Las Vegas Insider | July 2017

July 2017

LAS VEGAS

INSIDER A COMMUNICATION FOR BROKERS, EMPLOYEES, COLLEAGUES AND FRIENDS

Accelerating success.

LAS VEGAS INSIDER | Jul y 2 017

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TABLE OF CONTENTS: MIDYEAR 2017 – LV RESEARCH 4 FEATURED DEALS 7 FEATURED LISTINGS 8

COLLIERS IN THE NEWS 9 BROKER HAWAII TRIP 10 UPCOMING EVENTS 11

VEGAS BY THE NUMBERS 12 BROKER OF THE MONTH 13 DIRECTORY 14

M I K E’ S Q U OTE O F TH E M O NTH

YOU’VE GOT TO ASK. Asking is, in my opinion, the world’s most powerful and neglected secret to success and happiness.

A S MALL CIT Y PA SS E S TH ROUG H TH E H OTEL , DAILY Hotel st af f estimate that 70,0 0 0 pe ople pas s through the hotel each day. S o, roughly the s ame size as S cranton, PA . This crowd is there to hit the c asino or st ay in one of MG M G rand ’s 6, 852 rooms .

- PERC Y ROSS

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LAS VEGAS RESEARCH

C O M M E R C I A L R E A L E S TAT E

LOOKING GOOD AT MIDYEAR 2017

The recovery and expansion of Southern Nevada’s commercial real estate market continued in the second quarter of 2017. The industrial and multifamily markets are keeping up with

near record levels of new development, medical office has picked up its pace dramatically,

professional office continues to improve and the retail market bounced back from negative net absorption in the first quarter.

Colliers International – Las Vegas Releases Second Quarter Report

The chief complaint of industrial brokers in 2016 was that they were turning away tenants because there were not enough large contiguous spaces on the market. In 2017, developers answered that challenge, constructing by midyear 3.7 million square feet of new industrial product, all of it in the form of large warehouse/distribution buildings.

The market has answered with 3.6 million square feet of net absorption, indicating that indeed there was demand in Southern Nevada that was not being met prior to the new developments of 2017 entering the market. Industrial vacancy remains a low 5.4 percent and the average asking rate for industrial space has not suffered much for all of the new development.

The medical office market in Southern Nevada may have finally shaken off the turmoil, both economic and governmental, that has plagued for the past few years. Net absorption has been positive for over a year now and was especially strong in the second quarter of 2017. Vacancy is still elevated, but it is falling. Development is on the rise, and appears to be stimulating the market, perhaps bringing medical practitioners the space designs they need to compete in the changing health care landscape. Whether the next round of healthcare reform in Washington D.C. will knock things off kilter is unknown, but as of yet they do not appear to be dampening demand for medical office space in Southern Nevada.

“With Southern Nevada’s new industrial construction boom well underway, the result has been encouraging,” remarked John Stater, the research

Despite some headwinds created by the closure of some large anchor stores in Southern Nevada, the retail market is looking up. A weak first quarter was followed by a much stronger second, putting the Valley on pace to chock 2017 up as another year of retail recovery. The second half of the year will see significant new retail inventory with strong pre-leasing completed in Southern Nevada, which should boost net absorption numbers for the year as a whole, and contribute to continued decreases in the vacancy rate.

manager of Colliers International’s Las Vegas office.

The hot multifamily market has kept up with the industrial market in terms of construction in 2017. Inventory of multifamily in Southern Nevada could expand by more than 5,000 units this year, and so far demand is keeping pace. Multifamily vacancy is a very low 3.3 percent, and asking rents continue to rise. An expanding population and difficulty for some to qualify for home loans should keep demand for multifamily high in 2017 and 2018. Sales of multifamily projects are slower this year than last, although the average sales price is up significantly.

Sales of hospitality properties remained light in the second quarter of 2017, although the announced sale of the Stratosphere and Arizona Charlie’s could improve matters by the end of the year depending on when those sales are recorded. Visitor volume is a tad shy of where it was last year at this time, but gaming revenue continues to grow. A total of 2,143 rooms sold in the first half of 2017, with total sales volume of $69.5 million and an average sales price of $32,424 per room.

