We have been looking at Las Vegas for sometime now. Below is some market information about Las Vegas as it relates to other markets in the contry. We feel there is still signigigant upside in the Las Vegas market due to the fact it has been one of the last markets to recover from the 2008 recession and still on the upswing where many US markets are on the downswing.
The below two graphs are from Integra Realty Resources (IRR) which is an industry leader in market research. https://www.irr.com/about-us/
1.) graph one shows where Las Vegas sits in the market cycle….in the expansion area which is where you want to be investing in the market cycle, not in the hyper supply areas or the tail end of the expansion cycle
2.) graph two shows how Las Vegas sits in transaction volume showing the new activity going on there currently.
Below is an article about Las Vegas from a local with boots on the ground!
“The Truth about Downtown Las Vegas revitalization”
It’s no secret that Las Vegas was hit hard by the great recession of 2008. Many projects where mothballed and some abandoned all together. There are still some remnants of the great recession that could be seen if you look hard enough throughout Las Vegas.
Some people still don’t believe the city has stabilized from the recession. Well that’s all BS and those people should be swept off their feet and escorted head first out of a casino using their head to open the door. (Ok that was a Casino movie reference for those of you thinking I am a bit extreme)
Las Vegas has had it’s issues in the past however as any great metropolitan we have grown form our mistakes to become even better than before, especially in downtown Las Vegas. Zappos kicked things off with their three hundred million plus in investments for their envisioned downtown project.
Speaking of which, the downtown project has just broken ground on an new 200+ apartment building complex called Fremont 9 in the heart of Downtown Las Vegas which is expected to be completed in late 2017. Lets get back to my point.
Downtown Las Vegas is going through a major transition right now and savvy investors who can recognize value and future potential are in a prime position to realize huge returns. The model of renovating existing downtown apartment buildings with new modern finishes that appeal to a younger hipper generation has proven to be one of the most lucrative ventures.
But for those who don’t have the patients or know how to identify, negotiate and manage a successful project from start to finish there are still opportunities available that make dollars and cents. For example currently you can acquire projects that have been completed, stabilized and are producing strong returns for a fraction of what their replacement costs
It’s my prediction that within the next 24 months downtown Las Vegas will be light years ahead of where things are now and many people will be in awe of the transformation we are experiencing right now. It’s taken some time to get to where we are and we still have some ways to go but the truth is Downtown Las Vegas is evolving in all the right ways.
Some may disagree and some may say right on. Come and see for yourself the new downtown Las Vegas and all it has to offer both residence and visitors to form your own opinion, you won’t be disappointed and if you are then there is a whole in the desert waiting for you.
The above article written by another investor who lives in las Vegas and is close to what is going on. We like Las vegas right now. It was slow to recover meaning there is still upside going forward while many markets in the U.S are peaking out and might have less value to be added in the near term.
If you would like to discuss more about some of the markets we follow with regards to apartments…Give us a call at 510-863-1447