Last week, NAI Horizon confirmed speculation to In Business Las Vegas that the commercial brokerage has closed its Las Vegas office.

Thirty commercial brokers who handle leases and sales lost their jobs and were given severance packages. NAI Horizon has moved out of its digs at the Marnell Corporate Center and is working on a buyout of its lease. NAI Horizon will keep its two-person property management staff in place in Las Vegas and move into new space, says Terry Martin-Denning, chief operating officer with NAI Horizon in Phoenix, which oversaw the Las Vegas office as well.

She cites the economy as the reason behind the closure. The slowdown started 18 months ago, and there haven't been enough deals to sustain the operation, and activity continues to trend downward, she says. She says she's confident the economy will rebound, but didn't want to wait it out in Las Vegas. NAI Horizon acquired the commercial operation from Prudential Americana in 2001.

"The current investors have fed the beast as much as they can," Martin-Denning says. "I think we are seeing a lot of shakeout, and no one knows what's going to happen. There are a lot of uncertainties with the economy. You have seen some title companies that rely on real estate transactions downsizing or closing."

Some landlords haven't been realistic about the market and haven't been willing to make the concessions to attract tenants, and tenants have been reluctant to relocate until they know what the economy will do, Martin-Denning says. Some landowners have been unwilling to cut prices, and buyers are waiting for lower prices before they make any deals.

The company has fared better in Phoenix because of the size and diversity of the market, which have created more opportunities, Martin-Denning says. She says it will recover more quickly than Las Vegas.

"Phoenix has a more diverse employment and economic base, and it makes a difference," Martin-Denning says. "We hear disturbing news about the gaming industry, and the latest revenues are down for the first time. Gaming brings people and people need offices. The whole focus of the economic base in Las Vegas is gaming. That news was a concern."

Martin-Denning says Las Vegas clients are being encouraged to do deals with former NAI Horizon employees.

David Blanchard, executive vice president of NAI Global, says he's working on a deal to keep the NAI flag flying in Las Vegas with former NAI Horizon employees.

"We are going to continue with a strong presence in the market," Blanchard says. "It is simply a reconfiguration and restructuring. We are going to be leaner and meaner."

Blanchard says he has confidence in the Las Vegas market and that the problems with the NAI Horizon affiliate were about the "internal struggles of an individual company" more than about NAI Global or Las Vegas itself.

"I think this was very specific to NAI Horizon," Blanchard says. "Their operation had high overhead from the office space and operation overall. No doubt the market has slowed a little bit."

Deals that once took 90 days are now taking 190 days to complete, Blanchard says. People are being more cautious.

"I am extremely optimistic about the Las Vegas market," Blanchard says. "It is not struggling like southern Florida. I see caution and concern. It is a time for companies and clients to take inventory, but I think the Las Vegas market will be fine."

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