Residential Real Estate

First of all, This Lawyer is NOT the first to do this.

Second, This Lawyer will NOT be the last to walk away from a lease in the next six months.

Why?

Because Landlords -- specifically asset managers -- are NOT doing what needs to be done to keep tenants in the buildings that are/were foreclosed upon in the last few years

This Lawyer, fed up with the back and forth about lowering the base rent on their 9,000 SF office, quietly ordered a moving company to pack up and move, leaving the space on September 30th for an equally sized space at half the base rent they were paying.  I asked about any personal guarantee that the asset manager may use to go after This Lawyer?  This Lawyer replied, "I will just keep it in litigation until they go away."

Smart move?

This Lawyer thinks so.  (Also) This Lawyer is (quietly) encouraging others to follow suit.  The asset managers who are receiving a monthly fee for managing properties are the ones creating this mess, because they have made a (false?) promise to re-capitalize the buildings for the owners ("banks").

Will asset managers re-capitalize buildings to pre-recession values?

One word answer: Not!  No, it's Not going to happen.  There is no way a bank -- who was foolish enough to lend the money in the first place -- is going to recoop anywhere near what their initial real estate investment in Las Vegas was.  Prices are so far down -- and they are expected to go fall further.

Las Vegas was the best city to live in during the 1990's thru 2007.  It was growing.  Roads were, sorry, still are being widen, re-paved.  Water supply lines are still being upgraded.  Sewer lines are (still) being replaced with (much) larger ones.  The electric grind, cable lines, cellular towers are still going in.  Their was, at one time, about 12 to 13 schools that were planned to be built prior to the 2008 "Oh, No!  We can't re-sell this CDO for anywhere near the value that we artificaially created!"  Thank you, Wall Street.

Harry Reid really had ...  my bad ..still has so much money coming to Clark County, that even I-15 is still being improved as I write this.  And, this is today and will continue into tommorrow and will continue --  most likely -- right through this over-long recession.  IF!, he is re-elceted.  (Sharon Angle will NOT be able to do any of this if elected.

So, should you walk away from your lease?  I say, if the asset manager makes you jump through hoops to "be qualified" to see if there is a hardship to receive a rent reduction -- Ask, This Lawyer.

For Information about las vegas Commercial Investment Property, contact David Howes at: david@davidhowes.net