Accelerating success.
April 2016
Las Vegas Insider A communication for brokers, employees, colleagues and friends
NEW YEAR AND 3 ANEW CHALLENGES 5 FEATURED DEALS 6 NEW LISTINGS 7 UPCOMING EVENTS
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APRIL 2016
8 BROKER RANKINGS 9 BY THE NUMBERS 10 BROKER OF THE MONTH 11 PHONE DIRECTORY
Mike’s Corner Always Speak the Truth, Even If Your Voice Shakes. - Maggie Kuhn
A NEW YEAR AND NEW CHALLENGES BY JOHN “MATT” STATER
After a very impressive 2015, all eyes were on Southern Nevada’s industrial market for the opening of the 2016 season, and it has not disappointed. First quarter performance saw the industrial vacancy rate at 5.6 percent, 0.1 point higher than at the end of 2015 due primarily to a new speculative industrial building completed in the first quarter. Net absorption in the first quarter was 900,732 square feet, a bit higher than one year ago, and the asking rental rate increased to $0.65 per square foot on a NNN basis. Aside from the industrial market, which added more than 1 million square feet of new product to its inventory in the first quarter, Southern Nevada’s multifamily market is also in a heavy expansion phase. Over 2,000 units of multifamily were completed this quarter, and another 1,600 units slated for completion during 2016. This is the largest expansion of the multifamily market in more than 5 years, and it has also driven vacancy up a notch, to 4.9 percent. As in the industrial market, this minor increase in vacancy has not impacted rent, with the average asking rent for Southern Nevada multifamily increasing to $925 in the first quarter of 2016. Southern Nevada’s hospitality market, the engine of the Valley’s growth, continued to show signs of growth and diversity in 2016. Visitor volume is on par with 2015’s, and gaming revenue continued to decrease despite increased visitor spending. Since 2014, more than 3,000 rooms have been removed from inventory, primarily in Downtown, the “Strip” and in the Resort Corridor, and this is proving a boon to operators in those submarkets, increasing room occupancy. This, in turn, may stimulating future “Strip” development, not only at Genting Group’s Resorts World Las Vegas, but also at Wynn Resorts, which has recently announced a planned 1,000 room expansion, projected to open in 2020. Non-gaming/hotel expansion also continues on the “Strip”, with the recent completion of the T-Mobile Arena. Southern Nevada’s office market recovery as a long time coming, but appears to have finally taken root. The past two years have seen over 2 million square feet of net absorption, bringing vacancy down from almost 20 percent to 16.7 percent. 2016 will not be without inventory
expansion, as 325,000 square feet of new office space is now under construction. Much of this is pre-leased, so the impact should be minimal. This means that another strong year of net absorption, in the 1 million square foot range, could see vacancy rates fall to 15 percent, which we would count as normalized vacancy given the altered expectations of the post-Great Recession era. The recovery of Southern Nevada’s medical office market after the Great Recession has been rough and unstable. In 2015, it looked as though, despite two weak quarters, the recovery was picking up steam. A third weak quarter in a row, though, would tend to point to more of the same – two steps forward, one step back. The professional office market followed a similar trajectory, and now appears to be in a strong recovery. Perhaps the medical office market will do the same. It does have two significant headwinds – competition from other types of commercial real estate, and market distortions created by the ACA. Hopefully, higher spending on healthcare is not entirely the result of increases in prices and deductibles, and healthcare employment growth will translate into more demand for medical office space over the remainder of 2016. With five big box leases in the first quarter of 2016, one might be tempted to credit the quarter’s strong performance solely to large retailers. Those five new big box tenants added up to 324,382 square feet, impressive, but offset by 227,411 square feet of newly vacated big box space in the Valley. This means that the lion’s share of net absorption (66 percent) was due to expansion by smaller retailers. This makes Southern Nevada’s current retail expansion widespread and, hopefully, sustainable. If the past four quarters is any indication, Southern Nevada’s economy should continue to grow through 2016. Economic growth may slow due to national and international headwinds, but a local recession is unlikely. That means that the market will likely continue its expansion in industrial and multifamily, and its recovery in other areas. As recovery continues, it should stimulate more development – with light industrial space the most likely segment to see renewed development in the next year.
