Vegas Falling Fast

Until 2008, commercial real estate would not have been noted as being particularly distressed. However, with this economy and especially following the Lehman Brothers collapse, no division is safe. With the greatest share of distressed properties being retail with $37.5 billion, followed by Hotels with $32 billion, then offices with $28.2 billion, and trailing behind that, is the industrial properties sector with only $5 billion in distress. Unfortunately, and in stark contrast to being considered as not distressed just two years ago, commercial real estate properties nationwide totaled $180 billion as reported by Real Capital Analytics.

Distressed properties include any that are in default, delinquent, bankrupt, or foreclosed.  More specifically within this troubled sector of CRE, Las Vegas was ranked as the worst off in November with $17.7 billion properties classified as distressed. Second on the list was Manhattan with $12.3 billion, and then Miami with $7.6 billion in distressed assets. Following suit with the troubles in private home ownership, lower employment rates, and all other effects of the fallen economy, our nations’ industries are certainly no better off, and it looks like it’s lights out for Las Vegas.

Via: The Real Deal