Las Vegas Commercial Market

The commercial real estate market in Las Vegas, Nevada is composed of several property types including; retail, shopping center, office, medical office, fast food restaurants, restaurants, mini-storage (industrial), car wash, auto service centers, mini-lube, nightclubs, casinos, motels, hotels, gas stations, convenience stores, convenience stores with gas, banks, churches and a number of other types not detailed within geographic areas or sub-markets.

Commercial properties are used for business purposes as opposed to residential properties that are used as dwelling units.  At times there are mixed-use developments that combine two or more uses like condominium units and retail into one development.  

The supply of any type of property, like offices, has to do with the existing space already constructed and the space planned and currently under construction that will be available in the near term future.  Demand varies and it is generally tied to employment and economic activity.  When supply and demand are in balance the available space that comes onto the market is absorbed and the vacancy rate is relatively low.

When the supply of office space is greater than the demand for it, as has been noted during the "recession of 2008," the space is not absorbed and vacancies occur.  If demand falls, vacancy generally increases.    

As we move into the Summer of 2010, the commercial real estate market is entering a situation that has not occurred in Las Vegas for many years.  The inability of owners to refinance their debt, unemployment rates climbing above 13%, vacancy rates in office buildings above 23% and a general market deterioration is upon us.  Forecasts indicate that defaults will break records and more bank failures may be on the way.  

Some geographic areas within Las Vegas are being negatively affected more than others and some property types are being hit harder than others, so making generalizations beyond the fact that "values are down" is the best we can do without analyzing your specific situation.   

Contact us with your questions or concerns regarding the Las Vegas commercial market or regarding your specific appraisal assignment in Nevada at 1-702-568-6699.  We can also be e-mailed at grigdon@cox.net.  

Commercial Real Estate Appraisals in the Las Vegas & Henderson, Nevada Area.