Restrepo Consulting Group

RCG in the News

Jobs In Medical Field In Las Vegas Fare Well, Despite Economy

Buck Wargo / IBLV

FEBRUARY 2010 - Although the state’s jobless rate hovers at 13 percent and many workers are losing jobs, health care employment has bucked that trend in Las Vegas just as it has across the nation.

Toward the end of 2009, Las Vegas had 69,700 health care workers, up 3.4 percent or 2,300 jobs from a year earlier, said Brian Gordon, principal at research firm Applied Analysis.

“They have outperformed other sectors of the economy regardless of the economic climate. People still demand health care-related services,” Gordon said. “Given the fact that the
population continues to age, that segment of the population will continue to demand medicalrelated services.”

In real estate, Las Vegas sitting pretty for weather-weary seniors

Buck Wargo / IBLV

FEBRUARY 2010 - If real estate agents are applauding the historic snowfalls pounding the Midwest and Northeast, little wonder.

History tells us that blizzards prompt snow-weary homeowners to move to Las Vegas, and the depressed housing market is making that all the more attractive.

With a 60-percent decline in home prices in Las Vegas since 2006, the valley is certainly an attractive option to homebuyers tired of wielding snow shovels.

SOUTHERN NEVADA ECONOMY: Economy showing some improvement in gaming, lagging in creation of jobs -
Professor says construction, tourism must recover for valley to add jobs

Hubble Smith / LVRJ

FEBRUARY 2010 - Southern Nevada's economy is gaining some traction for recovery, though the most important piece of the puzzle - job growth- is still missing, a UNLV economist said.

The Southern Nevada Index of Leading Economic Indicators showed improvement in gaming revenue and visitor volume from a year ago, but total employment dropped 7.4 percent and the
unemployment rate remains much higher than the national average at 13.1 percent.

Seniors to Stimulate Economy

Buck Wargo / IBLV

FEBRUARY 2010 - The 60 percent decline in home prices in Las Vegas since 2006 has opened the door for out-of-state retirees to move to the region and stimulate the housing market, real estate observers say.

Las Vegas has been relying on investors and first-time homebuyers to swoop up a lot of the inventory triggered by foreclosures — but Realtors and housing analysts note it is uncertain how long that can last.

Las Vegas Monorail has few profitable options -
Despite bleak financial picture, CEO still hopes to expand line to airport

Hubble Smith / LVRJ

FEBRUARY 2010 - The Las Vegas Monorail will never generate enough revenue to pay off its debts, according to the company’s own financial estimates. And without financial relief, looming
bills to replace trains and other equipment cast doubt on the transit system’s ability to continue operating beyond 2019.

Based on this dim outlook — from monorail management and analysts, contained in the company’s bankruptcy filings — the system likely faces one of three fates:

Office Vacancy Soars in LV for Fourth Quarter
Economy exacerbates usually bad period

Hubble Smith / LVRJ

JANUARY 2010 - The number of "For Lease" banners hanging on office buildings in Las Vegas shows the worst-performing commercial real estate market in decades, bringing a halt to any new construction.

Fourth-quarter office vacancy rose to 22.5 percent on an inventory of 41.4 million square feet, while average asking rents dropped 13 cents from a year ago to $2.27 a square foot, Colliers International commercial brokerage in Las Vegas reported.

Industrial Space Available -- for a while
Vacancy tops 10 percent; construction halted

Hubble Smith / LVRJ

JANUARY 2010 - Industrial vacancy topped 10 percent in Las Vegas and there's virtually no industrial space under construction or planned for the next 24 months, CB Richard Ellis brokerage reported in its fourth-quarter MarketView.

Vacancy for 98.7 million square feet of industrial space climbed to 10.15 percent in the quarter, up from 9.12 percent in the previous quarter and 7.63 percent a year ago.

Valley Industrial Market Sinks in Fourth Quarter
2009 leasing activity mostly short-term leases and renewals, few new tenants

Tony Illia / LVBP

JANUARY 2010 - Southern Nevada's industrial market finished 2009 with a thud as the amount of empty space expanded by nearly 41 percent year-to-year, reports Colliers International.
Valleywide industrial vacancy rates reached a record 14.5 percent in the fourth quarter, while average asking rents dipped to 61 cents per square foot or 20 percent less a year ago.

"There are more than 25 industrial projects in various stages of distressed sale scenarios," Colliers Senior Vice President Daniel Doherty said. "These will have the most dramatic effect on pricing on a going forward basis."

Contractors in Vegas Still Hurting from Recession
The deep recession that shut down major construction projects in Nevada and put design plans on hold has severely hurt the state's second-largest industry, with contractors hoping to hang
on until things get better.

KOLOTV.COM

LAS VEGAS (AP) - The deep recession that shut down major construction projects in Nevada and put design plans on hold has severely hurt the state's second-largest industry, with
contractors hoping to hang on until things get better.

General Contractor Frank Martin of Martin-Harris Construction says his firm has had to diversify and is now spread out throughout the Southwest.

"There's work out there. You've got to know where to look," said Martin, who has been working construction in Las Vegas for 30 years.

Retail Market Struggles as Vacancies Inch Upward

Buck Wargo / IBLV

JANUARY 2010 - Two brokerage firms and a consultant said the retail vacancy rate in Las Vegas rose in the fourth quarter.

The latest numbers released by Colliers International, Commerce CRG and Restrepo Consulting contrast with a report released this month by CB Richard Ellis that said the retail vacancy rate fell in the fourth quarter to 12.3 percent, down from 13.1 percent in the third quarter.

Penny Mendlovic, a retail analyst with CB Richard Ellis, said one reason for a discrepancy is her firm tracks space from 10,000 to 20,000 square feet, whereas other firms might focus on larger developments. When that space is filled, it lowers the vacancy rate, she said.

'Just Not a Lot Going On' - Local contractors still feeling recession

Hubble Smith / LVRJ

JANUARY 2010 - General contractor Frank Martin keeps a Martin-Harris Construction banner hanging on the stalled Wyndham time-share project near Interstate 15 to remind everyone that he's still in business.

He's waiting for the winds of economic change, hoping they don't blow him away first.

Like most contractors in Las Vegas, Martin is scrambling for work in a deep recession that has snuffed Nevada's second-largest industry, shutting down major construction projects and mothballing design plans.

LV Economic Foundations ‘cracked,’ Report Says
Panel: Diversification, higher quality workforce needed

Buck Wargo / IBLV

JANUARY 2010 - A group of business leaders, academics and politicians doubts there will be a quick recovery for Las Vegas’s economy and suggested the future won’t be bright for Southern
Nevada unless a greater emphasis is placed on diversification.

The sober analysis comes from a round-table discussion by the Lied Institute of Real Estate Studies at UNLV, which annually publishes a report on challenges Southern Nevada faces.

Unfinished Summerlin Mall a Monument to Recession
-Optimism takes a back seat as project managers look for answers

Work on the Shops at Summerlin Centre, which was to resemble a pricey New England village, was halted more than a year ago.

J. Patrick Coolican / Las Vegas Sun

JANUARY 2010 - Opfer is a professor of engineering and construction management at UNLV and lives in Summerlin, not far from the half-finished construction site of the once and future Shops at Summerlin Centre. The site went silent on Halloween 2008, and no one knows when, or even if, work will resume.

“I can look out my house and see the steel girders,” Opfer says.

Vacancy Glut Hurts LV Office Market During Fourth Quarter - Six years worth of supply empty

Tony Illia / LVBP

JANUARY 2010 - Southern Nevada's commercial office market limped through the fourth quarter hobbled by dampened demand and a glut of unoccupied space, industry observers say.

The recession has wreaked havoc with the market, forcing many businesses into bankruptcy and prompting bank foreclosures of office buildings. Surviving companies are trimming expenses wherever possible by cutting jobs and lowering overhead by combining offices and using less
space.

For Businesses, Economy Brings Sobering Realities
Meltdown has forced many to learn smarter practices

Brian Wargo / Las Vegas Sun

JANUARY 2010 - Having endured the brutal recession of 2009, Las Vegas businesses have learned a thing or two.

“I would assume the biggest lesson businesses learned overall is how to manage their debt loads to revenue,” said John Restrepo, principal of Restrepo Consulting Group. “We need to overcome this idea that you can take on debt because revenue will keep growing at a set percentage. You can’t take on too much debt because you never know when the downturn will come that depletes your cash that you need to carry you through the lean times.”

Las Vegas Housing Market May Continue to Slump

Jonathan Martinez / Channel 8 Las Vegas Now

DECEMBER 2009 -- Real estate experts say when the housing market was booming, Las Vegas grew faster than other cities. Now that the market has crashed, they believe it will take longer for Las Vegas to recover.

While the housing markets in other cities slowly recover, Las Vegas home prices will remain low. Experts say prices will stay 56-percent off their peak in 2006.

Census Confirms It: Our Growth is Done
Worn adage modified: If you aren’t building it, they won’t come

J. Patrick Coolican / Las Vegas Sun

DECEMBER 2009 - For two decades Las Vegas boosters had a quick retort to all the nattering naysayers who pointed out the city’s less-than-stellar schools, hospitals and social services: If we’re so bad, why do people keep coming here?

It was never a completely convincing reply, but it contained a morsel of truthiness: Nevada was the country’s fastest growing state through most of the past two decades, more than doubling in size because tens of thousands of people picked up and came here, every year, year after year.

