Las Vegas Insider | May 2021 | Colliers Las Vegas

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May 2021

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Game 7 against the Minnesota Wild Friday, May 28 @ 6:00PM

Table of Contents

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Las Vegas Research – Office Insights

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F e a t ure d D e a l s – Ma y 2021

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L a s Ve ga s I n T h e N e w s

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L a s Ve ga s Re ce n t H e a dlin e s

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F e a t ure d L is t in g s – Ma y 2021

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U p co min g J un e C a l e n da r

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B ro ke r of t h e M o n t h – Ma y 2021

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L a s Ve ga s B y T h e N um b e r s – A p r il

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K n o w l e d ge L e a d e r A r t i c l e s

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L a s Ve ga s D ire c to r y

Who? What? Where?

Las Vegas Office Market

BY JOHN MATT STATER | MAY 2021

Heading into the COVID-19 lockdowns, there were many things we did not know, but one certainty… office real estate was in trouble. With hundreds of employees working from home, businesses were involved in an experiment that could shake the foundations of office real estate. If a business could remain just as productive without office space or with less office space – why pay rent?

Now, more than a year since the lockdowns were started, it’s a good time to look at how Southern Nevada’s office sector fared. In particular – where did the largest vacations of office space occur in Southern Nevada, what classes of office space lost the most tenants, and who, in terms of industry, saw the biggest impact from the lockdowns. As always, here come the caveats. These figures are based on office units that came on the market, direct or sublease, after March, 2020. Keep in mind that May 2021

units vacated during the lockdowns were not necessarily vacated because of the

4

lockdowns. Also, do not assume that the vacating businesses did so because they went out of business; many probably moved from one building to another, as always happens in the market.

Where?

It should be no surprise that the largest

Do not assume that the vacating

vacations of space during the lockdown

businesses did so because they went

period took place in the Valley’s largest

out of business; many probably moved

office submarkets, the Northwest,

from one building to another, as

Southwest and East Las Vegas. If we look at the space vacated as a percentage of

always happens in the market.

the inventory in submarkets, we see the biggest impact was felt in the Northwest (12.7% vacated) and East Las Vegas (11.6% vacated). These submarkets were followed

by Henderson, Southwest and the Airport.

Slicing and dicing, we see among major office submarkets that the Southwest was probably the most resilient, while Downtown and West Central were the most resilient office markets overall. That Northwest suffered as badly as it did is interesting.

Who? The top five industries that vacated space during the lockdowns were financial activities (±1.2 million SF), healthcare (±590,000 SF), technology (±418,000 SF), real estate services (±394,000 SF) and hospitality/travel/events (±275,000 SF).

Most likely, these industries either found it easy to transfer to work-fromhome (such as finance, real estate and technology), or they suffered severely from the business lockdowns (healthcare and hospitality). Some percentage of them would have moved or closed in 2020 whether the lockdowns had happened or not.

While the three major office submarkets

What?

were all impacted by the movement of

Among office classes, Class A was predicted

each submarket was disproportionately

to suffer the worst from work-at-home,

impacted by another industry. The East

and indeed it did in Southern Nevada, with

Las Vegas submarket, for example, saw the

vacations of office space equaling 19.2% of

vacation of several information (i.e. radio/

Class A inventory. Class B and C were far

telecom) businesses. Real Estate companies

more resilient than Class A. This probably

had a larger impact on the Northwest

has as much to do with the kinds of work

submarket than on other submarkets, and

that occurs in Class B/C office space as it

the Southwest submarket’s exposure to

does with the pricing of that space.

technology companies impacted it.

Continued on page 6

healthcare and financial activities companies,

Colliers – Las Vegas Insider

5

How Does this Story End? That’s the real question, of course. We do not know yet where these companies went – did they simply move, did they go out of business entirely, are they downsizing and leaving their employees at home? But, as time progresses, we will have a better idea about this.

