January 2018
LAS VEGAS
INSIDER A COMMUNICATION FOR BROKERS, EMPLOYEES, COLLEAGUES AND FRIENDS
Accelerating success. LAS VEGAS INSIDER | JA NUA RY 2 018
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Accelerating success.
NATI O NAL CO NSERVATI O N AR E A RED ROCK CANYON FEATURES A ONE-WAY 13-MILE SCENIC DRIVE, HIKING AND TRAILS, PLANTS AND WILDLIFE, GEOLOGY, CAMPING, CULTURAL RESOURCES AND MUCH MORE. Whether you are hiking, rock climbing or just enjoying the scenery along the Scenic Drive, Red Rock Canyon has some of the best sights and experiences the Mojave Desert has to offer. The 13-mile Scenic Drive offers several overlooks, parking areas and picnic areas to enjoy.
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TABLE OF CONTENTS: 2017 HIGH NOTE – LV RESEARCH 4 FEATURED DEALS 9 GOLF TOURNAMENT SAVE THE DATE 10
FEATURED LISTINGS 12 COLLIERS IN THE NEWS 13 UPCOMING EVENTS 15
VEGAS BY THE NUMBERS 16 BROKER OF THE MONTH 17 DIRECTORY 18
MIKE’S QUOTE OF THE MONTH:
A T R ULY RICH MAN IS ONE W HOSE CHIL DR E N R UN IN T O HIS A R MS W HE N HIS H A NDS A R E E MP T Y. - ZIAD ABDELNOUR
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COMMERCIAL REAL ESTATE ENDS 2017 ON A HIGH NOTE Southern Nevada’s commercial real estate market shifted firmly into expansion mode in 2017, with a near record-breaking expansion of the industrial sector, strong growth in the multifamily sector and renewed interest in office and retail expansions in the coming year.
BY JOHN MATT STATER
LAS VEGAS RESEARCH
In our first quarter report of 2017, we were facing a potential 6.8 million square foot expansion of the industrial inventory, and worried that this rapid expansion could lead to much higher vacancy rates. At year’s end 2017, we find that industrial inventory expanded by 6.3 million square feet, and powerful demand for industrial space sent vacancy rates down to a very strong 4.3 percent. While the vast majority of this new development has been in large warehouse/ distribution buildings, construction of smaller light distribution and light industrial buildings is now on the horizon. An additional 4 to 9 million square feet of industrial space is slated for completion in 2018; expansion will likely be in the neighborhood of 6.5 million square feet. “Given current performance, we think 2018 will follow 2017’s path as long as the national (and to a lesser extent, global) economics remain positive,” remarked John Stater, the research manager of Colliers International’s Las Vegas office. Continued growth in single-family home prices and renewed migration into Southern Nevada continued to drive construction of multifamily properties. The Valley was poised to complete as many as 3,500 units at 2017’s end, and could add twice that number in 2018. While multifamily vacancy remained very low at 3.2 percent, it has generally been on the rise over the past five quarters, and increased again in the third quarter of 2017, the most recent quarter of data. More importantly, the third quarter of 2017
showed negative net absorption, meaning fewer units occupied in the third quarter than in the quarter previously. This was the first negative net absorption recorded since the Great Recession, and might work to slow multifamily expansion in 2018. Multifamily sales have generally been stronger in 2017 than in 2016, showing that investors think Southern Nevada’s multifamily market will remain strong in the near term. Recovery in the hospitality sector appeared to hit a plateau in 2017, with visitor volume failing to improve over 2016’s number. This lull in growth may be a sign that room expansion is overdue, especially with new entertainment venues on the horizon for Southern Nevada, not the least of them being the Las Vegas Raiders. Hospitality sales were down in 2017 compared to the past three years. A total of 3,637 rooms sold in 2017 at a total sales volume of $398.4 million and an average sales price of $110,000 per room. The forthcoming sales of the Stratosphere, both Arizona Charlie’s locations and the SLS should boost sales numbers in 2018.