Recession in Nevada: Expect It To Hang On A While

David McGrath Schwartz / Las Vegas Sun

DECEMBER 2009 - The current recession will wind up eclipsing the Depression of 80 years ago in Nevada, the state’s longtime former archivist and preeminent historian predicts.

“I believe emphatically that before the Great Recession runs its course, it will be worse than the Great Depression in Nevada,” Guy Rocha says.

Nevada fell into the Great Depression late and got out early, Rocha notes. The state didn’t get hit until 1931, two years after the stock market crash of 1929. And, helped by federal spending and legalized gambling as well as quick marriages and divorces, Nevada’s government was enjoying budget surpluses by 1935. By 1939 Nevada was well out of the Depression, Rocha says. The rest of the country didn’t get back
on its feet until after the U.S.’ entry into World War II in December 1941.

Jobless Picture Remains Bleak

Steve Green / IBLV

DECEMBER 2009 - Analysts say Southern Nevada’s employment picture remains troubled, despite the
surprising nationwide improvement announced Dec. 4.

The U.S. unemployment rate fell in November to 10 percent from October’s 10.2 percent, a development some say indicates the recession may be winding down. Many economists had expected the rate to remain at 10.2 percent.

Nevada’s November unemployment statistics are to be released Dec. 17. Unemployment was at 13 percent
in October.

Las Vegas: The Look of the Rebound

By John Restrepo Thu, Nov 12, 2009

How and when will the gaming capital respond to an upturn in the economy?

DECEMBER 2009 - The Las Vegas resort industry, and for that matter, Southern Nevada, is at a turning point in its historyone
that many in the industry, and those who observe and analyze it, never thought they would see in their lifetimes. It would not be hyperbole to say that the industry and Las Vegas are being fundamentally "reset" before our very eyes, because of the Great Recession of 2008-2009 (technically it started in
December 2007). The recession is now finishing its second year.

Wynn CFO Appointed to Nevada Economic Forum

Howard Stutz / Casino City Times

DECEMBER 2009 - Wynn Resorts Chief Financial Officer Matt Maddox has been appointed to the Nevada Economic Forum by Gov. Jim Gibbons.

Maddox has worked for Wynn Resorts since 2002 in both Las Vegas and Macau. Prior to Wynn Resorts, Maddox worked for Bank of America and Caesars Entertainment.

The five-member Economic Forum established by the Nevada Legislature in 1993, meets just prior to the convening of he state's biennial Legislature to provide revenue forecast for use in adopting state government budgets.

Analysis: City Hall Project Would Generate Jobs, Activity

Las Vegas Review Journal

DECEMBER 2009 - The City Hall building proposed for downtown Las Vegas would create about 475 construction jobs a year, along with 266 indirect jobs related to construction, an economic consultant said in an independent analysis.

Construction wages and benefits from those jobs are estimated at nearly $33 million a year, about $69,000 per worker, said John Restrepo, principal of Restrepo Consulting Group.

As National Jobless Rate Improves, LV Sees Signs of Trouble

Steve Green / Las Vegas Sun

DECEMBER 2009 - Analysts say Southern Nevada's employment picture remains troubled, despite the
surprising nationwide improvement announced today.

The U.S. unemployment rate fell in November to 10 percent from October's 10.2 percent, a development some observers say indicates the deep recession may be winding down. Many economists had expected the rate to remain at 10.2 percent.

Las Vegas REALTORS(R) Make a Big Move Towards a Comprehensive Commercial Real Estate Research Database

Fox Business News

DECEMBER 2009 - -Commercial Alliance Las Vegas (CALV), operated by the Greater Las Vegas Association of REALTORS(R), recently joined forces with Restrepo Consulting Group and a leading national real estate data provider to drastically expand the size and quality of their repository of Las Vegas commercial real estate data.

Since 2004, CALV has partnered with Catylist to provide members with a powerful listing and marketing Commercial Information Exchange, http://www.calv.org, allowing them to share and market properties more efficiently. Data entered by members is owned and controlled by the association on behalf of their commercial real estate community. Next on their agenda is to develop an affordable, fully researched database that includes all commercial land and building records in the Greater Las Vegas market area in addition to recent sale and lease transactions and currently listed properties.

NEW CITY HALL: Ready to Roll the Dice - Proponents Declare Risk Worthwhile

Alan Choate / LVRJ

NOVEMER 2009 - The existing Las Vegas City Hall was completed in 1973, but the corner of Stewart Avenue and Las Vegas Boulevard has been the seat of city government since the early 1940s.

That's when the city took over most of the American Legion War Memorial building there, eventually occupying the entire building and expanding it as Las Vegas grew in the 1950s and 1960s.

Now, in true Vegas fashion, the city wants to ditch the high-profile corner to make way for a casino.

CityCenter Completion Might Spur Home Foreclosures

Brian Wargo / IBLV

NOVEMBER 2009 - Although some are touting CityCenter’s opening as a boon to the local economy, a mortgage expert says it will also signal the beginning of another wave of home foreclosures.

Ian Hirsch, Fortress Credit Services director of operations, says he is concerned about thousands of construction workers who will lose their jobs with the completion of CityCenter. Although the project will create more than 12,000 jobs in travel and tourism, construction workers have limited job opportunities
once they are done with CityCenter, he says.

Las Vegas Ready to OK City Hall Bond Sale

Brian Wargo / IBLV

NOVEMBER 2009 - Commercial development in Southern Nevada is stagnant, but a move next week by the Las Vegas City Council is expected to pave the way for the next wave of downtown projects once the economy recovers.

The City Council is preparing to authorize issuing bonds that would enable Ohio-based developer Forest City Enterprises to build a new city hall at First Street and Clark Avenue. It would set the stage for Forest City to build commercial projects adjacent to the city government center and swap other land with Las Vegas for a hotel and casino.

Las Vegas Building Halt Looms

Dennis Myers / Reno News & Review

NOVEMBER 2009 - Las Vegas, whose name is practically synonymous with uncontrolled growth, is
facing something it hasn’t seen in decades—a construction halt.

Once the nine major construction projects currently underway are completed, there are no large projects coming along after them, according to the Las Vegas Sun.

John Restrepo of Restrepo Consulting said, “We are going to have a drought of commercial construction for a number of years. … Southern Nevada went through a long stretch having a disproportionate share of its job base in construction, at least by national standards. Many in the community started to believe that this reflected a normal and sustainable job base. The recession has dramatically shown how transitory
construction employment really is.”

Valley Industrial Rents Dip, Vacancies Rise - Inventory of For-sale Industrial Space Climbs 20 Percent in Third Quarter

Tony Illia / LVBP

NOVEMBER 2009 - Southern Nevada's industrial and warehouse market worsened in the third quarter as
the economy continued to struggle, reports Restrepo Consulting Group, a Las Vegas-based economic research firm. The Las Vegas Valley had its sixth straight quarter of negative industrial absorption, with 15.1 million square feet of empty space, Restrepo added.

New Method to Count Population Shows Clark County May Still be Growing

Brian Wargo / Las Vegas Sun

NOVEMBER 2009 - Last year’s headlines about our population crystallized the bad news swirling about Clark County: 10,000 fewer people were living here on July 1, 2008, compared with a year earlier. So much for the region’s remarkable year-after-year growth.

Not only had it gone kaput, but those numbers, based on how the county estimated its population at the time, said we were now going in reverse.

CityCenter Realtors Hit with Cut in Commissions

Brian Wargo / IBLV

NOVEMBER 2009 - The 30 percent drop in condo prices at CityCenter is going to cost Realtors in commissions.

Bob Hamrick, CityCenter’s broker, met with about 70 preferred agents (those who have had a sale) Nov. 6 at the development to inform them about the new commission
strategy and give them a tour.

Shooting for Even Dozen - Home Depot Adds 12th Valley Store Despite Economic Downturn

Hubble Smith / LVRJ

NOVEMBER 2009 - Even with the retail market in peril and the housing market crawling around the bottom, Home Depot plans to open its 12th store in the Las Vegas Valley on Nov. 19, a 140,000-squarefoot warehouse at Deer Springs Town Center in North Las Vegas.

The $20 million investment in land and construction costs seems risky, considering the sparse number of homes in the area around North Fifth Street and the Beltway. But the Atlanta-based corporation looks at the potential return on investments more than population density, Home Depot Western Division
President Joe McFarland said.

Construction Nears Standstill - Commercial Sector Enters ‘Drought’ with Demand Staying Low

Brian Wargo / Las Vegas Sun

NOVEMBER 2009 - The state bird of Nevada, the construction crane, is on the endangered species list.

The good news, at least, is that it still has a few places to roost — maybe an amazing achievement in itself, given the economic climate.

Las Vegas research firm Applied Analysis reports there are nine commercial projects of consequence under construction off from the Strip in Southern Nevada. Once most of those projects wind down early next year, there’s not much in the pipeline and development will essentially cease, said Jake Joyce, an
analyst with Applied Analysis.

Vegas' Massive City Center Project On Hiring Spree

Ted Robbins / NPR

NOVEMBER 2009 - The $9 billion MGM Mirage City Center is undertaking what could be the largest private job creation effort in the country: 12,000 workers to staff the enormous Las Vegas Strip development.

