Real estate deals - office buildings
John Vanhara Last week I spent some time looking for office building to purchase in Las Vegas, NV. I saw couple of potentially reasonably deals, one deal looked very good, but the building was too big and I couldn’t get it financed. It was 26,000 sq. feet building in great location on West Sahara Ave with price tag of $5,700,000. The price per sq. foot comes to $220 per sq. foot, which is actually very good price for Las Vegas and that particular building. New c0nstruction in that location is selling for $220-$250, but the price is for Gray shell only, which means you don’t have bathrooms, walls and flooring included. To finish the building takes about $50 per sq. foot. Unfortunately I cannot buy this one, because it requires assuming existing loan and bring $3,000,0000 in cash to the table. But some other looks good promising too, so I will probably write few Letter of Intent for some 10,000-12,000 sq. feet buildings and see if I can get anything reasonable.
But there is one thing what really struck me. I looked at office building in other states, what I can get for the same money I will pay in Las Vegas. If I buy office building in Las Vegas I would pay about $2,500,000 for 10,000 sq. feet of office. But I can get very similar deals in good locations in California. Or I can buy for the same money office building which has instead of 10,000 sq. feet maybe 50,000 sq. feet or even more in some other states. I am really wondering what is better deal? Las Vegas has good economy and I know there will be no problem to rent it out, but some of the deals I saw nationwide let me really wonder what makes good investment choice.