MIKE MIXER, MANAGING DIRECTOR FOR COLLIERS INTERNATIONAL – LAS VEGAS, SAID, “OVER THE PAST DECADE, BIG SALES YEARS HAVE OCCURRED IN 2010 AND 2014. THAT PUTS 2018 ON SCHEDULE FOR ANOTHER BIG YEAR, PROVIDED INVESTORS CAN BE CONVINCED TO PLAY ALONG.” Southern Nevada’s medical office market experienced a banner year in 2017, posting the highest level of net absorption experienced by the market in five years, as well as the first significant expansion of inventory in five years. Continued on next page...
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In 2017, newly constructed medical office buildings stimulated demand for medical office space, and as a result Southern Nevada’s medical office market experienced its strongest year in a decade. We think this trend will continue into 2018, provided the federal government does not get up to any significant hijinks and the national economy remains positive. Net absorption in Southern Nevada’s office market topped 1.0 million square feet in 2017, a distinct improvement over 2016 and roughly equal to net absorption in 2015. The office market has been in a slow recovery since 2012, and demand for office space appears to be increasing. We think that, provided the national economy continues to improve, Southern Nevada’s office market will experience a healthy 2018, with new construction increasing overall demand in the marketplace and putting increased pressure on older properties that are still trying to recover from the Great Recession.
Southern Nevada’s retail market was heading for a lackluster year in 2017 until the fourth quarter. With a last second save, the market produced 497,892 square feet of net absorption, dropping retail vacancy to 8.1 percent. Southern Nevada, like other regions, is struggling with headwinds caused by e-commerce and at the same time is dealing with a retail migration from east to west. If the national economy remains in positive territory in 2018, we think Southern Nevada will reap the benefits and experience another small decrease in vacancy by year’s end. Southern Nevada’s land market saw 267 sales in 2017, the fewest since 2012. 2016 aside, the general trend for land sales has been down since 2014. Numbers for 2017 were down in terms of the number of sales, the acreage sold and the sales volume. Only the average price per square foot increased in 2017 compared to 2014. That plus the increase in planned future development of office and retail properties suggests that a turn-around is in the cards for 2018 or 2019 at the latest. If anything is holding a rebound back, it is high asking prices from landlords who are willing to wait buyers out.
QUARTERLY REPORTS FOR Q4 2017 DOWNLOAD HERE
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LINKS FOR LIFE
F O U N D A T I O N
Join us for an overview of our company’s charitable foundation including: ++ New Links for Life Website ++ Calendar of Events/ Opportunities for 2018 ++ Guest Speakers ++ Incentives ++ Giveaways ++ Food and Fun
KICKOFF YO U ’ R E T H E M I S S I N G L I N K 12–2PM :: JANUARY 31 Providing grants that benefit children in need since 1995
FEATURED DEALS
MULTIFAMILY SALE
INDUSTRIAL LEASE
94 UNIT MULTIFAMILY PROPERTY A sale to Bill & Carol Cosgrove. The 94-unit multifamily property, Skyline Villas Apartments, is located at 3501 South Maryland Parkway in Las Vegas. The transaction amount was $7,385,000.00. Thomas Olivetti of Colliers International represented the buyer and the seller, Alpha Wave Investors.
±53,760 SQUARE FOOT INDUSTRIAL PROPERTY A lease to High Impact Sign and Design, LLC. The ±53,760 square foot industrial property is located in Henderson Interchange Center at 820 Wigwam Parkway in Henderson. Dan Doherty, SIOR, Paul Sweetland, SIOR, Chris Lane and Jerry Doty of Colliers International represented the landlord, Henderson Interchange Center, LLC.
LAND SALE
OFFICE LEASE
±16 ACRES OF LAND A sale to Richmond American Homes. The ±16 acre land parcel is located on Centennial Parkway and Hualapai Way (APN: 125-19-401-005, 006, 009, 010 & 011) in Las Vegas. The transaction amount was $6,610,000.00. Vince Schettler of Colliers International represented the seller, VFR-Southwest Desert Equities.
±1,400 SQUARE FOOT OFFICE PROPERTY A lease to RiskNomics LLC. The ±1,400 square foot office property is located in Seven Hills Business Park at 880 Seven Hills Drive, Suite 180 in Henderson. Taber Thill, SIOR and Patti Dillon, SIOR of Colliers International represented the tenant.
