LAS VEGAS INSIDER | Aug ust 2 016
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TABLE OF CONTENTS: RESEARCH | WINNERS & LOSERS 3 SUMMER TRAVELS 4
FEATURED DEALS 5 FEATURED LISTINGS 6
OFFICE HAPPENINGS 7–11 DIRECTORY 12
VEGAS FUN FACT: There is one slot machine in Las Vegas for every eight inhabitants
“IF YOU MAKE OTHERS HAPPY, YOU’LL BE HAPPY. IF YOU MAKE OTHERS UNHAPPY, YOU’LL BE MISERABLE.” The Dalai Lama
HENRY JAMES
7 LBS. 8 OZ. AND IS 21 INCHES LONG Congratulations to Jerry Doty and his wife Jennifer on the arrival of their handsome baby boy Henry James. Henry made his debut on August 4th at 7:50 p.m. He weighed 7 lbs. 8 oz. and is 21 inches long. Welcome to the Colliers family Henry!
LAS VEGAS RESEARCH
WINNERS & LOSERS By John Matt Stater - Research & GIS Manager | Las Vegas
WE’RE NOW FAR ENOUGH INTO THE RECOVERY, IN ALL SECTORS, TO EXAMINE THE WINNERS AND LOSERS. BY THAT, I MEAN THOSE SUBMARKETS AND SUBTYPES THAT ARE SHOWING THE MOST GROWTH (OR LEAST, IN THE CASE OF THE LOSERS) OVER THE PAST COUPLE YEARS, AND WHICH MAY THEREFORE WARRANT THE MOST ATTENTION BY BROKERS.
In light industrial, Henderson and North Las Vegas are the market leaders in decreasing vacancy, but the Airport submarket has seen the biggest jump in net absorption in the last four quarters (+662.3 percent), followed by Henderson (+322.3 percent).
The following growth rates compare the average vacancy, net absorption and gross absorption over the past four quarters to the four quarters previously, or in other words by comparing late 2015/ early 2016 to late 2014/early 2015.
OFFICE In the office market, the recovery is still fairly new. Class A office has seen vacancy decrease the most in Henderson and the Southwest, and the largest increase in net absorption is in East Las Vegas (primarily in Hughes Center, of course). Unfortunately, Class A net absorption has been on the decline overall.
INDUSTRIAL We’ll begin our tour of the Valley with the industrial market, where it should be no surprise that over the past few years the warehouse/distribution subtype has dominated the headlines, especially in the North Las Vegas and Southwest submarkets. For that reason, we won’t linger long on warehouse except to mention that the East Las Vegas’ warehouse market has also done pretty well over the past year, and that the Airport submarket has been terrible, with average vacancy doubling in the past four quarters versus the four quarters previous. This might have something to do with the price, as warehouse space is 24 percent more expensive in the Airport submarket than in the Valley overall. Heavy road construction, and a general difficulty in access might also have contributed to this slump. Henderson light distribution has been very strong of late. Gross absorption in the submarket has remained very stable, and net absorption is way up, indicating more expansion and less downsizing by existing tenants. Southwest light distribution has seen net absorption double in the last four quarters, and vacancy has been cut in half, while gross absorption actually fell. When new light distribution construction begins, it should probably be in Henderson and the Southwest.
The Airport has also seen strong growth in the incubator subtype, in which gross absorption has doubled and net absorption is up more than 2,000 percent. In essence, it has switched from losing occupancy to gaining it. The flex subtype in East Las Vegas and North Las Vegas has had a similar experience; in East Las Vegas, net absorption is up over 6,000 percent, and gross absorption has almost tripled.
