Las Vegas dealing with high CRE vacancies

Las Vegas is struggling with a large percentage of commercial real estate vacancies.

The Las Vegas commercial real estate market struggled during the first quarter, as it was unable to attract more investors and, in turn, property management companies, according to Vegas INC.

Due to the struggles of the recession that hit the Las Vegas area quite hard, recovery has been difficult. Much of the blame can be put on the fact that the area overbuilt when the market was thriving, and there is now a plethora of space available, the news source said. In addition, more than 12 percent of the local population is unemployed, further showing that there are not enough businesses in the area.

''The cure to the current supply-demand imbalance is time," Brian Gordon, principal for Applied Analysis, said in a statement, according to the news source. "As the economic recovery takes hold, hard-hit sectors of the economy will benefit, including the industrial real estate sector."

The news source cited Applied Analysis, which noted that the industrial vacancy rate was approximately 19 percent during the first quarter – its highest level ever. In addition, the local office vacancy rate was 25.2 percent during the same period.

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