April 2018
LAS VEGAS
INSIDER A COMMUNICATION FOR BROKERS, EMPLOYEES, COLLEAGUES AND FRIENDS
Life is Beautiful Music & Art Festival is coming back! Friday, September 21 – Sunday, September 23
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2017 RECAP Every September thousands of inspired creators converge on 18 blocks in Downtown Las Vegas to enjoy a world that celebrates the beauty in ourselves and our surroundings. A world in which music and art transform, positivity prevails, imagination overwhelms and creativity thrives. In 2017, 78 musical acts, 19 artists and muralists, 14 comedians, more than 20 speakers cemented into our community’s DNA a sense of inspiration, imagination and initiative.
Accelerating success.
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TABLE OF CONTENTS: STRONG START – LV RESEARCH 4 FEATURED DEALS 7 FEATURED LISTINGS 8
COLLIERS IN THE NEWS 9 UPCOMING EVENTS 11 VEGAS BY THE NUMBERS 12
BROKER OF THE MONTH 13 DIRECTORY 14
MIKES QUOTE DON’T WORRY ABOUT FAILURES, WORRY ABOUT THE CHANCES YOU MISS WHEN YOU DON’T EVEN TRY. – JACK CANFIELD
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LAS VEGAS RESEARCH
COMMERCIAL R E A L E S TAT E MARKET POSTS S T R O N G S TA R T TO 2 0 1 8 . Southern Nevada's commercial real estate market posted strong demand in the first quarter of 2018, with the professional office and medical office markets showing notable improvement.
QUARTERLY REPORTS FOR Q1 2018 AVAILABLE NOW
BY JOHN MATT STATER
A STRONG START Southern Nevada’s office market got off to a good start in 2018 with 182,070 square feet of net absorption. This extended the office market’s recovery - or perhaps we should start calling it an expansion - into a thirteenth straight quarter. Forward supply of office space jumped in the third quarter of 2017, and office inventory expansion should heat up next quarter. We think Southern Nevada will see approximately 600,000 square feet completed over the remainder of 2018. Build-to-suits make up 371,851 square feet of that total, so net absorption should be strong by year’s end, and we think vacancy will fall below 15 percent. “After three years of positive net absorption, Southern Nevada’s office market has never been more ready for inventory expansion,” said John Stater, Research Manager of Colliers International’s Las Vegas office. Southern Nevada’s medical office market followed up a strong 2017 with a solid first quarter in 2018. Net absorption was 108,228 square feet, an improvement over net absorption in the first quarter of 2017, though not the highest net absorption recorded during the current recovery period. We think medical office vacancy will decrease to near 10 percent by the end of 2018, just a bit higher than the average 8.6 percent vacancy in the market prior to the Great Recession.
“After three years of positive net absorption, Southern Nevada’s office market has never been more ready for inventory expansion,” said John Stater, Research Manager of Colliers International’s Las Vegas office. Southern Nevada’s medical office market followed up a strong 2017 with a solid first quarter in 2018. Net absorption was 108,228 square feet, an improvement over net absorption in the first quarter of 2017, though not the highest net absorption recorded during the current recovery period. We think medical office vacancy will decrease to near 10 percent by the end of 2018, just a bit higher than the average 8.6 percent vacancy in the market prior to the Great Recession.
Mike Mixer, Executive Managing Director for Colliers International Las Vegas said, “After a tumultuous run during the post-Great Recession years, Southern Nevada’s medical office market has made rapid strides over the past two years.”
After a small hiccup in the third quarter of 2017, Southern Nevada’s multifamily market got back down to business. Net absorption improved dramatically in the fourth quarter of 2017 compared to the third quarter of 2017, bringing vacancy down to 3 percent and boosting the average rental rates to over $1,000. Two factors should keep the multifamily market healthy over the next few years, population and home prices. While Southern Nevada’s population is not growing as quickly as it did a decade ago, it is still growing and is predicted to add over 4,500 rental households per year over the next five years. This growth in rental households is partially because apartment rents remain less expensive than monthly payments for new and resale homes, and the barrier of entry for apartments is substantially lower than for homes. The first quarter of 2018 saw industrial vacancy increase to 5.5 percent as completions increased to 2.4 million square feet while net absorption decreased to (a still strong) 832,583 square feet. After a boisterous 2017, the lower net absorption experienced in the first quarter of 2018 might come as a shock, especially as it came with a post-recession record level of new completions. This is not necessarily the beginning of the end, as a surplus of vacant industrial space represents an opportunity for businesses the want to establish themselves in Southern Nevada on a short timeline. That being said, demand for industrial space must increase to keep pace with new supply entering the market in 2018 to keep vacancy rates from rising. After three quarters of strong net absorption, Southern Nevada’s retail market experienced negative 25,803 square feet of net absorption in the first quarter of 2018. Net absorption often decreases when new completions are light, and new completions totaled only 18,237 square feet this quarter. Southern Nevada’s retail market continued to feel the impact of two long-term trends, the continued impact of e-commerce on brick-andmortar retail (a national trend) and the demographic trend of people and wealth moving from the east side to the west side of the Valley. The overall retail vacancy rate and asking rental rate have shown little movement either way over the past five quarters, and we think this trend will continue in 2018. Vacancy might be lower at the end of 2018 than it is now, but the continued closure of large anchor stores in the Valley will act as a major head wind to lowering vacancy.