The biggest improvement in demand for Class B office has been in the Airport and West Central submarkets. Class B office was late to the game in terms of recovery, and really appears to have shown most of its improvement over the past year. Whether this boost in demand for Class B has been at the expense of Class A space is unknown, but it is certainly possible. Class C office has seen the most improvement in East Las Vegas and the Southwest, the former having very good population density and the latter showing the most population growth of late. In general net absorption is outpacing gross absorption in office space, indicating more business creation and expansion. That being said, gross absorption is on the rise, indicating more movement of existing tenants within the Valley. This might point to existing businesses becoming more cost conscious, perhaps because they expect slower times ahead. RETAIL In the retail world, power centers continue to see a general decrease in interest by retailers, in the form of both less net absorption and less gross absorption. Neighborhood centers have had similar troubles. Neighborhood centers in the Northeast have outperformed centers in other submarkets, perhaps indicating that it was underserved by retailers in the past, or that the growing Hispanic population there is
stimulating demand for space. Henderson has seen just the opposite, with its negative net absorption getting more negative in the past four quarters and vacancy rising, all while gross absorption has doubled. Since Henderson remains a strong retail submarket overall, in terms of demographics, we must assume that retailers in Henderson are finding neighborhood centers not to their liking and are choosing to move elsewhere. Community centers have seen large improvements in demand in North Las Vegas, the Northwest and especially the University East submarket. The University East submarket has seen little change in gross absorption, so the increase in net absorption is due to greater tenant retention and the introduction of new entries into the market. Anecdotally, the University East corridor might be seeing a demographic shift, and this shift could be stimulating demand. Community centers are proving to be more popular lately than either power or neighborhood centers. This could be because they have the right mix of anchor and shop space, where power centers are too reliant on anchors and junior anchors, who are not in expansion mode these days, and neighborhood centers are too reliant on a single anchor to boost traffic in the center. If that anchor leaves, the neighborhood center is little more than a more expensive strip center. Speaking of strip centers, they have seen strong growth in the last four quarters in Henderson (where neighborhood centers have struggled) and in University East, North Las Vegas and West Central (i.e. in the older submarkets). It could be that the retail recovery that occurred over the past two years got the older submarkets late, and is still playing out there. MEDICAL OFFICE Medical office has been generally weak, but there are some bright spots in terms of demand in Northwest Class A, Southwest and East Las Vegas Class B and Airport and East Las Vegas Class C. The problem is that medical office has seen an overall decrease in demand (-221 percent) accompanied by a smaller drop in gross absorption (-25.4 percent). Medical businesses are not expanding and not moving, so landlords are competing for pieces of a shrinking pie. The main movement in the medical office sector appears to be from Class B buildings to Class A and Class C buildings, thus doctors looking for less expensive space or for better space at a low rate.
LAS VEGAS INSIDER | Aug ust 2 016
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SUMMER TRAVELS
SEE WHERE YOUR COLLEAGUES SPENT THEIR SUMMER VACATION.
WHEN IN DOUBT,
TRAVEL Sandra and Tom Naseef – Saw a private Train concert in a friend’s backyard in Park City Utah
Kara Walker – Ranch Sorting in Mormon Lake, Arizona
Chris, Sterling, Cooper and Landry Connell – La Jolla Shores, CA
Mike Stuart – Edinburgh, Scottland – Photo taken from Calton Hill
Courtney, Shane and Logan Goffstein – Scottsdale, AZ Sealife Aquarium
Renae and Nick Russo – Maui, Hawaii
Chelsy, Casey, Kylei and Kynlee Cardin – Cruise to the Bahamas and a week in Florida
Suzette LaGrange and her family –Yellowstone National Park
FEATURED DEALS
RETAIL SALE
INDUSTRIAL LEASE
±60,757 SQUARE FOOT SHADOW ANCHORED SMITH’S A sale to Aliante Plaza, LLC. The ±60,757 square foot shadow anchored Smith’s shopping center, The Aliante Marketplace and is located at the 215 Beltway and Aliante Parkway in the Aliante Master Planned Community in North Las Vegas. The transaction amount was $19,000,000.00. David Grant and Grant Traub of Colliers International represented the seller, Aliante Marketplace, LLC. Al Twainy, CCIM and Amelia Hyden of Colliers International represented the buyer.
±5,099 SQUARE FOOT INDUSTRIAL PROPERTY A lease to Creative Light Source, Inc. The ±5,099 square foot industrial property is located in Northpointe Business Center at 4150 North Lamb Boulevard, Suite 110 in Las Vegas. Dean Willmore, SIOR and Chelsy Cardin of Colliers International represented the landlord, FJM Northpointe Associates, LLC.
INDUSTRIAL SALE
LAND SALE
±12,320 SQUARE FOOT INDUSTRIAL PROPERTY A sale to CP 121, LLC. The ±12,320 square foot industrial property is located in Corporate Park Industrial at 121 Corporate Park in Henderson. The transaction amount was $1,663,200.00. Mike DeLew, SIOR of Colliers International represented the seller, Elevon Corporate Park, LLC. Greg Pancirov, SIOR of Colliers International represented the buyer.
