Las Vegas Commercial Office Market Looking To Own

THE OFFICE MARKET IN LAS VEGAS NOW IN AN OWNING RATHER THAN A RENTING MODE

Small business owners such as Clay Bloxham, of PayPros payroll accounting service recently bought
a freestanding, 4,100 square foot office condo at Durango Drive for $390,000, working out terms with
Bank of Nevada, the property's previous owner.

Bloxham figures to save about 55 percent from what he was paying in rent in similar-size office rent locally.
Bloxham looked at 6 different properties to make an easier commute for him and his 8 employees.

Even with office vacancies in Las Vegas at 25 percent and asking rents falling under $2 a square foot, it makes better financial sense for some small businesses to follow Bloxham's lead.

With prices and interest rates low, an owner can control costs and gain tax breaks from depreciation.

A local Realtor said he is selling offices of 10,000 square feet or less for about $80 a foot in the southwest Las Vegas area, while improved buildings, not just shells, are going for $125 a square foot.

Going forward, there will be more bank owned properties coming on the market says a research analyst in Las Vegas.

While banks continue to work with owner-users of smaller mostly vacant office buildings, special servicers are trying to unload larger income-producing properties to the right investor.

Another Realtor said the benefits of renting rather than buying offices are much the same as in residential real estate, because the full amount of expenses can be deducted from taxable income.

Bloxham of PayPros estimates he will spend about $15,000 on new paint and carpets for his office. "We
looked at Small Business Administration financing but the bank's terms made more sense."