Continued on page 9
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24TH ANNUAL LINKS FOR LIFE GOLF TOURNAMENT :: MAY 17 :: SIENA GOLF CLUB
SADDLE-UP
REGISTRATION
NOW OPEN 600
$
INDIVIDUAL
2,000
$
FOURSOME
GOLF ALL MORNING! PARTY TILL WE KICK YA OUTLAWS OUT!
RAFFLE PRIZES GALORE
HOSTED BY:
REGISTRATION @ 7:45AM
SHOTGUN START
9:00AM
BUT NO BOOTS
THEIR RULES NOT OURS
FEATURED DEALS
RETAIL SALE
INDUSTRIAL SALE
±73,576 SQUARE FOOT RETAIL PROPERTY A sale to Stirling Club LLC. The ±73,576 square foot Stirling Club property is located at 2827 Paradise Road in Las Vegas. The transaction amount was $12,360,000.00. Chris Clifford, Steve Neiger and Brett Rather of Colliers International represented the seller, JDLB LLC.
±16,800 SQUARE FOOT INDUSTRIAL PROPERTY A sale to John Xanthos. The ±16,800 square feet industrial property is located at 240 Sunpac Avenue and 2031 Pabco Drive in Henderson. The transaction amount was $2,995,000.00. Dan Doherty, SIOR, Paul Sweetland, SIOR, Chris Lane and Jerry Doty of Colliers International represented the seller, Sanders Property Management, LLC.
LAND SALE
RETAIL LEASE
±50.48 ACRE LAND PARCEL A sale to Greystone Nevada, LLC. The ±50.48 acre land parcel is located on Hollywood Boulevard and Alto Avenue (APN: 140-14-101-002) in Las Vegas. The transaction amount was $9,338,800.00. Vince Schettler of Colliers International represented the seller, Mosaic Hollywood 247, LLC.
±4,732 SQUARE FOOT RETAIL PROPERTY A lease to The Stove Anthem, LLC. The ±4,732 square foot retail property is located at 11261 South Eastern Avenue, Suite 200 in Henderson. Stacy Scheer, CCIM of Colliers International represented the tenant.
INDUSTRIAL SALE ±14,320 SQUARE FOOT INDUSTRIAL PROPERTY A sale to Eastgate Henderson, LLC. The ±14,320 square foot industrial property is located in Henderson Freeway Crossing at 8345 Eastgate Road in Henderson. The transaction amount was $1,707,660.00. Pat Marsh, SIOR and Sam Newman of Colliers International represented the seller, Henderson Freeway Crossing LLC. Brian Riffel, SIOR and Tyler Jones of Colliers International represented the buyer.
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FEATURED LISTINGS
3377 LAS VEGAS BOULEVARD
6050 SOUTH FORT APACHE ROAD
TABER THILL, SIOR AND PATTI DILLON, SIOR
DEAN WILLMORE, SIOR AND MIKE WILLMORE
•
Only 3 spaces available: ±2,066 SF, ± 5,900 SF and ±8,478 SF
•
±2,000 SF of professional office space
•
Office Space on Las vegas Boulevard “The Strip”
•
Frontage on Fort Apache Road and Russell Road in the Southern
•
$2.50/SF Full Service Gross with the ability to operate 24/7
Palms Office Park •
Asking Lease: $1.65/SF :: Estimated CAM: $0.44/SF
4320 & 4340 NORTH LAMB BOULEVARD
7500 WEST LAKE MEAD BOULEVARD
JERRY DOTY, CHRIS LANE AND PAUL SWEETLAND, SIOR
AL TWAINY, CCIM AND AMELIA HENRY • ±2,663 SF available for lease in Summerlin Gateway Plaza • The property is situated at the signalized intersection of West Lake Mead Boulevard and North Buffalo Drive • Anchored by an approximate 56,525 square foot Sprouts Market and a 20,840 square foot 99 Cents Only Store
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±13,330 SF Warehouse/Office Space available for lease
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Craig Distribution Center II is a ±11.98 acre industrial park located in the North Las Vegas submarket just minutes from the I-15 Interstate via Craig Road and Lamb Boulevard interchanges.