±9.49 ACRES IN NORTH LAS VEGAS A sale to 2567 East Washburn Road, LLC. The ±9.49 acre vacant land parcel is located adjacent to the I-15 freeway near Craig Road and Pecos Road on Corporate Center Drive (APN:139-01-711-002) in North Las Vegas. The transaction amount was $2,480,306.00. Dan Doherty, SIOR, Susan Borst, CCIM, SIOR, Chris Lane and Jerry Doty of Colliers International represented both the seller, The Realty Associates Fund XI, LP, and the buyer.
OFFICE LEASE ±3,714 SQUARE FOOT OFFICE – FORT APACHE COMMONS A lease to Ivan Sher, LTD. The ±3,714 square foot office property is located in Fort Apache Commons at 1215 South Fort Apache Road, Suite 210 in Las Vegas. David Grant, Grant Traub, Andrew Kilduff and Chris Connell of Colliers International represented the landlord, LJT Properties I, LP.
LAS VEGAS INSIDER | Aug ust 2 016
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FEATURED LISTINGS
VALLEY VIEW SURGERY CENTER
SUNSET 215 WEST
STACY SCHEER, CCIM, LEED GA AND ANDREW KILDUFF
MIKE DELEW, SIOR AND GREG PANCIROV, SIOR
• • •
• • • •
1330 South Valley View Boulevard
±18,147 SF Ambulatory Surgery Center Asking $5,500,000.00 Single Tenant Net Lease – recently renewed for an additional 11 years
Southeast Corner of Sunset Road and Torrey Pines Drive Estimated Delivery 1st Quarter 2017 For Sale or Lease 277/480 volt, 3-phase power and 32’ clear heights Two (2) industrial/office buildings ranging in size from ±22,500 to ±45,000 SF
FORMER CHILD/DAY CARE FACILITY
±2.39 ACRES FOR LEASE
CHRIS CONNELL AND GRANT TRAUB
STEVEN HAYNES AND MIKE DELEW, SIOR
• • •
• • •
555 Page Street
Price Reduced for Quick Sale or Lease ±4,775 Former Child/Day Care Facility on ±0.69 Acres Asking $400,000
Jones Boulevard & Blue Diamond Road Estimated Delivery 1st Quarter 2017 Asking $5,975 per month or $0.06 PSF M-1 (Light Manufacturing)
VILLAGE OF CENTENNIAL SPRINGS
VENTURE COMMERCE CENTER
PHILLIP DUNNING, CCIM, TOM NASEEF, CCIM, SIOR, JEFF NASEEF
RENAE RUSSO, KP, LEED GA
• • •
• • •
Norman Rockwell Lane
Retail and Office Suites Available for Lease Unique Mixed-Use/Master Planned Community Competitive Lease Rates/Ready for Tenant Improvements
6745 South Eastern Avenue #12
±1,198 SF First Floor Office Space Available Immediately Lease Rate $0.99 SF / LEASE CAMS $0.20 SF Exterior Building Signage Available Directly Across from Sunset Park
OFFICE HAPPENINGS
EVENT HIGHLIGHTS ICE CREAM SOCIAL 2:30pm Main Conference Room AUGUST 31
SCHOOL SUPPLY DRIVE
LABOR DAY HOLIDAY Office Closed SEPTEMBER 5
Thanks to your generous donations, Links for Life and Colliers were able to deliver more than 40 backpacks filled with school supplies to the children at Tanaka Elementary School.
IN THE NEWS DERMODY PROPERTIES BEGINS CONSTRUCTION ON 550,000 SF DEVELOPMENT IN LAS VEGAS www.nevadabusiness.com/2016/08/dermodyproperties-begins-construction-on-550000sf-development-in-las-vegas/ NORTH LAS VEGAS INDUSTRIAL MARKET REMAINS STRONG www.businesspress.vegas/real-estate/northlas-vegas-industrial-market-remains-strong
ON THE MOVE: CREDIT ONE BANK BUYS LAND NEAR BUFFALO AND DURANGO FOR NEW OFFICES www.vegasinc.com/business/2016/jul/28/ on-the-move-credit-one-bank-buys-landnear-buffalo/
CANDLELIGHTERS SUPERHERO 5K 8:00am Exploration Park Mountains Edge SEPTEMBER 10
PANGRAM
WORD OF THE MONTH MOST FAMOUS PANGRAM:
The sentence “The quick brown fox jumps over a lazy dog.” uses every letter of the alphabet!
