Archive for 2011

Beware of Out of state agents marketing Las Vegas Property

What's with real estate agents from out of state marketing Las Vegas Properties? 

They tease they have an exclusive insider tract on a Las Vegas Property.   "Great deal!" they print. 

When I am done puzzling together their vague clues about the property, I find out that these out of state agents don't know "jack" or even know much about the property itself that they are "marketing." 

Case in point: Several downtown +/-50 unit extended stay motels owned by one entity DOES NOT make it a single multi-unit apartment property.

For Information about Las Vegas Commercial Investment Property, contact David Howes at:

Happy Hoildays to All!

I just want to wish everyone a Happy and Safe Holiday Season!

For Information about Las Vegas Commercial Investment Property, contact David Howes at:

Las Vegas Prices to drop more?

I'd like to say it isn't so.  But, the rumor I am hearing is: Home prices will be going down even more.

Unfortunately, there is talk that HOA's need to sue home owning banks because the Banks are so far behind in paying the required monthly HOA fee, that the HOA will most likely foreclose on the Bank for back payments.  Which means a further loss for the bank.  Yeah!?

So, in order to remedy the situation of past due back HOA payments, banks will need to get rid of a lot of their shadow inventory most likely the first of the new year because they will ultimately lose in a Trustee Sale.

So, do I feel sorry for the recent buyers?  Not at all.  They thought they were getting a deal buying then; now, the rest of us can get a deal on a SFR rental.  And, yes!  USA Today was reporting that there is a need for rentals because home owners who lost their homes are now gun shy about buying again.  (I think part of that is due to the Fannie Mae mandated four year waiting period you need to wait in order to qualify for another home loan.)

As for commercial real estate, more and more, I am seeing notes being purchased.  And, these are most likely at a discount.  With office, retail and industrial vacancies being so high, it doesn't make sense to keep these properties either -- if you are an owner.

One of my clients has decided to stay put for now.  His commercial property is paid for and he is collecting enough rent to maintain the property until the Las Vegas economy improves.

For Information about Las Vegas Commercial Investment Property, contact David Howes at:

Would you read a purchase contract for me?

That's right.  I was asked to read a purchase contract -- a contract inwhich I was NOT involved in creating in anyway.  The Seller was being represented by a broker; and, the buyer was being represented by another broker.  So, before I accepted, I had to let the attorney friend of mine know, that I can't give a BPO on this or the other brokers would hold me liable.

So, I read this contract.  It was fo rthe purchase of a property with a house.  (For those who are new, I do NOT work in the residential side of real estate.)

From what I could understand, the buyer was buying an option to purchase a home for a substantial sum.  There was an escrow, there was a closing period.  And, there was going to be a Grant Deed issued upon the close of escrow.

The initial red flag was the offerred price.  It was ten times the value of the house.  "Huh?" you asked.

That's correct.  10X the value of the property.  The next red flag was that a Option was part of the purchase.  The Buyer would pay $$$ per month for eighteen months.  Not, bad.  The seller would get some income for a year and a half.

BUT, the killer was that "Upon the close of Escrow, a Grant Deed would be issued to Buyer from Seller AND RECORDED.  Are you with me?  Did you catch what I caught?  (It took me three re-reads to fully understand this one.)

So, I excuse myself from reading further.  I was NOT apart of the transaction so, I gave the contract back to the person who asked me to read.  That person only asked me one question: Did you see the problem they saw?

The one about the option and escrow closing with maybe only $1,000 dollars paid to Seller?
That person said, that's the one.

So, there was a little trickery involved.  This is Halloween.  Why not a little trickery?
Real Estate is funny.  I didn't wonder about why they asked me to read this for them.

For Information about Las Vegas Commercial Investment Property, contact David Howes at:

A Lifestyle For You

A Lifestyle For You

Las Vegas "Strip" Land For Sale

There is a property located along the Las Vegas Strip that is For Sale.

The price will seem high to a first time Las Vegas buyer.  However, since the property falls under the Clark County Gaming Overlay and is in the "Resort Corridor," the Owner is being smart in their pricing.  The property is large enough for developing a gaming resort with +/- 250 rooms, a Mall, and enough frontage along the "Strip" for restaurants or retail shops.

A Non-Circumvent Agreement is necessary so that everyone stays honest.

For Further Information about this Las Vegas Commercial Investment Property, contact David Howes at:

Las Vegas Real Estate Investing

Recently, I read an article about a former professional football player who had signed a contract for a guaranteed $50 million over five or six years in 2003 or 2004.  He is currently broke and living back with his parents.

Now, forgive me.  But, how does that happen to someone?

Was it his posse?  Was it his sudden change in lifestyle where he had to have the mansion and the Bentley?  Did he really think that he was going to be able to live such a lavish lifestyle the rest of his life?  And, on $50 Million?  Duh!  Of course, he did.

Now, if he had invested some money in a stock portfolio he would have lost some due to the 2008 market crash.  And, if he had Owned Real Estate, such as a long term passive lease investment, he most probably would be still collecting rent and right on through the crash.  Or, he would still be earning enough to live modestly on.

And, I am NOT just talking about Las Vegas Real Estate.  This could have been anywhere in the country.  There are and always will be, long term real estate investments that will pay -- even a "Star Athlete" over the long term -- ten to twenty years enough to make his "normal" bills per month.

Now, having a posse isn't my thing.  I can't stand people just hanging around.  That's just me.  And, if I have to pay them to hang around, I'd rather be alone.  And, if I am paying them, they had better give me a return on my money!  Or, they would be gone!

So, if you know of a young up and coming "Star" and they are being pursued with the promise f big bucks.  Once they have hold of said dollars, give me a call.

For Information about Las Vegas Commercial Investment Property, contact David Howes at:

 How Commercial Landlords Should Balance Rent Payments, Late Fees and Grace Periods
Landlords are in the real estate business for one primary reason: collecting rent. Almost all aspects of property ownership and management revolve around rent collection. John Pagliassotti, AIR Commercial Forms author and expert, and forensic real estate consultant with Opine Experts, offers the following suggestions to landlords and asset managers to better influence rent collection rates and long term property success.

Landlords must be firm in their negotiation of leases and the use of the late payment fee provision in order to provide an uninterrupted income stream and positive cash flow for their properties. The following tips are useful reminders for any new or seasoned landlord.

·       Clearly define the late payment fee in the lease agreement.  The late payment fee is one of the most negotiated of all lease provisions and the first line of defense against nonpayment of rent. For most properties, the late payment fee is usually a percentage of the rent and paid to the landlord if the rent is not paid by the due date.   