APRIL 2016
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APRIL 2016
FEATURED DEALS INDUSTRIAL LEASE
Pat Marsh, SIOR, Sam Newman, Dan Doherty, SIOR, Susan Borst, CCIM, Chris Lane and Jerry Doty completed a ±28,910 square foot sale to NSHE Lake Enriquillo, LLC. The industrial property is located at 2057 Maule Avenue in Las Vegas. The transaction amount was $3,250,000.00. Marsh, SIOR, Newman, Doherty, SIOR, Borst, CCIM, Lane and Doty of Colliers International represented the seller, PanCal Maule 262, LLC. Susan Borst, CCIM of Colliers International represented the buyer.
OFFICE LEASE Taber Thill, SIOR, Ryan Martin, SIOR and Patti Dillon completed a ±44,387 square foot lease to Central Telephone Co. (CenturyLink). The office property is located in Marnell Corporate Center at 6700 Via Austi Parkway in Las Vegas. Thill, SIOR, Martin, SIOR and Dillon of Colliers International Represented the landlord, MCC TWO, LLC.
MULTIFAMILY SALE Tom Naseef, CCIM, SIOR, Garry Cuff, CCIM and Jeff Naseef completed a ±198 unit/±205,928 square foot sale to ROC II NV Ritz, LLC. The multifamily property is called Sonoma Pointe Apartments and is located at 4250 South Jones Boulevard in Las Vegas. The transaction amount was $20,831,792.40. Naseef, CCIM, SIOR, Cuff, CCIM and Naseef of Colliers International represented the seller, Petwin Flamingo Corp.
RETAIL LEASE David Grant finalized a ±2,508 square foot lease to Chipotle Mexican Grill, Inc. The retail property is located in College Park Shopping Center at 2023 East Lake Mead Boulevard in North Las Vegas. Grant of Colliers International represented the tenant.
INDUSTRIAL LEASE Dean Willmore, SIOR and Chelsy Cardin completed a ±53,200 square foot lease to Hynes Industries, Inc. The industrial property is located at 2020 Mendenhall Drive in North Las Vegas. Willmore, SIOR and Cardin of Colliers International represented the landlord, JAVSE Realty Corporation, Inc. Eric Molfetta, CCIM and Chris Zunis of Colliers International represented the tenant.
APRIL 2016
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NEW LISTINGS INDUSTRIAL - FOR SALE OR LEASE 1775 Executive Airport Drive
LAND - FOR SALE 922-926 Desert Lane
OFFICE - FOR LEASE 6785 South Eastern Avenue, Unit #3
Dan Doherty, SIOR, Susan Borst, CCIM, Chris Lane & Jerry Doty are representing a ±482,300 SF available divisible to ±109,200 SF. The property is located at the South15 Airport Center in Henderson, NV. Includes 44 (9’ x 10’) dock doors, 4 (12’ x 14’) grade doors & 38 trailer parking stalls. Available for occupancy December, 2016.
Stacy Scheer, CCIM LEED GA & Steven Haynes are representing a ±0.33 acres land parcel located in the heart of the Las Vegas Medical District. The property is adjacent to UNLV Shadow Medical Schools, UMC & Valley Hospitals. Ideal redevelopment opportunity medical users.
Renae Russo, KP, LEED GA, is representing a ±1,927 SF 2-Story office condo. The property has a parking ratio of 3.7/1000 & is zoned M-D. Base Rent $0.99 SF - $1.10 SF/MO/FSG in Las Vegas.
RETAIL - FOR LEASE Scottsdale Plaza
OFFICE - FOR LEASE Pointe North Office Park
LAND - FOR SALE Rainbow Boulevard Frontage
Chris Connell & Grant Traub are representing a turn-key 2nd generation office space available from ±344 SF to ±5,220 SF; Retail space available from ±1,151 SF to ±4,930 SF. Office Lease Rates: $2.25 PSF/Month FSG - TT only responsible for phones & internet services. Retail Lease Rates: $1.35 PSF/Month NNN; CAMs at $.38 PSF/Month. Approximately one (1) mile from I-215 Beltway.
