Las Vegas Insider | July 2020

LAS VEGAS

INSIDER

A COMMUNICATION FOR BROKERS, EMPLOYEES, COLLEAGUES AND FRIENDS

JULY 2020

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TWITTER.COM/COLLIERS_LV

COLLIERS INTERNATIONAL LAS VEGAS RECOGNIZED AS

BROKERAGE FIRM OF THE YEAR FOR 15TH YEAR IN A ROW

TAB L E O F

CON T EN TS 4

WEATHER THE STORM

7

COLLIERS IN THE NEWS

8

FEATURED LISTINGS

10 11

BROKERAGE FIRM OF THE YEAR

UPCOMING EVENTS

12

FEATURED DEALS

15

BROKER CONNECTIONS

16

BY THE NUMBERS

19

DIRECTORY

15TH CONSECUTIVE YEAR

BROKERAGE FIRM OF THE YEAR! NAIOP SOUTHERN NEVADA DELIVERS COLLIERS INTERNATIONAL BROKERAGE FIRM OF THE YEAR AWARD READ MORE ON

PAGE 10

DID YOU KNOW?

It’s impossible to sneeze with your eyes open

Weathering the

Storm Las Vegas, NV John Matt Stater

The second quarter of 2020 was the “business closure” quarter, and only the industrial market bucked the expected trend of weaker commercial real estate numbers.

INDUSTRIAL HISTORICAL VACANCY RATES AND ASKING LEASE RATES

The second quarter of 2020 produced over 2 million square feet of industrial net absorption. Warehouse/ distribution product posted all of the Valley’s positive net absorption in the second quarter of 2020. Other industrial product types, which rely more heavily on small businesses, suffered negative net absorption.

While it is likely that warehouse/distribution demand will remain relatively strong through the remainder of 2020, it is unknown how quickly small businesses will recover. By the end of 2020, we may see an overall positive industrial picture that nevertheless obscures the challenges faced by many landlords of nonwarehouse/distribution properties in the Valley.

After a robust first quarter, pandemic woes sent land sales activity much lower in the second quarter of 2020. While it is unlikely that this slump in land sales was directly related to the existence of COVID-19, it is probable that the uncertain business climate created by the business closures enacted to stem the spread of the virus put land investors on the sidelines in the second quarter. Land sales may not fare better in the third quarter, but signs of solid economic recovery in the third quarter could put investors back in the market by the end of 2020.

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Southern Nevada’s office market has, so far, showed surprising resilience in the face of the business closures enacted to stem the spread of COVID-19.

While approximately 10,000 square feet of net absorption is nothing to brag about, any positive net absorption in the face of the massive job losses experienced over the past two months is remarkable.

Anecdotal evidence suggests that most office tenants continued to pay their rent over the past few months, but the eviction moratorium imposed until July makes it difficult to know how vulnerable the market is to future vacancies. We think the office market will continue to be challenged by the job losses already experienced and the uncertainty regarding evictions, utilization of office space post-pandemic and whatever other upheavals 2020 has in store for us.

There was little doubt that Southern Nevada’s retail market was going to suffer a rough second quarter. Job losses in the retail sector, even if mostly temporary, are staggering, so negative 74,874 square feet of net absorption was not as bad as was feared.

The fact that businesses are now opening and retail sales are improving should not, however, instill a belief that the worst is over. Further retail job losses remain a possibility, as the requirements imposed under the PPP program end in July. Furthermore, the state moratorium on evictions also ends in July, raising the possibility of a wave of retail vacancies in the third quarter. Finally, announced closures and potential closures of major retail chains have almost 500,000 square feet of occupied retail in the Valley in jeopardy. The third quarter of 2020 should give us a better understanding of the resilience of Southern Nevada’s retailers, and how long and painful a recovery we can expect.

Just as Southern Nevada’s medical office market was putting up strong numbers in the first quarter of 2020 the healthcare sector was hit hard by the restrictions on medical care enacted due to fears of hospitals being overtaxed by the COVID-19 pandemic. While those fears may not have been realized, the damage done by the restrictions is undeniable, as almost 15,000 healthcare workers lost their jobs in April and May and the activity in medical office market came nearly to a halt. The pandemic is not over, and fears over going to the doctor may leave the health care industry wanting for business despite lessened restrictions on care. Uncertainty alone may put a damper on leasing and investment activity in 2020, although the chance of recovery in the second half of the year is not out of the question.