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Lease Rate: $0.57 PSF
9171 WEST FLAMINGO ROAD CHRIS CLIFFORD, STEVE NEIGER AND BRETT RATHER •
±2,587 SF office space in Flamingo Trails Professional Plaza
•
Excellent location at 215 and West Flamingo
•
Lease Rate: $1.45 PSF NNN
NORTH WALNUT & NORTH LAS VEGAS BOULEVARD SUSAN BORST, SIOR, CCIM, DAN DOHERTY, SIOR AND JERRY DOTY •
±109,200 SF Speculative Distribution Building
•
Easily accessed via I-15 at the Lamb Boulevard interchange
•
Available for Pre-Leasing – Delivery Q2 2019
A STRONG START CONTINUED... Southern Nevada’s hospitality sector has struggled over the past year with decreasing visitor volume and in recent months with decreasing gaming revenue. Despite these problems, sales of hospitality properties have rebounded since the second and third quarters of 2017, with four major properties sold during the fourth quarter of 2017 and first quarter of 2018. Aside from new property development, Southern Nevada is slated for $1.4 billion in property remodels and renovations over the next two years, including Park MGM, a rebrand and remodel of the Monte Carlo Resort & Casino and Palace Station Hotel & Casino. Conference center and convention center construction and expansions total almost $2 billion and include the expansion of the Las Vegas Convention Center, the new Caesars Forum convention center and the expansion of the MGM Grand conference center. Non-gaming developments slated for the Valley over the next three years include Area 15, a 146,000 square foot recreation attraction, Las Vegas Ballpark in Summerlin, Las Vegas Stadium, which will host the NFL Las Vegas Raiders,
the All Net Resort & Arena, which will host the WNBA Las Vegas Aces, Madison Square Garden’s Sphere Arena and an expansion of the Showcase Mall on the Las Vegas “Strip”. The general trend for land sales has been downward since 2014, with 2016 a notable exception thanks to large parcel sales occurring at Apex. Based on the land sales recorded in the first quarter of 2018, this year might reverse that trend. A rebound in land sales seemed likely in consideration of the high level of commercial, residential and industrial construction taking place in the Valley over the past two years. Every project that is constructed takes vacant land off the market, and more importantly, takes vacant land out of a developer’s inventory. If developers plan to keep on developing, they need to buy land on which to do it.
FIRST QUARTER 2018 REPORT DOWNLOAD NOW!
IN THE NEWS COLLIERS INTERNATIONAL – LAS VEGAS NAMED BROKERAGE FIRM OF THE YEAR FOR 13TH CONSECUTIVE YEAR https://www.nevadabusiness.com/2018/03/ colliers-international-las-vegas-named-brokeragefirm-of-year-for-13th-consecutive-year/
March 15
AN OMAKASE AND TACO STAND HEAD TO CHINATOWN https://vegas.eater.com/2018/4/4/17195848/kameomakase-the-taco-stand-chinatown-restaurantsopening-soon
April 4
COMMERCIAL REAL ESTATE MARKET POSTS STRONG START TO 2018 https://creconfidential.com/las-vegas/commercialreal-estate-market-posts-strong-start-to-2018/
WE’RE PROUD TO HAVE SIX OF OUR TEAM MEMBERS NOMINATED FOR COLLIERS INTERNATIONAL’S SERVICE EXCELLENCE AWARDS. These individuals were nominated by their peers for their dedication to our success and we are so glad to recognize their contributions. Congratulations to Courtney Goffstein, Sara Johansson, Chris Sutton, John Matt Stater, Jennifer Kennedy and Erica Aulino.
April 22
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BBQ FOOD TRUCK
HIGHLIGHTS On April 18th, we gathered on the grassy area in front of our office building to enjoy some delicious entrees prepared by Bone Appetit Bar-B-Que Grill Food Truck. We had our choice of pulled pork tacos, pulled pork nachos (the favorite menu item of the day), chicken plates or sandwiches, hot link sandwiches, and a plethora of side dishes. Gina treated us to cookies and brownies for dessert.
We hope you enjoyed the weather and the food and we look forward to our next perk.
CHEESE
COLLIERS PERKS
CONGRATULATIONS, YOU MADE THE PLANE!
