Retail Market in Las Vegas
Retail properties include free standing (stand-alone) stores, department stores, supermarkets, theaters, banks, restaurants and shopping centers. Shopping centers fall into a number of categories depending on their size and location, and include; neighborhood centers, community centers, strip centers, power centers, specialty centers, regional centers and super regional centers.
Investors buy retail buildings in Las Vegas for their income production, so good, long-term tenants are one of the most important criteria. Of course location, age and condition are also important factors, but a building in an average location with a 1st class tenant who has signed a long term lease is like gold.
Retail properties in Las Vegas are relatively popular with buyers. There are thousands of them in the County, and it is hard to find one that is a bad investment. While some retail properties fall into neglect, and need a face lift, and some have poor management, few have reached the point where demolition is necessary.
Even with Las Vegas sales slowing and vacancy rates increasing toward 8% for retail properties in 2009, asking rents are still moving up and they increased on average about 4% to 5% in 2008. Retail buildings appeared, together with apartment complexes, to be the best real property investments to own in 2008, and they will likely remain in favor in 2009.
The capitalization rate is the best indicator of expected net return on a retail building investment, and a Las Vegas average rate of about 7.0% is anticipated for the 1st Quarter of 2009.
Copyright 2008, Glenn Rigdon, Horizon Village Realty
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