The closure of hospitality properties in Southern Nevada for more than two months was unprecedented and had an obvious negative impact on the hospitality industry in particular, and the Valley’s economy in general. Just how permanent this damage will be is unknown, as properties only began re-opening in June 2020 and we lack visitation and revenue data for those re-openings. There is anecdotal data suggesting that visitor volume in June was more than was expected by property operators, but the potential for further travel restrictions, and the lack of business travel’s impact on the local convention industry make it difficult to predict how quickly the Valley’s hospitality industry will bounce back. For now, we remain in “wait-and-see” mode, a fact unlikely to stimulate investment in hospitality properties in the near term.

HISTORICAL VACANCY RATES AND ASKING LEASE RATES

OFFICE

R E TA I L

MEDICAL

// COLLIERS INTERNATIONAL LAS VEGAS //

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Recent Economic Indicators Point to a Gradual Recovery for Industrial Real Estate As predicted, the U.S. economy hit a major slump at the start of the second quarter. The COVID-19 pandemic negatively impacted employment, manufacturing production, retail sales and consumer sentiment across the country. Some of the lowest economic measures were reported during the second quarter as the country officially entered a recessionary period.

Assessing CRE Transaction Viability Post-COVID-19 Many occupiers are asking where and when to pick-up with the implementation of transactions now that we are transitioning back to a new way of working. In our previous article, we noted the way businesses occupy real estate portfolios in the “new normal� could change dramatically.

Actions that were planned or started pre-COVID-19 now have questions around their relevancy.

READ MORE

DID YOU KNOW? READ MORE

Walt Disney was afraid of mice

COLLIERS IN THE NEWS Healthcare Panel talks about future of down town Medical Arts District

Colliers Las Vegas announces new industrial broker

DEAL WATCH Doherty Industrial Group

Nevada Business Journal - July 13

Las Vegas Business Press - June 23

READ MORE

READ MORE

READ MORE

Colliers International | Las Vegas Recognized As Brokerage Firm Of The Year For 15th Year In A Row

Real estate report says retail space in Las Vegas was hit hard during COVID-19 pandemic

Colliers International welcomes Raiderettes to Matter Park

CRE Confidential - July 17

KLAS 8 News Now – July 22

READ MORE

READ MORE

Las Vegas Review Journal - July 3

KTNV Abc – June 30

READ MORE

// COLLIERS INTERNATIONAL LAS VEGAS //

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Photo by Matthias Mullie on Unsplash

Photo by ihtesham ismail on Unsplash

FEATURED LISTINGS Photo by Alive Coverage Photo by Alive Coverage/Sipa USA/AP Images

Photo by Marina Monroe from Pexels

1100 West Warm Springs Grant Traub, SIOR and Chris Connell, SIOR •

±14,817 SF Auto Dealership For Sale Or Lease Sales And Service Property

•

Offering Price: $9,500,000

•

Price Per SF: $641.16

6030 South Rainbow Boulevard, Building D Taber Thill, SIOR, Patti Dillon, SIOR and Megan McInerney •

±5,000 SF Multi-Tenant Office Building

•

Owner-user building with monthly income

•

Sale price: $1,200,000 ($240 PSF)

2870 South Maryland Parkway Stacy Shapiro, CCIM

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// JULY 2020 //

•

4% Commission

•

Suites ranging between ±1,206 SF — ±10,518 SF

•

Asking rate: $0.90-$1.10/SF NNN

3850 Ponderose Way Dean Willmore, SIOR, Alex Stanisic and Mike Willmore •

±20,464 SF Industrial Income Property

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100% Leased Single Tenant Industrial Investment

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For Sale: $2,935,000 | Cap Rate: 6.1%

3575 West Post Road Brian Riffel, SIOR and Tyler Jones •

±25,500 SF office/warehouse building for lease

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±6,121 SF of High-Image Corporate Style Office

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Total monthly rent: $31,365.00

±3.98 Acres - 2595 North Las Vegas Boulevard Steven Haynes

JULY FEATURED LISTINGS

•

±3.98 Acres - Zoned C-2

•

APN: 139-13-301-001

•

Asking Price: $1,900,000

// COLLIERS INTERNATIONAL LAS VEGAS //

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OUR 15TH CONSECUTIVE YEAR WINNING THE PRESTIGIOUS AWARD

BROKERAGE FIRM OF THE YEAR! NAIOP SOUTHERN NEVADA DELIVERS COLLIERS INTERNATIONAL BROKERAGE FIRM OF THE YEAR AWARD ON WEDNESDAY, JULY 15th.