In the meantime, we do know that, through 20q2 to 21q1, only one submarket, Henderson, had positive net absorption, totaling 137,290 square feet. The Northwest submarket over the same period had 786,000 square feet of gross absorption and negative 336,849 square feet of net absorption. The Southwest submarket had negative 11,397 square feet of net absorption and 605,817 square feet of gross absorption. Less activity in the Southwest, but more of it positive. A realignment of office users towards Henderson from the west side of the Valley is unlikely, but a realignment from the Northwest, which boomed in the 1990s, to the Southwest, which starting booming in the 2010’s, is possible.

When we look at net absorption on an industry-byindustry basis, we see that some took more square footage than they gave away, such as healthcare (957,000 SF net absorption), technology (300,000 SF net absorption) and legal services (190,000 SF net absorption). Others remain in the red, such as financial activities (-854,000 SF net absorption), hospitality (-178,000 SF net absorption) and marketing (-130,000 SF net absorption).

As 2021 presses on, we’ll get a fuller understanding May 2021

of how different industries have reacted to the

6

lockdowns, how quickly they are bouncing back, and whether we are seeing a new office demand paradigm in terms of location and building class.

Office Lockdown Activity By Industry Estimated Space Vacated and Occupied, 20q2 to 21q1

Source: Colliers International

With hundreds of employees working from home, businesses were involved in an experiment that could shake the foundations of office real estate.

Colliers – Las Vegas Insider

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2,220 SF

Featured Deals May 2021 Office Lease

A lease to Clay Consulting, LLC. The ±2,220 square foot office property is located in Airport Corporate Center at 376 East Warm Springs Road, Suite 125 in Las Vegas. Chris Connell, SIOR and Grant Traub, SIOR of Colliers International represented the landlord, Airport CC, LLC.

4,083 SF

DID YOU KNOW!?

People who are alive are banned from being featured on U.S. currency.

Office Lease A lease to THEDOCS, LLC. The ±4,083 square foot office property is located at 3005 West Horizon Ridge Parkway in Henderson. Taber Thill, SIOR, Patti Dillon, SIOR and Megan McInerney of Colliers

May 2021

International represented the landlord, Insight on

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Horizon, LLC.

$

1,400,000

5,581 SF

Land Sale

Medical Office Lease

A sale to Forte Specialty Contractors. The ±1.92

A lease to Gallus Detox Services, LLC. The ±5,581

acre land parcel is located at Post Road and

square foot medical office property is located in

Buffalo Drive (APN: 163-34-301-020) in Las Vegas.

Flamingo Microhospital at 9880 West Flamingo

The transaction amount was $1,400,000.00.

Road in Las Vegas. Alexia Crowley, CCIM and

Brian Riffel, SIOR and Tyler Jones of Colliers

Stacy Shapiro, CCIM of Colliers International

International represented the buyer.

represented the landlord, Emerus.

$

1,395,000

$

350,000

Industrial Sale

Land Sale

A sale to B&C Properties. The ±10,500 square

A sale to BMV Properties LLC. The ±1.89 acre

foot industrial property is located at 3236 Meade

land parcel is located at Lone Mountain Road

Avenue in Las Vegas. The transaction amount

and North Durango Drive (APN: 125-32-804-

was $1,395,000.00. Dan Doherty, SIOR, Paul

003) in Las Vegas. The transaction amount

Sweetland, SIOR, Chris Lane, SIOR, CCIM and Jerry

was $350,000.00. Steven Haynes of Colliers

Doty, SIOR of Colliers International represented

International represented the seller, Efren &

the buyer.

Nevarrie Deleon Et. Al.

Colliers – Las Vegas Insider

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News Coverage May 2021

Expanding Your Business Footprint with a Real Estate Broker May 25 – The Scrappy Entrepreneur

Colliers Las Vegas Exclusively Lists Rare Undeveloped Las Vegas Resort Corridor Property for $12.9m May 12 – Nevada Business Magazine

Colliers Las Vegas Exclusively Lists Rare Undeveloped Las Vegas Resort Corridor Property for $12.9m May 12 – CRE Confidential

Need Press?