·       Be very clear regarding the date in which rent is due and the consequences for not adhering to that date.  Lease agreements should include a clause that not only allows for a grace period, but clearly defines the time frame and consequences for not following it. For example, the rent is due on the first and the late fee is triggered on the fifth.   
o   Tenants mistakenly believe that the grace period serves as a de facto extension to the date on which the rent is due.  
o   Tenants who pay the rent after the first are at risk of defaulting on their lease.

·       Understand that tenants are hesitant to agree to the terms of a late fee clause; take steps to address it early in the process. 
o   This five-day grace period, for example, is a muddy area for both tenants and landlords; it’s imperative that a discussion ensues at the onset of lease negotiation to clearly define what that time frame implies.

·       Determine as a landlord what is acceptable for tardy rent payments.
o   There may be a number of legitimate reasons a tenant delays delivering a rent check. Delays can be caused by checks getting lost in the mail, accounts payable systems failing, or general check processing errors.
o   As a landlord, what are you comfortable with – allowing one or two tardy payments or none? Assess the risk of the tenant – if they’ve paid on time 12 months in a row, and they communicate in advance they may be late on the 13th rent, you may allow one tardy payment without penalty. This should be a case by case situation.

·       Tenants often try to negotiate a reduction in the amount of the late payment fee, or eliminate it entirely.  
o   One compromise with proven success is an agreement to waive the late fee once per year over the term of the lease.  This allows for unpredictable errors without penalty, while ensuring that the landlord maintains the leverage of a reasonable late payment fee over 90% of the lease period.
·       Avoid impacting the monthly debt service on the property by “floating” the tenant.  
o   In most cases, at least part of the rent payment is used for monthly debt service which carries a late payment penalty of its own.  
o   A prudent landlord understands this and the value of the late payment fee provision as a tool to protect their investment. 
·       Avoid reducing the late payment fee below what is effective in order to maintain positive rent collection.
o    If the late payment fee is reduced too low, late rent payments can effectively become a low interest loan to the tenant. 
o   Avoid this scenario by holding firm to a percentage that both deters a late payment and encourages prompt payment.

Pagliassotti Joins OPINEXPERTS

John Pagliassotti Joins First-Ever Forensic Talent Agency formed to Bridge Expert Gap between Real Estate and Legal Sectors
SAN FRANCISCO (Aug. 16, 2011) -- Opine Experts, a talent agency launched to provide the legal profession with first-tier real estate industry experts, today announced that John Pagliassotti, a commercial real estate consultant, author and educator with more than 25 years experience in all aspects of commercial real estate brokerage, property and asset management, and expert witness services, has joined its firm as a forensic specialist.  
         Pagliassotti is one of 16 real estate industry consultants who comprise Opine Experts’ elite talent pool.  His background in brokerage, international asset management, lease negotiations, and expert witness experience, provide Opine Experts with a unique skill set and breadth of knowledge.  While running his commercial real estate firm in Orange County, Calif., Pagliassotti also acts as the Managing Member of South North Properties in Los Angeles and President of Fujita Properties in Guam.  He is a member of IREM, AIR and a member of NAIOP, and has successfully co-authored a book for AIR Commercial Real Estate Association, AIR Commercial Real Estate Forms: A User’s Manual Volume I – Lease Forms and Addenda.
            “Opine frees lawyers from the hassle of finding experts qualified to testify on a wide range of issues involving California real estate. We pre-screen specialists who are not just highly-credentialed but persuasive communicators, too. Our experts must be able to help judges and juries understand complex real estate matters – and John’s got what it takes. He’s accustomed to the role of expert witness and draws on his years of experience in the commercial real estate field to make him one of the more sought after stars in the real estate universe,” said Bill Lightner, Esq., co-founder of Opine Experts. “With talents like John Pagliassotti, Opine is becoming the go-to place for California real estate industry experts.”      
About Opine Experts
Opine Experts represents authoritative experts who provide forensic and business consulting services regarding California real estate matters. Its clients include law firms seeking expert witnesses, real estate practitioners needing focused expertise and real estate investors seeking project consultants. Opine searches for, qualifies and invites the best California real estate authorities to join its talent pool. Experts highly-qualified in specialties and regions not represented on our existing roster of experts are invited to engage Opine Experts as their agent.  Follow Opine Experts on Twitter @Opinexperts or its LinkedIn company page.                 
# # #
Contact:           Jayme Soulati
                        Soulati Media, Inc.
                        937.312.1363 @Soulati

Las Vegas Commercial Real Estate may be down but it's NOT out!

That's right!
If Las Vegas was in a boxing match against the economy, it took a right cross and a left hook to the chin in 2007-2008.

If Las Vegas was in a UFC or Mixed Martial Arts fight, it was kick squarely in the groin.

Either scenario sent Las Vegas to the canvas.  It was knocked down on it's knees.  And the over powering Wall Street provided Economic Failure, pounced on Las Vegas with killer instinct and continued to pound Las Vegas in the head as it was laid low on that canvas.  (The economy does fight fair.  Las Vegas knew this.  Because Las Vegas wanted it that way.)

But Las Vegas knows it is only down for the count.  It is woozy and dizzily searching its surroundings with blurred vision for a way to stand and start giving punches back.

But, Las Vegas is making a come back as we sit and voice concern.  I have several clients ready to pounce.  I have given them the okay to move forward.  (Unfortunately, getting the clients here from there has been the challenge.)

But they will come and they will buy.  And now that I have my own company and don't have to answer to a broker or even partners, I will prevail beyond my wildest dreams.

Am I counting the commission before the close?  NO!  But without the mandatory "make me money" hanging over me, I am at ease and will prosper accordingly.

So, I may be down along with Las Vegas.  But, I am rising from the canvas, too.  The Wall Street economic failure may feel brave and bold.  But, just wait until it starts to feel the severe pain of my punches.

For Information about Las Vegas Commercial Investment Property, contact David Howes at:

Calling all dumb real estate investors!

First, I am almost there.  It's been four years since my last closed sale.  (I am sad to admit.)  But, I am close on about four maybe five properties.  The problem continues to be investor anxiety -- especially the ones I am working with.

Second, every buyer (that I am working with) is expecting a deal.  No, that's incorrect.  They are expecting a sweet deal!  And unfortunately, I do NOT have any investors who think prices are at current sweet deals.  So, I languish on.

However, over the past year, I have seen some sales that closed that were NOT sweet deals and the buyers were talking about them as if they just took the previous owners (banks) to the cleaners.  And, I am sure the buyer believes they did just that.

For example: an apartment  complex converted to condos over the past ten years sold for +/-$50,000 per unit.  In my search of comparables in the area for another apartment investor, those very same type of condos were listed individually at +/-$25,000 to +/-$30,000 per unit.  Were my clients smart?  Were the buyers dumb?  (I wish I had dumb buyers.)