DOHERTY INDUSTRIAL GROUP INDUSTRIAL BROKER OF THE YEAR

We are honored to announce that Colliers International Las Vegas was named Brokerage Firm of the Year for our 15th consecutive year at the NAIOP Southern Nevada Chapter’s Virtual Spotlight Awards!

Additionally, Doherty Industrial Group which includes Dan Doherty, SIOR, Paul Sweetland, SIOR, Chris Lane, SIOR, CCIM and Jerry Doty were recognized as Industrial Broker of the Year and the team of Taber Thill, SIOR, Patti Dillon, SIOR, and Megan McInerney were named Office Broker of the Year.

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// JULY 2020 //

OFFICE TEAM OFFICE BROKER OF THE YEAR

August 2020

CREW LUNCHEON ZOOM CALL 11:30am – 1:00pm August 11

SIOR LUNCHEON ZOOM CALL 11:45am – 1:30pm August 12

MONTHLY RETAIL MEETING 8:30am – 10:00am

MONTHLY INVESTMENT MEETING 9:00am – 10:30am August 25 (Grant Traub to send Zoom link)

MONTHLY OFFICE MEETING 9:00am – 10:00am August 26 (Taber Thill to send Zoom link)

CCIM VIRTUAL LUNCH MEETING 11:30am August 26

MONTHLY INDUSTRIAL MEETING 9:00am – 10:00am August 27 Call in: 712 770 4703 Access code: 121737

August 18 (David Grant to send Zoom link)

NAIOP BREAKFAST ZOOM CALL 7:00am – 8:45am August 20 (Zoom link to follow)

DID YOU KNOW?

Lighters were invented before matches.

// COLLIERS INTERNATIONAL LAS VEGAS //

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FEATURED DEALS JULY 2020

Industrial Sale A sale to GLM Cabinets. The ±12,878 square foot industrial property is located in Matter Business Park @ Warm Springs at 7930 West Warm Springs, Suite 170 in Las Vegas. The transaction amount $2,060,480.00. Dan Doherty, SIOR, Paul Sweetland, SIOR, Jerry Doty, and Chris Lane, SIOR, CCIM of Colliers International represented the seller, Matter Business Park @ Warm Springs.

Land Sale A sale to Arev Holdings, LLC. The ±1.21 acre land parcel is located at 4390 Sobb Avenue (APN: 162-31-701-010) in Las Vegas. The transaction amount $500,000.00. Brian Riffel, SIOR and Tyler Jones of Colliers International represented the seller, DAC Realty LLC.

Industrial Lease A lease to Serenity Funeral Homes. The ±12,158 square foot industrial property is located in Cheyenne Airport Center at 3575 West Cheyenne Avenue, Suite #105-107 in North Las Vegas.

Gabe Telles, Ryan Hendershot and Chase Pavlov of Colliers International represented the landlord, BKM Capital Partners.

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// JULY 2020 //

A AD IR SP IN A VI

Land Sale A sale to Centurion 2, LLC. The ±23.99 acre land parcel is located near Via Inspirada (APN: 191-22-511-003) in Henderson. The transaction amount $15,120,000.00. Mike Stuart of Colliers International represented the buyer.

Industrial Lease A lease renewal to Derse Inc. The ±133,400 square foot industrial property is located in Las Vegas Corporate Center at 3200 East Gowan Road in North Las Vegas. Dan Doherty, SIOR, Chris Lane, SIOR, CCIM, Paul Sweetland, SIOR and Jerry Doty of Colliers International represented the landlord, Icon Pac Nevada Owner Pool 3 Nevada LLC.

Industrial Lease A lease renewal to Pierce Distribution Services Co. Inc. The ±31,306 square foot industrial property is located in Freeport West Distribution Center at 3030 North Lamb Boulevard, Suite 101 in Las Vegas. Dean Willmore, SIOR, Alex Stanisic, Michael Willmore and Lauren Willmore of Colliers International represented the tenant.

JULY FEATURED DEALS

// COLLIERS INTERNATIONAL LAS VEGAS //

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WHO MADE THE PLANE

2020 SALES AWARD TRIP JUNE 5–9, 2021 FAIRMONT KEA LANI IN MAUI

Congratulations and Welcome Aboard!

- DAN DOHERTY - PAUL SWEETLAND - DAVID GRANT - CHRIS LANE - JERRY DOTY - SPENCER PINTER - KEITH CUBBA - CHRIS CLIFFORD - BRIAN RIFFEL - PAT MARSH - MIKE STUART*

*Made the plane in July

DID YOU KNOW?