Mike Mixer, Executive Managing Director for Colliers Las Vegas said, “While

sales volume in 2017 may not equal that recorded in 2016, the overall sales picture remained strong at mid-year.”

Southern Nevada’s office market saw dramatic improvement in the second quarter of 2017. After five years of recovery, the office market saw its strongest demand in nine quarters, with net absorption of 545,955 square feet. This brought vacancy down to 16.1 percent, while asking rents remained at $2.02 per square foot (psf) on a Full Service Gross (FSG) lease. Vacancy is probably too high and asking rates too low to stimulate a large number of new speculative office developments in the Valley, but niche development will likely begin soon.

2017 at midyear presents a mixed bag for land sales. In terms of acres sold, only commercial land looks poised to match 2016 levels. Sales are down tremendously for industrial land in 2017, though it should be pointed out that industrial sales were exceptionally strong in 2016 and would be difficult to match. Residential sales are down slightly compared to 2016, and price per square foot of residential land is also down. The price decreased experienced in residential land sales is reversed for industrial and commercial land, with commercial land experiencing a significant increase in price per square foot. This leaves us with a 2017 in which the number of acres of land sold will likely decreased compared to 2016, while total sales volume will likely match or beat 2016 levels – and all of this in the face of increased (or in industrial’s case near record) levels of new development. Land sales have been relatively strong since 2013, when real estate development was very restrained. Sales might lag a bit in 2017, but at the rate developers are developing, another banner year cannot be far away assuming the local economy continues to grow.

THE FULL SECOND QUARTER REPORT OF 2017 CAN BE DOWNLOADED AT www.colliers.com/en-us/lasvegas/ insights/marketnews/lvqreport

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Office Potluck On July 21st our office came together in the main conference room to host a summer themed potluck full of tasty treats, patriotic décor and a pie contest that had our mouths watering. We had a variety of entrées and side dishes including Dan Doherty’s famous smoked salmon, Gina Jones’ beer brats and Courtney Goffstein’s pulled pork. Our apple pie contest had three contestants: Taber Thill baked a sharp cheddar cheese topped pie, Patti Dillon prepared a brown sugar and pecan topped pie, and Kara Walker made some apple pie strudel pastries. In the end, TABER WON THE PIE CONTEST BY A SMALL MARGIN AND TOOK HOME THE GRAND PRIZE GIFT CARD. Thank you to everyone that participated and/or prepared a dish. We hope you all enjoyed yourselves and we are looking forward to our Thanksgiving Potluck in November.

FEATURED DEALS

INDUSTRIAL LEASE

RETAIL SALE

±81,000 SQUARE FOOT INDUSTRIAL PROPERTY A lease to Blueprint Studios Trends, Inc. The ±81,000 square foot industrial property is located in Southwest Corporate Campus at 7900 West Sunset Road, Suite 400 in Las Vegas. Susan Borst, CCIM, SIOR, Dan Doherty, SIOR, Chris Lane and Jerry Doty of Colliers International represented the landlord, Southwest Corporate Campus, LLC. Tom Naseef, CCIM, SIOR and Jeff Naseef of Colliers International represented the tenant.

14,880 SQUARE FOOT RETAIL PROPERTY A sale to 840 Alvarado Enterprises. The ±14,880 square foot retail property is located in Stone Canyon Shopping Center at 7293 West Sahara Avenue in Las Vegas. The transaction amount was $4,450,000.00. Chris Clifford, Steve Neiger and Brett Rather of Colliers International represented the seller, National Solutions LLC.

LAND SALE

RETAIL LEASE

±2.7 ACRE VACANT LAND PARCEL A sale to Atlas Properties, LLC. The ±2.7 acre vacant land parcel is located in Horizon Ridge at 1740 West Horizon Ridge in Henderson. The transaction amount was $1,050,000.00.

Robert Torres and Scott Gragson of Colliers International represented the seller, MacDonald Properties Ltd.