Keith McSorley manages the MGM-Mirage City Center Uniform Distribution building. He coordinates 37 other tailors and a couple of hundred clients each day.

Retail Market Braces for Rough Holiday Season: Recent Poll Predicts Uptick in Spending

Tony Illia / LVBP

NOVEMBER 2009 - Southern Nevada's retail real estate market is bracing for a tough holiday season following a bumpy third quarter in which vacancies hit 8.9 percent, reports Restrepo Consulting Group, a Las Vegas-based economic research firm. The volume of empty shop space grew by 3.5 percentage points
throughout the valley during the last year, with 347,000 square feet of negative absorption during the third quarter alone. It's a reversal from two years ago when Southern Nevada boasted a 2.9 vacancy rate with 460,000 square feet of positive net absorption.

City Center Audio

Tony Illia in Las Vegas / ENR.com

NOVEMBER 2009 -

Vegas’ CityCenter Eyes Rocky Finish $8.5-billion Hotel-Casino-Retail Complex set for Dec.1 Phased Opening in Tough Economy

Tony Illia in Las Vegas / ENR.com

NOVEMBER 2009 - Stakes are high for gaming giant MGM Mirage Inc.’s $8.5-billion CityCenter development on the Las Vegas Strip. The project’s turbulent history includes the death of six construction
workers, a lawsuit between development partners over rising costs and funding woes brought on by the global credit crisis. Yet the 18-million-sq-ft complex of hotels, condos, casinos and entertainment space still is scheduled to open in phases, starting on Dec. 1.

Work to Start on Airport Cargo Center: Space for Operations will Remain the Same but Efficiency Expected to Increase with New Facility

Tony Illia / LVBP

OCTOBER 2009 - McCarran International Airport's $29 million cargo center is clear for takeoff. On Nov. 9, the two-building, 200,028-square-foot complex officially breaks ground at Surrey Street and Patrick Lane. Las Vegas-based Marnell Properties has a 20-year ground lease to develop the 19.15-acre airport site; rent generated by the project will be spilt with the Clark County Department of Aviation.

"This type of public-private partnership enables municipalities to build critical infrastructure while still preserving their cash reserves," said John Restrepo, principal of Restrepo Consulting Group, a Las Vegasbased economic research firm. "It additionally enables them to realize a revenue stream without incurring an initial capital outlay."

Retail Sector to Suffer Next Several Quarters

Brian Wargo / IBLV

OCTOBER 2009 - Analysts are predicting more bad news for the retail real estate business as weak consumer confidence and a sagging job market will hurt development and push up vacancy rates.

Restrepo Consulting Group reported that shopping centers without a major anchor have been battered during the recession, and that is now spreading to larger centers. Merchants vacated nearly 350,000
square feet of space in anchored centers in the third quarter.

Office Vacancies Soar in Third Quarter

Brian Wargo / IBLV

OCTOBER 2009 - The vacancy rate for high-end office space jumped to 25 percent in the third quarter, prompting landlords to steeply cut rents.

Applied Analysis reported the already record-high vacancy rate for office space increased, going from 22 percent in the second quarter to 22.7 percent in the third quarter.

In 2010 it expects the vacancy rate to triple in size from its low of 8.1 percent in 2005’s third quarter,
which is not good news for office-building owners.

Industrial Building Market may ‘Slow to Near Standstill

Brian Wargo / IBLV

OCTOBER 2009 - Industrial buildings’ rents fell sharply in the third quarter, and the trend shows no sign of slowing as demand is weak, analysts said.

The average asking price per square foot fell for the third consecutive quarter, Applied Analysis Principal Brian Gordon said. It declined 4.2 percent in the third quarter after dropping 3.9 percent in the first quarter and 4.1 percent in the second quarter.

Gaming Stocks Tumble on Earnings, Economic News

Steve Green / Las Vegas Sun

OCTOBER 2009 - Gaming stocks fell broadly Tuesday after three big Las Vegas hotel-casino operators reported third-quarter results reflecting the continuing economic downturn.

And with consumer confidence nationwide falling in October, more pain may be in store for Las Vegas. U.S. consumer confidence is seen as a key factor influencing decisions to travel to Las Vegas and other destinations.

Harrah's Entertainment Inc., which doesn't have publicly held stock, said Tuesday that its revenue fell 13.7 percent to $2.282 billion and even more in Las Vegas, by 17.5 percent, as the stubborn recession continued to curtail activity at its casinos and hotels.

FDIC Auction to Affect Luxury Condo Market - Failed Corus held $400 Million Stake in LV Projects

Tony Illia / LVBP

OCTOBER 2009 - Starwood Capital Group recently acquired ownership in several Las Vegas high-rise properties through the U.S. Federal Deposit Insurance Corp.'s asset auction of Corus Bank, a unit of Chicago-based Corus Bankshares. The deal will likely have a large effect on Southern Nevada's luxury condominium market due to the scope and scale of Corus Bank's local financial involvement.

The failed bank previously provided more than $400 million in loans for Las Vegas Valley condominium developments, many of which didn't reach full potential. In 2006, Southern Nevada made up 6 percent of Corus Bank's total loan exposure. It provided a $123.1 million construction loan for the 21-story
Streamline Tower at Las Vegas Boulevard North and Ogden Avenue; the high-rise still has 90 percent of its 275 units remaining, reports Applied Analysis, a Las Vegas-based business advisory firm. Corus also provided $106.2 million to the 15-story, 341-unit Juhl at 255 Bonneville Ave. in downtown Las Vegas that opened earlier this year after a 14-month delay from construction problems. Less than 10 percent of the
project's residences have been sold, Applied Analysis said.

Equity Building Services Completes Two Las Vegas Business Parks - Market's First Apartment Complex Short Sale Reported

Tony Illia / LVBP

OCTOBER 2009 - Equity Building Services this month will complete two business complexes totaling a quarter-million square feet of industrial and office space in Las Vegas. The Huntington Beach, Calif.-based commercial real estate developer is finishing the $13 million, 121,875-square-foot Procyon Distribution Center at the southwest corner of Ponderosa Way and Procyon Street. Lake Construction is
the general contractor; Calvert Architectural Group is the designer. The complex, on 5.75 acres, consists of two concrete tilt-wall buildings -- one is 65,330 square feet, the other 56,545 square feet. The dual 45-foot tall structures at 6025 Procyon St. offer distribution and warehouse space, with front office areas.

Ground Broken for New Police Headquarters - Lend-lease Deal Benefits Developer, Community

Tony Illia / LVBP

OCTOBER 2009 - Crime fighting is getting a new address. A new headquarters for the Metropolitan Police Department recently broke ground at the northwest corner of Martin Luther King Boulevard and Alta Drive in Las Vegas.

Penta Building Group is the general contractor; Thomas & Mack Development Co. is the construction manager. The suburban office complex, on 14 acres, consists of three buildings and a multilevel parking structure. Mark L. Fine & Associates is developing the 390,000-square-foot project under a leasepurchase pact with Clark County and the city of Las Vegas.

Effort Will Look at Diversification of Vegas Economy

Brian Wargo / IBLV

OCTOBER 2009 - What do you want to be when you grow up?

That’s normally a question a teacher or parent asks a teen or a child looking to her future.

Now, a group of business leaders, academics and politicians are asking that about Las Vegas and trying to provide some insight about what the region can do to live up to its potential.

That discussion and strategy session will be part of a white paper that’s expected to be made public in the next 30 days. It was developed out of a roundtable held in August that was sponsored by the Lied Institute for Real Estate Studies at UNLV.

Commercial Developers Hope There’s Nowhere To Go But Up

At a NAIOP seminar, attendees listen to John Restrepo, center, of the Restrepo Consulting Group.

Brian Wargo / IBLV

OCTOBER 2009 - John Restrepo of the Restrepo Consulting Group speaks during a NAIOP seminar on Oct. 2. Restrepo expects third quarter numbers to come in at a 22 percent vacancy rate for office, 9.7 percent for retail and 13 percent for industrial.

The bad news is easy to see: Commercial vacancy rates continue to rise, rents keep dwindling and the potential exists for a large number of foreclosures to hit the market.

Despite those clouds over commercial real estate, some in the industry are hoping that the market may be close to its bottom. Some sense there may be reason for optimism in that they know what they are facing even if it’s a new meaning of what’s normal.

The Long Way Home - Housing recovery a mixed bag of contradictions

Hubble Smith / LVBP

OCTOBER 2009 - Longing to escape freezing winters in Oklahoma, Dale Brown wants to find a good deal on a second home in Las Vegas or Phoenix, maybe two bedrooms for about $150,000.

He looked at a condominium at Lake Las Vegas during a recent trip here, but it needed $15,000 in repairs and he was worried about future increases in homeowners' association fees.

"I talked to two Realtors and they're trying to sell you what they've got," Brown said. "That gal's responsibility is to get rid of condos at Lake Las Vegas, and there are some great deals out there."

Vacancies, Poor Sales Slow Retail Development

Brian Wargo / IBLV

OCTOBER 2009 - Numbers showing retail sales in Clark County declined 21 percent in July are adding to the anxiety of those who are waiting on the sidelines when it comes to development.

Retailers have been reluctant to open new stores during the recession. Developers, already under pressure because of rising vacancy rates caused by retailers going out of business, have little appetite to open more retail space even if they could get financing.