The Dole Plantation in Honolulu, Hawaii has the largest pineapple maze in the world.

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// JULY 2020 //

BROKER CONNECTIONS

M SA

NEWM

AN

Best book you’ve ever read?

Green Eggs and Ham. Highly recommend. It will make your head spin.

Are you an early bird or night owl? Why? I aspire to be an early bird, not great at being a night owl…

I like sleep

Would you rather be able to run at 100 miles per hour or fly at 10 miles per hour, WHY? Just glad I’m not Brett Rather.

If you could keep only one appliance in your house, which one would you choose and why?

Laundry. Hate doing laundry as is. Can you imagine doing this manual?

TAG, YOU’RE IT! BRETT RATHER

// COLLIERS INTERNATIONAL LAS VEGAS //

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LAS VEGAS

BY THE NUMBERS JUNE 2020 Broker Rankings YTD

MULTIFAMILY

7% RETAIL

OFFICE

2%

12%

JUNE PROPERTY TYPES INDUSTRIAL

33%

LAND

46%

Sales vs. Lease Revenue 67% - Sales

33% - Lease

124% MONTHLY BUDGET 38% YTD BUDGET 16

// JULY 2020 //

1. Dan Doherty

25. Brian Fike

2. Paul Sweetland

26. Stacy Shapiro

3. Mike Stuart

27. Alexia Crowley

4. Jerry Doty

28. Kara Walker

5. Chris Lane

29. Suzette Lagrange

6. Chris Clifford

30. Gabe Skerlich

7. David Grant

31. Steve Neiger

8. Brian Riffel

32. Brett Rather

9. Spencer Pinter

33. Tyler Jones

10. Pat Marsh

34. Andrew Kilduff

11. Keith Cubba

35. Joe Bonifatto

12. Grant Traub

36. Sam Newman

13. Dean Willmore

37. Steve Haynes

14. Eric Molfetta

38. Al Twainy

15. Dan Gluhaich

39. Jennifer Lehr

16. Mike Mixer

40. Gabe Telles

17. Scot Marker

41. Patrick Baker

18. Taber Thill

42. Chase Pavlov

19. Patti Dillon

43. Chris Bentley

20. Chris Connell

44. Jeff Swinger

21. Alex Stanisic

45. Rebecca Staniec

22. George Connor

46. Chris Lobello

23. Ryan Hendershot

47. Amanda Irving

24. Mike Willmore

Photo by Scott Webb on Unsplash

JUNE 2020 ANNIVERSARIES MIKE STUART

1994

26 Years

DAN DOHERTY

1998

22 Years

PAT MARSH

1998

22 Years

JENNIFER KENNEDY

2007

13 Years

SAM NEWMAN

2010

10 Years

CHRIS CONNELL

2011

9 Years

JERRY DOTY

2012

8 Years

TYLER JONES

2012

8 Years

NICOLE CAUILAN

2015

5 Years

CHRIS SUTTON

2016

4 Years

Congratulations!

49

TOTAL DEALS FOR THE MONTH OF JUNE

TOP 11 JUNE 2020 MIKE STUART

1

BROKER OF THE MONTH

MICHAEL STUART EXECUTIVE VICE PRESIDENT | LAND DIVISION Michael’s Broker of the Month donation will be going to the Pat Kelly Youth Foundation.

The Patrick Kelley Youth Foundation (PKYF) serves the Las Vegas community and youth with educational incentives and financial aid.

I N S P I R AT I O N A L Q U OT E :

GRANT TRAUB BRIAN RIFFEL DAN DOHERTY PAT MARSH DAN GLUHAICH PAUL SWEETLAND MIKE MIXER DEAN WILLMORE JERRY DOTY CHRIS LANE

“Life is not about finding yourself. Life is about creating yourself.”

— Lolly Daskal

// COLLIERS INTERNATIONAL LAS VEGAS //

17

HELLO

HOW CAN I HELP!

Voice Commerce

By Anjee Solanki | 28 July 2020

Today, nearly 50% of all online searches are facilitated by voiceenabled tools as consumers engage with businesses on mobile devices and their smart home speakers. According to OC&C Strategy Consultants, voice commerce is predicted to reach $40 billion by 2022. A massive number considering 2019 sales revenue recorded at $1.8 billion. Voice commerce leverages voice-activated technologies and machine learning to create a friction-free environment that enables consumers to use speech commands to search and purchase products online.

READ MORE

DID YOU KNOW? On average, people fear spiders more than they do of death.

