Las Vegas Commercial Construction To Hit Skids

Las Vegas, NV, Nov. 9, 2009--Commercial construction in the Las Vegas area is likely to come to a virtual standstill next year, according to a Las Vegas research firm.

Applied Analysis says nine major commercial projects are under construction in southern Nevada, and development will essentially cease once most of them wind down early next year.

The firm said that commercial construction is following the same path as tourism, which is in a huge slump.

Analysts said they don't expect another major casino project on the Strip for another decade after completion of most of the $8.5 billion CityCenter casino development in December.

With commercial vacancy rates at record levels, weak demand because of the ailing economy and credit hard to obtain, the chance for new projects is low, they added.

Las Vegas now has the same amount of space occupied as it did in 2006, and there has been millions of square feet added since then.

In addition, the office market has 11.2 million square feet of empty space, with a vacancy rate of nearly 23 percent. That equates to about five years of inventory, the firm said.

Nevada also leads the nation in the rate of foreclosures and bankruptcies. The casino industry, the economic engine that drives the state, has been battered by reluctant tourists.