Get the news out!

Reach out and let us know the good news.

Matter Logistics Center @ West Cheyenne Fully Leased by Colliers Las Vegas Doherty Industrial Group May 10 – Nevada Business Magazine

New listings, properties just sold/leased, team news, etc! Help us, help you.

May 2021

Congrats Ladies.

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Colliers Sells In-N-Out Location Near Allegiant Stadium site May 04 – Las Vegas Business Press

Angelina Scarcelli & Jennifer Mount were both recognized in Real Las Vegas Magazine as part of the 2021 Women Who Wow.

Las Vegas Recent Headlines

RE AD MORE

RE AD MORE

RE AD MORE

Resorts World announces

Las Vegas preparing for

Las Vegas conventions

opening details

June 1 reopening

are coming back

Signs of life and many visible changes in the city ’s casino landscape

World of Concrete convention is returning on June 8 for a three-day show

Convention Center is booking up with 30+ shows on the calendar this year

The north Strip resort casino property, which has a price tag of $4.3 billion, will officially open its doors on June 24, 2021.

Casinos place big bet on vaccinations as Las Vegas prepares for June 1 reopening and nation’s first large convention.

The Las Vegas convention industry supports 67,000 jobs with an economic impact of more than $11 billion.

Colliers Las Vegas adds respected industry leader

Aaron West

Aaron joins the company as Managing Director and Market Leader for our Brokerage operations in Las Vegas. In his new role, Aaron will oversee all brokerage operations and service lines in Las Vegas with a key focus on new business development, talent recruitment and retention. He will report to David Josker, President, Southwest Region | U.S. Brokerage.

Las Vegas Managing Director

Colliers –– Las Las Vegas Vegas Insider Insider Colliers

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Industrial

Featured Listings May 2021

SunPoint West Dan Doherty, SIOR, Paul Sweetland, SIOR, Chris Lane, SIOR, CCIM and Jerry Doty, SIOR •

±17,000 SF–±237,776 SF for sale or lease

•

Deliverying Q1 2022

•

Six-building industrial park totaling ±730,771 SF of warehouse & distribution

Industrial

DID YOU KNOW!?

84.4% of Nevada’s land is owned by the federal government - more than any other state.

7055 Windy Street Gabe Telles, Ryan Hendershot and

May 2021

Chase Pavlov

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•

±16,291 SF Industrial Office/Warehouse Unit

•

Located at I-15/215 interchange, on Warm Springs Road and Windy Street

•

Lease Rate: $0.82/PSF (NNN) CAM: $0.10/SF (NNN)

Office

Industrial

526 & 530 S. 7th Street

3450 N. Lamb Blvd. & 3702 Las Vegas Blvd

Brian Fike, Patti Dillon, SIOR, Taber Thill,

Eric Molfetta, MBA and Amanda Irving

SIOR and Megan McInerney

•

146,895 total SF divisible to ±103,011 SF, ±50,000 SF or ±43,980 SF

•

±1,840 SF (Single-Story)

•

Located in the Downtown Las Vegas

•

Sunpoint Crossing - Available May 1, 2021

•

Sale Price: $1,198,500 ($250/SF)

•

Lease rate: $0.54 PSF

Office

Retail

Flamingo Grand Plaza

4850 W. Sunset Road

Chris Connell, SIOR and Grant Traub, SIOR

Steve Neiger, CCIM Chris Clifford and

•

Suite sizes ranging from ±625 to ±5,487 RSF

Brett Rather

•

Recently refurbished common areas

•

±1,160 SF Pre-existing Restaurant Space

•

Turn-key suites available for lease with

•

Zoning: General Commercial (C-2)

immediate occupancy

•

$3.00 PSF/Mo + NNN ($0.45 PSF/Mo) Colliers – Las Vegas Insider

13

Upcoming Calendar June 2021 – Summer is almost here. We’re warming up!