Suzette LaGrange & Kara Walker, CCIM are representing a ±6,150 SF professional office suite. The property includes above-standard parking capability of 8:1,000 & is quick, turn-key, custom build-out also available. Asking $1.65 /SF, MG in Las Vegas.
Steven Haynes is representing a ±2.05 acre land parcel that is located on the northwest corner of South Rainbow Boulevard & West Cougar Avenue approximately ±0.6 miles north of Blue Diamond Road & ±2.9 miles south of I-215 Beltway.
Nevada Business “How to Lease or Buy: A Guide to the Rebounding Commercial RE Industry” http://www.nevadabusiness.com/2016/04/lease-buy-guide-rebounding-commercial-re-industry-chris-sieroty/ Vegas Inc “Stuck in neutral: Faraday Future hasn’t sparked land sales at Apex park” http://vegasinc.com/business/2016/feb/24/faraday-future-sparks-price-increases-at-apex-indu/ Vegas Inc “It’s a good time to sell, but for buyers, value ‘is still out there if you turn over all the rocks’” http://vegasinc.com/business/2016/apr/11/its-a-good-time-to-sell-but-for-buyers-value-is-st/
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APRIL 2016
U P C O M I N G
EVENTS
MAY 5th
MAY 10th
MAY 11th
Links For Life Anthem Country Club
USGBC Breakfast inNEVation Center
SIOR Luncheon Maggiano’s Little Italy
CREW Luncheon Las Vegas Country Club
Monthly Retail Meeting Main Conference Room
MAY 19th
9:00am
11:30am
7:00am
8:30am
12:00pm
NAIOP Breakfast Orleans Hotel & Casino 7:30am
MAY 22nd-25th
MAY 25th
MAY 31st
ICSC RECon Las Vegas Convention Center
Monthly Office Meeting Main Conference Room
Parfaits With Pat Colliers Café
Cheers and Beers
4:00pm - Monday May 23rd
Last Call - Drais
9:30am
1:00pm
CCIM Luncheon Palms Hotel & Casino 11:30am
7:00pm - Tuesday May 24th
colliers appreciation lunch Colliers Las Vegas enjoyed a “Colliers Appreciation Lunch” with Señor Blues on March 31st. Let’s recap the event with some fun photos. Hope everyone had a great time!
APRIL 2016
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LOOK WHO MADE THE PLANE!
2016 SALES AWARD TRIP
MAUNA KEA - MARCH 17, 2017 - MARCH 22, 2017
YEAR-TO-DATE BROKERS WHO QUALIFY FOR THE HAWAII TRIP MIKE MIXER MIKE STUART SCOTT GRAGSON DAN DOHERTY
MIKE DELEW TOM NASEEF SUSAN BORST*
*THESE BROKERS QUALIFIED FOR THE PLANE IN MARCH ... WELCOME ABOARD!
BROKER RANKINGS YEAR TO DATE MARCH 2016
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16.
STACY SCHEER
32.
KEITH CUBBA
1.
DAN DOHERTY
17.
ERIC MOLFETTA
33.
JOE BONIFATTO
2.
MIKE MIXER
18.
DAVID GRANT
34.
AL TWAINY
3.
MIKE DELEW
19.
GREG PANCIROV
35.
BRIAN RIFFEL
4.
SCOTT GRAGSON
20.
CHRIS LANE
36.
SCOT MARKER
5.
TOM NASEEF
21.
PHILLIP DUNNING
37.
JASON LESLEY
6.
SUSAN BORST
22.
RENAE RUSSO
38.
REBECCA STANIEC
7.
MIKE STUART
23.
ROBERT TORRES
39.
BRIDGET RICHARDS
8.
TABER THILL
24.
STEVE HAYNES
40.
CHARLES CONNORS
9.
RYAN MARTIN
25.
SUZETTE LAGRANGE
41.
GEORGE CONNOR
10.
PAT MARSH
26.
KARA WALKER
42.
DAVE FREAR
11.
GARRY CUFF
27.
CHRIS CONNELL
43.
CHRIS LOBELLO
12.
PATTI DILLON
28.
GRANT TRAUB
44.
FRANK MARRETTI
13.
SPENCER PINTER
29.
VINCE SCHETTLER
45.
ERIC TUMBLESON
14.
DEAN WILLMORE
30.