Also, there was an office transaction where the former lease listing agent had told me he never could  get the occupancy above 70% occupied -- even in the good times.  The issue preventing 100% occupancy was the parking.  Did the buyer know about this issue with the property?  Was it disclosed to the buyer?  Or, did the buyer choose to ignore it?  And, even though there is this huge occupancy problem, the new owner "knows" -- his words -- that he can get this leased up 100%.  As far as I can tell, the parking is still an issue preventing 100% occupancy.

So, since I pride myself on being truthful.  I pledge to help dumb buyers before they get themselves caught up in problem properties. 

Unfortunately, if you are already in escrow or working on buying a property, I can NOT help you.  (I am deathly afraid of litigation.)  But, on anything new and into the future, please contact me.  A Dumb Investor intelligence test is NOT required. :-)

For Information about Las Vegas Commercial Investment Property, contact David Howes at:

"Purchasing Real Estate now is like catching a falling knife!"

Just this AM, a long time client of mine said to me, "Purchasing Real Estate now is like catching a falling knife!"
I had to repeat it back to him because, at first, I thought he was joking.  And, even though he said it in a joking manner, he was and is dead serious and absolutely correct.

This client was able -- through my help -- to sell a majority of his portfolio of properties in 2006 and the last in 2007.  When we met, I reminded him that he made out like a bandit looking back with 20/20 vision.  He laughed and said, it was all just the right time for him.

And, even though, he still maintains a couple of properties, every once in a while, I will call to test his appetite for acquiring real estate.  And, this morning, after reviewing a few potential properties, he said the above and decided to wait some more.

And, not wanting to catch the falling knife is great symbolism.  because in it, it is implied you will be hurt.  Cut even more badly than you would want.  And, even if you were able to catch it clean, your chances are still great that you will be cut in some manner.

Are there deals?  Of, course, Yes!  But, for most of my clients waiting is their option and they do NOT fear time.  Unfortunately, I keep trying to tell them to NOT wait.  Why wait for the property that you can acquire for: $1.6 Million to see if $1.55 Million would be more attractive?

And, I am seeing this on a lot of properties where companies and individuals are pressing the envelop to get the cheapest price available.

And it holds true for even the clients I am working with.  One has the mantra it's going to be his price or the highway.

For Information about Las Vegas Commercial Investment Property, contact David Howes at:

Rentable v. Usable: Load Factor

Most office buildings have a load factor. This load factor is a percentage that describes the difference between the rentable and useable square footages for the building. The usable square footage of a building is all the square footage behind the front doors of the tenant’s suite; the space that is exclusive to them. The rentable square footage is the usable square footage plus the common areas. The common areas include the hallways, lobbies, elevators, stairwells and restrooms of the building. These areas are not exclusive to any one tenant, but are for the use all the tenants and their guests.

Let’s say the gross square footage of an office building is 100,000 square feet. The gross square footage of the building is everything contained within the exterior walls. Let’s say that the total square footage of the common areas of the building is 15,000 square feet. This leaves 85,000 sq.ft. of usable space (i.e. suites).

To calculate the load factor we take the total square footage of the common areas, (15,000 sq.ft.) and divide it by the gross square footage of the building, (100,000 sq.ft.). The formula looks like this:

15,000/100,000 = .15. Therefore, the load factor of the building is 15%.

Let’s see how the load factor relates to leasing space within the building. Let’s say that a tenant plans on leasing a suite with 1,200 square feet of usable space. Knowing that the load factor of the building is 15%, the tenant could then calculate the rentable square footage of the suite (1,200 + 15% = 1,380 sq.ft.). So if the monthly rent for the suite is $2.00 per square foot, the tenant’s total monthly rent would be $2,760.00:

(1,380 rentable sq.ft. x $2.00 per sq.ft.= $2,760.00).

The rentable square footage is always higher than the usable square footage because it includes both the tenant’s suite and their percentage of the common areas.

When shopping for space, it’s important for tenants to understand and compare the load factors of the buildings they may be interested in. Higher load factors mean that more of a tenant’s monthly rent will be dedicated to common areas and less to the suite they occupy. That being said, buildings with higher load factors often have amenities, such as spacious lobbies or atriums, which many tenants may find appealing.

Las Vegas Home Prices to Continue to Fall?

A little disturbing news this AM in the Las Vegas Review Journal.  This article paints a dismal picture that home values/prices will continue to decline even at the slower rate of 4% to 5% per year.

My home is currently worth less than what I had paid for it and I am -- for the first time -- seeing my home value now lower than what I owe.

How does this translate to commercial real estate, you may be asking?  Since home prices have slide (crashed?) commercial real estate has fallen just as much or more right behind it.

And, as I drive around and view properties my clients (could be) are interested in, I am noticing more and more vacancies.  Tenants are now numb to the after effects of walking away from their leases or mortgages.

For Information about Las Vegas Commercial Investment Property, contact David Howes at:

Ferguson's Motel Sale Price Reduced!

Attention Blog Readers and Buyers!

The owner of the Ferguson's Motel in Downtown Las Vegas has asked me to reduce the asking price to $1.6 Million.

This 68 unit property is on Fremont Street just east of the Fremont Street Entertainment District.  Each unit is equiped with a kitchenette, thus making it also an Extended Stay property.

For updated information on the Ferguson's Motel click on button to the right or use my email address below.

And for Information about Las Vegas Commercial Investment Property, contact David Howes at:

Dual Agency-Single Broker of Record

In order to fully understand dual agency, it is important to understand that as far as representation is concerned, the law views the broker of record as the agent and the salespeople that hang their real estate license with that broker as licensees, not as agents. What this means is that a dual agency can exist even if two agents are involved in a transaction because they may share the same broker.

This is particularly important for companies that use a single broker of record for multiple sales offices. In such case, if a licensee from the Downtown office makes an offer on a listing held by another licensee in the Westside office, a dual agency must be disclosed to the parties. Again, this is because there is a single broker of record, agent, for both offices and both licensees are working under that broker/agent. Clearly the same is also true for a single licensee who is acting on behalf of, say, a buyer and seller.

It is important for brokers to understand all the laws surrounding dual agency and how these laws affect their duties of disclosure to their clientele.

Abitration Clauses

Arbitration is often offered as an alternate form of dispute resolution in commercial leases. By agreeing to use the services of an arbitrator, the parties agree to waive their rights to litigate disputes in civil court. There are a few matters, however, such as eviction, fraud and criminal activity where use of the public court system is mandatory.