LAS VEGAS INSIDER | Aug ust 2 016
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OFFICE HAPPENINGS
NEW HIRES: WELCOME TO COLLIERS DIANE EDDINS Administrative Assistant Multifamily Division
ALEX STANISIC Associate Industrial Division
Working with Naseef Investment
Working with Dean Willmore
Please join us in welcoming Diane Eddins to Colliers International – Las Vegas as an Administrative Assistant to the Naseef Investment Services Team in the Investment Services Division. Her responsibilities include administration functions for the team such as lease and sale coordination, managing property listings, lease and escrow processing, client communication, database management and assisting the team in underwriting analysis. Diane moved to Las Vegas in 1976 so she has witnessed much of the growth in the Valley over the last few decades. She is a graduate of Bonanza High School (Class of 1982). Go Bengals! After high school, Diane immediately began a career in banking which eventually evolved into the real estate industry. Diane has four sons and two grandchildren. In her free time, she enjoys riding motorcycles, photography and being outdoors enjoying life. Please take a moment to stop by and introduce yourself.
Please join us in welcoming Alexander Stanisic to Colliers Las Vegas as an Associate in the Industrial Division. Alex will be working with Dean Willmore, SIOR and Chelsy Cardin. Alex is fluent in German and grew up in Munich, Germany. He holds a Bachelors degree in Dietetics. Prior to making the transition to Industrial Real Estate, Alex says that fitness played a huge roll in his life for the better part of 30 years. He owned a health club in Germany, designed/engineered the Reebok “Tomahawk” and “Superhawk” indoor spinning bikes and was a personal trainer for 26 years. Alex has been married for ten years and has two beautiful daughters. In his free time he enjoys cycling around Lake Mead, boating, boxing and golfing. Make sure to stop by to introduce yourself and ask him for Bavarian recipes or tried and true fitness tips.
UPCOMING EVENTS ICE CREAM SOCIAL 2:30pm Main Conference Room AUGUST 31
LABOR DAY HOLIDAY Office Closed SEPTEMBER 5 CANDLELIGHTERS SUPERHERO 5K 8:00am Exploration Park Mountains Edge SEPTEMBER 10
MONTHLY RETAIL MEETING 8:30am Main Conference Room SEPTEMBER 13
MONTHLY OFFICE MEETING 9:30am Main Conference Room SEPTEMBER 21
SIOR LUNCHEON 11:45am Maggiano’s SEPTEMBER 14
NAIOP OKTOBERFEST MIXER 5:00pm Hofbrauhaus Las Vegas SEPTEMBER 22
MONTHLY INDUSTRIAL MEETING 9:00am Main Conference Room SEPTEMBER 15
NAIOP CRE-CON Scottsdale, Arizona SEPTEMBER 25-28
NAIOP LUNCHEON 11:30am Orleans Hotel & Casino SEPTEMBER 15 CCIM PUTT PUTT TOURNAMENT 4:00pm Angel Park Golf Club SEPTEMBER 15
CALV EDUCATIONAL SYMPOSIUM 7:30am Gold Coast Hotel SEPTEMBER 28
2016 SALES AWARD TRIP March 17–21, 2017 // Mauna Kea Beach Hotel, Big Island, Hawaii
PLANE
Mike Mixer Mike Stuart Scott Gragson
Dan Doherty Mike DeLew Tom Naseef
Susan Borst Pat Marsh Taber Thill
Ryan Martin Spencer Pinter Dean Willmore
BROKER RANKINGS YTD 2016 1. Dan Doherty 2. Scott Gragson 3. Mike DeLew
13. Patti Dillon 14. Garry Cuff
25. Vince Schettler 26. Phillip Dunning
37. Keith Cubba 38. Chris Lobello
15. Dan Gluhaich
27. Chris Lane
39. Chris Clifford
4. Pat Marsh 5. Mike Mixer 6. Mike Stuart
16. Stacy Scheer 17. Greg Pancirov 18. Brian Riffel
28. Suzette Lagrange 29. Kara Walker 30. Renae Russo
40. George Connor 41. Dave Frear 42. Frank Marretti
7. Susan Borst 8. Tom Naseef 9. Spencer Pinter
19. Grant Traub 20. Chris Connell
31. Al Twainy 32. Steve Haynes
43. Eric Tumbleson 44. Julie Bauman
10. Dean Willmore
21. David Grant 22. Eric Molfetta
33. Rebecca Staniec 34. Pat McNaught
45. John Kilpatrick 46. Steve Neiger
11. Ryan Martin 12. Taber Thill
23. Scot Marker 24. Robert Torres
35. Andrew Kilduff 36. Joe Bonifatto
47. Brett Rather 48. Thomas Olivetti
LAS VEGAS INSIDER | Aug ust 2 016
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VEGAS THE NUMBERS:
OFFICE HAPPENINGS
