Las Vegas
Insider
A communication for brokers, employees, colleagues and friends
May 2021
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Table of Contents
04
Las Vegas Research – Office Insights
08
F e a t ure d D e a l s – Ma y 2021
10
L a s Ve ga s I n T h e N e w s
11
L a s Ve ga s Re ce n t H e a dlin e s
12
F e a t ure d L is t in g s – Ma y 2021
14
U p co min g J un e C a l e n da r
15
B ro ke r of t h e M o n t h – Ma y 2021
16
L a s Ve ga s B y T h e N um b e r s – A p r il
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K n o w l e d ge L e a d e r A r t i c l e s
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L a s Ve ga s D ire c to r y
Who? What? Where? Las Vegas Office Market BY JOHN MATT STATER | MAY 2021
Heading into the COVID-19 lockdowns, there were many things we did not know, but one certainty… office real estate was in trouble. With hundreds of employees working from home, businesses were involved in an experiment that could shake the foundations of office real estate. If a business could remain just as productive without office space or with less office space – why pay rent? Now, more than a year since the lockdowns were started, it’s a good time to look at how Southern Nevada’s office sector fared. In particular – where did the largest vacations of office space occur in Southern Nevada, what classes of office space lost the most tenants, and who, in terms of industry, saw the biggest impact from the lockdowns. As always, here come the caveats. These figures are based on office units that came on the market, direct or sublease, after March, 2020. Keep in mind that May 2021
units vacated during the lockdowns were not necessarily vacated because of the
4
lockdowns. Also, do not assume that the vacating businesses did so because they went out of business; many probably moved from one building to another, as always happens in the market.
Where? It should be no surprise that the largest
Do not assume that the vacating
vacations of space during the lockdown
businesses did so because they went
period took place in the Valley’s largest
out of business; many probably moved
office submarkets, the Northwest,
from one building to another, as
Southwest and East Las Vegas. If we look at the space vacated as a percentage of
always happens in the market.
the inventory in submarkets, we see the biggest impact was felt in the Northwest (12.7% vacated) and East Las Vegas (11.6% vacated). These submarkets were followed by Henderson, Southwest and the Airport. Slicing and dicing, we see among major office submarkets that the Southwest was probably the most resilient, while Downtown and West Central were the most resilient office markets overall. That Northwest suffered as badly as it did is interesting.
Who? The top five industries that vacated space during the lockdowns were financial activities (±1.2 million SF), healthcare (±590,000 SF), technology (±418,000 SF), real estate services (±394,000 SF) and hospitality/travel/events (±275,000 SF). Most likely, these industries either found it easy to transfer to work-fromhome (such as finance, real estate and technology), or they suffered severely from the business lockdowns (healthcare and hospitality). Some percentage of them would have moved or closed in 2020 whether the lockdowns had happened or not. While the three major office submarkets
What?
were all impacted by the movement of
Among office classes, Class A was predicted
each submarket was disproportionately
to suffer the worst from work-at-home,
impacted by another industry. The East
and indeed it did in Southern Nevada, with
Las Vegas submarket, for example, saw the
vacations of office space equaling 19.2% of
vacation of several information (i.e. radio/
Class A inventory. Class B and C were far
telecom) businesses. Real Estate companies
more resilient than Class A. This probably
had a larger impact on the Northwest
has as much to do with the kinds of work
submarket than on other submarkets, and
that occurs in Class B/C office space as it
the Southwest submarket’s exposure to
does with the pricing of that space.
technology companies impacted it.