2018 SALES AWARD TRIP MAUNA KEA BEACH RESORT, BIG ISLAND, HAWAII
FRIDAY, MARCH 8 – TUESDAY, MARCH 12, 2019 VINCE SCHETTLER
CHRIS BENTLEY
DAN DOHERTY, SIOR
DEAN WILLMORE, SIOR*
MICHAEL STUART
BRIAN RIFFEL, SIOR* *These brokers qualified for the plane in March
UPCOMING EVENTS COMMERCIAL ALLIANCE MIXER 5:30pm Cili at Bali Hai MAY 2
MONTHLY RETAIL MEETING 8:30am Main Conference Room MAY 15
ICSC RECON Las Vegas Convention Center MAY 20-23
CREW LUNCHEON 11:30am Las Vegas Country Club MAY 3
LVGEA PERSPECTIVE 2018 7:30am Park MGM MAY 15
MONTHLY OFFICE MEETING 9:00am Main Conference Room MAY 23
CCIM LUNCHEON 11:30am Westin Las Vegas Hotel MAY 16
NAIOP BREAKFAST 7:30am Orleans Hotel & Casino MAY 24
CINCO DE MAYO MAY 5
SAVE THE DATE
COLLIERS HEALTHCARE SERVICES CONFERENCE Houston, Texas MAY 8 & 9
MONTHLY BIRTHDAY CELEBRATION 2:30pm Main Conference Room MAY 24
SIOR LUNCHEON 11:30am Maggianos Fashion Show MAY 9
MEMORIAL DAY Office Closed MAY 28
NAIOP GOLF TOURNAMENT 7:30am Spanish Trails MAY 10
LF GO TOURNAMENT MAY SIENA
17 GOLF CLUB
MONTHLY INDUSTRIAL MEETING 9:00am Main Conference Room MAY 31
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THE NUMBERS:
OFFICE HAPPENINGS
OTHER MULTIFAMILY
$55,354
OFFICE
SALE
3%
$97,854 4%
82%
$184,123 9%
INDUSTRIAL
MARCH PROPERTY TYPES
RETAIL $274,252 13%
$648,564 30%
MARCH
SALES VS. LEASE
LAND $885,023 41%
TOP 10 AGENTS OF THE MONTH MARCH 2018 1. 2. 3. 4. 5.
Dan Doherty Scott Gragson Mike Stuart Chris Clifford Vince Schettler
64
6. Brian Riffel 7. Al Twainy 8. Keith Cubba 9. Garry Cuff 10. Spencer Pinter
MARCH OFFICE TRANSACTIONS
MARCH 2018 ANNIVERSARIES Taber Thill
2002
16 Years
Brian Riffel
2002
16 Years
Suzette Lagrange
2005
13 Years
Chris Lane
2010
8 Years
Joe Bonifatto
2012
6 Years
Al Twainy
2012
6 Years
Chris Zunis
2015
3 Years
LEASE 18%
BROKER RANKINGS YTD 2018 1. Mike Stuart 2. Dan Doherty 3. Vince Schettler 4. Chris Bentley 5. Dean Willmore 6. Brian Riffel 7. Chris Clifford 8. Scott Gragson 9. Paul Sweetland 10. Patti Dillon 11. Taber Thill 12. Spencer Pinter 13. Pat Marsh 14. Al Twainy 15. Keith Cubba 16. Grant Traub
Vince Schettler Brian Riffel Dan Doherty
85/15 CLUB
17. Garry Cuff 18. Chris Connell 19. David Grant 20. Tom Naseef 21. Stacy Scheer 22. Phillip Dunning 23. Chris Lane 24. Dan Gluhaich 25. Eric Molfetta 26. Steven Haynes 27. Alexia Crowley 28. Scot Marker 29. Robert Torres 30. Jerry Doty 31. Brian Fike 32. Patrick McNaught
Chris Clifford Mike Stuart Scott Gragson
33. Jeff Naseef 34. Susan Borst 35. Steve Neiger 36. Kara Walker 37. Suzette Lagrange 38. Rebecca Staniec 39. Sam Newman 40. Thomas Olivetti 41. Andrew Kilduff 42. Mike Mixer 43. Chris Lobello 44. Joe Bonifatto 45. George Connor 46. Phillip Frank 47. John Kilpatrick
Dean Willmore Chris Bentley -
-
1
BROKER OF THE MONTH
CO NG RA T UL A T IO NS DAN DOHERTY, SIOR Executive Vice President Industrial Division
ANGELINA SCARCELLI, CPM
Senior Portfolio Manager REMS Division
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 five producers in the Las Vegas Office for the past 14 years. Dan is experienced in all phases of industrial real estate including REO Properties, site selection, development and design, leasing and industrial investment sales.
