One-Fourth of Las Vegas Commercial Real Estate in Trouble

With the gambling industry facing lower demand, commercial real estate is being hit hard in Las Vegas, where nearly $8 billion worth of real estate is in trouble.

"Real Capital Analytics Inc. of New York said that in terms of troubled commercial properties and loans against them, Las Vegas ranks second in the nation behind the much larger New York market, with $8.525 billion of loans and property in trouble, and is ahead of the far larger Los Angeles market at $5.02 billion."

"Real Capital senior market analyst Jessica Ruderman said the problem has accelerated in Las Vegas since February 2008, when loans on troubled local properties totaled $4.8 billion, or 17 percent of the market. She estimated the new figure of $7.885 billion represents about 25 percent of the market."

"The company identifies properties that are in trouble by looking at foreclosures, tenant departures and the weakening finances of their owners, among other factors, she said. For instance, the Las Vegas numbers include the Tropicana hotel-casino, which is in bankruptcy; the Riviera hotel-casino, which has warned it may need to seek bankruptcy; and two shopping malls owned by struggling real estate giant General Growth Properties Inc. Those malls are the Fashion Show and the Shoppes at the Palazzo, both on the Las Vegas Strip."

Full Story: Report: 25% of LV commercial real estate troubled

Comments

Comments

Commercial Vacancies

Part of the reason that Las Vegas has so many troubled properties was a lack of planning on the builders part. When the market started to go down, builder kept on building. A lot of new commercial centers are vacant because even though they have had signed lease agreements, those businesses are either out of business or are consolidating their locations.

I work as a Las Vegas Real Estate webmaster in Southern Nevada.

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