Continued on page 6
healthcare and financial activities companies,
Colliers – Las Vegas Insider
5
How Does this Story End? That’s the real question, of course. We do not know yet where these companies went – did they simply move, did they go out of business entirely, are they downsizing and leaving their employees at home? But, as time progresses, we will have a better idea about this. In the meantime, we do know that, through 20q2 to 21q1, only one submarket, Henderson, had positive net absorption, totaling 137,290 square feet. The Northwest submarket over the same period had 786,000 square feet of gross absorption and negative 336,849 square feet of net absorption. The Southwest submarket had negative 11,397 square feet of net absorption and 605,817 square feet of gross absorption. Less activity in the Southwest, but more of it positive. A realignment of office users towards Henderson from the west side of the Valley is unlikely, but a realignment from the Northwest, which boomed in the 1990s, to the Southwest, which starting booming in the 2010’s, is possible. When we look at net absorption on an industry-byindustry basis, we see that some took more square footage than they gave away, such as healthcare (957,000 SF net absorption), technology (300,000 SF net absorption) and legal services (190,000 SF net absorption). Others remain in the red, such as financial activities (-854,000 SF net absorption), hospitality (-178,000 SF net absorption) and marketing (-130,000 SF net absorption). As 2021 presses on, we’ll get a fuller understanding May 2021
of how different industries have reacted to the
6
lockdowns, how quickly they are bouncing back, and whether we are seeing a new office demand paradigm in terms of location and building class.
Office Lockdown Activity By Industry Estimated Space Vacated and Occupied, 20q2 to 21q1
Source: Colliers International
With hundreds of employees working from home, businesses were involved in an experiment that could shake the foundations of office real estate. Colliers – Las Vegas Insider
7
2,220 SF
Featured Deals May 2021 Office Lease
A lease to Clay Consulting, LLC. The ±2,220 square foot office property is located in Airport Corporate Center at 376 East Warm Springs Road, Suite 125 in Las Vegas. Chris Connell, SIOR and Grant Traub, SIOR of Colliers International represented the landlord, Airport CC, LLC.
4,083 SF
DID YOU KNOW!?
People who are alive are banned from being featured on U.S. currency.
Office Lease A lease to THEDOCS, LLC. The ±4,083 square foot office property is located at 3005 West Horizon Ridge Parkway in Henderson. Taber Thill, SIOR, Patti Dillon, SIOR and Megan McInerney of Colliers
May 2021
International represented the landlord, Insight on
8
Horizon, LLC.
$
1,400,000
5,581 SF
Land Sale
Medical Office Lease
A sale to Forte Specialty Contractors. The ±1.92
A lease to Gallus Detox Services, LLC. The ±5,581
acre land parcel is located at Post Road and
square foot medical office property is located in
Buffalo Drive (APN: 163-34-301-020) in Las Vegas.
Flamingo Microhospital at 9880 West Flamingo
The transaction amount was $1,400,000.00.
Road in Las Vegas. Alexia Crowley, CCIM and
Brian Riffel, SIOR and Tyler Jones of Colliers
Stacy Shapiro, CCIM of Colliers International
International represented the buyer.
represented the landlord, Emerus.
$
1,395,000
$
350,000
Industrial Sale
Land Sale
A sale to B&C Properties. The ±10,500 square
A sale to BMV Properties LLC. The ±1.89 acre
foot industrial property is located at 3236 Meade
land parcel is located at Lone Mountain Road
Avenue in Las Vegas. The transaction amount
and North Durango Drive (APN: 125-32-804-
was $1,395,000.00. Dan Doherty, SIOR, Paul
003) in Las Vegas. The transaction amount
Sweetland, SIOR, Chris Lane, SIOR, CCIM and Jerry
was $350,000.00. Steven Haynes of Colliers
Doty, SIOR of Colliers International represented
International represented the seller, Efren &
the buyer.
Nevarrie Deleon Et. Al.
Colliers – Las Vegas Insider
9
News Coverage May 2021
Expanding Your Business Footprint with a Real Estate Broker May 25 – The Scrappy Entrepreneur
Colliers Las Vegas Exclusively Lists Rare Undeveloped Las Vegas Resort Corridor Property for $12.9m May 12 – Nevada Business Magazine
Colliers Las Vegas Exclusively Lists Rare Undeveloped Las Vegas Resort Corridor Property for $12.9m May 12 – CRE Confidential
Need Press?