INDUSTRIAL LEASE ±3,812 SQUARE FOOT INDUSTRIAL PROPERTY A lease to Bradley Architectural Systems, Limited. The ±3,812 square foot industrial property is located in Valley View Corporate Center (Phase I) at 6285 South Valley View Boulevard, Suite K in Las Vegas. Spencer Pinter of Colliers International represented the landlord, Valley View, LLC. Pat Marsh, SIOR and Sam Newman of Colliers International represented the tenant.
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24TH ANNUAL LINKS FOR LIFE
L O F G TOURNAMENT MAY SIENA
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SAVE THE DATE
GOLF CLUB
SURE AS
SHOOTIN
IT’S NOT OUR FIRST RODEO
SINCE 1994
HOSTED BY:
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FEATURED LISTINGS
3250 WEST ALI BABA LANE, STE A & B
8520 & 8540 SOUTH MARYLAND PARKWAY
BRIAN RIFFEL, SIOR AND TYLER JONES
JOSEPH BONIFATTO AND BRIAN FIKE • ±14,480 SF Multi-tenant retail investment for sale • The building sits on approximately ±1.49 acres that is very well maintained • Asking Price: $6,257,571.59
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±10,400 SF industrial space available for sublease
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Convenient freeway access to I-15 via Tropicana Avenue and located in the southwest submarket
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Total Monthly Rent: $8,566
6330 WEST FLAMINGO ROAD STACY SCHEER, CCIM, LEED GA •
±11,703 SF Medical Office Building available for lease
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Located in the West Central submarket of Las Vegas, centrally located within minutes to The Strip, McCarran International Airport and 5 major medical campuses.
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Lease Rate: $1.25-$1.50/SF NNN
LAS VEGAS BOULEVARD AT CHEYENNE AND LAMB DAN DOHERTY, SIOR, PAUL SWEETLAND, SIOR, CHRIS LANE AND JERRY DOTY • ±18.81 acres of land available for sale • This Industrial Zoned Parcel Is Located Between Two Of The Most Traveled Roads In North Las Vegas • For Sale: $4,514,000 / $5.50 PSF
6050 SOUTH FORT APACHE ROAD
376 EAST WARM SPRINGS ROAD
DEAN WILLMORE, SIOR AND MIKE WILLMORE
CHRIS CONNELL AND GRANT TRAUB
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±2,000 SF Professional Office Space available for lease
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±1,302 RSF to ±7,353 RSF Turn-key office space for lease
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Located on Fort Apache Rd and Russel Rd in the Southern Palms
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Tenant Responsible for Power, Phones/Data, HVAC, and
Office Park •
Security Alarm (if so desired); Landlord Responsible for Quarterly HVAC Maintenance
Asking Lease: $1.75/SF – Estimated CAM: $0.44/SF •
Lease Rate Starting: $1.85 PSF/Month MG
WELCOME TO COLLIERS
GABRIEL SKERLICH
ASSOCIATE – RETAIL INVESTMENT DIVISION PLEASE JOIN US IN WELCOMING GABRIEL SKERLICH AS AN ASSOCIATE TO THE COLLIERS LAS VEGAS OFFICE. GABE WILL BE JOINING JOE BONIFATTO IN THE RETAIL INVESTMENT DIVISION. IN HIS ROLE, GABE WILL BE PARTICIPATING IN COMPREHENSIVE LEASE NEGOTIATIONS AND DEVELOPMENT AGREEMENTS AS WELL AS FINANCIAL ANALYSIS. Gabriel is a native of Las Vegas. He is a graduate of Bishop Gorman High School and attended the University of Nevada, Las Vegas where he received a Bachelor of Science degree in Business Administration and Finance. He comes to Colliers with two years of experience in financial investment and marketing sales. In his free time Gabriel enjoys traveling, playing soccer, studying financial technologies and wealth management and spending time with friends, family and his dog.
AMERICAS CONFERENCE February 20-22 Phoenix, Arizona
SAVE THE DATE
www.colliersamcon.com
WELCOME ABOARD GABE!
