RCA in the commercial property press:

Worst in nation: Las Vegas commercial properties in distress

Las Vegas Sun reports: The number of commercial properties facing foreclosure is growing rapidly, and observers said a massive bank takeover of office and retail buildings is likely in the coming months.

In its June 4 report, New York-based Real Capital Analytics said April had the largest increase in properties in default, foreclosure or involved in bankruptcy in this recession. The firm ranked Las Vegas No. 1 in the nation with $9.7 billion worth of properties in distress and another $5.7 billion worth that have been resolved. That’s a bump from its report earlier this year stating the value of troubled loans in Las Vegas was $6.4 billion.

Most of the bank takeovers have been undeveloped land — more than 90 percent by one estimate — but real estate brokerages say more lenders are starting to take possession of buildings as well.

Any property takeover by lenders is expected to depress prices more as the lenders seek to get the properties off their books. That could lead to more foreclosures and weaken local and regional banks that made the loans.

In its report, Real Capital Analytics outlined the $9.7 billion in distressed Las Vegas properties:

• $4.48 billion in land.
• $2.4 billion in hotels.
• $1.6 billion in retail with 5.4 million square feet.
• $830 million in apartments with 7,374 units.
• $177 million in offices with 678,377 square feet.
• $43 million in industrial with 258,819 square feet.
• $27 million in “other” properties.