Aaron West New MD Meet & Greet Lunch

NAIOP Virtual Breakfast

Birthday Celebration

7:00am–8:45am

2:30pm–3:30pm

11:30am–1:00pm

Thursday, June 17

Thursday, June 24

Wednesday, June 2 Main Conference Room

Next Gen Churro Truck 11:00am–1:00pm Thursday, June 3 Oasis Park (across the street from us next to 3893 building)

CREW Luncheon Zoom 11:30am–1:00pm Tuesday, June 8

SIOR Luncheon Zoom

Sunday, June 20

Industrial Monthly Meeting 9:00am–10:00am

First day of Summer

Thursday, June 24

Monday, June 21

Investment Monthly Meeting Zoom 9:00am–10:30am Tuesday, June 22 (Grant Traub to send Zoom link)

Office Monthly Meeting Zoom 9:00am–10:00am Wednesday, June 23

Wednesday, June 9

(Taber Thill to send Zoom link)

Retail Monthly Meeting Zoom

CCIM Luncheon Zoom

9:00am–10:30am

Wednesday, June 23

(David Grant to send Zoom link)

May 2021

Happy Father’s Day

11:45am–1:30pm

Thursday, June 17

14

Main Conference Room

11:30am–1:30pm

Nicole Cauilan Brianna Maldonado Spencer Pinter Leah Mullen Amber McDaniel Suzette LaGrange

Dan Doherty, SIOR

2020/21 Sales Award Trip March 11–15, 2022 Fairmont Kea Lani in Wailea, Maui

2021 Trip Qualifiers 1. Brian Rif fel 2. Dan Doher t y 3. Pat Mar sh 4. Eric Molfet t a 5. Paul Sweetland 6. Jerr y Dot y 7. Chris L ane

2020 Trip Qualifiers 1. Dan Doher t y 2. Paul Sweetland

Broker of the month A Giving Spirit Dan’s donation will be going to After-School All-Stars.

After-School All-Stars Las Vegas provides

3. Dav id Grant

children a safe and supportive space to

4. Chris L ane

learn, grow, and achieve. Providing free,

5. Jerr y Dot y

comprehensive after-school programs, they

6. Spencer Pinter 7. Keith Cubba 8. Chris Clif ford 9. Brian Rif fel 10. Pat Mar sh 11. Grant Traub 12. Dan Gluhaich

accomplish this by providing at-risk youth the opportunity to participate in programs that include sports, educational, cultural, and community enrichment components. Over 6,000 children served annually in Clark County.

They’ve served Las Vegas communities for 24 years while the program is offered at no charge to students, families, or schools.

LINKS FOR LIFE

F O U N D A T I O N

Good luck to our future qualifiers.

Colliers – Las Vegas Insider

15

Las Vegas Office Report April 2021 Office

Retail

Broker Rankings YTD

6%

5%

1.

Dan Doherty

22. Patti Dillon

2.

Pat Marsh

23. Gabe Telles

3.

Paul Sweetland

24. Sam Newman

4.

Brian Riffel

25. Alexia Crowley

5.

Eric Molfetta

26. Megan McInerney

6.

Jerry Doty

27. Tyler Jones

7.

Chris Lane

28. Brian Fike

8.

David Grant

29. Chase Pavlov

9.

Grant Traub

30. Ryan Hendershot

10. Keith Cubba

31. Al Twainy

11. Spencer Pinter

32. Gabe Skerlich

12. Mike Mixer

33. Brett Rather

13. Steve Haynes

34. Steve Neiger

14. Kara Walker

35. Jennifer Lehr

15. Suzette Lagrange

36. Amanda Irving

16. Jeff Swinger

37. Chris Bentley

17. Chris Connell

38. Dan Gluhaich

18. Scot Marker

39. George Connor

19. Stacy Shapiro

40. Rebecca Staniec

20. Chris Clifford

41. Nick Gordon

Land

24%

April Property Types 143% Monthly Budget 62% YTD Budget Industrial

65%

Sales vs. Lease Revenue 72% - Sales

28% - Lease

21. Taber Thill

May 2021

Top 10 Agents – April 2021

16

April Anniversaries

1.