The holiday shopping season, in which retailers generate much of their revenue, may be weak again because consumer confidence remains low. That could break some smaller retailers who have been seeking rent breaks from landlords, analysts said.

More Nevadans Will Need Help as Economic Storm Worsens: Total of Nevadans on Food Stamps Jumps 45 Percent; State Projects Greater Hardship, More in Need of Aid by 2013

J. Patrick Coolican and David McGrath Schwartz / Las Vegas Sun

SEPTEMBER 2009 - The parking lot at Catholic Charities, which shares space with a state welfare office, is packed these days.

That’s a new thing. In the past, clients were the type to take the bus or walk to the service center on Las Vegas Boulevard in North Las Vegas. Now it’s the middle and working classes driving here, desperate for help.

Same at the Women, Infants, and Children program offices at Flamingo Road and Torrey Pines Drive, its waiting room teeming with young, weary mothers who need nutrition assistance for their toddlers.

Nevada-China Deal to Boost Cooperation, Jobs

Brian Wargo / LVIB

SEPTEMBER 2009 - Nevada’s economy is expected to get a boost over the next several years from Chinese investments as part of an agreement reached this week.

Nevada and China signed a deal Sept. 8 in Phoenix paving the way for investments that state officials said will create jobs.

The memorandum of understanding is a tacit commitment by the Chinese to invest in renewable energy such as solar, wind and geothermal; mining; manufacturing; and tourism infrastructure, said Alan Di Stefano, Nevada Economic Development Commission director of global trade and investment.

Brokers Battered Because Business Besieged

Brian Wargo / LVIB

SEPTEMBER 2009 - Sign of the times: A for-sale sign advertises a commercial building project near South Buffalo Drive and Interstate 215.

The commercial real estate slump is taking a toll on brokerages whose revenue has dipped sharply because of the steep decline in sales and lease rates.

In Business Las Vegas research in its annual survey showed a shake-up in the ranking of brokerages and the extent of the decline in activity.

Vegas Home Sales Slip as Prices Continue Fall

Brian Wargo / Las Vegas Sun

SEPTEMBER 2009 - The red-hot Las Vegas housing market cooled off a bit in August as home and condo sales dropped and prices edged lower.

The Greater Las Vegas Association of Realtors reported today that the 3,229 sales of single-family homes in August were 14 percent less than July when 3,738 homes sold.

The median price of homes sold in August fell 2.4 percent to $135,500, from $138,800 in July, according to the Realtors.

Home Sales, Prices Fall in Las Vegas

Hubble Smith / LVRJ

SEPTEMBER 2009 - After showing signs of stability for a couple of months, Las Vegas’ housing market returned to its downward trend in sales and prices in August, the Greater Las Vegas Association of Realtors reported Thursday.

Homes are still selling at a brisk pace, but at a slightly slower rate and at lower prices than the previous month, the Realtors’ statistics showed.

Single-family home sales dropped to 3,229 in August from 3,738 in July. They increased 26.9 percent from August 2008. The median price of $135,500 is down 2.4 percent from July and 35.5 percent from a year ago.

Shake-up Among Top Valley Real Estate Executives
Commercial Market Poised for Major Reset Analyst Says

Tony Illia / LVBP

SEPTEMBER 2009 - A dramatic commercial real estate downturn has caused some shake-ups among the
industry's top Las Vegas executives.

Colliers International, for example, recently parted ways with managing partner Michael Campbell. He had overseen the firm's Las Vegas operations since January. Colliers' 66-employee local office recorded 534 commercial real estate transactions last year, with $346.6 million in leases and $632.3 million in sales. Campbell's experience was mostly concentrated in the housing industry, as opposed to commercial real estate. He had recently served as vice president/division manager of Coleman Construction and Coleman Homes in Nevada and California.

Panattoni Picks Up Distressed Property - Acquisition Sheds Light on Wave of Commercial Defaults

Hubble Smith / LVRJ

SEPTEMBER 2009 - Panattoni Development, a major commercial developer and landlord in Las Vegas, has acquired a bank-owned office and industrial project in the southwest valley near the Las Vegas Beltway and Buffalo Drive, a company executive said Wednesday.

It's one of the first distressed commercial properties to be acquired in Las Vegas following a spike in commercial mortgage defaults that started last year, a trend that's forecast to wreak more havoc on the banking industry.

Statistics Show Slight Dip in Local Home Sales, Prices

KVBC-Channel 3 Las Vegas

SEPTEMBER 2009 - Housing statistics released Thursday by the Greater Las Vegas Association of REALTORS® (GLVAR) show local homes still selling at a brisk pace, but at a slightly slower rate and at lower prices than the previous month.

According to the GLVAR, the total number of local homes, condominiums and townhomes sold in August was 4,039. GLVAR President Sue Naumann said that's down from 4,602 total sales in July, but still represents a strong sales month by historical standards.

Southern Nevada Economy Continues to Stifle Development and Construction

John Restrepo / Southwest Contractor

Las Vegas unemployment is up while the retail, office and industrial markets continue to lag.

The Nevada Department of Employment, Training and Rehabilitation reported that 18,700 jobs were lost this year through June in the Las Vegas Metro Area, versus a gain of 3,300 for the same period in 2008. However, it is important to note that June’s jobs were 167,100 higher than that recorded
in June 2000. So on a net basis, more jobs have been created in Clark County in the last nine years than have been lost.

Analyst: LV Keeps Spot at Top of List of Distressed Properties

Brian Wargo / IBLV

AUGUST 2009 - The number of commercial properties facing foreclosure tapered off over the summer, but that hasn’t prevented Las Vegas from holding onto its No. 1 ranking for distressed buildings and development.

In its August report that tracks the market through the end of June, New York-based Real Capital Analytics said Las Vegas had 168 troubled assets valued at $9.2 billion. That is down from $9.4 billion in its July report and $9.7 billion in its June report.

THE ECONOMY: Recovery in Vegas? Not so fast - Growth, tourism — our economic pillars — show no sign of rebound, keeping upturn at bay, experts say

J. Patrick Coolican / Las Vegas Sun

AUGUST 2009 - Las Vegas will take much longer than the rest of the country to emerge from the recession, according to several local economists. And once it does, the good old days won’t be coming back.

Without a major effort to broaden and strengthen the foundation of the local economy, this is what they see as the new normal for Las Vegas: flat or at-best much slower population growth, higher-than-average unemployment, slow wage growth.

“We will lag the national economy instead of leading it,” UNLV economist Bill Robinson said.

WHO’S WHO – IN BUSINESS LAS VEGAS

AUGUST 2009 - John Restrepo is the principal of Las Vegas-based Restrepo Consulting Group LLC, which he started in 1997. RCG is the most established economics and public policy research firm in Nevada. Restrepo has been providing consulting services in Nevada for 19 years. Prior to starting
RCG, he was the director the Las Vegas office of Coopers & Lybrand (now PricewaterhouseCoopers). Restrepo has analyzed regional economic trends in a number of markets. His clients include many prominent private and public organizations.

Report: Local Economic Rebound Likely in 2011

Steve Green / Las Vegas Sun

AUGUST 2009 - Las Vegas economic forecaster John Restrepo is out with another gloomy report on the Southern Nevada economy.

Restrepo, of Restrepo Consulting Group, points out that the June unemployment rate in Clark County of 12.3 percent compares unfavorably to the 8 percent rate in Phoenix -- a city hit hard like Las Vegas by the real estate catastrophe that started with the subprime mortgage crisis.

"Despite the significant problems in Phoenix, like the amount of developable land compared to Southern Nevada, Phoenix has an unemployment rate that is more than 4 points lower than Las Vegas. Why you may ask. The answer is simple: Phoenix has a more diverse economy that is not so heavily dependent on
tourism and discretionary spending, even with a less 'business friendly' tax structure than Nevada," Restrepo writes in the latest edition of his Economic INsight report.

THE ECONOMY: Recovery in Vegas? Not So Fast - Growth, Tourism — Our Economic Pillars — Show No Sign of Rebound, Keeping Upturn at Bay, Experts Say

J. Patrick Coolican / Las Vegas Sun

AUGUST 2009 - Las Vegas will take much longer than the rest of the country to emerge from the recession, according to several local economists. And once it does, the good old days
won’t be coming back.

Without a major effort to broaden and strengthen the foundation of the local economy, this is what they see as the new normal for Las Vegas: flat or at-best much slower population growth, higher-than-average unemployment, slow wage growth.

DEVELOPMENT: High-rise Plans go Flat in Las Vegas - Planners' Eyes Bigger Than Market as Many Proposed High-rises Fizzle

Hubble Smith / LVRJ

AUGUST 2009 - In feverish times, when spinmeisters hyped the "Manhattanization" of Las Vegas, grand plans were
announced for some 75 high-rise towers that would deliver 47,500 luxury condominium units to a market saturated with single-family stucco homes in sprawling suburbs.

This is what Las Vegas needs and wants, developers from New York and Florida confidently proclaimed as they unveiled slick architectural renderings of glamorous buildings and promoted lifestyle amenities to match.

Economic Indicators Increase Slightly

Brian Wargo / IBLV

JULY 2009 - A UNLV index that measures Las Vegas’ economy rose modestly from May to June, meaning the sharp slowdown in the region has at least paused and given hope of a recovery starting in 2010, according to economist Keith Schwer.

