Written by Beth Mattson-Teig | March/April 2018
Investors have plenty of capital to spend and a desire to grow office portfolios – and more of that capital is moving away from major metros. The economic recovery that has been slower to trickle down into secondary and tertiary markets is gaining traction, and investors clearly are taking note of that market shift.
As a result, investors have started shifting to secondary markets, such as Las Vegas, because the gateway markets really have topped out for market pricing and property values, notes Soozi Jones Walker, CCIM, SIOR, president and broker at Commercial Executives Real Estate Services in Las Vegas.
“Bigger institutional investors are coming to our market to look for higher yields,” she says.
The Las Vegas metro was hard hit by the Great Recession, but investors now recognize that property values have bottomed out and have started to rise. In Las Vegas, office vacancies have dropped to about 13 percent and are still improving, along with an increasingly diverse economy, Jones Walker notes. Investors seem to have “pots of money” even for Class B assets in secondary markets, she adds.
Larry Dietz, an associate broker with Saurage Rotenberg Commercial Real Estate, has over 30 years of Sales, Marketing and Public Relations experience. He is a Designee member of the Certified Commercial Investment Member Institute (CCIM) and CCIM Louisiana Chapter; a member of the Commercial Investment Division of the Greater Baton Rouge Board of REALTORS® (CID); as well as an affiliate member of the National Association of REALTORS® (NAR). He is a licensed real estate broker in Louisiana and Mississippi.
Saurage Rotenberg Commercial Real Estate is a member of the Baton Rouge Area Chamber of Commerce (BRAC); the West Baton Rouge Chamber of Commerce; the Baton Rouge Better Business Bureau; the Louisiana Commercial Data Base (LACDB); and the International Council of Shopping Centers (ICSC). Several agents, on an individual basis, are members of the Society of Industrial and Office Realtors® (SIOR), the Certified Commercial Investment Member Institute (CCIM); the National Association of REALTORS® (NAR); and the Greater Baton Rouge Association of REALTORS® Commercial Investment Division (CID).