Dan Doherty

6.

Mike Mixer

John Matt Stater

1996

25 Years

2.

Paul Sweetland

7.

David Grant

Keith Cubba

2005

16 Years

3.

Chris Lane

8.

Brian Riffel

Angelina Scarcelli

2013

8 Years

4.

Jerry Doty

9.

Steve Haynes

Chris Clifford

2016

5 Years

5.

Pat Marsh

10. Grant Traub

Steve Neiger

2016

5 Years

Brett Rather

2016

5 Years

Megan McInerney

2019

2 Years

Las Vegas | 10 Emerging U.S. Industrial Markets to watch in 2021

Key Strengths Southern Nevada offers a competitive tax structure and a friendly business climate, as well as excellent access to interstates and highways, including the new I-10 linking Las Vegas with Phoenix, AZ. This makes Las Vegas a link in the Canamex corridor. The area’s proximity to the ports of Los Angeles and Long Beach, its position to the Union Pacific railroad, and its proximity to other major trade routes like Interstate 40 and the BNSF Railroad, makes Southern Nevada an ideal place for a western distribution facility.

Major Logistics Drivers: Interstate Access The main drivers of logistics in Southern Nevada are the area’s rapidly expanding population and the nexus of I-10, I-15 and US- 93/95 in the Valley.

2021 is shaping up to be a very active year for the warehouse/ distribution sector in Southern Nevada. With just more than five million square feet currently under construction, one would think it’s a very favorable tenant market, but that’s not the case. There is substantial activity on every building that has gone vertical and several developers are declining partial building deals in hopes of landing one

Dan Doherty, SIOR

to two tenants. Our team has never seen more tenant activity in 32 years, both organically as well as prospects from other markets.

Colliers – Las Vegas Insider

17

America’s Love Affair with Costco Read More

Retail Begins To Rebound Higher-than-expected advances in employment, along with the expanding vaccine rollout, stimulus checks and robust retail sales, are helping to support tenant health and retail fundamentals in the first quarter of 2021. Retail sales surged as the year commenced and grew 30.4% yearover-year in March on a non-seasonally adjusted basis. If we set aside last year’s weak retail sales numbers and compare it to March 2019, overall retail sales are up by $109 billion or 21.1%.

Read More

Inflation is Picking Up Disruptions to supply and production chains due to the pandemic are partly to blame.

Strong support remains for continued sales volume increases. Most important

Multifamily Capital Migration

May 2021

Multifamily is on a roll, accounting for onethird of investment in 2021 as cap rates fall and sales prices rise.

18

Read More

are near-record fundraising, the push from pension funds and other real estate investors which are under allocated to real estate, improving economic conditions, and attractive cap rates due to the low-interestrate environment. Potential tax law changes along with inflation risk will only add more fuel to that fire.

