October 2018
LAS VEGAS
INSIDER A COMMUNICATION FOR BROKERS, EMPLOYEES, COLLEAGUES AND FRIENDS
ONE OF THE GRANDEST HOTELS IN THE WORLD
With the addition of The Palazzo to The Venetian, the combined properties have more than 7,000 suites, making this “under one roof” space the largest hotel in the world. LAS VEGAS INSIDER | OC TOBE R 2 018
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Accelerating success.
WATER CONSERVATION REMAINS A KEY FOCUS FOR SOUTHERN NEVADA
C
FACEBOOK.COM/COLLIERSLV
TWITTER.COM/COLLIERS_LV
TABLE OF CONTENTS: E-COMMERCE – LV RESEARCH 4
COLLIERS IN THE NEWS 11
VEGAS BY THE NUMBERS 14
FEATURED DEALS 9
OKTOBERFEST WRAP-UP 12
BROKER OF THE MONTH 15
FEATURED LISTINGS 10
UPCOMING EVENTS 13
DIRECTORY 16
THE LAS VEGAS VALLEY GETS ABOUT 90 PERCENT OF ITS WATER FROM THE COLORADO RIVER, WHICH IS FACING THE WORST DROUGHT IN THE RIVER BASIN’S RECORDED HISTORY. THE WATER LEVEL OF LAKE MEAD, WHICH SERVES AS THE SOURCE OF MOST OF OUR COMMUNITY’S DRINKING WATER, HAS DROPPED MORE THAN 130 FEET SINCE JANUARY 2000.
CONSERVE LAS VEGAS INSIDER | OC TOBE R 2 018
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E-COMMERCE CONTINUES TO STIMUL ATE COMMERCIAL REAL ESTATE Potent demand for warehouse/distribution space and continued population growth fueled another strong quarter for commercial real estate in Southern Nevada. LAS VEGAS RESEARCH
BY JOHN MATT STATER
The industrial story in Southern Nevada is a warehouse/distribution story. The local population is growing at a faster pace than during the Great Recession, and the local economy is growing with it. Southern Nevada’s industrial market saw increased strong demand for warehouse/distribution space drive vacancy down to 4.6 percent, lower than one quarter ago and lower than one year ago. New completions of industrial space increased from last quarter, reaching 805,764 square feet. Asking rental rates remained stable at $0.66 per square foot (psf) on a triple net (NNN) basis. Demand for warehouse/distribution space looks as though it will remain strong in 2019. “The focus of e-commerce companies on improved local delivery times is stimulating demand for warehouse/ distribution space, and Southern Nevada’s developers are answering that demand.” remarked John Stater, the research and GIS manager of Colliers International’s Las Vegas office. Demand for medical office space grew in 2017, and though it has softened slightly in 2018, it remained strong enough to bring vacancy down to an eight-year low. Over the past six quarters the vacancy rate has decreased from 16.2 percent to 12.1 percent, with only moderate growth in asking rents. Net absorption over the past six quarters was 660,683 square feet, more than net absorption in the previous 46 quarters combined. Clearly the lethargy afflicting the medical office market has cleared, both due to the general economic recovery experienced over the past decade and the relative lack of government intervention, which tends to make the market nervous. We think this growth will continue through 2019. Mike Mixer, executive managing director said, “Southern Nevada’s medical office market is in growth mode and responding to the changing needs of both health care providers and consumers.” As construction heats up in Southern Nevada, demand for Class A multifamily properties is holding its own, with only nominal increases in vacancy. As strong as net absorption has been in Class A properties, Class B/C properties have seen very light activity, with a slight decrease in vacancy and moderate rent growth. If newly completed projects in Southern Nevada are cannibalizing older projects, the older projects are managing to replace the tenants they lost, and at slightly higher rents. This suggests that continued multifamily development in Southern Nevada is warranted, but continued increases in rents, even in older properties, raise the concern that lower income residents are going to suffer.