Before agreeing to arbitration, there are a few things to consider. First, the process for preparing to appear in arbitration can be identical to preparing for an appearance in civil court. That is to say attorneys can be retained, depositions can be taken and evidence can be requested and exchanged. Therefore, the preparation costs can be the same as for a traditional court case. Also, the final decision of the arbitrator is binding and cannot be appealed, regardless of the legal standing for the decision. In other words, the arbitrator’s decision can be totally arbitrary and without legal precedent or standing. In addition, the cost/fees for the arbitrator can be higher than court fees and costs depending on the length of the arbitration. Finally, there is no assurance that an arbitrator’s decision will be any better or worse than that of a judge. That being said certain ADR companies such as JAMS employ retired judges almost exclusively. This is not to say that binding arbitration is without merit, it is potentially faster than the civil courts and some argue have more predictable outcomes than a jury trial. Also, if privacy is an issue, ADR can be much more discreet than the civil court system. In addition, in the event that there are technical elements to a case, many attorneys prefer to argue in front of an arbitrator with some level of technical expertise as opposed to a jury of laypeople.

A few precautions can be taken prior to agreeing to an arbitration clause. First, make vetting the arbitrator a part of the agreement. Selecting an arbitrator with an extensive real estate background would be wise. Also, the parties may want to consider setting financial limits. For example, the parties could exclude any disputed amounts that qualify for small claims court and/or placing a cap on the amount subject to the arbitration.

Las Vegas Commercial Real Estate - Good, Bad, Ugly

Since visiting Napa, CA last week, I got a good look at what another smaller market is doing in comparison to my home turf of Las Vegas, NV.  Napa has been a desired destination for my wife and I since we honeymooned in San Francisco way back in 1985.

Well, I got a good look at it last week.  We purposely arrived on a Monday and departed on Thursday.  I really wanted to see downtown Napa in action during business hours.  And, it is quite quiet.  During our stay, my wife looked at architecture and I looked at real estate.  Okay, they are pretty much the same.  What I noticed was that you could compare both down towns. 

I found there are a lot of office and retail vacancies in and around downtown Napa just as there are in and around Downtown Las Vegas.  Napa has a few "newer" developments -- or should I say, re-developments.  And, it appears that money is being spent to improve the properties along (near) the river.  Developmental properties in and around Downtown Las Vegas are few, too.

Comparing their wineries to our Resorts on the Strip brings up the obvious: Foot traffic in downtown Napa is a good deal less than Downtown Las Vegas.  And, of course, there is definitely more foot traffic to our Strip resort corridor than Napa Valley's wineries.  This is because the wineries are spaced further apart from on another by hundreds of acres of grapevines.  You could walk between the wineries, but it is too far to do that when driving is a reasonable alternative.

The Las Vegas Valley population is much larger than Napa Valley.  You don't really need a census to figure that out.  But, the attraction to visit is just as appealing.  (Several times we would "run into" other visiting couples and many had been visiting Napa every year for years.  Sounds like Las Vegas to me.)

Unfortunately, being different animals, it did feel like I was comparing apples to oranges.  But, since tourism is what drives these economy's, it depends on the tourist's desire for a return trip.

As for hotels/motels, that would be comparing apples to oranges.  Las Vegas hotels are larger, because the "Strip" does draw more people.

For Information about Las Vegas Commercial Investment Property, contact David Howes at:

Subordination and Distressed Assets

In a real estate market where failing loans are more common than in years past, tenants should be aware of the concept of subordination. Any lease entered into subsequent to a loan being placed on a particular property will be subordinate to that loan. In the event that a lender takes ownership of a property through foreclosure, or other such means, it is under no obligation to honor a lease that commenced subsequent to the loan that was placed on the property. Clearly, the potential impact this could have on a tenant is devastating. Tenants considering entering into a long term lease and/or spending a great deal of money on improvements to a leased property should seriously consider investigating the solvency of the landlord and status of the loan to which their lease will be subordinate. In addition, tenants may want to consider making the receipt of a non disturbance agreement from the lender a condition for entering into a lease.

Negotiating with the GSA-Consultants

The ITC office building in Guam, (, has gotten a great deal of attention from the U.S. Government lately. As you may have seen in my profile, I'm the president of Fujita Property Guam, the company that owns and manages this 210,000 square foot office building. We are currently in various stages of negotiations with several U.S. Government tenants. As you may know, the job of negotiating leases on behalf of the Government belongs to the General Services Administration, (GSA).

Candidly I was shocked when I received the GSA's version of a request for proposal/solicitation. The document was over 100 pages. It was overwhelming to say the least. In addition to the volume of the solicitation, it required a great deal of attention to detail. Landlords are required to respond to a number of requests, surveys and questions. A potential property can be disqualified if just one error is made in response to the GSA’s solicitation. This is just the start of the process of leasing space to the Federal Government. If our building is selected, we will begin the process of negotiating the lease document and constructing the tenant improvements. I have been told that neither is easy because of the difficult requirements set forth by the GSA.  

Because of the importance of these transactions, I sought out a consultant that could provide guidance from start to finish. As it turns out, two former GSA employees have started a company that provides such consultation. It is called Unified Interest ( They offer a comprehensive set of consulting services for dealing with the GSA.

Considering that the U.S. Government is expanding quite rapidly, the likelihood of leasing space to them is greater now than ever. Landlords, and brokers for that matter, should seriously consider utilizing the services of expert consultants to help them through the rigorous process of completing a lease transaction with the U.S. Government. Here's a link to an interesting article relating to GSA leasing.

Commercial and Investment Real Estate Market Starting To Show Signs Of Life by Grant Person

The commercial and investment real estate business has been very soft for the last 2.5 to 3 years in this area. 2010 saw a reasonable up-tick in leasing activity, but sales remained substantially less than 50% of what we typically experience. Much of our investment activity over the past several years was driven by "1031" tax deferred exchange transactions. That has almost completely dried up.

In the last 3 - 4 months, we noticed a definite increase in leasing activity, some sales activity and substantially more prospects calling and looking at properties to lease and to purchase. Investors' psychology has begun to turn, wherein they are now seriously considering making an investment with the cash they have been sitting on. They perceive the market is "bottoming out" and perhaps now is the time to buy. Returns on alternative investments are at historic lows, and real estate can still deliver an honest 6% to 10% cash return.

There's plenty of commercial money available from various to value ratios are probably down in the 60% to 70% range (requiring more cash equity) and securing a loan at a fixed rate for 10 years or more is challenging to get, most want to re-price or call the loan in 5 years. However, interest rates remain at an all-time low. Depending on the property type, rates will range from low 5% to 6.5%, maybe 7%.

Even during this recent down turn in the economy, sellers have been very reluctant to recognize the fact that their property may have lost 20% to 30% of it's previous value...Thus, have not been motivated to sell. That's now beginning to change and we're seeing signs from sellers that they are becoming more motivated. This will create an environment where "deals" can be structured. In addition, we are hearing that some of the banks want to rid themselves of their foreclosed properties.

