A local news station has reported that there have been layoffs at Trump Towers in Las Vegas because of slow luxury condominium closings. According to the report, there have been 73 layoffs - nearly 20 percent of the workforce.
While the overall Las Vegas real estate market is going through major changes and challenges, it is important we continue to differentiate between "condotel" and "residential" when it comes to high-rise product. The challenges between the two are much different; nobody seems to address the fact that condotel is a specialty product.
While mortgage lending has tightened up across the entire United States, condotel financing has taken a big hit as banking institutions' guidelines find the product more risky than typical residential developments. Condotel is primarily purchased as a vacation home and/or investment property. Units come turn key, fully furnished, and can usually be thrown into some kind of nightly rental program. These are NOT regular condos or pieces of real estate!
It's not to say that buyers of residential high-rise condos have not had difficulty getting loans, all facets of real estate are facing challenge including commercial, single family homes, investment properties, vacation residences, and primary residences.
It has been consistent for the challenges of high-rise properties in Las Vegas to be smeared into one generic category, when in fact, the media continues to avoid explaining the differences between product types.
We must address and not combine...
How often do you see the media...
Trump Towers' 73 job layoffs will probably get more play than a teenage rockstar...
The groupies will love this story and ride it until it's raw. Meanwhile, stories such as Wynn Resorts hiring for approx. 5,300 new jobs at Encore and Station Casinos' recent announcement of approx. 1,000 new jobs at Aliante Station get the leftovers.
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Aaron Auxier REALTOR®, ABR can be reached at 702-205-1818
Copyright © 2008 Aaron Auxier. All Rights Reserved.
Disclaimer: All information in this post is subject to change without notice. Subject matter: is an opinion, is not guaranteed, may be time sensitive, and may be based on information collected from several sources which may or may not be reliable at the time of sourcing.
Aaron Auxier specializes in Las Vegas luxury real estate. His reputation has earned him the nickname "Hollywood's Connection to Vegas"®.
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Tell us how you feel about the MLS' definition of "VERTICAL" starting Aug 1. 4 stories or more, that's it! I wish there was a better definition!
It needs to have low (1-4), mid (5-24), and high (25+). Maybe one day we'll have Skyscraper (70+!) haha.
Agreeeeeeeeeeeeeeeeeeeed!
Excellent post Aaron. Thanks for keep us updated.
PS: Did you read my post about Candy Spelling's $47 Million LA Condo?
Yup. I was excited to see that at just over $2,800 a foot, it was a local PPF record (according to one report). My record sales at over 2k and over $2,400 a foot here in Vegas were only approx. $400 less a foot! Although they were not close to the total dollar amount.
ughhhhhhhh all you do is complain complain complain! stop cramping my vagina
hi- I agree with you..too much negative news..I have emailed the reporter and told him to start writing positve articles but he said-"why should I, when this is what's happening"
Aaron: report it as spam, it wasn't me. AR will investigate by IP. Probably a jealous competitor!
They actually came and interviewed me after this story broke and let me talk about some of the frustrations we have all had with innacurate statistic reporting when it comes to high-rise.
You deleted the wrong comment Aaron!! The one that is not mine is still up there and bothering me!
Aaron,
On the way home from the airport tonight I listened to the radio and got the devestating news about the 73 layoffs at Trump. Maybe those affected can go begging for one of the thousands of openings at Wynn. Great Post!
Tom Garcia
OH, the DRAMA! Another layoff tragedy and pass on the 1000's of hirings. The economy isn't booming, but it's not dead either. The media insists that the glass is half empty, any way they can to sell papers. I had to laugh at a recent article about stores closing because of the economic downturn. Several mentioned including a CompUSA, had closed before the downturn. Surprise! Business can close even when times are good, and this was just another exaggeration.
Guess it's no surprise they lump everything and compare apples to oranges. Investment properties at condo-hotels are a different market than residential.I just had another contact that found listings on the media's 'leading source on foreclosures', Realty Trac. Had to explain once again that the public is being misled. All those $30k upscale foreclosed homes don't exist, and the only thing at that price was a 1962 manufactured home 60 miles away in Pahrump, on a rented slab. This media misinformation campaign is absurd and does more damage to people and the economy than if they reported the WHOLE story.
Nice comment Tom!
And Roberta, you hit it right on the head.