June’s Southern Nevada Index of Leading Economic Indicators, which measures economic data in April, is down 2.98 percent from June 2008, but is 0.06 percent higher than May, said Schwer, UNLV’s Center for Business and Economic Research director.

THE ECONOMY: Recovery Moving Slowly but Steadily / Critics Call Stimulus a Failure, but Others See Welcome Progress

Lisa Mascaro, David McGrath Schwartz & Emily Richmond / Las Vegas Sun

By The Numbers: Some gains to come … 1,100 — Jobs one expert estimates will be created by Nevada Transportation Department projects made possible by the economic recovery plan.

285 — Positions the Clark County School District is looking to fill, thanks to $114 million from the recovery act. Of those jobs, 130 will be teachers; the rest will be staff support positions. Other districts statewide will also be hiring.

REAL ESTATE: Outlook for LV Housing Grim - Sales Down in First Quarter; Builders Can't Get Financing

Hubble Smith / LVR-J

JULY 2009 - A few years ago, when 3,000 to 4,000 new homes were being sold monthly in Las Vegas, people were trampling each other to snap them up, camping for days to be first in line for new releases at some 500 subdivisions around the valley and pushing prices beyond reality.

Homebuilders couldn't deliver fast enough. They were fetching top dollar for their product and reaping huge profits. It was a bandwagon that carried the entire real estate industry.

Jobless Jump is Fueled by End of School Year

Nicole Lucht / IBLV

JULY 2009 - The dramatic increase in June’s jobless rate can be partially attributed to jobs cut at the end of the school year, economists said. Las Vegas’ jobless rate in June was 12.3 percent; statewide, it was 12 percent.

Las Vegas’ labor force dipped in June, dropping 400 workers. However, it grew 2.5 percent from 987,000 to 1.01 million employed and unemployed workers living in the city in the past year. In that time, 37,500 jobs were eliminated, from 924,300 in June 2008 to 886,800 last month.

On Economic Horizon: Diversification is Essential for Southern Nevada

Brian Wargo / IBLV

JULY 2009 - This summer’s round table discussion on what caused Las Vegas’ recession and what needs to be done to reset the economy should generate a lot of debate in the business and gaming communities.

It’s not like the topic hasn’t been discussed before. But with the backdrop of the worse recession since the Great Depression, the debate should be lively. UNLV’s Lied Institute for Real Estate Studies is the sponsor for the August event.

Loans Weigh Down Nevada Banks

Nicole Lucht / IBLV

JULY 2009 - Nevada banks have loaned out more than they have taken in, and the higher the number, the
more concern banking regulators have, state Financial Institutions Commissioner George Burns said.

The Federal Deposit Insurance Corp. report, released last week, is based on a bank’s loans and deposits made as late as June 30, 2008. Only North Dakota’s 172 percent loan-to-deposit ratio is higher than Nevada’s 128 percent.

The purpose of the rating is to make sure that banks with headquarters outside of Nevada aren’t using deposits made in the state for loans elsewhere. Closely watched are the big national banks such as Bank of America, Wells Fargo and US Bank, Burns said.

Valley’s Anchored Market Falls Victim to Economic Downturn

By John Restrepo, Principal, with John Donovan and Maria Guideng, Researchers, Restrepo Consulting Group LLC – CRE Article / IBLV

JUNE 2009 - The Las Vegas Valley’s economy remains in the midst of one of the most severe downturns in U.S. history. The culprits are the collapse of the local housing market, massive job losses and the frozen credit markets. Consequently, the valley’s anchored retail market, such as the office and industrial
markets, has not been able to avoid the turmoil.

For many years, the region’s anchored market was one of the most vibrant and strongest in the region, if not the nation. That has now changed. The housing market crash, combined with the drop in consumer confidence and spending, has caused the valley’s anchored retail centers to see a steady rise in vacancy
and a downward trajectory in rents. A look at our local economy should shed some light on where the valley’s anchored market is headed in 2009.

Look Who’s in the Jobless Line: Bosses - Managers’ Claims Grew Faster than Others’; Analyst Blames Construction Bust

Nicole Lucht, Richard N. Velotta, Brian Wargo / Las Vegas Sun

JUNE 2009 - The biggest percentage increase in unemployment from May 2006 to May 2009 was among those in the ranks of management, state unemployment statistics show.

The number of managers filing for unemployment increased by 436 percent in that period, from 1,297 claims in 2006 to 6,950 three years later.

Analyst John Restrepo said many of those managers may have come from the hard-hit construction industry. “You get rid of the more expensive guys first, and then just spread around the work to the remaining guys,” he said.

Commercial Market Tilts to Tenants - Suffering Real Estate Segment May Help Startups

Hubble Smith / LVRJ

No matter how bad the economy gets, nobody wants a dirty, smelly dog.

That's why Kathy Patterson decided to open Barking Dogs Self-Wash and Grooming at Cimarron and Blue
Diamond roads in the southwestern Las Vegas Valley.

While many retailers are struggling to make payroll and expenses, Patterson saw an opportunity to
expand her business. She also owns Barking Dogs Bakery and Boutique on Rainbow Boulevard.

Commercial Developers, Lenders in ‘Stare Down’

Brian Wargo / IBLV

JUNE 2009 - Property owners are doing what they can to cut prices to lure buyers, but the market for office buildings, retail parks and other commercial development is at a standstill.

As of June 4, New York-based Real Capital Analytics reports 53 sales worth $17.7 billion have closed in the past 12 months out of 185 for sale.

The worst rate has been in retail: 13 out of 71 on the market sold for a total of $143 million or $198 per square foot.

MGM-Mirage: CityCenter Bankrupt No More

Gerard Ramalho / Channel 3

JUNE 2009 - It's a breaking development in the biggest development project on the Las Vegas Strip.

Tuesday, MGM-Mirage announced it has removed a bankruptcy warning that threatened the completion of CityCenter.

News 3's Gerard Ramalho reports that there is reason to be excited about the news: Analysts agree that the economic future of Las Vegas, at least in part, hinges on the success of CityCenter.

Construction on the project has never actually stalled, but after Tuesday, there's even more reason to believe that the project will open on time.

Vegas Economy Shows Glimmer of Hope

The downturn in the real estate market has lowered home prices, such as in this Henderson neighborhood, to levels not seen in years. Lower prices have increased home sales, a factor leaving some economists optimistic that a rebound in the economy is around the corner.

Brian Wargo / IBLV

JUNE 2009 - Could the worst be over for Southern Nevada’s economy?

Although the evidence is meager, there is an indication that Las Vegas’ economy could improve in the coming months based on the latest data from UNLV’s Center for Business and Economic Research, according to Director Keith Schwer.

The Southern Nevada Index of Leading Economic Indicators shows seven of the 10 categories turned positive in May compared with April. However, nine indicators were down compared with May 2008. Overall, the index was down by 3.2 percent since then.

Vacancies Don’t Deter Longtime LV Developer

Brian Wargo /IBLV

JUNE 2009 - No one has to tell Roland Sansone that the office vacancy rate in Las Vegas is 20 percent.

Sansone, CEO of Sansone Development, is wrapping up grading and utility work in Henderson in preparation for construction of a three-story office building south of Interstate 215 and St. Rose Parkway.

The 60,000-square-foot office building is part of a 100,000-square-foot development that has four retail
buildings.

Smaller Home Price Drop May Signal Bottom

Brian Wargo / IBLV

JUNE 2009 - Housing analysts said a moderate price drop in May could signal that higher-priced homes are finally starting to sell in Las Vegas.

Home prices in May dropped by their smallest percentage since November 2007 as demand approached record levels, according to the Greater Las Vegas Association of Realtors.

The median price of homes sold in May was $140,000, a 1.2 percent decline from April when the price was $141,720. Prices, which are at their lowest level since 2001, according to the Realtors’ group, had dropped by 4 percent a month in the previous two months and had declined by as much as 8.6 percent in January. The May drop was the smallest decline since a 0.4 percent drop from October 20007 to November 2007, according to the group, which tracks all homes sold through Realtors.

Economic Indicators Rise Slightly from April to May

Hubble Smith / LVRJ

JUNE 2009 - The Southern Nevada Index of Leading Economic Indicators showed a slight uptick in May, but it's still down 3.2 percent from a year ago, a UNLV economist reported.

Led by improvements in gross gaming revenue and taxable sales, the index climbed to 126.83, compared with 126.09 in April and 130.80 in May 2008. Seven of 10 data series rose, adjusted for seasonal variations.

Affordable Housing Topic Still Relevant Despite Price Drops

Brian Wargo / IBLV

JUNE 2009 - Las Vegas’ staggering home prices during the boom years generated cries that the lack of affordable housing hindered the region’s ability to attract teachers and other crucial professionals and prevented companies from moving here.

Despite home prices falling in April to their lowest level since 1998, the need for affordable housing hasn’t waned.

Members of the Las Vegas chapter of the Urban Land Institute met recently to discuss the once-hot topic
that you would have thought would have gone by the wayside with median home prices of $125,000 — more than $160,000 below their peak in June 2006.

.

Home Prices Drop by Smallest Amount Since 2007
Median Price of a Home Sold in May Falls to $140,000

Brian Wargo / Las Vegas Sun

JUNE 2009 - Las Vegas home prices dropped in May by their smallest percentage since November 2007 as demand for housing approached record levels, according to statistics released Tuesday by the Greater Las Vegas Association of Realtors.

