IF Las Vegas City Officials were Smart?

That's right!

In my opinion, IF the Las Vegas city officials were smart, they'd offer developers the same incentives that the Downtown Redevelopment Project (DRP) is getting. Now, what I have seen and the impression I am getting is that the east side of Las Vegas Blvd, along Fremont Street could be an area of upscale office and retail and NOT just a party area for First Friday and teen drinking any other weekend.

Tony of Zappos' plans are pretty secret. And he may just be planning this. But, I believe that unless other developers get involved in this area, this is going to be pretty much the same as it has always been.

It is my belief that the need for higher end jobs is the key to getting this area redeveloped properly and it would have a positive affect on existing property values for the current owners in this area.

DRP has been able to convince several property owners in this area their properties are worth less than what has been paid to others in the area before they decided to sell. It's as if they didn't look at the area comparable sales in pricing their properties.

Granted most properties left in this area are low end housing and older homes which most likely need to be torn down.  But, to sell off to one buyer at the buyer's price is fueling a decline in the values.

That is why I have been standing firm in my listings in staying at the list price I have stated to these owners. Why sell cheap? Just because a sale near you was low at $24 PSF doesn't mean that, that is the value of your property. I have also cautioned that just because properties such as the Las Vegas Dragon or Ferguson's or Peter Pan Motels sold at $159 PSF doesn't mean your property is that high either.

But, in reality, another developer needs to step up and get involved. Other developments in this area are necessary to build competition so that the property values will increase thus making the current and future developments more valuable. And that would affect future re-sale prices in this area, too.

I have been marketing my listings to Pacific Rim investors and thus far I have received a lot of inquiries, but these investors are gun shy to pull the trigger. WHY? I ask. My guess is that they fear Tony's bank account.  I know it is NOT bottomless. But there is the rub.

East Las Vegas along Fremont Street has a reputation of being low end everything.  However, it could be a hub for business rather than a play ground for youthful Zappos' Millenniumers. who engage in underage drinking which will continue to be a problem and could set any development back IF not corrected without the Metro Police's involvement. So, IF you are brave and bold, this area of Las Vegas is in desperate need of high rise office, retail and non gaming hotel rooms just as any other well developed city has.

For more Information about any Las Vegas Commercial Investment Real Estate Property, contact David Howes at: davidATdavidhowesDOTnet OR call 70 25 01 93 88

Club Owners, Chefs and Restaurateurs Looking at Opening a Restaurant in Downtown Las Vegas?! I have Four Properties!

Earlier this month I received a call from an associate real estate agent who has a client looking for sites in downtown Las Vegas to open their restaurant concept. She has a client who owns and operates restaurants who wants to be in a specific area of Downtown.

I sent her ALL the sites I have listed.  Fortunately, I have two properties in this area she is looking at Listed For Sale.

This got me wondering about ALL the things happening in Downtown where Tony Hsieh's Zappos Company is currently moving into the old Las Vegas City Hall building. He is attracting a lot of attention. And, it makes me wonder IF these business people who are following this are truly interested in moving into the downtown east area OR are they thinking of being in a casino along the Fremont Street Experience.  My immediate concern is: will they have enough foot traffic to succeed at the Downtown east locations?

From my perspective, more roof tops or housing is needed.

Tony's crew, lately, has been acquiring property at what I believe is below the normal or median price for this area.  I have advised my sellers to NOT ask too much IF they truly want to sell; rather ask for just more than the norm and under NO circumstance will I allow them to sell to the flippers.

Hopefully, with this inquiry to you today, we may see more activity in the coming months.

AND - just so you know - the area of the Downtown Redevelopment Project is east of Las Vegas Blvd; US 95 south to Charleston; and Las Vegas Blvd to Maryland Pkwy.  Of course, Tony's crew has bought property outside of this area, so anything could happen.

For more Information about any Las Vegas Commercial Investment Real Estate Property, contact David Howes at: davidATdavidhowesDOTnet OR call 70 25 01 93 88

Lots of People Look; Very Few Buy! $300,000 for a Las Vegas Office Building!

Over the past year or so, I have been prophesying that the Las Vegas Commercial Real Estate Market "CRE" was losing it's "steal" muster.

Many of you "looked" at my blog; however, very few of you actually inquired about the steals that were happening. Unfortunately, the good ones have been SOLD.

(There were a few of you that did contact me just to tell me that the "steals" were in your opinion NOT steals because the property prices were still "too high" for you to actually make an offer. Since then, I have booted these people because they would still complain the price was too much even IF the properties were given to them for free.)

And, since then, most of the 8% Cap Rate properties have SOLD! ALL the small sports bars, gaming properties, and the Walgreen's were bought up! When one person was telling me that the prices were NOT steals; and least two were telling me they were.

For example: a recent 7 Eleven property was listed at just less than a hair less than a 7% Cap Rate. I contacted the owner who told me he put it on the market one day; and the next, he had 6 offers that ALL were for MORE than his listed price.

So, IF you ask and I reply by telling you the truth; please do NOT assume I am lying to you. (One Buyer kept telling me I was just lying to him to get him to pay more for a property. Okay. He wanted to offer a price that he felt was a steal and it turned out was the lowest offered to the Owner.)

Then, of course earlier this summer there was the idiot for Brooklyn. He had such a bad attitude. He was going to 'teach me' how to buy property in Las Vegas. In reality, he didn't have a clue as to how to buy a CRE property here in Las Vegas. And, after the debacle where he employed another broker to write a second offer on a property that I had written an offer for him first, I booted him, too. (Unfortunately, since he didn't listen, another client of mine who wanted the same property -- and who did listen to me -- is happily in escrow. The Brooklyn idiot didn't get the property because the owner knows me well enough to have respect for the real estate buying process. (Word to the wise, employ only one broker IF you are seriously considering acquiring a Las Vegas property))

AND, I do know of one property NOT ON THE MARKET that was taken back through foreclosure by the bank.  The Bank is willing to sell a +/-3,400 SF office building at a 10% Cap Rate!
Price: $300,000!
Hmmm? I wonder how many of you will tell me this is priced too high? OR, not enough of a steal?

For more Information about any Las Vegas Commercial Investment Real Estate Property, contact David Howes at: davidATdavidhowesDOTnet OR call 70 25 01 93 88