Read More

Industrial

Investment Services

Dan Doherty

+1 702 836 3707

Jerry Doty

+1 702 836 3735

Ryan Hendershot

+1 702 836 3751

Tyler Jones

Brian Fike

+1 702 836 3744

Nicholas Gordon

+1 702 836 3703

Amanda Irving

+1 702 836 3732

+1 702 836 3754

Eric Molfetta

+1 702 836 3756

Suzette LaGrange

+1 702 836 3799

Stacy Shapiro

+1 702 836 3762

Chris Lane

+1 702 836 3728

Gabriel Skerlich

+1 702 836 3708

Pat Marsh

+1 702 836 3741

Grant Traub

+1 702 836 3789

Sam Newman

+1 702 836 3724

Chase Pavlov

+1 702 836 3731

Spencer Pinter

+1 702 836 3776

Brian Riffel

+1 702 836 3773

Danielle Scarano

+1 702 836 3747

Christopher Bentley

+1 702 836 3779

Paul Sweetland

+1 702 836 3750

Shalonda Hughes

+1 702 836 3765

Gabe Telles

+1 702 836 3758

Jeffrey Swinger

+1 702 836 3764

Kara Walker

+1 702 836 3705

Medical Office

Office Chris Connell

+1 702 836 3709

Patti Dillon

+1 702 836 3790

Megan McInerney

+1 702 836 3700

Rebecca Staniec

+1 702 836 3792

Taber Thill

+1 702 836 3796

Retail Chris Clifford

+1 702 836 3746

George Connor

+1 702 836 3786

Dan Gluhaich

+1 702 836 3757

David Grant

+1 702 836 3785

Jennifer Lehr

+1 702 836 3736

Scot Marker

+1 702 836 3782

Steve Neiger

+1 702 836 3760

Brett Rather

+1 702 836 3794

Al Twainy

+1 702 836 3725

Land Steven Haynes

Multifamily

LAS VEGAS

Direc tor y

Alexia Crowley

+1 702 836 3778

Valuation Services Richard Koldewyn

+1 702 836 3738

Heidi Meidenbauer

+1 702 836 3726

Leah Mullen

+1 702 836 3775

Evan Ranes

+1 702 836 3749

Brandon Roper

+1 702 836 3734

Property Management Valerene Corbin

+1 702 836 3761

Jennifer Kennedy

+1 702 836 3772

Amber McDaniel

+1 702 836 3745

Jennifer Mount

+1 702 836 3753

Christine Norberg

+1 702 836 3704

Angelina Scarcelli

+1 702 836 3768

+1 702 836 3727

Staff Hotel/Resort Mike Mixer

+1 702 836 3777

Golf Course Brokerage Keith Cubba

+1 702 836 3733

Nicole Cauilan

+1 702 836 3706

Sara Johansson

+1 702 836 3771

Gina Jones

+1 702 836 3783

Brianna Maldonado

+1 702 836 3701

Caryl Lou Paayas

+1 702 836 3702

Matt Stater

+1 702 836 3781

Chris Sutton

+1 702 836 3721

Aaron West

+1 702 836 3795

Colliers – Las Vegas Insider

19

Our mission is to maximize the potential of property to accelerate the success of our

MARKET CONTACTS:

clients and our people.

Aaron West Managing Director | Las Vegas

+1 702 836 3795

351 offices in 67 countries

aaron.west@colliers.com

Mike Mixer, SIOR Chairman | Las Vegas

+1 702 735 5700

mike.mixer@colliers.com

$3.3 billion in annual revenue 2 billion square feet under management 18,000+ professionals and staff 54,000 Lease/Sale Transactions $40B Assets under management

John Stater Research & GIS Manager

+1 702 836 3781

john.stater@colliers.com

Colliers | Las Vegas 3960 Howard Hughes Parkway, Suite 150 Las Vegas, Nevada 89169 | USA +1 702 735 5700 www.colliers.com/lasvegas

About Colliers Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 67 countries, our more than 15,000 enterprising professionals work collaboratively to provide expert advice to real estate occupiers, owners and investors. For more than 25 years, our experienced leadership with significant insider ownership has delivered compound annual investment returns of almost 20% for shareholders. With annualized revenues of $3.0 billion ($3.3 billion including affiliates) and $40 billion of assets under management, we maximize the potential of property and accelerate the success of our clients and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn. © 2021 Colliers International. The information furnished has been obtained from sources we deem reliable and is submitted subject to errors, omissions and changes. Although Colliers Nevada, LLC has no reason to doubt its accuracy, we do not guarantee it. All information should be verified by the recipient prior to lease, purchase, exchange or execution of legal documents.