The median price of homes sold in May was $140,000, a 1.2 percent decline from April when the price was $141,720. Prices, which are at their lowest level since 2001 by the Realtors’ group calculations, had been dropping by more than 4 percent a month in the previous two months and as much as 8.6 percent in January. This is the smallest decline since a 0.4 percent drop from October 2007 to November 2007, according to the group, which tracks all homes sold through Realtors.

Report: State’s Tax Hike Will Bring Stimulus to Economy

Steve Green / Las Vegas Sun

JUNE 2009 - A Las Vegas economic forecaster says the Legislature's decision to hike taxes by $1 billion was a good one and likely will provide some stimulus to the struggling Nevada economy.

"Some will say, 'Taxes are never good during a recession,'" John Restrepo's Restrepo Consulting Group says in the May edition of its Economic INsight report. "However, the nature of the current recession does not make it possible to cut our way to prosperity. The impact of double-digit cuts to health care, education and social assistance would be too severe to the quality of life of our community.

Experts Eye Fewer Jobless Claims with Nervous Anticipation

Edward Lawrence – Channel 8 Las Vegas NOW

JUNE 2009 - National ongoing jobless claims dropped for the first time since January. Nationwide,15,000 fewer people are filing unemployment claims, but no one is popping out the Champagne yet.

When business at Millennium Staffing Services picks up, everyone needs to take notice. Sure, more people have been filling out applications, but over the past six weeks, more of those applications have been accepted by employers.

Valley Office Rents Drop by Nearly 10 Percent - Banks Pressure Landlords to Create Revenue or Face Foreclosure

Tony Illia / LVBP

JUNE 2009 - Southern Nevada's office market took a beating in the first quarter. Vacancies reached a record 20 percent while rents dipped by nearly 10 percent, reports Restrepo Consulting Group, a Las Vegas economic research firm.

This marks the highest amount of empty office space the Las Vegas Valley has seen in more than a decade. Median asking rents, meanwhile, were $2.28 per square foot in the first quarter or 24 cents less than a year ago. Record unemployment, a deepening recession, and overbuilding are to blame, Restrepo claims.

Experts Eye Fewer Jobless Claims with Nervous Anticipation

Edward Lawrence – Channel 8 Las Vegas NOW

JUNE 2009 - National ongoing jobless claims dropped for the first time since January. Nationwide, 15,000 fewer people are filing unemployment claims, but no one is popping out the Champagne yet.

When business at Millennium Staffing Services picks up, everyone needs to take notice. Sure, more people have been filling out applications, but over the past six weeks, more of those applications have been accepted by employers.

Report: State’s Tax Hike Will Bring Stimulus to Economy

Steve Green / Las Vegas Sun

JUNE 2009 - A Las Vegas economic forecaster says the Legislature's decision to hike taxes by $1 billion was a good one and likely will provide some stimulus to the struggling Nevada economy.

"Some will say, 'Taxes are never good during a recession,'" John Restrepo's Restrepo Consulting Group says in the May edition of its Economic INsight report. "However, the nature of the current recession does not make it possible to cut our way to prosperity. The impact of double-digit cuts to health care, education and social assistance would be too severe to the quality of life of our community.

Home Prices Drop by Smallest Amount Since 2007
Median Price of a Home Sold in May Falls to $140,000

Brian Wargo / Las Vegas Sun

JUNE 2009 - Las Vegas home prices dropped in May by their smallest percentage since November 2007 as demand for housing approached record levels, according to statistics released Tuesday by the Greater Las Vegas Association of Realtors.

The median price of homes sold in May was $140,000, a 1.2 percent decline from April when the price was $141,720. Prices, which are at their lowest level since 2001 by the Realtors’ group calculations, had been dropping by more than 4 percent a month in the previous two months and as much as 8.6 percent in January. This is the smallest decline since a 0.4 percent drop from October 2007 to November 2007, according to the group, which tracks all homes sold through Realtors.

EMPTY FEELING: Struggling Economy Leads to Tripling of Unused Retail Space

Tony Illia / LVBP

MAY 2009 - Retailers are facing tough times. A deepening recession and rising unemployment have diminished families' consumer confidence and left them with less money for shopping. Circuit City closed four stores in the Las Vegas Valley during the first quarter, Linens 'n Things closed two locations and Gold's Gym shut down a branch. Southern Nevada's retail market recorded a 12.4 percent vacancy rate
during the first three months of 2009, reports CB Richard Ellis.

It's nearly triple the amount of unoccupied space from just two years ago.

Forecast: City’s Recovery will Trail National Rebound

Steve Green / Las Vegas Sun

May 2009 - The worst U.S. economic downturn since the Great Depression is likely to end in October, a national economist told Las Vegas convention-goers today.

Mark Zandi, chief economist for Moody's Economy.com, made the prediction during a presentation during day two of the International Council of Shopping Centers ReCon convention at the Las Vegas Hilton and Las Vegas Convention Center.

Auto Industry Woes: Las Vegas Escapes GM Purge - 1,124 Dealerships to be Terminated in U.S.

John G. Edwards / Las Vegas Review-Journal

May 2009 - Southern Nevada's 15 General Motor dealers ended a white-knuckle wait for franchise termination notices Friday, and one key dealer believes they all escaped unscathed.

"My people have been at wit's end for two weeks," said Greg Heinrich, president of Fairway Chevrolet, Henderson Chevrolet and the Pahrump Valley Auto Plaza. Like workers at other dealerships, his employees feared they would lose their jobs, he said.

Las Vegas Poised for Economic Rebound?

Gerard Ramalho / Channel News 3

May 2009 - With Las Vegas more than one year into its worst decline on record, people just want to know when things will turn around. A new Forbes.com report suggests it will happen sooner than you think. News 3's Gerard Ramalho digs deeper into why some experts say Vegas is poised to lead the economic rebound.

A Job You Don't Want: Projecting the State's Revenue Now - Economic Forum Looks Ahead Two Years, Sees More Signs of Trouble

J. Patrick Coolican, David McGrath Schwartz / Las Vegas Sun

May 2009 - Despite the dull and dry drone, discussions Friday among the state’s official fiscal forecasters, collectively called the Economic Forum, occasionally seemed
surreal.

Frank Streshley, for instance, chief of the Gaming Board’s Tax and License Division, offered a bit of hope amid all the doom and gloom: “We have a strong events calendar this month,” he said, pointing to tonight’s boxing match between Ricky Hatton and Manny Pacquiao. He then offered up concerts by Dave Matthews, Jimmy Buffett and Fleetwood Mac.

Budget Hole Gets $908 Million Deeper

Anjeanette Damon / Reno Gazette-Journal

May 2009 - Legislators struggling to ease the sweeping budget cuts proposed by Gov. Jim Gibbons were dealt a $900 million setback Friday, with the release of final revenue projections that have further deteriorated amid the state's worsening economy.

Housing Collapse Gets The Blame for Industrial Market's Woes

Brian Wargo / In Business Las Vegas

May 2009 - The effect of the housing market collapse extends well beyond the residential sector, as evidenced by the industrial building market’s foundering in the fallout.

Vacancy rates have reached their highest level since the recession in 2002 when the rates averaged
between 10 percent and 11 percent.

Retail Vacancy Up 66% from Q1 '08

Brian K. Miller / GlobeSt.com

April 2009 - The Las Vegas retail market posted its second consecutive quarter of negative net absorption we well as a record-high vacancy rate, according to a first quarter report by Applied Analysis, a locally based business research and advisory firm that tracks 51 million square feet of retail space in the region. The firm attributes the performance to retailers that closed stories in the market and new developments that came to market with significant vacancy.

Office Vacancies Climb as Rents Head South, Analysts Say

Brian Wargo / IBLV

April 2009 - The office vacancy rate in Las Vegas surpassed 20 percent during the first quarter and rents are tumbling with no sign of slowing, according to a consulting firm.
Restrepo Consulting reported the vacancy rate jumped from 18.4 percent at the end of 2008 to 20 percent by the end of March. That number is even higher at 21.7 percent when subleased space is included.

That’s quite a jump from the 14 percent vacancy rate at the end of March 2008. Of the 40.6 million square feet in the valley, 8.1 million square feet is vacant, the firm noted.

Las Vegas Braces for Commercial Foreclosures

Nicole Lucht, Brian Wargo / IBLV

April 2009 - A tsunami of commercial real estate foreclosures is on the horizon and is threatening banks and undermining developers who are already struggling with high vacancy rates.

It’s another looming blow for many Southern Nevada banks that are sweeping up after the financial wave of the residential real estate bust. Since the first of the year, a growing number of
developers of offices, industrial space and retail centers are in default and face foreclosure, according to local real estate analysts.

Speculative office market takes hit; Sahara poker tourney planned

Steve Green / Las Vegas Sun

April 2009 - The latest report on the Las Vegas office market shows, again, there's a dramatic imbalance between supply and demand.

Consulting firm Restrepo Consulting Group LLC said the Las Vegas Valley’s speculative office market -- that is, space built without a tenant lease in hand -- closed the first quarter with a
record 20 percent vacancy rate.

THE ECONOMY: How did so many experts get their forecasts so wrong?