Q A
What did you want to be when you grew up?
Believe it or not an auto mechanic.
Q
Who is the most inspirational person to you?
A
My dad. He called me “pal”, never chased money and always tried to do the next right thing. I will never be him but do try.
Q
What’s your hidden talent?
A
I am the oldest Crossfit instructor in the state.
Q
What is your greatest achievement?
A
Convincing Deb to marry me.
Q
Which language would you like to learn?
A
Spanish, it is a bucket list item of mine.
.O.T.M. ONATION
Angelina serves as a Senior Portfolio Manager of the Property Management division for the Las Vegas office of Colliers International. Angelina provides over sixteen years of experience in the Las Vegas commercial real estate market. Throughout Angelina’s career she has been an expert in tenant relations/retention in regards to retail, office & industrial product. Angelina also specializes in tenant in common ownership structure, lease negotiations, construction management in addition to asset management services.
Q A
Where would you most like to live?
Florida
Q
Which task or chore is your least favorite?
A
Doing the dishes
LINKS FOR LIFE
F O QU N D A T I O N What flavor ice cream would you be?
A The Links for Life Foundation is donating in Dan Doherty’s name to St. Jude Children’s Research Hospital – Las Vegas Chapter
Strawberry
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LAS VEGAS PHONE DIRECTORY INDUSTRIAL Susan Borst Dan Doherty Jerry Doty Tyler Jones Suzette LaGrange Chris Lane Pat Marsh Eric Molfetta Sam Newman Spencer Pinter Brian Riffel Alexander Stanisic Paul Sweetland Kara Walker Dean Willmore Mike Willmore Chris Zunis
LAND +1 702 836 3719 +1 702 836 3707 +1 702 836 3735 +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 3773 +1 702 836 3742 +1 702 836 3750 +1 702 836 3705 +1 702 836 3763 +1 702 836 3748 +1 702 836 3703
OFFICE Chris Connell Patti Dillon Phillip Frank Andrew Kilduff Rebecca Staniec Taber Thill
+1 702 836 3709 +1 702 836 3790 +1 702 836 3775 +1 702 836 3718 +1 702 836 3792 +1 702 836 3796
Scott Gragson Steven Haynes John Kilpatrick Pat McNaught Taylor Schettler Vince Schettler Mike Stuart Robert Torres
+1 702 836 3730 +1 702 836 3727 +1 702 499 8999 +1 702 836 3798 +1 702 836 3717 +1 702 836 3764 +1 702 836 3739 +1 702 836 3788
HOTEL/RESORT Mike Mixer Dharmesh Patel
+1 702 836 3777 +1 702 836 3713
INVESTMENT SERVICES Joe Bonifatto Brian Fike Tom Naseef Gaberiel Skerlich Grant Traub
+1 702 836 3729 +1 702 836 3744 +1 702 836 3720 +1 702 836 3708 +1 702 836 3789
GOLF COURSE Keith Cubba
+1 702 836 3733
MULTI-FAMILY RETAIL Chris Clifford George Connor Phillip Dunning Dan Gluhaich David Grant Amelia Henry Scot Marker Steve Neiger Brett Rather Al Twainy
+1 702 836 3746 +1 702 836 3786 +1 702 836 3766 +1 702 836 3757 +1 702 836 3785 +1 702 836 3774 +1 702 836 3782 +1 702 836 3760 +1 702 836 3794 +1 702 836 3725
Christopher Bentley Garry Cuff Jeff Naseef Tom Naseef
MEDICAL OFFICE Alexia Crowley Stacy Scheer
+1 702 836 3778 +1 702 836 3762
VALUATION SERVICES Rosa Haley Richard Koldewyn Evan Ranes
+1 702 836 3702 +1 702 836 3738 +1 702 836 3749
PROPERTY MANAGEMENT Erica Aulino Valerene Corbin Jennifer Kennedy Breanna Lara Gretchen Lee Angelina Scarcelli
+1 702 836 3745 +1 702 836 3761 +1 702 836 3772 +1 702 836 3753 +1 702 836 3704 +1 702 836 3768
STAFF Nicole Cauilan Courtney Goffstein Alisa Husic Sara Johansson Gina Jones Matt Stater Chris Sutton
+1 702 836 3706 +1 702 836 3710 +1 702 836 3701 +1 702 836 3771 +1 702 836 3783 +1 702 836 3781 +1 702 836 3721
+1 702 836 3779 +1 702 836 3716 +1 702 836 3731 +1 702 836 3720
RECEIVERSHIP Christopher LoBello
+1 702 836 3714
MIKE MIXER
Executive Managing Director | Las Vegas
+1 702 735 5700