LAS VEGAS -- Looks can be deceiving in the real estate market, especially in the case of commercial real estate. Many tall office buildings have been sitting pretty and empty for a few years, but experts say things are finally turning around.
A lot of law firms are moving in or moving up and so are the technical schools like ITT or Devry. High unemployment has encouraged people to go back to school to get new skills, so these specialty schools are in high demand.
Another surprise -- industrial space like big warehouses is getting bought up quickly thanks to improved tourism.
"It's also Strip properties too that need those warehouses to store all their supplies to keep on property that doesn't make sense for them to keep on Las Vegas Boulevard," said Tabor Thill with Collier's International.
Gaming companies can once again pay for that space, which used to be twice the price it is now. Experts at Collier's International, the largest commercial real estate firm in Las Vegas, believe the office space market will be next to rebound.
There are currently 9.5 million square feet of vacant office space, which is good for businesses wanting to trade up.
"A lot of tenants are moving around to get better deals. Not a lot of new tenants are moving into the community yet, so it's more musical chairs. But we do have a lot of new investors that are buying a lot of office properties," said finance expert John Restrepo.
After many months of holding onto them, Restrepo says many banks are finally releasing foreclosed office properties to the market. And that's what investors are after because they're cheap.
Across the board, commercial space that used to cost $3,000 or $4,000 a square foot is now $1 to $2, and many landlords are offering build-outs or incentives to get them leased up.