Difficulty, missed signs and lingering boom-time euphoria all contributed to inaccurate predictions. Jeremy Aguero, a principal analyst with Applied Analysis, remains optimistic about Las Vegas’ future, saying, “This economy has weathered storms before and I certainly believe it will weather this one.”

J. Patrick Coolican, Michael Mishak / Las Vegas Sun

April 2009 - It’s April 2008.

Henderson primed to receive 500 acres from federal bill

Jeremy Twitchell / Las Vegas Sun

March 2009 - A federal lands bill that would give more than 500 acres to Henderson for business development and 25 acres to the Nevada Cancer Institute is inching closer to passage.

The two provisions are among more than 150 bills that have been lumped together into a single federal lands bill package.

The bill has faced opposition in the Senate, but advisers to Senate Majority Leader Harry Reid said Tuesday that a compromise had been reached to limit the number of amendments to the bill and that it could pass before the week's end.

State jobless rate jumps; numbers worse in Las Vegas

Nicole Lucht / IBLV

March 2009 - January was another grim month for unemployment in Southern Nevada and most of the rest of the state.

Las Vegas’ unemployment rate hit 10 percent in January, while the state’s jobless rate increased a full percentage point to 9.4 percent.

The state adjusted its unemployment calculations for 2008, taking into account new population estimates. An earlier report said Nevada’s jobless rate for December was 9.1 percent; it has been adjusted to 8.4 percent.

Las Vegas’ jobless rate in January 2008 was 5.6 percent, making this January’s rate a year-overyear
increase of 78.6 percent.

The state of our engine

Liz Benston / LVRJ

March 2009 - Last year, Las Vegas gaming revenue fell to 2005 levels.

On the Strip, which generates more than half of the state’s gaming revenue, gamblers lost $6.1 billion last year. That’s about what they lost in 2005 — a boom year with revenue soaring 13 percent from a year earlier.

No industry wants to go backward. But considering the stock market has plunged to 1997 levels and homes may take decades to return to their peak values of a couple of years ago, three years of gaming growth seems like a small hit in this economy.

Cutting costs with more than just layoffs

Nicole Lucht / InBusiness Las Vegas

February 2009 - Zappos, Trump Tower, MGM Mirage, Ford Motor Credit, Sunrise Hospital, Las Vegas Sands. Layoffs are hitting all sectors of the local economy.

On a national level, retailers Macy's and Home Depot are cutting 7,000 jobs each, pharmaceutical giant Pfizer and wireless provider Sprint are cutting 8,000 each, Microsoft is cutting 5,000, Intel is cutting 6,000 and United Airlines is cutting another 1,000 on top of the 1,500 positions eliminated last year.

In December, Nevada's unemployment rate hit 9.1 percent, an unprecedented full percentage point increase from the previous month. The national rate is 7.2 percent.

Wheel of Fortune

The Economist

February 2009 - We begin an occasional series on how America’s states are faring in the downturn with Nevada, the ultimate in boom and bust.

For a glimpse of the old, confident Las Vegas, visit its newest hotel. Steve Wynn’s vaguely Chinese-themed Encore, which opened in December, is packed with heavy draperies and welldrilled staff. It has thousands of indoor flowers, flat-screen televisions in the bathrooms and a restaurant where the décor changes every half-hour or so. One of its boutiques sells a bejewelled object adorned with a butterfly for $269. Closer inspection reveals it to be a toothbrush-holder.

No doubt it seemed like a good idea two-and-a-half years ago, when work began on the hotel. Today it seems delusional. Nevada’s most distinctive industry is slumping as Americans fasten their wallets. Despite the opening of several big casinos, total gambling revenues have declined by 15% in a year. Developers are frantically scaling back projects, or even mothballing them. Still, two huge casino-hotels will open this year, boosting supply at the worst possible moment.

Valley office vacancies hit highest level

Hubble Smith / Las Vegas Review Journal

January 2009 - Las Vegas is overbuilt, with 48.6 million square feet of office space, pushing vacancy rates to 17.3 percent in the fourth quarter, Voit Commercial Brokerage reported.

It's the highest level of vacancy on record, Voit Senior Vice President Kevin Higgins said. The rate has climbed 3.7 percentage points from 2007 and was below 10 percent as recently as 2005.

Absorption, or demand for space, retreated to 637,800 square feet in 2008, down 68.9 percent from 2.05 million square feet the previous year. Higgins said it would take two or three years of that kind of historical absorption to get vacancy back to 10 percent.

High costs hamper industrial market, study finds

Tony Illia / Las Vegas Business Press

January 2009 - Southern Nevada's industry market is losing ground to rival cities due to high development costs, reports the Southern Nevada chapter of NAIOP. The commercial real estate trade group recently released an 86- page report produced by the Theodore Roosevelt Institute that examines the Las Vegas Valley's industrial land constraints and its consequences.

Less local land is fueling higher development expenses. Warehouse and distribution centers must compete against housing subdivisions and shopping centers for developable property, making many projects no longer financially viable. There is only 6,619 acres of industrial land in the Las Vegas Valley, the study says, including some undevelopable tracts. Yet, most warehouse and distribution centers require 10 acres or more for development, further shrinking the pool of available acreage. Roughly 52 percent of all industrial zoned land lies within unincorporated Clark County.

Is it real estate developers' turn for a federal bailout?

Brian Wargo / InBusiness Las Vegas

January 2009 - Investment banks and financial institutions asked the government to bail them out because of the mortgage meltdown and automakers did the same to stave off bankruptcy.

And now real estate developers across the country are holding out their hand asking the federal government for some help.

A dozen real estate trade groups sent a letter to Treasury Secretary Henry Paulson asking to be included in a $200 billion loan program intended to secure car loans, student loans and credit card debt.

The reason: reports that more than $500 million in commercial mortgages are coming due for refinancing in the next three years and more than $160 million in the next year alone.

Developers are concerned the lack of available credit will prevent many from refinancing and prompt foreclosures of office complexes and shopping centers.

DP Partners builds new $32 million industrial complex
Groundbreaking for three-building project expected to come by year's end

Tony Illia / Las Vegas Business Press

September 2008 - DP Partners is back. The Reno-based national developer has been out of sight, quietly plotting its next move, since selling off the bulk of its real estate portfolio last year to Denver-based rival ProLogis for $1.85 billion in cash. The deal's timing was perfect, industry observers say, taking full advantage of the capital markets for a maximum return on investment.

Well, DP is now back in the game and building its first major development in Southern Nevada since last summer's sale.

"We're bullish on the market over the long term," said Bradley Myers, DP's Las Vegas regional manager. "We wanted to get back into the market that we grew up in. This is our bread and butter."

Industrial market stays steady
Construction on new projects not expected until early 2009

Tony Illia / Las Vegas Business Press

September 2008 - Southern Nevada's industrial market was resilient during the second quarter with a low 5.87 percent vacancy rate, CB Richard Ellis reports. It marks the first time in 18 months that the Las Vegas valley's industrial market vacancies decreased, it adds.

Industrial space is a consistent commercial real estate market, say industry pundits. It doesn't experience the big vacancy swings like office and retail markets. Its steady performance is partly due to a careful balance between demand and supply.

Foreign investors take interest in LV housing

Brian Wargo / In Busiiness Las Vegas

August 2008 - Las Vegas has been in the national media's spotlight because of the drop-off in the gaming industry and its effect on the local economy, but there has been some positive news as well.

USA Today reported "there's a glimmer of hope in (Las Vegas) the neon city of Nevada, where home sales are starting to heat up after two dismal years."

Optimists look for silver lining in Echelon shutdown

Richard Velotta / In Business Las Vegas

August 2008 - For those of us who are by nature optimistic and are always trying to find the silver lining, the recent news of the shutdown in construction at Echelon came as a shock.

A $4.75 billion project being built by one of the city's best companies, Boyd Gaming, shut down? Say it ain't so!

Housing affordability seen as long-term problem
Businesses, governments in area must do more to help workers, study says

Brian Wargo / Las Vegas Sun

August 2008 - Despite the housing slowdown that has dropped median house prices more than 20 percent in the past year, affordability remains a long-term problem that could stop industries and workers from moving to
Southern Nevada, according to a study done on behalf of local governments.

The study conducted for the Southern Nevada Regional Planning Coalition by Restrepo Consulting Group and the Theodore Roosevelt Institute also suggests it’s not enough to have affordable housing on the fringes of the valley or in satellite communities.

Housing legislation could spur quicker Las Vegas rebound

Brian Wargo / In Business Las Vegas

August 2008 - As the infancy of a recovery takes shape in the Las Vegas housing market, builders and analysts are counting on a $300 billion housing rescue bill to accelerate any rebound.

Congress approved legislation that allows homeowners to avoid foreclosure by refinancing mortgages into fixed-rate loans insured by the Federal Housing Administration.

Recession taking its toll on Las Vegas economy

Brian Wargo / In Business Las Vegas

July 2008 - The Las Vegas economy is continuing its slump, and commercial real estate and development are paying the price.

Pressured by overbuilding and retail outlets closing, Las Vegas recorded its highest retail and office vacancy rates in two decades. As a result, commercial construction has fallen 66 percent in the past year.

Triggered by Las Vegas' 2-year-old housing slump and coupled with this year's slowdown in tourism and gaming and commercial construction, the local economy is in a recession. And it worsened slightly in June's Southern Nevada Index of Leading Economic Indicators, released by UNLV's Center for Business and Economic Research.