ANDREW KILDUFF
46.
JULIE BAUMAN
15.
DAN GLUHAICH
31.
PAT MCNAUGHT
47.
JOHN KILPATRICK
APRIL 2016
BY THE NUMBERS MARCH 2016
LAS VEGAS - MARCH 2016 RESULTS MULTI FAMILY 6%
OFFICE 4%
LEASE 50%
RETAIL 14%
MARCH 2016 Sale Revenue vs. Lease Revenue
PROPERTY TYPES
LAND 25%
61 DEALS IN MARCH
INDUSTRIAL 52%
TOP 10 AGENTS: MARCH 2016 1. DAN DOHERTY
6. SPENCER PINTER
2. PAT MARSH
7. MIKE DELEW
3. DAN GLUHAICH
8. SCOTT GRAGSON
4. SUSAN BORST
9. DAVID GRANT
5. DEAN WILLMORE
10. TOM NASEEF
SALES 50%
ANNIVERSARIES: MARCH 2016 1. MIKE DELEW 1995 / 21 YEARS 2. TABER THILL 2002 / 14 YEARS 3. BRIAN RIFFEL 2002 / 14 YEARS 4. SUZETTE LAGRANGE 2005 / 11 YEARS 5. CHRIS LANE 2010 / 6 YEARS 6. JOE BONIFATTO 2012 / 4 YEARS
7. AL TWAINY 2012 / 4 YEARS 8. BRANDY DUMAS 2014 / 2 YEARS 9. JASON LESLEY 2014 / 2 YEARS 10. BRIDGET RICHARDS 2014 / 2 YEARS 11. CHRIS ZUNIS 2015 / 1 YEAR
YAY FOR SUSAN! Susan Borst, CCIM, SIOR has just been named Senior Vice President of the Industrial Division.
Coca Cola used to contain cocaine when it was initially introduced.
She also recently was pinned as an SIOR, one of only 3 women in the valley to hold this designation. Congratulations Susan!
APRIL 2016
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BROKER OF THE MONTH MARCH 2016 What part of your daily routine do you enjoy most?
When I don’t have an early morning meeting. Coffee with my wife.
What is your pet peeve when you are on vacation? Getting a bad hotel room
What is the one thing you can’t live without? Crossfit
What is one thing you miss about being a kid? Never having to dress up
PROFILE
Dan is an Executive Vice President in the Industrial Division of Colliers International, operating under Doherty Industrial Group and has been one of the top producers in the Las Vegas Office for the past 16 years. Dan is experienced in all phases of industrial real estate including REO dispositions, site selection, development and design, leasing and investment sales. Doherty Industrial Group (DIG) at Colliers International has a combined 40+ years of experience marketing industrial real estate properties in the Las Vegas Valley and during the past 48 months the team has brokered over 5.1M square feet of Industrial Property. Our Clients include ProLogis, Thrivent Financial, Saddleback Associates, Panattoni Development Co., City National Bank, Wells Fargo, RC Willey Home Furnishings IndCor and Pacific Life Insurance Company just to name a few.
DAN DOHERTY
EXECUTIVE VICE PRESIDENT INDUSTRIAL DIVISION
CONGRATULATIONS, DAN!
Colliers Las Vegas
ICEBREAKER HOW MANY PAIRS OF SHOES DO YOU OWN?
I own around 50 pairs of shoes, but only wear 3 pairs. Why I insist on buying shoes that I never wear, I have no idea.
Amelia Hyden ASSOCIATE
IF YOU WERE TO BUY A CAR RIGHT NOW, WHAT WOULD YOU BUY?
I don’t really need to buy a car since I already have a new car. I rather spend that money on shoes (that I will probably never wear). 10 APRIL 2016
WHAT IS YOUR FAVORITE ICE CREAM FLAVOR?
My favorite ice cream is the strawberry blonde from Coldstone’s Ice Cream.
INTERESTING TIDBITS FROM PEOPLE YOU WORK WITH DO YOU PREFER TO TEXT OR TALK ON THE PHONE?
I prefer a good mix of texting and talking. Texting is nice to relay a quick message or just to say hi. I do enjoy having a good old-fashion phone conversation to catch up with people I haven’t spoken to in a while. BE INVISIBLE OR BE ABLE TO READ MINDS?