IN THE NEWS WYNN WANTS NEW HOTEL ACROSS VEGAS STRIP FROM HIS 2 TOWERS https://www.ktnv.com/news/wynn-wantsnew-hotel-across-vegas-strip-from-his-2towers_89390474
January 23 INVESTORS BUY 129K SQUARE FEET OF OFFICE SPACE AT TOWN SQUARE https://www.reviewjournal.com/business/ investors-buy-129k-square-feet-of-office-space-attown-square/
January 19 NAIOP SOUTHERN NEVADA ANNOUNCES 2018 OFFICERS, DIRECTORS - LED BY INCOMING PRESIDENT MIKE MIXER https://businesspress.vegas/real-estate/realestate-briefs-cai-investments-breaks-ground-onshopping-center/
January 02
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2017 SALES AWARD TRIP THE FAIRMONT KEA LANI PLANE
WAILEA, MAUI, HAWAII Friday, March 16 – Tuesday, March 20, 2018
CONGRATULATIONS AND WELCOME ABOARD! DAN DOHERTY, SIOR TOM NASEEF, SIOR, CCIM CHRIS CLIFFORD** DAN GLUHAICH BRIAN RIFFEL, SIOR GRANT TRAUB AL TWAINY, CCIM DEAN WILLMORE, SIOR DAVID GRANT MIKE STUART KEITH CUBBA PAT MARSH, SIOR
STEVEN HAYNES** CHRIS CONNELL THOMAS OLIVETTI** TABER THILL, SIOR PATTI DILLON, SIOR ERIC MOLFETTA, CCIM SPENCER PINTER PHILLIP DUNNING, CCIM** BRIAN FIKE** SCOT MARKER STACY SCHEER, CCIM ANDREW KILDUFF* ** SUSAN BORST, CCIM, SIOR*
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WE HAD QUALIFIERS THIS YEAR (OUR BEST YEAR EVER)
**First timers on the plane! *These brokers qualified for the plane in December!
UPCOMING EVENTS
LINKS FOR LIFE KICKOFF 12:00pm–2:00pm Gordon Biersch January 31
CREW LUNCHEON 11:30am Las Vegas Country Club FEBRUARY 8 CONSTRUCTION VS. CANCER 10:00am Symphony Park FEBRUARY 10 MONTHLY OFFICE MEETING 9:00am Main Conference Room FEBRUARY 14 SIOR LUNCHEON 11:30am Maggiano’s Fashion Show Mall FEBRUARY 14
VALENTINE’S DAY OFFICE PERK FEBRUARY 14
LET’S MAKE THIS YEAR GREAT FOR THE KIDS.
NAIOP BREAKFAST 7:30am Orleans Hotel & Casino FEBRUARY 15 MONTHLY INDUSTRIAL MEETING 9:00am Main Conference Room FEBRUARY 15 BOMA’S TOBY AWARDS 5:00pm Enclave FEBRUARY 17
OFFICE CLOSED FEBRUARY 19 AMERICA’S CONFERENCE Phoenix, Arizona FEBRUARY 20-22 CCIM LUNCHEON 11:30am Palms Casino Resort FEBRUARY 21
NAIOP SPOTLIGHT AWARDS 6:00pm – Green Valley Ranch FEBRUARY 24
MONTHLY RETAIL MEETING 8:30am Main Conference Room FEBRUARY 27
MONTHLY BIRTHDAY CELEBRATION 2:30pm Main Conference Room FEBRUARY 28
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THE NUMBERS:
OFFICE HAPPENINGS
OTHER
MULTIFAMILY
SALES
2%
8%
35%
OFFICE 16%
RETAIL 7%
DECEMBER SALES VS. LEASE
DECEMBER PROPERTY TYPES
LAND 4%
INDUSTRIAL 63% LEASES 65%
TOP 10 AGENTS OF THE MONTH DECEMBER 2017 1. 2. 3. 4. 5.