Higher than normal unemployment still hampers a robust rebound in our area (although we're better off than much of the nation) but considering all of these elements, 2011 looks like it will be a much improved year.

The Square Footage Debate

I worked on a large office lease transaction and part of the deal involved determining the exact square footage of the floor that the tenant would be occupying. We, the landlord, hired an architect to measure the space as did the tenant. Both architects were instructed to use the BOMA standard as their basis for measuring the space. As it turns out, the architects both came up with different results. As a resolution, we agreed to hire a third architect to measure the space. That architect, too, came up with a different number. Three professionals using an exact standard of measurement could not agree upon the square footage of a single space. This may sound odd, but it is not unusual. In fact, it is not uncommon for the actual square footage of a building to be different than what is shown on the original building plans. Obtaining an accurate measurement of any space or building can be tricky at best.

With that in mind, all leases have a section where the premises are described. Many people feel compelled to include the square footage as a part of that description when preparing the lease. I urge against that. It opens the door for disputes during the term, such as tenants wanting to renegotiate their rent based upon a discrepancy in the square footage of the space. In other words, in the lease the landlord states that the square footage is 1,000 square feet, but two years into the term the tenant decides to measure the space and comes up with 975 square feet. In addition, the California Court of Appeal has weighed in on this matter in the matter of McClain v. Octagon Plaza. For further information visit 

If it is necessary to provide the square footage in the lease, have an attorney draft language that specifies how the space was measured and by whom, and that the Lessor and Lessee agree upon same.

Cigar? Cigarette?

Yes, smoking is the theme of the day.

A client of mine wants to open a restaurant. But the spaces available are in areas where -- well, there is a qualified reason why these restaurant spaces are currently vacant and will stay vacant.

But I did notice a lot of restaurants are for sale as business opportunities. The financial times has wreaked havoc on many, many businesses -- not just restaurants. Fortunately, the national credit tenants in Las vegas for the most part are weathering the storm -- for now.

And, since there are several of these restaurant spaces are "taverns," this is probably the time to move and acquire one.

BUT, yes, it is a big butt, the smoking laws are playing trivia with us. Take for example Dotty's. It's been in the news because it's slot machines are assembled in "kiosks" -- not mounted in the bar. It has full alcohol service, too -- but, again, not in a bar shape; And, it has food! But since the food is pre-packaged and NOT coooked on site, so far, that seems to be exempt from the 2007 tavern smoking law.

So, my suggestion is to not wait for a specific property type to come available -- if you are considering opening a business. Or, if you are considering acquiring an investment site. If you are looking now, be willing to look hard and long. There are buys out there right now.

For Information about Las Vegas Commercial Investment Property, contact David Howes at:

Getting an Estoppel Signed

Buyers in a transaction involving the purchase of a leased property will usually require the tenant to complete an estoppel certificate. By completing this form, the tenant has an opportunity to confirm the terms of the lease, verify that the landlord is in compliance with those terms and/or provide any other information relating to their relationship with the landlord. It is important for a buyer to have a solid understanding of the tenant's perspective of their relationship with the landlord; after all it is a relationship that the buyer will inherit. Because of its importance, the estoppel certificate is usually a condition of closing a sale transaction. Most leases have language that requires tenants to complete and execute an estoppel certificate within a certain time period, say 10 days. 

Despite its importance and the requirements of the lease, it is not uncommon for tenants to make completing the estoppel a low priority. This can lead to a delay in closing the sale transaction. Depending on the language of the lease, the landlord has a few remedies against the tenant. First, he can pursue a breach action against the tenant. This option is probably not practical considering the time required and the fact that most buyers do not want to inherit a lease that is in breach. Secondly, many leases have language which allows landlords to provide an estoppel on behalf of the tenant if the tenant refuses to provide it. That being said, most buyers prefer to have an estoppel provided by the tenant themselves. Perhaps the most effective option is a monetary penalty. Try adding language to your leases that allows for charging an amount equal to one month’s rent. This could be the most effective way to motivate a tenant to complete an estoppel certificate.

One last word on estoppels. It's not unsual for a buyer or lender to add language to an estoppel that essentially amends/modifies the lease rather than just confirm its terms. Tenants are under no obliation to execute such an estoppel.

emails are getting scare!

While sitting at home last night, I kept checking my phone for emails.  And, for the first time in a long time, I kept seeing an empty email inbox indicator on my cellular telephone.  Now, I am fine with this because at home at 10 PM the last thing I want to handle is an real estate emergency.

But, what is surprising isn't that clients aren't emailing me.  It's that I am getting less and less  real estate "junk' emails.  Is this a bad sign?

In the course of usual business emails, I get notices from subscribed sites all the time showing me other agents listings and other notices that would regularly be sent out.  But in the last week or two, they are NOT coming.  At least not at the rate they were.

Just goes to show, that maybe, these agents can't afford to anymore.  Or, the property owner lost the property to the bank, or the fact that the agent had to leave the business because of the lack of business.

All I do know is that regardless, I am going to hang in there as long as I can.  And, I hope the same for you, too.

For Information about Las Vegas Commercial Investment Property, contact David Howes at:

Video: Defined Terms

Tips for Using CPI Rent Adjustments

Rental adjustment provisions are a common component of most leases. Often such adjustments are linked to the rise and fall of the Consumer Price Index (CPI). Sometimes referred to as a cost of living adjustment (COLA), these adjustments typically occur annually on the anniversary of the start date of the lease.  The adjustments parallel the increase, or decrease, in the CPI over that same period. For example if the CPI increases 3% then the rent will increase 3% as well.

One inherent problem with using the CPI as an index for adjusting rent is that landlords are forced to wait a few months before billing tenants for the newly adjusted rent.  This problem is a result of the fact that there is a delay in the publication of the CPI. In other words, the CPI for January may not be published until March because the Government must gather and analyze data prior to releasing the index to the public. This forces landlords to bill tenants retroactively for the adjustment in rent each year. If January is used as the month that the rent adjusts each year, then landlords must wait until the CPI for January is published at some later date in order to know exactly how much to increase, or decrease, the rent. Besides being inconvenient, retroactively billing a tenant causes budgeting problems and accounts payable issues for tenants not to mention cash flow planning problems for landlords.  

One solution is to set the CPI index date as a date prior to the rental adjustment date. In other words, separate the two dates. If a lease begins in January and the landlord would like to bill and collect the adjusted rent annually in January, he should set the CPI index date as the month of November (i.e. two months prior). In doing so, the landlord can be assured of having the published CPI index by the time he is ready to bill the rent for January. The difference between the November CPI and January CPI will be almost certainly be negligible, so there is little downside for either the tenant or landlord.