I would be invisible. Reading people’s minds would probably be way TMI.
Las Vegas Phone Directory INDUSTRIAL Susan Borst Mike De Lew Dan Doherty Jerry Doty David Frear Tyler Jones Suzette LaGrange Chris Lane Pat Marsh Eric Molfetta Sam Newman Greg Pancirov Spencer Pinter Brian Riffel Renae Russo Kara Walker Dean Willmore Chris Zunis
LAND +1 702 836 3719 +1 702 836 3736 +1 702 836 3707 +1 702 836 3735 +1 702 836 3723 +1 702 836 3754 +1 702 836 3799 +1 702 836 3728 +1 702 836 3741 +1 702 836 3756 +1 702 836 3724 +1 702 836 3776 +1 702 836 3776 +1 702 836 3773 +1 702 836 3775 +1 702 836 3705 +1 702 836 3763 +1 702 836 3703
OFFICE Patti Dillon Andrew Kilduff Ryan Martin Tom Naseef Rebecca Staniec Taber Thill
+1 702 836 3790 +1 702 836 3718 +1 702 836 3780 +1 702 836 3720 +1 702 836 3792 +1 702 836 3796
RETAIL Chris Clifford Garrett Connor George Connor Chris Connell Phillip Dunning Dan Gluhaich David Grant Scot Marker Steve Neiger Brett Rather Eric Tumbleson Al Twainy
+1 702 836 3746 +1 702 836 3738 +1 702 836 3786 +1 702 836 3709 +1 702 836 3766 +1 702 836 3757 +1 702 836 3785 +1 702 836 3782 +1 702 836 3760 +1 702 836 3794 +1 702 836 3708 +1 702 836 3725
Julie Bauman Scott Gragson Steven Haynes John Kilpatrick Pat McNaught Vince Schettler Mike Stuart Robert Torres
PROPERTY MANAGEMENT +1 702 836 3753 +1 702 836 3730 +1 702 836 3727 +1 702 499 8999 +1 702 836 3798 +1 702 836 3764 +1 702 836 3739 +1 702 836 3788
Erica Aulino Brandy Dumas Jennifer Kennedy Gretchen Lee Jennifer Maximino Susan McMasters Jessie Noche Jessica Rothwell Angelina Scarcelli
+1 702 836 3777 +1 702 836 3713
STAFF
HOTEL/RESORT Mike Mixer Dharmesh Patel
INVESTMENT SERVICES Joe Bonifatto Brian Fike Robert Henn Jason Lesley Frank Marretti Bridget Richards Grant Traub
+1 702 836 3729 +1 702 836 3744 +1 702 836 3767 +1 702 836 3742 +1 702 836 3758 +1 702 836 3743 +1 702 836 3789
Nicole Cauilan Courtney Goffstein Alisa Husic Sara Johansson Gina Jones Scott Jun Laura Medina Matt Stater Elizabeth Valles
+1 702 836 3745 +1 702 836 3761 +1 702 836 3772 +1 702 836 3704 +1 702 836 3726 +1 702 836 3750 +1 702 836 3752 +1 702 836 3748 +1 702 836 3768
+1 702 836 3706 +1 702 836 3710 +1 702 836 3701 +1 702 836 3771 +1 702 836 3783 +1 702 836 3721 +1 702 836 3769 +1 702 836 3781 +1 702 836 3791
GOLF COURSE Keith Cubba
+1 702 836 3733
MULTI-FAMILY Garry Cuff Jeff Naseef Tom Naseef Thomas Olivetti
+1 702 836 3716 +1 702 836 3731 +1 702 836 3720 +1 702 836 3740
RECEIVERSHIP Christopher LoBello +1 702 836 3714
MEDICAL OFFICE Stacy Scheer
+1 702 836 3762
VALUATION SERVICES Tom Hoover
+1 702 836 3749
APRIL 2016 11
Accelerating success.
www.colliers.com/lasvegas Colliers International Mike Mixer, Executive Managing Director 3960 Howard Hughes Parkway, Suite 150 Las Vegas, Nevada 89169 T +1 702 735 5700 | F +1 702 731 5709