Get the news out! Reach out and let us know the good news.
Matter Logistics Center @ West Cheyenne Fully Leased by Colliers Las Vegas Doherty Industrial Group May 10 – Nevada Business Magazine
New listings, properties just sold/leased, team news, etc! Help us, help you.
May 2021
Congrats Ladies.
10
Colliers Sells In-N-Out Location Near Allegiant Stadium site May 04 – Las Vegas Business Press
Angelina Scarcelli & Jennifer Mount were both recognized in Real Las Vegas Magazine as part of the 2021 Women Who Wow.
Las Vegas Recent Headlines
RE AD MORE
RE AD MORE
RE AD MORE
Resorts World announces
Las Vegas preparing for
Las Vegas conventions
opening details
June 1 reopening
are coming back
Signs of life and many visible changes in the city ’s casino landscape
World of Concrete convention is returning on June 8 for a three-day show
Convention Center is booking up with 30+ shows on the calendar this year
The north Strip resort casino property, which has a price tag of $4.3 billion, will officially open its doors on June 24, 2021.
Casinos place big bet on vaccinations as Las Vegas prepares for June 1 reopening and nation’s first large convention.
The Las Vegas convention industry supports 67,000 jobs with an economic impact of more than $11 billion.
Colliers Las Vegas adds respected industry leader
Aaron West
Aaron joins the company as Managing Director and Market Leader for our Brokerage operations in Las Vegas. In his new role, Aaron will oversee all brokerage operations and service lines in Las Vegas with a key focus on new business development, talent recruitment and retention. He will report to David Josker, President, Southwest Region | U.S. Brokerage.
Las Vegas Managing Director
Colliers –– Las Las Vegas Vegas Insider Insider Colliers
11
Industrial
Featured Listings May 2021
SunPoint West Dan Doherty, SIOR, Paul Sweetland, SIOR, Chris Lane, SIOR, CCIM and Jerry Doty, SIOR •
±17,000 SF–±237,776 SF for sale or lease
•
Deliverying Q1 2022
•
Six-building industrial park totaling ±730,771 SF of warehouse & distribution
Industrial
DID YOU KNOW!?
84.4% of Nevada’s land is owned by the federal government - more than any other state.
7055 Windy Street Gabe Telles, Ryan Hendershot and
May 2021
Chase Pavlov
12
•
±16,291 SF Industrial Office/Warehouse Unit
•
Located at I-15/215 interchange, on Warm Springs Road and Windy Street
•
Lease Rate: $0.82/PSF (NNN) CAM: $0.10/SF (NNN)
Office
Industrial
526 & 530 S. 7th Street
3450 N. Lamb Blvd. & 3702 Las Vegas Blvd
Brian Fike, Patti Dillon, SIOR, Taber Thill,
Eric Molfetta, MBA and Amanda Irving
SIOR and Megan McInerney
•
146,895 total SF divisible to ±103,011 SF, ±50,000 SF or ±43,980 SF
•
±1,840 SF (Single-Story)
•
Located in the Downtown Las Vegas
•
Sunpoint Crossing - Available May 1, 2021
•
Sale Price: $1,198,500 ($250/SF)
•
Lease rate: $0.54 PSF
Office
Retail
Flamingo Grand Plaza
4850 W. Sunset Road
Chris Connell, SIOR and Grant Traub, SIOR
Steve Neiger, CCIM Chris Clifford and
•
Suite sizes ranging from ±625 to ±5,487 RSF
Brett Rather
•
Recently refurbished common areas
•
±1,160 SF Pre-existing Restaurant Space
•
Turn-key suites available for lease with
•
Zoning: General Commercial (C-2)
immediate occupancy
•
$3.00 PSF/Mo + NNN ($0.45 PSF/Mo) Colliers – Las Vegas Insider
13
Upcoming Calendar June 2021 – Summer is almost here. We’re warming up!