Southern Nevada’s office market has made the transition from recovery to expansion, although it still has plenty of slack that can be taken up before new construction begins in earnest. So far, new construction in the Valley has served to facilitate the long-term movement of the upper middle class and upper class from the east side of the Valley to the west side. As available product continues to be occupied, a more widespread expansion of the office inventory may take place. At the current rate of demand, this might be as little as two to three years away if the local and national economies play along. After a short pause at the beginning of 2018, Southern Nevada’s retail market is back on track and growing. With continued improvement in retail taxable sales and a return to population growth, Southern Nevada looks to be returning to growth in the retail real estate sector despite continuing pressure on brick-and-mortar retail from e-commerce. The retail market was the first commercial real estate segment to recover after the Great Recession and appears to have settled into a new normal with higher vacancy rates than in the pre-recession era. While 2018 is not on track to beat 2014’s hospitality sales volume of $2 billion, it has exceeded the sales volume of each of the last three years. So far in 2018, hospitality property sales volume was $1.31 billion, with 4,751 units sold at an average price per unit of $276,000. This is an improvement over 2017 in all but the number of units sold, and exceeds the price per unit recorded in the most recent peak sales year of 2014. Buyers are bullish on the future of Southern Nevada’s hospitality sector, and may be prepositioning themselves for the next building boom, which should take place in the early 2020’s. Land sales saw improvement in the third quarter of 2018, boosted by a significant industrial land sale at Apex. Even without this sale, the land market was strong, stimulated by a boisterous local and national economy. Homebuilders are running low on improved lots in the Valley, and large contiguous acreage on which to build, and industrial developers are finding parcels well suited to development harder to find. Lack of available land is putting upward pressure on prices, and this could potentially slow land sales going into 2018.
DOWNLOAD Q3 2018 REPORT
https://www2.colliers.com/en/research/lasvegas/2018-Q3-Las-Vegas-Market-ResearchReport
LAS VEGAS INSIDER | OC TOBE R 2 018
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T hanksgiving
k c u l t Po
THURSDAY, NOVEMBER 15
11:30am – 1:30pm
MAIN CONFERENCE ROOM
Sign up with Jennifer at the Front Desk and bring your favorite dish
CONGRATULATIONS to our newest designees!
GRANT TRAUB, SIOR
AMELIA HENRY, CCIM
CHRIS LANE, CCIM
STEVE NEIGER, CCIM
JEFF NASEEF, CCIM
DID YOU KNOW? DUE TO EARTH’S GRAVITY IT IS IMPOSSIBLE FOR MOUNTAINS TO BE HIGHER THAN 49,000 FEET
LAS VEGAS INSIDER | OC TOBE R 2 018
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WELCOME TO COLLIERS!
Andrea Oceguera
Please join us in welcoming Andrea Oceguera to the Colliers Las Vegas office as Associate for the Doherty Industrial Group.
Resorts World Las Vegas is showing visible progress The question used to be all too common in real estate circles: What’s going on with Resorts World? Today it’s a different story. The site is alive with multiple cranes in the air and a hotel that keeps growing taller. The hotel building is planned to be 60 stories, and work crews have reached floor 35, Genting Americas spokesman Michael Levoff said in an email Friday. More than 1,000 construction workers are on site, and “several thousand” will be there by mid-2019, he said.
READ MORE
Source: Las Vegas Review Journal - Eli Segall, Photograph by Richard Brian @vegasphotograph
Andrea previously worked for CBRE in office leasing. Andrea brings over seven (7) years of experience in commercial real estate. She was born and raised in Los Angeles, California. Andrea attended UNLV and plans to return to obtain a Bachelor’s Degree in Business Administration Management. Andres’s primary responsibilities on the team include: ownership services, property marketing, research, property tours with potential tenants/buyers, negotiating leases, respond to inquiries on listings and provide the team with administrative support. Andrea enjoys traveling and spending time with her family and friends.
Welcome aboard Andrea!
10118
DID YOU KNOW? THE EMPIRE STATE BUILDING HAS ITS OWN ZIP CODE
FEATURED DEALS
RETAIL SALE
INDUSTRIAL LEASE
±7,930 SQUARE FOOT RETAIL PROPERTY A sale to 4590 W Sahara LLC. The ±7,930 square foot retail strip center, the Sahara & Decatur Retail Shops is located at 4590 West Sahara Avenue in Las Vegas. The transaction amount was $2,475,000.00. David A. Grant of Colliers International represented the seller, McLaren Las Vegas, LP.
±41,760 SQUARE FOOT INDUSTRIAL PROPERTY A lease expansion to Shepard Exposition Services, Inc. The ±41,760 square foot industrial property is located at 5845 Wynn Road, Suite A-D in Las Vegas. Dan Doherty, SIOR, Paul Sweetland, SIOR, Chris Lane, CCIM and Jerry Doty of Colliers International represented the tenant.
