Las Vegas CRE investment sales shift from distress-driven to institutional capital dominance
- 2008-2012 (Distress & Recovery): Following the financial crisis, much of the market was distress- and tax-driven, as struggling owners sold properties and opportunistic investors stepped in. Institutional and portfolio-driven capital was present but not yet dominant.
- 2013-2019 (Low-Rate Expansion): With interest rates at historic lows, financing and capital structure-driven deals surged, reflecting cheap debt and refinancing activity. Distress-related sales declined sharply, while institutional investors began to increase their presence.
- 2020-2021 (Stimulus & Liquidity Surge): Despite pandemic disruptions, government support kept distress limited. The market was led by institutional capital and tax/investor strategy-driven activity, with tenant-driven transactions beginning to re-emerge.
- 2022-YTD 2025 (Rate Hikes & Repricing): Higher borrowing costs slowed financing-driven deals, but portfolio and institutional capital have grown to dominate the market. Distress sales have ticked up slightly but remain well below post-2008 levels, underscoring stronger fundamentals.
September 15, 2025