Dan Doherty Susan Borst Thomas Olivetti Andrew Kilduff Paul Sweetland
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6. Dan Gluhaich 7. Vince Schettler 8. Spencer Pinter 9. Patti Dillon 10. Taber Thill
DECEMBER OFFICE TRANSACTIONS
DECEMBER 2017 ANNIVERSARIES John Kilpatrick
1996
21 Years
Garry Cuff
2010
7 Years
Steve Haynes
2014
3 Years
Diane Crosby
2015
2 Years
BROKER RANKINGS YTD 2017 1. Mike Delew 2. Dan Doherty 3. Mike Stuart 4. Dean Willmore 5. Brian Riffel 6. Chris Clifford 7. Thomas Olivetti 8. Taber Thill 9. Grant Traub 10. Pat Marsh 11. Patti Dillon 12. Spencer Pinter 13. Dan Gluhaich 14. Greg Pancirov 15. Chris Connell 16. Tom Naseef
Mike Delew David Grant Tom Naseef Chris Clifford Dan Doherty Greg Pancirov Grant Traub Chris Connell
85/15 CLUB
17. Al Twainy 18. Ryan Martin 19. David Grant 20. Brian Fike 21. Susan Borst 22. Eric Molfetta 23. Keith Cubba 24. Andrew Kilduff 25. Phillip Dunning 26. Stacy Scheer 27. Steven Haynes 28. Scot Marker 29. Chris Bentley 30. Kara Walker 31. Suzette Lagrange 32. Paul Sweetland
Dan Gluhaich Mike Stuart Dean Willmore Ryan Martin Al Twainy Taber Thill Brian Riffel Thomas Olivetti
33. Pat McNaught 34. Vince Schettler 35. Mike Mixer 36. Garry Cuff 37. Chris Lane 38. Scott Gragson 39. Christopher Lobello 40. Alexia Crowley 41. Joe Bonifatto 42. Rebecca Staniec 43. George Connor 44. Robert Torres 45. Phillip Frank 46. Steven Neiger 47. John Kilpatrick
Eric Molfetta Spencer Pinter Pat Marsh Keith Cubba Patti Dillon Scot Marker Steven Haynes Christopher Bentley
Phillip Dunning Stacy Scheer Andrew Kilduff Brian Fike Susan Borst
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BROKER OF THE MONTH
CO NG RA T UL A T IO NS DAN DOHERTY, SIOR
SCOT MARKER
Executive Vice President Industrial Division
Senior Vice President Retail 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 has been honored with the Industrial Broker of the Year award by NAIOP in 1999, 2002, 2007, 2009 and 2012. Dan was also named 2008 People’s Choice Broker of the Year and top producer by SIOR in 2012. He is a three time past president of the Nevada Chapter of SIOR and has held the SIOR designation since 1995. Additionally, Dan served on the Board of Directors for Colliers Parrish International, Inc. for three years.
Q
Q
What famous person to other people say you most resemble?
Who do you admire the most and why?
A
My dad, he never chased money, commissions or deals. He just put bad guys in jail. Pretty cool.
Q
If you could hear what someone is thinking for a day, who would you choose?
A
Debbie, my wife.
Q
Scot Marker is a Senior Vice President in the Retail Division at Colliers International’s Las Vegas Office. Since beginning his career in 1995 he has sucessfully negotiated many transactions with national concepts as a tenant representative as well as marketing a variety of retail developments in the Greater Las Vegas Market.
What is one of the things you have on your “bucket” list?
A
Driving a portion of the Baja 1000 race
Josh Homme –“Queens of the Stone Age”
Q
Which do you prefer, sweet or salty?
A
Salty
Q
What would you do in life if you knew you couldn’t fail?
A
Pitch in the MLB
Q
What’s the worst haircut you’ve ever had?
A
The bowl cuts I had as a kid, followed by the part down the middle in Jr. High.
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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 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 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 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 3764 +1 702 836 3739 +1 702 836 3788
Chris Clifford George Connor Phillip Dunning Dan Gluhaich David Grant Amelia Hyden 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
Alexia Crowley Stacy Scheer
+1 702 836 3778 +1 702 836 3762
VALUATION SERVICES Rosa Haley Evan Ranes
+1 702 836 3702 +1 702 836 3749
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
MEDICAL OFFICE
Christopher Bentley Garry Cuff Jeff Naseef Tom Naseef Thomas Olivetti
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 +1 702 836 3740
RECEIVERSHIP Christopher LoBello
+1 702 836 3714
MIKE MIXER
Executive Managing Director | Las Vegas
+1 702 735 5700