LEASE 45%
MULTIFAMILY OTHER $122,766
$60,000 3%
OFFICE $249,357 13%
6%
RETAIL $218,829 11%
JULY
SALES VS. LEASE
JULY
PROPERTY TYPES LAND $621,903
INDUSTRIAL $696,015
32%
35%
TOP 10 AGENTS OF THE MONTH JULY 2016 1. Mike Stuart 2. Dan Doherty 3. Pat Marsh 4. Dean Willmore 5. Susan Borst
66
6. Scott Gragson 7. Grant Traub 8. Chris Connell 9. Spencer Pinter 10. Stacy Scheer
Grant Traub
1998
18 Years
George Connor
1998
18 Years
Rebecca Staniec
2004
12 Years
Vicki Longden
2009
7 Years
Renae Russo
2012
4 Years
Sandra Naseef
2014
2 Years
Chelsy Cardin
2015
1 Years
55%
DESCRIPTION
JULY ACTUAL
JULY BUDGET
% JULY BUDGET
% YTD BUDGET
Company Revenue
$8,774,308
$9,193,287
95%
120%
Office Revenue
$1,968,871
$1,587,317
124%
70%
JULY OFFICE TRANSACTIONS
JULY 2016 ANNIVERSARIES
SALE
85/15 CLUB Mike Mixer Mike Stuart Scott Gragson Dan Doherty Mike DeLew Tom Naseef Taber Thill Ryan Martin
Garry Cuff Pat Marsh Susan Borst Spencer Pinter Dean Willmore Patti Dillon Dan Gluhaich Stacy Scheer
BROKER OF THE MONTH
CO NG RA T UL A T IO NS MIKE STUART
BRIAN RIFFEL Senior Vice President Industrial Division
Executive Vice President Land Division
Michael was a founding broker with Stuart Mixer Commercial, which became Colliers International in 1997. With more than 23 years of experience in all aspects of land assemblage and sales, Michael has been a top producer with over $1 billion dollars in sales and was the Colliers Broker of the Year 2009, 2010, 2011, 2013 & 2014. In 2013 alone, Michael had over $125 million in sales and received Colliers Everest Award for Top Land Broker in the United States in years 2010-2014. Michael’s focus is on residential, commercial and multi-family land. Clients include: Angelo, Gordon & Co, Hillwood Residential, City National Bank, Olympia Companies, KB HOME and Ridgewood Properties.
Q
What is your biggest addiction or guilty pleasure?
A
Travel and food
Q
If you had only 24 hours to live, what would you do?
A
Live like it was my last day on earth and perform in a Northern Finnish snuff film
Q
If you could invite 3 people, living or dead out for dinner, who would they be?
A
Chandra Bahadur Dangi, Yu Zhenhuan and Lizzie Velasquez
Q
What is the strangest thing you have ever eaten?
A
Blowfish
Q
What is your favorite summer activity?
A
Luge lessons in Rangoon and making meat helmets
With a core concentration in industrial real estate opportunities and land acquisitions/dispositions, Mr. Riffel also specializes in both Tenant/Landlord representation and Owner/Occupied representation for all industrial product classes; and the formation of new developments.
Q
What is the last book you read in its entirety?
A
The Precious Present by Spencer Johnson
Q
What famous person do other people say you most resemble?
A
Keifer Sutherland
Q
If you could live anywhere for a year, all expense paid, where would you live?
A
Portofino, Italy
Fugu in Japanese
LAS VEGAS INSIDER | Aug ust 2 016
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LAS VEGAS PHONE DIRECTORY INDUSTRIAL Susan Borst Chelsy Cardin Mike DeLew 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 Alexander Stanisic Kara Walker Dean Willmore Chris Zunis
LAND +1 702 836 3719 +1 702 836 3793 +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 3742 +1 702 836 3705 +1 702 836 3763 +1 702 836 3703
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 Frank Marretti Grant Traub
+1 702 836 3729 +1 702 836 3744 +1 702 836 3767 +1 702 836 3758 +1 702 836 3789
+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
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
GOLF COURSE OFFICE Patti Dillon Andrew Kilduff Ryan Martin Tom Naseef Rebecca Staniec Taber Thill
Keith Cubba +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 Amelia Hyden 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 3774 +1 702 836 3782 +1 702 836 3760 +1 702 836 3794 +1 702 836 3708 +1 702 836 3725
+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
MIKE MIXER
Executive Managing Director | Las Vegas
+1 702 735 5700