Aaron West New MD Meet & Greet Lunch
NAIOP Virtual Breakfast
Birthday Celebration
7:00am–8:45am
2:30pm–3:30pm
11:30am–1:00pm
Thursday, June 17
Thursday, June 24
Wednesday, June 2 Main Conference Room
Next Gen Churro Truck 11:00am–1:00pm Thursday, June 3 Oasis Park (across the street from us next to 3893 building)
CREW Luncheon Zoom 11:30am–1:00pm Tuesday, June 8
SIOR Luncheon Zoom
Sunday, June 20
Industrial Monthly Meeting 9:00am–10:00am
First day of Summer
Thursday, June 24
Monday, June 21
Investment Monthly Meeting Zoom 9:00am–10:30am Tuesday, June 22 (Grant Traub to send Zoom link)
Office Monthly Meeting Zoom 9:00am–10:00am Wednesday, June 23
Wednesday, June 9
(Taber Thill to send Zoom link)
Retail Monthly Meeting Zoom
CCIM Luncheon Zoom
9:00am–10:30am
Wednesday, June 23
(David Grant to send Zoom link)
May 2021
Happy Father’s Day
11:45am–1:30pm
Thursday, June 17
14
Main Conference Room
11:30am–1:30pm
Nicole Cauilan Brianna Maldonado Spencer Pinter Leah Mullen Amber McDaniel Suzette LaGrange
Dan Doherty, SIOR
2020/21 Sales Award Trip March 11–15, 2022 Fairmont Kea Lani in Wailea, Maui
2021 Trip Qualifiers 1. Brian Rif fel 2. Dan Doher t y 3. Pat Mar sh 4. Eric Molfet t a 5. Paul Sweetland 6. Jerr y Dot y 7. Chris L ane
2020 Trip Qualifiers 1. Dan Doher t y 2. Paul Sweetland
Broker of the month A Giving Spirit Dan’s donation will be going to After-School All-Stars. After-School All-Stars Las Vegas provides
3. Dav id Grant
children a safe and supportive space to
4. Chris L ane
learn, grow, and achieve. Providing free,
5. Jerr y Dot y
comprehensive after-school programs, they
6. Spencer Pinter 7. Keith Cubba 8. Chris Clif ford 9. Brian Rif fel 10. Pat Mar sh 11. Grant Traub 12. Dan Gluhaich
accomplish this by providing at-risk youth the opportunity to participate in programs that include sports, educational, cultural, and community enrichment components. Over 6,000 children served annually in Clark County. They’ve served Las Vegas communities for 24 years while the program is offered at no charge to students, families, or schools.
LINKS FOR LIFE
F O U N D A T I O N
Good luck to our future qualifiers.
Colliers – Las Vegas Insider
15
Las Vegas Office Report April 2021 Office
Retail
Broker Rankings YTD
6%
5%
1.
Dan Doherty
22. Patti Dillon
2.
Pat Marsh
23. Gabe Telles
3.
Paul Sweetland
24. Sam Newman
4.
Brian Riffel
25. Alexia Crowley
5.
Eric Molfetta
26. Megan McInerney
6.
Jerry Doty
27. Tyler Jones
7.
Chris Lane
28. Brian Fike
8.
David Grant
29. Chase Pavlov
9.
Grant Traub
30. Ryan Hendershot
10. Keith Cubba
31. Al Twainy
11. Spencer Pinter
32. Gabe Skerlich
12. Mike Mixer
33. Brett Rather
13. Steve Haynes
34. Steve Neiger
14. Kara Walker
35. Jennifer Lehr
15. Suzette Lagrange
36. Amanda Irving
16. Jeff Swinger
37. Chris Bentley
17. Chris Connell
38. Dan Gluhaich
18. Scot Marker
39. George Connor
19. Stacy Shapiro
40. Rebecca Staniec
20. Chris Clifford
41. Nick Gordon
Land
24%
April Property Types 143% Monthly Budget 62% YTD Budget Industrial
65%
Sales vs. Lease Revenue 72% - Sales
28% - Lease
21. Taber Thill
May 2021
Top 10 Agents – April 2021
16
April Anniversaries
1.