Conceptually, and in an abbreviated form, the lease language might read: "The monthly rent shall be adjusted annually in the month of January. The adjustment will be based upon the difference in the CPI between the months of November 2011 and November 2012…"

For more information about the Consumer Price Index you can visit:

Tire Kickers and Foreign investors who can't get here quick enough

The Tire Kickers are here in full.  Really.  They are looking for a deal and are willing to wait, and wait, and wait.  But, then, again, I have several Foreign (out of this country) Investors, and they are trying to get to Las Vegas as quick as they can.

The difference is that the Tire kickers are looking, searching, and NOT settling until a seller agrees to their price.  I really don't blame them.

On the other hand, the Foreign Investors are wanting to get a property here as soon as they can.

Since I am working with both types of Buyers, I really can't blame them for their individual points of view.  There are deals -- but the deals are not steals.  So, one client type continues to drag their feet or they continually have me write low ball offers.  (I really hope that these would be countered with a reasonable counter offer.  It hasn't happened -- yet.)

And, the Foreign Investors want to eye ball the property in order for them to write an offer.  (Unfortunately, they know that there will be another good deal if they come a little later than they already are waiting.)

And, this AM, CNBC was reporting that banks are NOT lending because they have an REO inventory that is twice what the banks have released for sale.  And, they are hesitant to lend money of the very same inventory when they know that that property loan could end up back in their inventory as foreclosed upon again.  (Vicious cycle.)

Still, since I am NOT selling homes.  I am glad that I am NOT selling a house to an investor who is currently paying too much as I have a gut feeling that house prices will be heading down a lot more once the banks finally figure out that by holding properties while anticipating a buying spree is the real reason they are not lending.  The longer they hold out, the cheaper it will be to acquire in the (hopefully) near future.  (And, I thought you had to be smart to be a lender.)

For Information about Las Vegas Commercial Investment Property, contact David Howes at:

New Pittsburgh Commercial Real Estate Blog

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NAR/SIOR First Quarter 2011 Commercial Market Forecast

Commercial Real Estate Vacancy Rates to Decline but Rent Recovery Delayed
WASHINGTON (February 25, 2011) – A stabilization trend is taking place in commercial real estate sectors, but in most markets rent will remain soft except for multifamily rentals, according to the National Association of Realtors.
Lawrence Yun, NAR chief economist, said a pullback in construction is helping stabilize the market. “Very limited construction of new commercial real estate over the past few years has essentially fixed the supply of available space,” he said. “This means vacancy rates could fall quickly from any increase in demand for commercial space.”
From the first quarter of this year to the first quarter of 2012, NAR expects vacancy rates to decline 0.5 percentage point in the office sector, 1.3 points in industrial real estate, 0.1 point in the retail sector and 0.9 percentage point in the multifamily rental market.
“Even with declining vacancy rates, rents are not likely to turn positive in most markets until next year, outside of multifamily rental properties,” Yun said. For example, office rents are forecast to fall 1.8 percent this year before turning higher by 4.0 percent in 2012.
“Apartment rent increases are expected to accelerate from job creation leading to new household formation, particularly among the young adult population who will seek their own housing arrangements – many will be leaving their parents’ homes, or choose to live with with fewer roommates,” Yun said.
Average apartment rent is projected to grow 3.4 percent this year and another 4.2 percent in 2012.
“Rising apartment rent in combination with rising oil prices could push the overall inflation rate beyond a comfort level, which could then force the Federal Reserve to raise interest rates later this year or early in 2012,” Yun added.
The Society of Industrial and Office Realtors, in its SIOR Commercial Real Estate Index, an attitudinal survey of more than 360 local market experts,1 shows a notable improvement in market fundamentals.
The SIOR index, measuring the impact of 10 variables, rose 8.1 percentage points to 50.7 in the fourth quarter, the largest quarterly gain in five years, and is at the highest level since the fall of 2008. However, the index is well below a level of 100 that represents a balanced marketplace. This is the fifth consecutive quarterly improvement following nearly three years of decline, but the last time the index was at the 100 level was in the third quarter of 2007.

Commercial Real Estate Forecast/Market Report

Seventy-eight percent of SIOR participants expect improvements in the office and industrial sectors for the first quarter of this year.
There has been an increase of liquidity in Commercial Mortgage Backed Securities, which is helping to open the commercial market to more property transactions; commercial real estate sales had been stalled over the past few years with excessively tight credit conditions. In terms of development acquisitions, it remains a buyer’s market for those with cash or who can obtain credit financing.
NAR’s latest COMMERCIAL REAL ESTATE OUTLOOK2 offers projections for four major commercial sectors and analyzes quarterly data in the office, industrial, retail and multifamily markets. Historic data were provided by CBRE Econometric Advisors.

Office Markets
Vacancy rates in the office sector are forecast to decline from 16.5 percent in the first quarter of this year to 16.0 percent in the first quarter of 2012.
The markets with the lowest office vacancy rates currently are New York City and Honolulu, with vacancies in the 8 to 9 percent range.
In 57 markets tracked, net absorption of office space, which includes the leasing of new space coming on the market as well as space in existing properties, should be 14.5 million square feet in 2011.

Industrial Markets
Industrial vacancy rates are projected to decline from 14.2 percent in the current quarter to 12.9 percent in the first quarter of 2012.
At present, the areas with the lowest industrial vacancy rates are Los Angeles and Salt Lake City, with vacancies of 7.5 percent.
Annual industrial rent is likely to decline 2.5 percent in 2011, before rising 3.0 percent next year. Net absorption of industrial space in 58 markets tracked should be 127.5 million square feet in 2011.

Retail Markets
Retail vacancy rates are expected to slip from 13.0 percent in the first quarter of this year to 12.9 percent in the first quarter of 2012.
Markets with the lowest retail vacancy rates currently include San Francisco; Miami; Honolulu; and Long Island, N.Y., all with vacancies in the 7 to 8 percent range.
Average retail rent is seen to decline 0.9 percent in 2011, then rising 0.7 percent next year. Net absorption of retail space in 53 tracked markets is projected to be 4.8 million in 2011.

Multifamily Markets
The apartment rental market – multifamily housing – is tightening as the economy improves. Multifamily vacancy rates are forecast to decline from 5.8 percent in the current quarter to 4.9 percent in the first quarter of 2012.

