The Nevada Tango: Realty And Reality
Nevada real estate that has been designated for commercial uses have not fared as badly as the residential half of the industry, but in a state whose economy is driven almost entirely by the service sector, that is not really saying too much, unfortunately. Except for gaming, the only other enterprises of note in the state seem to be all the gated retirement communities that have been enthusiastically developed. Commercial real estate in Nevada may never be the same again, as it is much more intimately tied to the residential market than other states with more going on.
New construction is almost non-existent in Nevada right now, as there is a very definite state of oversupply in both the commercial and residential sides of the industry. A huge amount of development, launched in the expectation that the housing boom of the time could only continue, and even expand, has led, in conjunction with misguided policies from the government as well as lax oversight by the same, to the greatest economic calamity in several American generations. Thus, new construction in Nevada is not a currently factor in the local economic picture at all. In fact, a lot of work has been halted on account of tight credit lines, among other reasons.
Nevada shopping centers are one of the few relatively bright spots in the state’s economy, but they remain in danger of being caught up in our current crisis. Many such developments had been planned and launched in anticipation of newcomers populating the comparatively sparse state. For quite some time Nevada was a “happening” place, forming part of the economically fortunate parts of the Sun Belt that also comprised states like Arizona and Florida. Then one day the housing bubble collapsed on its own weight. Right now, many Nevada shopping centers are hemorrhaging money while awaiting the crowds that return with economic recovery.
The situation with shopping centers seems to suggest that there will be great deals lurking around over the next few years. Investors will have to be able to carry those projects and secure their financing, both difficult tasks even in the best of times. Vulture investors thrive on conditions like what we have currently and what tends to happen is that they end up stabilizing the market down the road, real estate gurus believe.
There is more to Nevada land than Area 51. While problematic, market fundamentals are generally sound and the state is expected to be one of the first to recover. Nevada is about more than just sand and cacti. It’s about losing oneself to find oneself, starting over bigger and better. Nevada communities are not all the big showcases that something like Reno or Las Vegas are, but there is a lot of potential still, particularly with the development of high-speed rail. That’s because the area along the California border is expected to develop into a string of bedroom communities for the San Franciso-Los Angeles-San Diego corridor.
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Category: Real Estate
Keywords: real estate, nevada, property, property markets, realty, business, advice