Dan Doherty
6.
Mike Mixer
John Matt Stater
1996
25 Years
2.
Paul Sweetland
7.
David Grant
Keith Cubba
2005
16 Years
3.
Chris Lane
8.
Brian Riffel
Angelina Scarcelli
2013
8 Years
4.
Jerry Doty
9.
Steve Haynes
Chris Clifford
2016
5 Years
5.
Pat Marsh
10. Grant Traub
Steve Neiger
2016
5 Years
Brett Rather
2016
5 Years
Megan McInerney
2019
2 Years
Las Vegas | 10 Emerging U.S. Industrial Markets to watch in 2021
Key Strengths Southern Nevada offers a competitive tax structure and a friendly business climate, as well as excellent access to interstates and highways, including the new I-10 linking Las Vegas with Phoenix, AZ. This makes Las Vegas a link in the Canamex corridor. The area’s proximity to the ports of Los Angeles and Long Beach, its position to the Union Pacific railroad, and its proximity to other major trade routes like Interstate 40 and the BNSF Railroad, makes Southern Nevada an ideal place for a western distribution facility.
Major Logistics Drivers: Interstate Access The main drivers of logistics in Southern Nevada are the area’s rapidly expanding population and the nexus of I-10, I-15 and US- 93/95 in the Valley.
2021 is shaping up to be a very active year for the warehouse/ distribution sector in Southern Nevada. With just more than five million square feet currently under construction, one would think it’s a very favorable tenant market, but that’s not the case. There is substantial activity on every building that has gone vertical and several developers are declining partial building deals in hopes of landing one
Dan Doherty, SIOR
to two tenants. Our team has never seen more tenant activity in 32 years, both organically as well as prospects from other markets. Colliers – Las Vegas Insider
17
America’s Love Affair with Costco Read More
Retail Begins To Rebound Higher-than-expected advances in employment, along with the expanding vaccine rollout, stimulus checks and robust retail sales, are helping to support tenant health and retail fundamentals in the first quarter of 2021. Retail sales surged as the year commenced and grew 30.4% yearover-year in March on a non-seasonally adjusted basis. If we set aside last year’s weak retail sales numbers and compare it to March 2019, overall retail sales are up by $109 billion or 21.1%.
Read More
Inflation is Picking Up Disruptions to supply and production chains due to the pandemic are partly to blame. Strong support remains for continued sales volume increases. Most important
Multifamily Capital Migration
May 2021
Multifamily is on a roll, accounting for onethird of investment in 2021 as cap rates fall and sales prices rise.
18
Read More
are near-record fundraising, the push from pension funds and other real estate investors which are under allocated to real estate, improving economic conditions, and attractive cap rates due to the low-interestrate environment. Potential tax law changes along with inflation risk will only add more fuel to that fire.