MEDICAL OFFICE SALE
OFFICE LEASE
±4,994 SQUARE FOOT MEDICAL OFFICE PROPERTY A sale to Alexandra Building, LLC. The ±4,994 square foot medical office property is located in Horizon Ridge Professional Park at 2380 West Horizon Ridge Parkway in Henderson. The transaction amount was $1,375,000.00. Stacy Scheer, CCIM of Colliers International represented the buyer.
±7,353 SQUARE FOOT OFFICE PROPERTY A lease to Australis Capital (Nevada) Inc. The ±7,353 square foot office property is located in Airport Corporate Center at 376 East Warm Springs Road, Suite 190 in Las Vegas. Chris Connell and Grant Traub, SIOR of Colliers International represented the landlord, Airport CC LLC. Alexia Crowley, CCIM and Andrew Kilduff of Colliers International represented the tenant.
LAND SALE ±6.20 ACRE LAND PROPERTY A sale to BFT 1, LLC. The ±6.20 acre land parcel is located at 8951 Kent Court (APN: 176-24-110-008 & 176-24-110-005) in Las Vegas. The transaction amount was $2,400,000.00. Scott Gragson and Robert Torres of Colliers International represented the buyer.
LAS VEGAS INSIDER | OC TOBE R 2 018
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FEATURED LISTINGS
SEC OF WESTWIND ROAD
3911 WEST OQUENDO ROAD
DAN DOHERTY, SIOR, PAUL SWEETLAND, SIOR, CHRIS LANE, CCIM AND JERRY DOTY
DEAN WILLMORE, SIOR •
±20,024 SF freestanding industrial building on ±0.91 acre lot
•
±2.5 acres of land in the southwest
•
Located on Valley View Boulevard, just West of the I-15 Freeway and
•
Potential for office/industrial
•
Sale Price: $2,178,000
South of Russell Road •
Lease Rate: $0.59 PSF (NNN)/$0.10 PSF CAM // For Sale: $2,585,000
6330 WEST FLAMINGO ROAD
MT HOOD STREET & HOWDY WELLS AVENUE
STACY SCHEER, CCIM, LEED GA
STEVEN HAYNES
•
±11,703 SF single-story, freestanding building
•
±20.60 acres – Zoned M-1
•
Zoning C-P
•
Property NOT located in a 100 year flood plain
Asking Rate: $1.25-$1.50 SF NNN
•
ASKING PRICE: $5,600,000
•
2575 WEST SERENE AVENUE
524 SOUTH BOULDER HIGHWAY
TOM NASEEF, CCIM, SIOR, GARRY CUFF, CCIM, AND JEFF NASEEF, CCIM • ±7.0 acres available – multifamily/condo development opportunity • Zoning – Limited Resort and Apartment (H) • Price: $7,000,000
CHRIS CLIFFORD, STEVE NEIGER, CCIM, BRETT RATHER •
±25,000 SF warehouse/industrial property
•
Zoned MC
•
$0.55 PSF (NNN)
THE WORLD’S LARGEST WEED DISPENSARY IS ABOUT TO OPEN NEAR THE LAS VEGAS STRIP Planet 13, a massive weed dispensary opening just off the Las Vegas Strip, will be a sight to behold. Music and lights will pulse through its enormous 40,000 square feet of space. A treasure trove of cannabis products for medical and recreational use will line the walls. All surfaces will be shiny and new.
IN THE NEWS LAS VEGAS CLOSES $16M SALE OF MATTER REAL ESTATE GROUP’S FOREMOST INDUSTRIAL PROPERTY MATTER @ CRAIG’’ https://www.nevadabusiness.com/2018/09/ colliers-international-las-vegas-closes-16m-saleof-matter-real-estate-groups-foremost-industrialproperty-matter-craig/
September 25 REGIONAL LEADERS VIE FOR LARGESCALE EXPANSION https://pvtimes.com/news/regional-leaders-viefor-large-scale-expansion/
September 26
BUSINESS NOTES: KEITH CUBBA IS SENIOR VICE PRESIDENT AT COLLIERS INTERNATIONAL —LAS VEGAS https://vegasinc.lasvegassun.com/business/ notes/2018/oct/15/the-notes-oct-15-2018/
October 15
DID YOU KNOW? ON EVERY CONTINENT THERE IS A CITY CALLED
ROME
LAS VEGAS INSIDER | OC TOBE R 2 018
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OKTOBERFEST
SAUSAGE TRUCK On October 18th we celebrated Oktoberfest in style! We invited the King’s Sausage food truck out to the office to serve us lunch including: a variety of sausages and pierogis. We paired those with some German beer, German chocolate cake and apple strudel for dessert. It was a beautiful day to be outside and kick off our fall festivities.
We hope you enjoyed this special treat.
PROST! Translation: Cheers!
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
SCOTT GRAGSON
PATTI DILLON, SIOR
DAN DOHERTY, SIOR
PAUL SWEETLAND, SIOR
TABER THILL, SIOR
MICHAEL STUART
CHRIS CLIFFORD
KEITH CUBBA
CHRIS BENTLEY
SPENCER PINTER
GARRY CUFF, CCIM
DEAN WILLMORE, SIOR
AL TWAINY, CCIM
TOM NASEEF, CCIM, SIOR
BRIAN RIFFEL, SIOR
GRANT TRAUB, SIOR
STEVEN HAYNES
PAT MARSH, SIOR
DAN GLUHAICH
UPCOMING EVENTS SIOR LUNCHEON 11:30am Maggiano’s Fashion Show NOVEMBER 14 NAIOP BUS TOUR 11:00am Silverton Casino NOVEMBER 1
T hanksgiving
Potluck
MONTHLY OFFICE MEETING 9:00am Main Conference Room NOVEMBER 28
MONTHLY INDUSTRIAL MEETING 9:00am Main Conference Room NOVEMBER 29
11:30pm Main Conference Room NOVEMBER 15
DAYLIGHT SAVINGS NOVEMBER 4
MONTHLY RETAIL MEETING 8:30am Main Conference Room NOVEMBER 20
GKT STAFF APPRECIATION DAY STAFF OUT OF OFFICE NOVEMBER 7
LAS VEGAS MARKET SYMPOSIUM 8:00am Suncoast Hotel & Casino NOVEMBER 8
THANKSGIVING HOLIDAY Office Closed NOVEMBER 22 & 23
MONTHLY BIRTHDAY CELEBRATION 2:30pm Main Conference Room NOVEMBER 29
NAIOP HOLIDAY RECEPTION 5:00pm Cili at Bali Hai NOVEMBER 29
LAS VEGAS INSIDER | O C TOBE R 2 018
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LAS VEGAS BY THE NUMBERS: OFFICE
12% RETAIL
29%
SEPTEMBER PROPERTY TYPES
SALE
61%
SEPTEMBER SALES VS. LEASE
LEASE
39%
LAND
13%
INDUSTRIAL
46%
TOP 10 AGENTS OF THE MONTH SEPTEMBER 2018 1. 2. 3. 4. 5.
Dan Gluhaich Brian Riffel Dean Willmore Spencer Pinter Susan Borst
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6. Dan Doherty 7. Taber Thill 8. Patti Dillon 9. Patrick McNaught 10. Pat Marsh
SEPTEMBER OFFICE TRANSACTIONS
SEPTEMBER 2018 ANNIVERSARIES Spencer Pinter
1996
22 Years
David Grant
2001
17 Years
Stacy Scheer
2012
6 Years
Dean Willmore
2012
6 Years
BROKER RANKINGS YTD 2018 1. Dan Doherty 2. Mike Stuart 3. Vince Schettler 4. Dean Willmore 5. Pat Marsh 6. Brian Riffel 7. Paul Sweetland 8. Scott Gragson 9. Chris Clifford 10. Spencer Pinter 11. Keith Cubba 12. Patti Dillon 13. Taber Thill 14. Dan Gluhaich 15. Chris Bentley 16. Garry Cuff
Vince Schettler Brian Riffel Dan Doherty Chris Clifford Mike Stuart Scott Gragson Dean Willmore
85/15 CLUB
17. Al Twainy 18. Tom Naseef 19. Steven Haynes 20. Grant Traub 21. Chris Connell 22. David Grant 23. Mike Mixer 24. Scot Marker 25. Chris Lane 26. Susan Borst 27. Jerry Doty 28. Phillip Dunning 29. Patrick McNaught 30. Stacy Scheer 31. Steve Neiger 32. Robert Torres
Pat Marsh Chris Bentley Paul Sweetland Spencer Pinter Al Twainy Dan Gluhaich Mike Mixer
33. Brian Fike 34. Jeff Naseef 35. Eric Molfetta 36. Alexia Crowley 37. Sam Newman 38. Andrew Kilduff 39. Kara Walker 40. Suzette Lagrange 41. Phillip Frank 42. Rebecca Staniec 43. Chris Lobello 44. Joe Bonifatto 45. George Connor 46. John Kilpatrick
Grant Traub Patti Dillon Taber Thill Chris Connell David Grant Keith Cubba Garry Cuff
Tom Naseef Steven Haynes Scot Marker Chris Lane Susan Borst
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BROKER OF THE MONTH
CO NG RA T UL A T IO NS
DAN GLUHAICH Vice President Investment Division
Dan has successfully closed over 1200 escrows during his career ranking in the top 5% of producers. Having partnered with investors in over 200 spec homes & subdivisions, he specializes in bringing together designers, city officials, lenders & construction managers and guiding them through the development process. Born and raised in Gilroy, Dan resides in Morgan Hill with his wife & 2 sons. He actively supports church, school & sports programs in the community. He graduated from California Poly, San Luis Obispo in 1983.
Q
Would you rather be Clever or Beautiful?
A
I would rather be Clever, because I am already Beautiful. LOL
Q
Would you like to go to a tropical island or the arctic more?
A
A tropical island, the weather is great and I can relax by the water and sip on a great cocktail.
Q
.O.T.M. ONATION
A
ANGELINA SCARCELLI, CPM Senior Portfolio Manager REMS Department 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.
Q
Where would you most like to live?
What Task or Chore is your favorite?
A
FLORIDA
I love to work out everyday in my Gym and like spending weekends working in my Vineyard.
Q
What flavor ice cream would you be?
A
Strawberry
Q
Tropical island or the Arctic?
The Links for Life Foundation is donating in Dan Gluhaich’s name to the Variety Children’s Charity of Southern Nevada
LINKS FOR LIFE A
Tropical Island
F O U N D A T I O N Q
Which task or chore is least favorite?
A
Doing the dishes
LAS VEGAS INSIDER | O C TOBE R 2 018
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LAS VEGAS PHONE DIRECTORY INDUSTRIAL Susan Borst Dan Doherty Jerry Doty Tyler Jones Suzette LaGrange Chris Lane Pat Marsh Sam Newman Andrea Oceguera Alyssa Parks 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 3724 +1 702 836 3752 +1 702 836 3755 +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 Logan Etherington Phillip Frank Andrew Kilduff Rebecca Staniec Taber Thill
+1 702 836 3709 +1 702 836 3790 +1 702 836 3700 +1 702 836 3775 +1 702 836 3718 +1 702 836 3792 +1 702 836 3796
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
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
MEDICAL OFFICE Alexia Crowley Stacy Scheer
+1 702 836 3778 +1 702 836 3762
VALUATION SERVICES Richard Koldewyn Evan Ranes Brandon Roper
+1 702 836 3738 +1 702 836 3749 +1 702 836 3734
HOTEL/RESORT Mike Mixer Dharmesh Patel
+1 702 836 3777 +1 702 836 3713
INVESTMENT SERVICES Joe Bonifatto Brian Fike Tom Naseef Gabriel Skerlich Grant Traub
+1 702 836 3729 +1 702 836 3744 +1 702 836 3720 +1 702 836 3708 +1 702 836 3789
+1 702 836 3733
MULTI-FAMILY Christopher Bentley Garry Cuff Jeff Naseef Tom Naseef
Erica Aulino Valerene Corbin Kiara Davis Stacy Inness Jennifer Kennedy Breanna Lara Gretchen Lee Angelina Scarcelli
+1 702 836 3745 +1 702 836 3761 +1 702 836 3740 +1 702 836 3726 +1 702 836 3772 +1 702 836 3753 +1 702 836 3704 +1 702 836 3768
STAFF
GOLF COURSE Keith Cubba
PROPERTY MANAGEMENT
+1 702 836 3779 +1 702 836 3716 +1 702 836 3731 +1 702 836 3720
Nicole Cauilan Courtney Goffstein Sara Johansson Gina Jones Jennifer Manning Matt Stater Chris Sutton
+1 702 836 3706 +1 702 836 3710 +1 702 836 3771 +1 702 836 3783 +1 702 836 3701 +1 702 836 3781 +1 702 836 3721
RECEIVERSHIP Christopher LoBello
+1 702 836 3714
MIKE MIXER
Executive Managing Director | Las Vegas
+1 702 735 5700