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// JULY 2020 //

LAS VEGAS

PHONE DIRECTORY INDUSTRIAL

LAND

MEDICAL OFFICE

Dan Doherty

+1 702 836 3707

Steven Haynes

+1 702 836 3727

Alexia Crowley

+1 702 836 3778

Jerry Doty

+1 702 836 3735

Mike Stuart

+1 702 836 3739

Stacy Shapiro

+1 702 836 3762

Ryan Hendershot

+1 702 836 3751

Tyler Jones

+1 702 836 3754

Suzette LaGrange

+1 702 836 3799

Chris Lane

+1 702 836 3728

Richard Koldewyn

+1 702 836 3738

Pat Marsh

+1 702 836 3741

Heidi Meidenbauer

+1 702 836 3726

Sam Newman

+1 702 836 3724

Evan Ranes

+1 702 836 3749

Alyssa Parks

+1 702 836 3755

Brandon Roper

+1 702 836 3734

Chase Pavlov

+1 702 836 3731

Angel Vidal

+1 702 836 3775

Spencer Pinter

+1 702 836 3776

Brian Riffel

+1 702 836 3773

Danielle Scarano

+1 702 836 3747

Alexander Stanisic +1 702 836 3742

HOTEL/RESORT Mike Mixer

INVESTMENT SERVICES Joe Bonifatto

+1 702 836 3729

Brian Fike

+1 702 836 3744

Amanda Irving

+1 702 836 3732

Eric Molfetta

+1 702 836 3756

Gabriel Skerlich Grant Traub

+1 702 836 3708

Paul Sweetland

+1 702 836 3750

Gabe Telles

+1 702 836 3758

Kara Walker

+1 702 836 3705

Dean Willmore

+1 702 836 3763

GOLF COURSE

Mike Willmore

+1 702 836 3748

Keith Cubba

Lauren Willmore

+1 702 836 3730

OFFICE Chris Connell

+1 702 836 3709

Patti Dillon

+1 702 836 3790

Andrew Kilduff

+1 702 836 3718

Megan McInerney

+1 702 836 3700

Rebecca Staniec

+1 702 836 3792

Taber Thill

+1 702 836 3796

+1 702 836 3777

+1 702 836 3789

+1 702 836 3733

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

PROPERTY MANAGEMENT Erica Aulino

+1 702 836 3745

Valerene Corbin

+1 702 836 3761

Jennifer Kennedy

+1 702 836 3772

Breanna Lara

+1 702 836 3753

Christine Norberg

+1 702 836 3704

Angelina Scarcelli

+1 702 836 3768

STAFF

MULTI-FAMILY Christopher Bentley

+1 702 836 3779

Shalonda Hughes

+1 702 836 3765

Jeffrey Swinger

+1 702 836 3764

RECEIVERSHIP Christopher LoBello +1 702 836 3714

RETAIL

VALUATION SERVICES

Nicole Cauilan

+1 702 836 3706

Sara Johansson

+1 702 836 3771

Gina Jones

+1 702 836 3783

Brianna Maldonado

+1 702 836 3701

Matt Stater

+1 702 836 3781

Chris Sutton

+1 702 836 3721

400 offices in 68 countries on 6 continents

MARKET CONTACT: Mike Mixer, SIOR Executive Managing Director

+1 702 735 5700

ANZ: 54 United States: 159 Canada: 48 Latin America: 20

mike.mixer@colliers.com John Stater Research & GIS Manager

+1 702 836 3781

john.stater@colliers.com

Asia Pacific: 45 EMEA: 114 COLLIERS INTERNATIONAL | LAS VEGAS

$3.5 billion in annual revenue 2 billion square feet under management 18,000+ professionals and staff

3960 Howard Hughes Parkway, Suite 150 Las Vegas, Nevada 89169 | USA +1 702 735 5700 www.colliers.com/lasvegas

ABOUT COLLIERS INTERNATIONAL Colliers International (NASDAQ, TSX: CIGI) is a leading real estate professional services and investment management company. With operations in 68 countries, our more than 15,000 enterprising professionals work collaboratively to provide expert advice to maximize the value of property for real estate occupiers, owners and investors. For more than 25 years, our experienced leadership, owning approximately 40% of our equity, has delivered compound annual investment returns of almost 20% for shareholders. In 2019, corporate revenues were more than $3.0 billion ($3.5 billion including affiliates), with $33 billion of assets under management in our investment management segment. Learn more about how we accelerate success at corporate.colliers.com, Twitter @Colliers or LinkedIn. Š 2020 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.