Read More
Industrial
Investment Services
Dan Doherty
+1 702 836 3707
Jerry Doty
+1 702 836 3735
Ryan Hendershot
+1 702 836 3751
Tyler Jones
Brian Fike
+1 702 836 3744
Nicholas Gordon
+1 702 836 3703
Amanda Irving
+1 702 836 3732
+1 702 836 3754
Eric Molfetta
+1 702 836 3756
Suzette LaGrange
+1 702 836 3799
Stacy Shapiro
+1 702 836 3762
Chris Lane
+1 702 836 3728
Gabriel Skerlich
+1 702 836 3708
Pat Marsh
+1 702 836 3741
Grant Traub
+1 702 836 3789
Sam Newman
+1 702 836 3724
Chase Pavlov
+1 702 836 3731
Spencer Pinter
+1 702 836 3776
Brian Riffel
+1 702 836 3773
Danielle Scarano
+1 702 836 3747
Christopher Bentley
+1 702 836 3779
Paul Sweetland
+1 702 836 3750
Shalonda Hughes
+1 702 836 3765
Gabe Telles
+1 702 836 3758
Jeffrey Swinger
+1 702 836 3764
Kara Walker
+1 702 836 3705
Medical Office
Office Chris Connell
+1 702 836 3709
Patti Dillon
+1 702 836 3790
Megan McInerney
+1 702 836 3700
Rebecca Staniec
+1 702 836 3792
Taber Thill
+1 702 836 3796
Retail Chris Clifford
+1 702 836 3746
George Connor
+1 702 836 3786
Dan Gluhaich
+1 702 836 3757
David Grant
+1 702 836 3785
Jennifer Lehr
+1 702 836 3736
Scot Marker
+1 702 836 3782
Steve Neiger
+1 702 836 3760
Brett Rather
+1 702 836 3794
Al Twainy
+1 702 836 3725
Land Steven Haynes
Multifamily
LAS VEGAS
Direc tor y
Alexia Crowley
+1 702 836 3778
Valuation Services Richard Koldewyn
+1 702 836 3738
Heidi Meidenbauer
+1 702 836 3726
Leah Mullen
+1 702 836 3775
Evan Ranes
+1 702 836 3749
Brandon Roper
+1 702 836 3734
Property Management Valerene Corbin
+1 702 836 3761
Jennifer Kennedy
+1 702 836 3772
Amber McDaniel
+1 702 836 3745
Jennifer Mount
+1 702 836 3753
Christine Norberg
+1 702 836 3704
Angelina Scarcelli
+1 702 836 3768
+1 702 836 3727
Staff Hotel/Resort Mike Mixer
+1 702 836 3777
Golf Course Brokerage Keith Cubba
+1 702 836 3733
Nicole Cauilan
+1 702 836 3706
Sara Johansson
+1 702 836 3771
Gina Jones
+1 702 836 3783
Brianna Maldonado
+1 702 836 3701
Caryl Lou Paayas
+1 702 836 3702
Matt Stater
+1 702 836 3781
Chris Sutton
+1 702 836 3721
Aaron West
+1 702 836 3795
Colliers – Las Vegas Insider
19
Our mission is to maximize the potential of property to accelerate the success of our
MARKET CONTACTS:
clients and our people.
Aaron West Managing Director | Las Vegas
+1 702 836 3795
351 offices in 67 countries
aaron.west@colliers.com
Mike Mixer, SIOR Chairman | Las Vegas
+1 702 735 5700
mike.mixer@colliers.com
$3.3 billion in annual revenue 2 billion square feet under management 18,000+ professionals and staff 54,000 Lease/Sale Transactions $40B Assets under management
John Stater Research & GIS Manager
+1 702 836 3781
john.stater@colliers.com
Colliers | Las Vegas 3960 Howard Hughes Parkway, Suite 150 Las Vegas, Nevada 89169 | USA +1 702 735 5700 www.colliers.com/lasvegas
About Colliers Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 67 countries, our more than 15,000 enterprising professionals work collaboratively to provide expert advice to real estate occupiers, owners and investors. For more than 25 years, our experienced leadership with significant insider ownership has delivered compound annual investment returns of almost 20% for shareholders. With annualized revenues of $3.0 billion ($3.3 billion including affiliates) and $40 billion of assets under management, we maximize the potential of property and accelerate the success of our clients and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn. © 2021 Colliers International. The information furnished has been obtained from sources we deem reliable and is submitted subject to errors, omissions and changes. Although Colliers Nevada, LLC has no reason to doubt its accuracy, we do not guarantee it. All information should be verified by the recipient prior to lease, purchase, exchange or execution of legal documents.