Words To Viva Las Vegas

Vivas Las Vegas - Recon Real Estate Convention

Let's set the scene: We are at The Global Retail Real Estate Convention, hosted at the prestigious Las Vegas Convention Center. It's a huge building, 3.2 million square feet of space, ready to receive a massive migration of retail real estate people from all over the country. The center is composed of over 2 million square feet worth of exhibition space and 144 meeting rooms (totaling 225, 000 square feet) entrenched throughout the facility. It is here one of the largest conventions will take place; 50, 000 thousand people will be packed in for four days to see and hear the latest from industry experts. Thousands of booths and tables will be set up, creating a maze of lights, sights, sounds and people that would send the unprepared into a daze. For four days, this place will be the central hub and nexus of retail real estate for the entire globe.

At least, that's how it's been for years past. Word on the proverbial street is that this year may be different. The new notion sweeping through offices and conference calls is that only half as many people will show up this year. Now, that is still 25, 000 people, but in the context of the massive convention center, there's no doubt people will notice the absence. Perhaps whole sections of the 2 million square feet of exhibition space will lie vacant; maybe the doors won't be opened on 72 meeting rooms. What really should strike people is simply where did all the people go? If anyone is looking for a test of health for the industry this may be it. How bad has this recession really hurt people? If it's to the point that half the attendance of this conference is gone, it will be a striking indictment.

This is not just some party in Vegas where people come to have fun. In the realm of business there may be no better opportunity than an industry convention to meet and gain new clients. Where else can you meet thousands of potential leads face to face, many of whom are actually decision makers at their respective companies? That's why so many have traditionally made the pilgrimage; it literally pays off. One wonders what the attitude will be at this year's convention; people there to look and not to buy? Let's hope not. Hopefully the people there this year are at least viable players, ready and willing to conduct some business.

With all the supposed negative news, there are also some positive signs. Recent news may point to a healthier market for commercial real estate than some had previously thought. According to the new stress test, baseline losses for office, industrial and retail properties were projected to be 4%-5% with worst case scenarios between 7%-9%. Construction loans had baseline losses projected at 9%-12% with a worst case of 11%-15%. Multifamily housing fared a little better with projected baseline losses of 3.5%-6.5% and a worst case of 10%-11%. All told, worst case scenarios have banks loosing around $53 billion from commercial real estate loans, which pales in comparison to projected residential losses of $185.5 billion. From these numbers there is no doubt that commercial/retail real estate is healthier than it's counterparts, hopefully that luck won't change in Vegas. Posted by NetLeaseNation.com at

Net Lease Nation will give you straight and forthcoming positions on issues that affect net lease investments. We encourage feedback from our readers, either positive or negative, and hope to create a dialogue that will foster interesting conversation in order to better understand the topics that are most prevalent in today's markets. www.netleasenation.com

Next page: Las Vegas Business Emergency Preparedness

Bookmark/Share This Page:

Words To Viva Las Vegas News