Areas with the lowest multifamily vacancy rates presently are San Jose, Calif.; Pittsburgh; and Newark, N.J, with vacancies in a range around 3 percent.
Multifamily net absorption should be 207,000 units in 59 tracked metro areas in 2011.
The COMMERCIAL REAL ESTATE OUTLOOK is published by the NAR Research Division for the commercial community. NAR’s Commercial Division, formed in 1990, provides targeted products and services to meet the needs of the commercial market and constituency within NAR.
The NAR commercial components include commercial members; commercial committees, subcommittees and forums; commercial real estate boards and structures; and the NAR commercial affiliate organizations – CCIM Institute, Institute of Real Estate Management, Realtors® Land Institute, Society of Industrial and Office Realtors®, and Counselors of Real Estate.
Approximately 79,000 NAR and institute affiliate members specialize in commercial brokerage services, and an additional 263,000 members offer commercial real estate as a secondary business.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
# # #
1 The SIOR Commercial Real Estate Index, conducted by SIOR and analyzed by NAR Research, is a diffusion index based on market conditions as viewed by local SIOR experts. For more information contact Richard Hollander, SIOR, at 202/449-8200.

2Additional analyses will be posted under Economists’ Commentary in the Research area of in coming days.

The next commercial real estate forecast and quarterly market report will be released on May 24.

Information about NAR is available at

For Further Information Contact:
Walter Molony, 202/383-1177

Certificates Of Insurance- Worthless?

Many leases require tenants to carry insurance for their personal property and, quite possibly, the property that they occupy. Part of this requirement is to provide the landlord with proof that the tenant's insurance is current and that the policy meets the landlord's requirements. To satisfy this requirement the tenant will often provide the landlord with a "certificate of insurance". This is usually a one page standard form that is issued by the tenant's insurance agent. The form provides basic information about the insurance policy and the effective dates of the policy.
However, it is important to note that many of these certificates of insurance contain disclaimer language such as:


While there is no reason to believe that the certificate is inaccurate or fraudulent, the landlord needs to be aware that these certificates do not guaranty the information they contain is correct or, in fact, an insurance policy exists at all. Keep in mind, most of the time these certificates are issued by the agent and not the insurance company itself.
To be sure, a landlord should contact the insurance company directly and request a certified copy of the actual policy.

Tenant Use Provision

The tenant's use provision of a lease is more critical than you might think. The way in which the tenant's use is described can be instrumental in the event that the tenant wishes to sublease the space or in the event his business plans change during the term of the lease which would require a change in his use of the premises. Both events require the landlord's approval. One of the conditions of the landlord's approval is his approval of the subtenant's use or change of use by the existing tenant. Generally, there are two ways to describe a tenant's use:

  • Very specifically (i.e. Metal fabrication operation.) 
  • Very generically (i.e. Industrial manufacturing and all other legal uses.)
The first way favors the landlord since it allows him to be more restrictive in his approval of a change of use to the building. The second favors the tenant since it gives him more flexibility with his use of the building.

Whether repping the landlord or tenant, be diligent when describing the tenant's use in the lease.

Waiver of Subrogation

Many leases contain a "waiver of subrogation" clause. This clause relates to insurance. First, let's understand what subrogation is. Many insurance policies allow for the insurance company to seek reimbursement from a third party for claims made by the person they insure. In other words, if the insured individual makes a claim as a result of a loss caused by a third party, the insurance company would pay that claim to the insured. Subrogation allows the insurance company to then pursue that third party in order to get reimbursed for the cost of the claim paid to the insured individual. This action would be taken on behalf of the insured individual.
A waiver of subrogation would disallow the insurance company from taking such action and pursuing the third party.

Video: Guarantor Section of AIR Lease Forms

Occupancy Costs for Tenants

In addition to rent, a tenant may incur other costs associated with their occupancy of a premises. Such costs may include property maintenance, property insurance and property tax payments. Even under gross leases, tenants may be liable for building related expenses beyond rental payment.
At a minimum, when negotiating a lease document, brokers should make sure that tenants are aware of all the costs associated with the lease. If you are unsure about such costs, ask the owner for an operating budget for the building or simply ask for a breakdown of all costs for which the tenant may be liable. Negotiating a cap or fixing the amount of such costs should be done during lease negotiations.
Think of it the same way you do when purchasing a car. There's the sticker price and then there is the "out the door" price with all the extras.

Sublease v. Assignment of Lease

Let's discuss a tenant that occupies a 5,000 square foot space and has three years of term remaining on his lease. Say this tenant wishes to dispose of a part, or all, of his space. Should he use a sublease or a lease assignment.
If the tenant subleases any amount of space less than 5,000 square feet or subleases for anything less than the entire three years of remaining term, then he should use a sublease. If, however, he subleases the entire space for the entire remaining term, he should use an assignment form.

Rules of Thumb:

  • Less than entire space= Sublease
  • Less than entire term= Sublease
  • Less than entire space and less than entire term= Sublease
  • Entire space for entire remaining term= Assignment
Keep in mind that subletting and/or assigning a lease does not relieve the original tenant of their obligations to the landlord under the original lease.

Using the Correct Names on Leases

When preparing a lease, or any legal document, always make sure to use the full and correct names of all the parties involved. Failing to do so can create problems down the road for the parties. For example, if Acme Inc. was going to be the tenant under a new lease, and Acme Inc. is a Delaware corporation, then the lease should read, Acme Inc., A Delaware Corporation. Acme or Acme Corp. is not satisfactory. If the tenant were an individual with the name John Jones, then the lease should read, John Jones, Individual. Also, the signature blocks should match the name filled in as the tenant and it is critical that all parties sign the lease on each of the blanks provided on the signature block.

It is a Fight to the Finish!

As the economy turns here in Las Vegas, I am still writing offers for purchase and (so far) one for lease. 

The problem I am running into (and I can only assume that you are too) is that Sellers are being tough as nails refusing to reduce the price of their poor real estate investment.  And, the Buyers are still gringing out low ball offers where they think that Las Vegas is doing sooo badly that they feel the Sellers should be thankful they are offering such low ball offers.  (Sic.)

So, that leaves me stuck in this crazy cycle of trying my hardest to get the Sellers to accept a less than top dollar amount; and, also trying to get the Buyers to forget what the national media is saying and focus on the benefits of the property and up their offer.

The good thing about this situation is that more Buyers are tire kicking and Sellers (who can) are hanging in there.  Most properties that were well over spent for just three years ago or more, are already foreclosed upon.  (And, I really don't think too many are selling even though I keep hearing about properties "Under Contract.")

The bad part of this is that I haven't placed a property "Under Contract."  The good thing is that soon I will have a property Under Contract." So, I am fighting to the finish here.

For the life of me, I can't remember who said the quote: "It isn't how many times you get up after being knocked down, it's that you keep getting up."  Or something like that.

Can anyone help me out on this?

For Information about Las Vegas Commercial Investment Property, contact David Howes at:

Wrote Two Offers in Two Days! Why is it I want more?

