Las Vegas RE in Depression

As I discuss Las Vegas real estate with various real estate investors from around the U.S., there is one theme that keeps poking it's ugly head into the conversation.

Every investor tells me they are waiting for the special low priced deal that they feel is at the bottom of the Las Vegas Market. Since real estate values have dropped so much already, I am confused as to just what the real reason is for their waiting because prices here are already low. The local newspaper The Las Vegas Review/Journal had an article (July 14, 2010) where a building that sold for $3 Million in 2007 recently sold for $950,000. That's not low enough?

Let's be real: Steals are already in Las Vegas. They may NOT be in the super-duper, low price range, but they are still hoovering around as if Wal-Mart came through and lowered all the real estate prices, too.

Are they going to go lower? I really don't know. But with the high vacancies: most likely. It really comes down to R.O.I. They real problem with Office, Retail and Industrial properties: are there any qualifies tenants? In order to get in and get it leased up, investors will have to sit on properties for a while. Even if it is an equity return in a few years, buying a property today -- or even start looking at potential properties today -- is the smart move.

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