WAITING TO RECOVER
Developments are down, vacancies are up, but hopes are high

Tony Illia / Las Vegas Business Press

June 2008 - Southern Nevada's commercial real estate market has softened somewhat as a result of the housing downturn and the resulting tightened credit availability for land-secured loans. There were 987 home foreclosures last month or the equivalent of 32 per day. Another 5,117 homes were undergoing the foreclosure process in May, which is 20 percent more than 12 months ago. Meanwhile, Las Vegas building permit activity dipped 38 percent for the first five months of 2008 versus the same period last year. There was only $59 million in commercial construction through May, 80 percent less than in 2007.

Office tenants make demands

Brian Wargo / In Business Las Vegas

June 2008 - With the office vacancy rate in the Las Vegas Valley creeping up quarter after quarter, landlords continue to offer breaks in rent and higher improvement allowances to attract tenants.

Although those factors play an important role in where a business locates, more and more companies take into account amenities in making decisions on where to locate, and office developers are trying to stay ahead of the curve in meeting their needs.

Las Vegas pushing growth to limits

Alan Choate / Review Journal

June 2008 - Pavement meets empty desert at the north end of Durango Drive. Limitations on growth at Las Vegas' northern boundary could impact the city's population growth and accompanying increases in tax revenue.

In far northwest Las Vegas, the city ends abruptly. One side of the street has houses and sidewalks, and the other has open space, including an environmentally sensitive area called the
Upper Las Vegas Wash.

Nevada’s Retail Market
Remains Resilient Despite Economic Downturn

Tony Illia / Nevada Business Journal

April 2008 - Nevada’s population boom and resilient economy have kept retail demand high, despite a statewide housing downturn. The state economy was home to 1.29 million jobs in the final quarter of 2007, with 5,300 new retail positions created by the holiday shopping season. Nevada is forecasted to see a 5 percent job growth by the decade’s end.

“There is reason to be optimistic about Nevada’s long-term economic outlook,” said Bill Anderson, chief economist of the Nevada Dept. of Employment Training and Rehabilitation. “While the news of late has not been encouraging, a developing megaresort boom, coupled with a likely improvement in the housing sector is the reason for the positive forecast.”

Chic, urban…and deserted
Shell of Henderson condo project symbolizes bust

Mike Trask / Las Vegas Sun

April 17, 2008 - At the end of Paseo Verde Parkway in Henderson, past the apartment complexes, the nice homes and the occasional dirt lot, sits something half-finished.

It’s the Las Vegas housing boom, manifest in the boxy, off-white form of Vantage Lofts. Just look south as you drive past Gibson Road on Interstate 215. You’ll see it sitting there, boarded up.

Resales rise for high-rise luxury condos, data find
Price per square foot declines, observer says

Hubble Smith / Las Vegas Review Journal

April 14, 2008 - Apr. 14, 2008 - Luxury high-rise condo resales increased to 29 units in the first quarter from 24 in fourth quarter 2007, Las Vegas-based Restrepo Consulting Group reported. The number is up from 27 in the same quarter a year ago.

While sales are up, the high-rise condo market continues to show signs of weakness, Restrepo Consulting project director Elena Shampaner said.

ECONOMY: Bad news mounts in housing
Clark County preforeclosures hit record in March

Hubble Smith / Las Vegas Review Journal

April 3, 2008 - April 3, 2008 - The number of Clark County homes that entered preforeclosure status reached a record 6,152 in March, up 52 percent from February and more than double the 2,813 preforeclosures in the same month a year ago, Sacramento, Calif.-based Foreclosures.com reported.

The county has 15,937 preforeclosures through the first quarter of the year, or 3.11 percent of its 512,253 households, the online foreclosure source reported.

Territory breaks ground on Centennial Gateway II
Juliet Cos. nears completion of Lake Mead Crossing's first phase

Tony Illia / Las Vegas Business Press

April 1, 2008 - Territory recently broke ground on the final phase of its $92 million, 350,000-square-foot Centennial Gateway development at U.S. Highway 95 and Ann Road in northwest Las Vegas. The project is a joint venture with Schwartz Development and Olympia Development. Centennial Gateway premiered in fall 2006 with Walgreen's, Lay-Z-Boy and Barbecues Galore, among others.

Downtown Las Vegas redevelopment
continues to undergo major changes

John Restrepo / CRE Realty Check

March 2008 - Mayor Oscar Goodman and the Las Vegas City Council continue to make the revitalization of downtown the centerpiece of the city of Las Vegas’ economic development efforts. Several of the city’s efforts have already begun to bear fruit, and the coming years are likely to bring even more dramatic changes. Below, are the highlights of downtown’s current and future major development and redevelopment activities as well as the state of the area’s residential and commercial markets at the end of 2007.

Water needs spurs Apex developers to seek annexation

Brian Wargo / In Business Las Vegas

March 21, 2008 - A group of property owners with the development rights to most of the Apex Industrial Park have petitioned for annexation into North Las Vegas. That's the first step for water lines to be extended to a project that's yet to reach its potential and could help solve the growing scarcity of industrial land in Southern Nevada.

Negotiations have been under way for about 10 months, and city officials are talking with Clark County about an interlocal agreement that would allow the annexation to go forward, says Mike Majewski, North Las Vegas' economic development director.

Resort condo sales prices remain strong

Single-family homes in valley sell for 88 percent less than average CityCenter condo

Tony Illia / Las Vegas Business Press

March 19, 2008 - Southern Nevada's luxury high-rise condo market recorded average sale prices of nearly $792 per square foot in January, reports Restrepo Consulting Group, a Las Vegas-based real estate research firm. MGM Mirage's $7.8 billion CityCenter had the valley's highest-priced condos at $1,492 per square foot. The 18.6 million square foot, mixed-use development is under construction on the Strip between Monte Carlo and Bellagio. A single-family home, by comparison, sells for around $180 per square foot or 88 percent less than a CityCenter high-rise residence.

BankUnited blacklists 14 local condo properties
Florida bank bases its loan refusals on 'risk-based factors'

Tony Illia / Las Vegas Business Press

February 25, 2008 - Home buyers looking to purchase units at Sky Las Vegas, One Queensridge Place and Panorama Towers won't be running to BankUnited for a mortgage. The Florida-based bank has named those projects and others in a blacklist of 191 luxury condominiums across the country for which it will no longer write loans.

Governor Appoints Three to Nevada Economic Forum

February 4, 2008 - Governor Jim Gibbons announced today that he has appointed John Restrepo, Linda Rosenthal, and Cathy Santoro to the Nevada Economic Forum, which is responsible for providing forecasts of the state’s general fund revenues for each biennium budget period.

The Economic Forum consists of five appointed members who cannot be employees of state government, including publicly supported institutions of higher education. Three members are appointed by the Governor, one member is appointed by the Senate Majority Leader, and one member is appointed by the Speaker of the Assembly to serve for a two-year term.

Head of office, industrial property group outlines agenda for 2008

Tony Illia / Las Vegas Business Press

January 28, 2008 - Real estate is like a second language for John Restrepo. He runs a real estate research firm, Restrepo Consulting Group, that helps keep local decision-makers informed.

Now it's Restrepo's turn to serve as decision-maker. He was recently named 2008 president of the local chapter of the National Association of Industrial and Office Properties. Restrepo served on the board for 10 years.

Vacancy rates climb in local office market

Hubble Smith / Las Vegas Review-Journal

January 25, 2008 - A year-end market review from Commerce CRG showed a 12.4-percent vacancy rate on 44.7 million square feet of existing office space in Las Vegas, up from 11.5 percent in mid-year 2007.

That doesn't take into account more than 1 million square feet of "sublease" space available, or space that is empty but under lease contract, said Ken Marrama, research and marketing director for Commerce CRG. He adds another 2.1 percentage points to the vacancy rate, taking it to 14.5 percent.

Industrial market softens in fourth quarter

Tony Illia / Las Vegas Business Press

January 14, 2008 - The Las Vegas Valley's industrial market softened in the fourth quarter as vacancies rose and rents dropped. The trickle-down impact from a hemorrhaging housing market and accompanying credit crunch are taking their toll. Southern Nevada had a 6.1 percent vacancy rate in the fourth quarter, up over two percent from a year ago, reports Colliers International and Restrepo Consulting Group. Asking rents, meanwhile, dropped to 66 cents per square foot or 11 cents less than a year ago.

Commercial sector might face own credit crunch

Brian Wargo / In Business Las Vegas

January 11, 2008 - Although the Las Vegas housing market struggled with a downturn in 2007, commercial development, even though it slowed, remained a bright spot for the local economy.

What does 2008 have in store?

A key to watch is the effect of the nationwide credit crunch in the housing market on the commercial sector, says John Restrepo, principal of Restrepo Consulting Group. Financing has been slowing for commercial projects.

Lake Las Vegas properties change hands

Arnold Knightly / Las Vegas Review-Journal

January 9, 2008 - The Atalon Group has acquired the assets of 3,592-acre Lake Las Vegas for an undisclosed amount after the developer defaulted on a nearly $540 million loan last fall.
The move pushes out Transcontinental Corp. and its chairman and president, Ron Boeddeker, who had been directing the development project since 1990.