It is hard for me to be optimistic when we have been living in an era of pessimism.  It really is a lot easier to join the pessimistic crowd right now.

But last Friday, I wrote two offers for two properties.  And, today about five days later, I am waiting to hear as to whether or not I get client approval to write a third.  But, through this immediate success, I still feel as if I should remain pessimistic about the future. 

The problem, I am noticing more and more, is that commercial real estate brokers are combining their forces.  One would close their shop to hang their license with another broker.  Is that going to happen to me?

Two years ago, I decided giving 50% of my earnings from my hard work for a greedy broker was idiotic.  Then, again, as I progressed through deals, I didn't spend all my money on luxury cars or homes.  (Even though it is becoming more evident that buying a rental is the most likely thing I should be doing.)  But with cutting back and saving as much as possible, I have a strong feeling that at least one of the offers recently written will earn me enough to keep going at least a few more years -- if it takes that long.

My problem has always been: I believe in telling clients the truth about real estate.  And I do so whether or not it hurts their feelings, or it kills a sale, or I would lose a commission.  The upside has been: my clients have stayed with me.  And, since I believe in keeping them informed about good and bad changes in the Las Vegas real estate market, they are the ones calling to ask me to write offers on properties I think are to their best interest.  Yeah!  (Sorry.  I need to praise myself more.)

So, I want more.  That is, I want to write more offers.  Oh, if you want me to write an offer for a property, I will help you.  But, I am NOT a Yes! Man.  I will write the offer -- if it is in your best interest.

So, in conclusion, I think I'll stay striving forward.  Optimism is just out of reach.  But, I'll get there.

P.S.: For examples of properties that were bought without the Buyer's best interest in mind, just read the papers.  They are all over the place.

For Information about Las Vegas Commercial Investment Property, contact David Howes at:

Bottom? This can't be the Bottom! Could it?

For the last two years, we (I mean you remaining real estate professionals) have seen a very large picture of real estate that had slowly grown go from a very high, high (too high?) to a

In the last two weeks, I have had several clients -- whom I have done business with in the past -- contact me to help find properties that they can get back to doing their usual business. Now, these clients are NOT tire kickers -- as we all have been seeing for too long now -- theses are genuine clients who had bought property through me and built the property up in the past.

For two (long) years and going, he has been on the sideline (with everyone else) while the economy worked itself out.

I mention this to you because when I sent him a property that is in default and asked if this would make a good acquisition for him and his company, he replied that, "land has fallen low enough for him to get back to doing what they are best at. Buy, build and hold.

O le`!! (OK, we'll see.)

But, with that said, I am becoming more hopeful that the bottom is actually here under us today. So, am I the only one? Anyone else finding buyer activity out there?

For Information about Las Vegas Commercial Investment Property, contact David Howes at:

NAI Black Retained as Property Mgr & Leasing Agents for Rock Pointe Corporate Center

NAI Black has been retained as property manager and leasing agent for the Rock Pointe Corporate Center, a Class A office park with 600,000 SF of office space plus structured parking in Spokane, WA. Thomas Hix, CPM, will be lead property manager for the asset, with Heidi Irvine as co-manager. Jeff Johnson, CCIM SIOR will direct leasing activities with Jeff McGougan and Jon Jeffreys as leasing agents.

If I had $1 Million to invest in Las Vegas Real Estate, it would NOT be in residential

That right, Folks!

If I had $ 1 Million to invest, it would be in a REO commercial property -- right now.

With all the prognosticators saying we are near Depression like declines when it comes to real estate, the amount of over built supply of homes is dragging that market down. And if you have acquired a home to flip or rent, my apologies.  I believe you overspent.

But, with commercial properties, as usual, it's location, location, location.  And, I believe, in my humble opinion, it is also what you should buy right now.

If you are a passive investor who is just looking for income and only care about the quarterly rent check, you need a freestanding building with a strong national or regional tenant.  Fortunately, Las Vegas has about a dozen or so of those properties.  If you are an active, hands on investor and are looking to acquire a property, re-tool it, then flip it or hold long term, Las Vegas has about 20 dozen of those.

And, yes.  Commercial real estate will return to active or positive gains faster than residential real estate.  And the biggest reason will be that the US government has for too long allowed companies to ship jobs overseas.  Which means that job growth in the good ole US of A will be much slower than people realize.  And that means that people won't buy or even keep an existing home when you know that it will be better for you to walk away from your current house situation, and get a cheaper house in two or more years from now after you have found a minimum wage job that barely will pay the bills that remain after your BK.

Yahoo!   WalMart greeter, here I come!  Oh, I have to be 55 or older?

So, if you have $1 Million to invest, I can recommend several Las Vegas properties -- listed with Las Vegas' Real Estate Brokers -- that will fit the bill.

For Information about Las Vegas Commercial Investment Property, contact David Howes at:

It's, "Under Contract!"

Before the holidays -- which I hope everyone had a Happy and Joyful Holiday -- from this miserable excuse of a market...  Sorry.  I digressed.

Let's start over: Before the Holidays, I had been in contact with several Agents listing REO properties.  They were hard up for an offer; and, they had been sending me numerous, unsolicited marketing materials about their bank owned properties (almost) begging for an offer.

Unforunately -- for me -- my clients were/still are on the sidelines waiting for some form of an offical word that the Las Vegas market had hit bottom.  So, getting them to even make a low ball offer is pretty much impossible.

That's when, I realised: "Who are making these offers on these properties that are all of the sudden, they are "off-the-market!" and/or "under contract?"

So, starting today, I started calling all of my buyer/seller contacts.  And, of course, I had to leave them voice mails because (apparently) they haven't returned from their holidays -- yet?

But, as the month of January, 2011 grows, and as it turns into February, 2011, you can be sure that I will be calling them (well, not everyday).  And the reason will be, that IF these Listing Agents are all of the sudden getting properties "under contract" during the actual Holidays; my clients need to step up. 

OR, are these Listing agents really telling the truth?

And the reason I question this is that one of these "under contracts" is from the Listing Agent that had said to me that FDIC would not pay a procuring commission on a property.  It is (probably) most likely NOT under contract because he was upset I called the FDIC to call his bluff.  Hmm.  Time will tell if he's is telling the truth.  (Hint: He lied to me at least once.)

Then, again.  Most real estate agents lie.  So, there is not any questions as to why (lay) people think real estate agents are sleazy.

Also, I received an indirect confirmation of my client telling me about six to eight months ago, that the FDIC, Fannie Mae, and Freddie Mac will in the near future be selling properties at a severe discount.  I read it in a Las Vegas Sun Q & A Article.  Check it out.

For Information about Las Vegas Commercial Investment Property, contact David Howes at: