Accelerating success.
July 2016
Las Vegas Insider A communication for brokers, employees, colleagues and friends
SOFTENING, BUT 3 MARKET STILL POSITIVE 5 FEATURED DEALS 6 NEW LISTINGS 7 UPCOMING EVENTS
baby cora
7 WELCOME TO COLLIERS 8 BROKER RANKINGS 9 BY THE NUMBERS 10 BROKER OF THE MONTH Mike’s Quote of the Month THE BEST TIME to plant a tree was 20 years ago. The second best time is NOW. Chinese Proverb
Congratulations to Amanda Palmer-Whinery and her husband Josh on the arrival of their beautiful baby girl Cora. Cora made her debut on Sunday, July 3rd at 5:54 p.m. She weighed 8 pounds 15 ounces and was 21 inches long. Welcome to the Colliers family Cora!
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JULY 2016
Las Vegas Releases Second Quarter Market Reports Market Softening, But Still Positive BY JOHN “MATT” STATER
Colliers International Las Vegas announced today the release of their second quarter market reports. While Southern Nevada’s commercial real estate market showed some softening at the mid-point of 2016, it remained positive overall. The industrial market continued to expand, posting slightly lower net absorption than in the previous quarter, but still enough to push the industrial vacancy rate down to 5.5 percent. The average asking rental rate for industrial space dropped at mid-year to $0.62 per square foot on a monthly basis, the first such drop in four quarters. “We think net absorption will remain positive for the remainder of 2016, but will not keep up with new completions," remarked John Stater, the research manager of Colliers International’s Las Vegas office.
“We think net absorption will remain positive for the remainder of 2016, but will not keep up with new completions," The multifamily market, which has seen a development explosion alongside that experience in the industrial market, is also handling the expansion well. With 473 new units of multifamily added to the Valley’s inventory, Class A multifamily vacancy increased to 5.0 percent. This was offset by the decrease in Class B/C vacancy, to a very low 3.4 percent. Overall vacancy stood at 4.2 percent. Rental rates continued to rise, pushed up as much by the strong demand for multifamily as by the completion of new Class A buildings. Population in Southern Nevada continues to increase, and those additional households, approximately 43 percent of them renters, will keep the multifamily market strong. At mid-year, 2016 is proving that Las Vegas’ hospitality market is still on a win streak. Visitor
volume in the first four months of 2016 is an improvement over the first four months of 2015, and room occupancy, average daily room rate (ADR) and revenue per available room (RevPAR) are up as well, year-over-year. Southern Nevada’s Resort corridor continues to grow and diversify, with such recent additions as TopGolf International’s four-story golf entertainment complex at the MGM Grand and the 20,000 seat MGM Resorts International/T-Mobile Arena behind New York-New York, not to mention the planned $75 million renovation of Caesars Palace’s original Roman Tower, a $47 million renovation of the Thomas & Mack Center, the expansion of the Las Vegas Convention Center, plans for a new tower at the Wynn Las Vegas and the first phase of Resorts World Las Vegas. Hospitality sales have softened in 2016 compared to the past two years, possibly as investors assess the success of these new developments. Mike Mixer, Executive Managing Director for Colliers International Las Vegas said, “The market now appears to be taking stock and preparing for the next phase, which may involve inventory expansion to go along with the entertainment venue expansion that has occurred since the end of the Great Recession.” Southern Nevada’s office market extended its recovery in the second quarter of 2016, again posting positive net absorption. Demand for office softened slightly in the second quarter, and job increases are not translating into the demand increases as we would expect, but the office market is still on track to reach approximately 1 million square feet of net absorption in 2016, and thus to approach a vacancy rate of 15 percent by year’s end. Southern Nevada’s medical office market got off to a bad start in 2016, with two quarters of worsening net absorption and rising vacancy. The problem appears to be increased competition from non-medical office real estate, significant restructuring in the real estate needs of healthcare practitioners, and market distortions created by the federal government. If current growth in healthcare employment and
spending does not turn demand around for medical office space, then it is likely that the “new normal” for medical office space will be high vacancy for the foreseeable future. The second quarter of 2016 saw negative 36,167 square feet of net absorption in the retail market, and vacancy increasing one-tenth of a percentage point to 9.2 percent. This was not a dire development, but does reinforce the idea that the local retail market is back in what we might term the “normal business cycle.” Fortunately, taxable retail sales and retail employment growth continued to be strong in the second quarter of 2016, so there is no reason that retail might resume its expansion in the third quarter of 2016. The second quarter of 2016 saw land sales, in terms of acreage sold, continue to increase. Land sales in the second quarter amounted to 1,794.5 acres, bringing the total for 2016 up to 3,018.5 acres sold. This is a significant improvement over land sales in 2015. While development in Southern Nevada is not booming, it is certainly recovering and growing stronger, especially in the industrial and multifamily sectors. If this continues, demand for land should increase through 2016 and 2017. Southern Nevada’s economy now may look something like its younger self, but there are significant differences as well. Some measures of the local economy have exceeded their 2005 levels, such as gaming revenue (which peaked in 2007), employment (with the notable exception of construction employment), and taxable sales. Likewise, migration into Southern Nevada is much lower now than it was in the early 2000’s, as are new home sales. The local economy is now more dependent on its hospitality sector than it used to be – not exactly the change that many local business people and politicians were hoping for. Still, the new formula appears to be working, and should continue to work through the remainder of the year.
JULY 2016
3
y a d i r F a h Alo 2016 The Colliers Las Vegas office celebrated Aloha Friday on July 22nd. Thank you to Sara, Nicole, Chris, Gina and Courtney for sharing the Hawaiian culture. First, we enjoyed a light Hawaiian breakfast with portuguese sausage, Hawaiian bread, tons of fruit and delicious Hawaiian coffee. Later that afternoon, our lunch included bento boxes filled with BBQ pork, chicken katsu and vegetable eggrolls and we were treated with delicious haupia pie, Kauai Kookies, and chocolate covered macadamia nuts. We hope everyone enjoyed these Hawaiian flavors. Aloha!
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JULY 2016
FEATURED DEALS INDUSTRIAL SALE
Mike DeLew, SIOR and Greg Pancirov, SIOR completed a ±156,564 square foot sale to 1051 Mary Crest, LLC. The industrial property is located in Suncrest Commerce Center at 1051 Mary Crest Road in Henderson. The transaction amount was $13,750,000. DeLew, SIOR and Pancirov, SIOR of Colliers International represented the seller, DCT Commercial.
CHURCH SALE Al Twainy, CCIM finalized a ±7,000 square foot sale to Progressive Pilgrims Fellowship. The church property is located at 5621-5719 Judson Avenue in Las Vegas. The transaction amount was $730,000. Twainy, CCIM of Colliers International represented the seller, Saint Michael Antiochian Orthodox Church.
RETAIL LEASE Chris Connell and Grant Traub completed a ±1,440 square foot lease to Canine Bodywork & Aquatics, LLC. The retail property is located in Pecos Wigwam Retail Center at 2563 Wigwam Parkway in Henderson. Connell and Traub of Colliers International represented the landlord, Pecos-Nevada Limited Partnership.
WEST PYLE AVENUE
DEAN MARTIN DRIVE
LAND SALE Vince Schettler finalized a ±2.5 acre sale to CFT Lands, LLC. The vacant land parcel is located on the southwest corner of Pyle Street and Polaris Avenue at APN: 177-29-301-002 in Las Vegas. The transaction amount was $750,000. Schettler of Colliers International represented the seller, Pyle Street Trust.
OFFICE LEASE Rebecca Staniec and Al Twainy, CCIM completed a ±5,000 square foot lease to Crossfit Brothers, LLC. The office property is located at 6040 South Fort Apache Boulevard, Suite B in Las Vegas. Staniec and Twainy, CCIM of Colliers International represented the landlord, JHW, LLC.
JULY 2016
5
NEW LISTINGS RETAIL/COMMERCIAL – FOR SALE OR LEASE Russell Commercial Center
CLASS “A” OFFICE - FOR LEASE 10000 West Charleston Boulevard
INDUSTRIAL - FOR SALE North Las Vegas Industrial Portfolio
Eric Molfetta, CCIM & Chris Zunis are representing ±24,034 SF of commercial sales & service space. Included with the property is ±2.1 acres of paved secured yard & has great exposure to the 95 Freeway. Located at 5050 East Russell Road, Las Vegas, NV 89122.
Ryan Martin, SIOR, CCIM, Taber Thill, SIOR & Patti Dillon are representing a Suburban Class “A” office building in the heart of Summerlin. With a high concentration of amenities in the immediate vicinity, the property offers a remarkable live, work, play balance. Available suites range from ±2,728 to ±8,881 RSF with an opportunity for building signage.
Dean Willmore, SIOR & Chelsy Cardin are representing the investment sale of five free-standing industrial buildings totaling ±94,492 SF. The investment includes a 96% leased multi-tenant industrial portfolio with warehouse units ranging from ±1,600 to ±12,392 SF. The properties are located at 4040 East Lone Mountain & 4405 East Colton in North Las Vegas.
RETAIL - FOR SALE Auto Dealership
INVESTMENT - FOR SALE Bigfoot Business Park
SURGERY CENTER - FOR LEASE Freestanding Ambulatory Surgery Center
Grant Traub & Chris Connell are representing a ±27,500 SF showroom & service buildings on ±4.2 acres. This property has ±500 feet of linear frontage on East Sahara Avenue located at 3250 East Sahara Avenue.
Suzette LaGrange & Kara Walker, CCIM are representing Bigfoot Business Park, a tremendous value-add investment opportunity. There is substantial upside in future rental income that is ready to be realized. The proforma reveals potential to achieve 16.92% for 10-year un-leveraged IRR. Up to $430,000 in additional potential net income to be added annually from office vacancies. More than ±21,000 SF of office space ready to be leased. Asking $11,689,000 ($42.77 psf) 7.21% CAP; priced well below replacement cost.
Stacy Scheer, CCIM, LEED GA & Grant Traub are representing a freestanding ambulatory surgery center in Summerlin on I-215 & Russell Road. The property is turnkey with surgical FF&E & all-inclusive negotiable rental rate. Located at 9120 West Russell Road, Las Vegas.
Review Journal “Nevada Regains Almost All Of 175K Jobs Lost In Recession, Economist Says” http://m.reviewjournal.com/business/economy/nevada-regains-almost-all-175k-jobs-lost-recession-economist-says Las Vegas Business Press “Home Prices Projected To Grow By More Than 5 Percent” http://businesspress.vegas/real-estate/home-prices-projected-grow-more-5-percent Las Vegas Business Press “Pacific Links To Sell Its Last Las Vegas Course" http://businesspress.vegas/real-estate/pacific-links-sell-its-last-las-vegas-course 6
JULY 2016
U P C O M I N G
EVENTS
AUGUST 4th
AUGUST 9th
AUGUST 10th
CREW Luncheon Las Vegas Country Club
USGBC Breakfast inNEVation Center
SIOR Luncheon Maggiano’s Little Italy
Las Vegas Heals "Healthcare Happy Hour" Redrock Fertility Center
Monthly Retail Meeting Main Conference Room
AUGUST 18th
AUGUST 24st
AUGUST 31st
NAIOP Breakfast Orleans Hotel & Casino
Monthly Office Meeting Main Conference Room
Ice Cream Social Main Conference Room
11:30am
7:00am
8:30am
6:00pm
7:30am
12:00pm
9:30am
3:00pm
CCIM Luncheon Palms Hotel & Casino 11:30am
TEDDIE HICKEY | Administrative Assistant She’s back! Please join us in welcoming back Teddie Hickey to Colliers International Las Vegas as an Administrative Assistant to the Office Division. While her primary role is to provide administrative support to the Office team of Ryan Martin, CCIM, SIOR, Taber Thill, SIOR and Patti Dillon, she also will function as the team’s transaction management coordinator. Teddie joins us again after a short hiatus in which she spent a few months traveling, soul searching and practicing yoga throughout Asia. Prior to joining the Office Division, Teddie was Colliers Las Vegas’ receptionist, she managed front desk operations and assisted brokers with administrative tasks. Teddie lives in the southwest valley with her sweet doberman Mayzee and in her spare time enjoys camping, hiking, teaching and practicing yoga and spending time with friends.
Welcome back Teddie!
LAUREN GEORGE | Administrative Assistant Please join us in welcoming Lauren George to Colliers International – Las Vegas as administrative assistant to the Industrial Division. Lauren's primary role is to provide administrative support to the Industrial team of Mike DeLew, SIOR and Greg Pancirov, SIOR. Prior to joining Colliers Las Vegas, Lauren spent over two years as a Marketing Assistant for Chicago Title. During that time she cultivated many strong relationships within the Las Vegas Real Estate Community. Lauren was born and raised in Las Vegas and in her spare time she enjoys traveling, camping, boating, hiking, and spending time with family and friends.
Welcome aboard Lauren! JULY 2016
7
LOOK WHO MADE THE PLANE!
2016 SALES AWARD TRIP
MAUNA KEA - MARCH 17, 2017 - MARCH 22, 2017
YEAR-TO-DATE BROKERS WHO QUALIFY FOR THE HAWAII TRIP SUSAN BORST MIKE DELEW DAN DOHERTY SCOTT GRAGSON
PAT MARSH RYAN MARTIN MIKE MIXER TOM NASEEF
MIKE STUART TABER THILL SPENCER PINTER DEAN WILLMORE
BROKER RANKINGS YEAR TO DATE JUNE 2016
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1.
DAN DOHERTY
17.
BRIAN RIFFEL
33.
JOE BONIFATTO
2.
SCOTT GRAGSON
18.
STACY SCHEER
34.
REBECCA STANIEC
3.
MIKE DELEW
19.
ERIC MOLFETTA
35.
KEITH CUBBA
4.
MIKE MIXER
20.
SCOT MARKER
36.
ANDREW KILDUFF
5.
PAT MARSH
21.
DAVID GRANT
37.
PAT MCNAUGHT
6.
TOM NASEEF
22.
ROBERT TORRES
38.
CHRIS LOBELLO
7.
SUSAN BORST
23.
VINCE SCHETTLER
39.
CHRIS CLIFFORD
8.
SPENCER PINTER
24.
PHILLIP DUNNING
40.
GEORGE CONNOR
9.
MIKE STUART
25.
CHRIS LANE
41.
DAVE FREAR
10.
DEAN WILLMORE
26.
GRANT TRAUB
42.
FRANK MARRETTI
11.
RYAN MARTIN
27.
CHRIS CONNELL
43.
ERIC TUMBLESON
12.
TABER THILL
28.
RENAE RUSSO
44.
JULIE BAUMAN
13.
GARRY CUFF
29.
SUZETTE LAGRANGE
45.
JOHN KILPATRICK
14.
PATTI DILLON
30.
KARA WALKER
15.
DAN GLUHAICH
31.
STEVE HAYNES
46. 47.
STEVE NEIGER BRETT RATHER
16.
GREG PANCIROV
32.
AL TWAINY
48.
THOMAS OLIVETTI
JULY 2016
BY THE NUMBERS JUNE 2016
LAS VEGAS - JUNE 2016 RESULTS TOP 10 AGENTS: JUNE 2016 1.
MIKE DELEW
6.
GRANT TRAUB
2.
SPENCER PINTER
7.
CHRIS CONNELL
3.
GREG PANCIROV
8.
DAN DOHERTY
4.
MIKE STUART
9.
VINCE SCHETTLER
5.
DEAN WILLMORE
10. ERIC MOLFETTA
55 DEALS IN JUNE OTHER 1%
RETAIL 11%
OFFICE 17%
LAND 14%
ANNIVERSARIES: JUNE 2016 1.
MIKE STUART 1994 / 22 YEARS
7.
SAM NEWMAN 2010 / 6 YEARS
2.
GREG PANCIROV 1997 / 19 YEARS
8.
CHRIS CONNELL 2011 / 5 YEARS
3.
DAN DOHERTY 1998 / 18 YEARS
9.
FRANK MARRETTI 2012 / 4 YEARS
4.
DAVE FREAR 1998 / 18 YEARS
10.
JERRY DOTY 2012 / 4 YEARS
5.
PAT MARSH 1998 / 18 YEARS
11.
TYLER JONES 2012 / 4 YEARS
6.
JENNIFER KENNEDY 2007 / 9 YEARS
12.
AMANDA PALMER 2015 / 1 YEAR
SALE 41%
LEASE 59%
INDUSTRIAL 57%
JULY 2016
9
BROKER OF THE MONTH JUNE 2016 What characteristic do you value the most in your coworkers? Team first attitude
If you HAD to give up one of your senses (hearing, seeing, feeling, smelling, tasting) which would it be and why? Smelling cause it seems like the easiest one to live without.
If you could have any kind of pet, what would you have? Falcon
If you could tell your younger self one thing, what would it be? Buy as much Apple stock as possible
PROFILE
MIKE DELEW, SIOR EXECUTIVE VICE PRESIDENT INDUSTRIAL DIVISION Colliers Las Vegas
Michael G. DeLew is an Executive Vice President in the Industrial Division of Colliers International, which consistently ranks at the top of all commercial real estate firms in Nevada. Mike is experienced in all phases of industrial real estate specializing in development feasibility analysis and design, investment property, land acquisitions, and leasing and sales to both users and investors. He has built strong relationships within the local and regional development community based on a respect for his comprehensive understanding of the development process. Mike is often hired on a consultation basis to help developers and users understand and evaluate the criteria particular to building different types of industrial product within our Valley. His involvement consistently helps to maximize potential returns and avoid costly mistakes. An expert in industrial sales and leasing, he has personally concluded more than $250,000,000 million in transactions over the past 5 years. He is regularly quoted in the Nevada Business Magazine, Las Vegas Review Journal, Las Vegas Business Press, and other industry specific news as a market expert with respect to all phases of industrial leasing, development and sales.
CONGRATULATIONS, MIKE!
ICEBREAKER HOW MANY PAIRS OF SHOES DO YOU OWN? 75+
INTERESTING TIDBITS FROM PEOPLE YOU WORK WITH
DO YOU PREFER TO TEXT OR TALK ON THE PHONE? Text
hey
Julie Dornak
girl h
ey!
MARKETING SPECIALIST FOR SCOT MARKER
IF YOU WERE TO BUY A CAR RIGHT NOW, WHAT WOULD YOU BUY? Jeep Wrangler
10 JULY 2016
BE INVISIBLE OR BE ABLE TO READ MINDS?
oh no she didn't!
Read Minds
WHAT IS YOUR FAVORITE ICE CREAM FLAVOR?
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 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 3705 +1 702 836 3763 +1 702 836 3703
OFFICE Patti Dillon Andrew Kilduff Ryan Martin Tom Naseef Rebecca Staniec Taber Thill
+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
Nicole Cauilan Courtney Goffstein Alisa Husic Sara Johansson Gina Jones Laura Medina Matt Stater Chris Sutton
+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
+1 702 836 3706 +1 702 836 3710 +1 702 836 3701 +1 702 836 3771 +1 702 836 3783 +1 702 836 3769 +1 702 836 3781 +1 702 836 3721
GOLF COURSE +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
Julie Bauman Scott Gragson Steven Haynes John Kilpatrick Pat McNaught Vince Schettler Mike Stuart Robert Torres
PROPERTY MANAGEMENT
+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
Keith Cubba
+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
JULY 2016 11
Accelerating success.
www.colliers.com/lasvegas Colliers International Mike Mixer, Executive Managing Director 3960 Howard Hughes Parkway, Suite 150 Las Vegas, Nevada 89169 T +1 702 735 5700 | F +1 702 731 5709