±6,000 SQUARE FOOT RETAIL PROPERTY A lease to Love Your Home LLC. The ±6,000 square foot retail property is located in Crossroads Plaza at 4965 South Fort Apache Road, Suite 102-105 in Las Vegas. Al Twainy, CCIM and Amelia Hyden of Colliers International represented the landlord, Crossroads Plaza LV LLC.

INDUSTRIAL LEASE ±3,706 SQUARE FOOT INDUSTRIAL PROPERTY A lease to Westinis, Inc. The ±3,706 square foot industrial property is located in Decatur Crossing – Phase 3 at 4675 West Teco Avenue, Suite 130 in Las Vegas. Greg Pancirov, SIOR and Mike DeLew, SIOR of Colliers International represented the landlord, DC3, LLC.

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FEATURED LISTINGS

NEC OF POST ROAD AND TENAYA WAY

1340 EAST PEBBLE ROAD, SUITE 100

CHRIS CONNELL, BRIAN RIFFEL AND TYLER JONES

ALEXIA CROWLEY, CCIM, LEED GA AND PHILLIP FRANK • ±1,445 RSF Turn-Key First Generation Medical Office / Professional Office Suite • Pre-leasing – Suite to be delivered at the end of August – early September • Lease Rate: $1.55 PSF/Month NNN

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22 units totaling ±36,990 SF

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Units ranging from 1,382 – 2,568 SF

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Pricing $269,490 - $500,760

168 NORTH GIBSON ROAD

8716 SOUTH MARYLAND PARKWAY

RYAN MARTIN, SIOR, CCIM, TABER THILL, SIOR, PATTI DILLON, SIOR AND TEDDIE HICKEY

CHRIS CONNELL AND GRANT TRAUB

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±29,988 RSF on 2.99 Acres

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±907 RSF fast food building with drive thru and patio

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Vanilla shell ready for customized tenant improvements

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Approximately one (1) mile from I-215 Beltway

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For sale at $160 PSF // For lease starting at $1.35/SF NNN

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Lease Rate: $2.50 PSF/Month NNN; CAMS estimated at $0.37 PSF/Month

Plus $0.17 CAM

1419-1445 WEST SUNSET ROAD

6555 SOUTH VALLEY VIEW BOULEVARD

CHRIS CLIFFORD, STEVE NEIGER AND BRETT RATHER

GREG PANCIROV, SIOR AND MIKE DELEW, SIOR

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Suites available ranging from ±2,040 – ±42,470 SF

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Newly painted and renovated shopping center with

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±72,580 SF Multi-Tenant Industrial/Office/Retail Building for lease

PRIME location

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Grade Level Loading

Lease Rate: $1.00 - $2.25 PSF

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Excellent access to the I-215, I-15, The Strip and McCarran International Airport

WELCOME TO COLLIERS! Luke Ramous – Brokerage Intern Please join us in welcoming Luke Ramous to the Colliers Las Vegas office as a Broker Intern. Luke is currently in his fourth year at University of Nevada, Las Vegas where he is studying Business/Finance.

Luke is spending the remainder of his summer in the Colliers office as a Broker Intern to gain valuable work experience and a better understanding of brokerage as a potential career path.

He will be shadowing our brokers and learning some of the intricacies of various disciplines of Commercial Real Estate.

In his free time Luke enjoys working out, spending time with friends and taking photos or making short films. Please stop by and introduce yourself.

Welcome aboard, Luke!

IN THE NEWS DEVELOPMENT IN LAS VEGAS RESORT CORRIDOR IS PUSHING EAST https://lasvegassun.com/news/2017/jul/06/ development-in-las-vegas-resort-corridor-is-pushi/

REAL ESTATE PROS SEE BRIGHTER FUTURE FOR BLIGHTED LAS VEGAS SHOPPING CENTER https://www.reviewjournal.com/business/ business-columns/real-estate-insider/real-estatepros-see-brighter-future-for-blighted-las-vegasshopping-center/

ENDURING OFFICE DESIGNS INCLUDE MINIMALIST FLOOR PLANS, HUDDLE ZONES AND FITNESS AMENITIES https://vegasinc.lasvegassun.com/business/2017/ jul/10/future-proof-office-designs-includeminimalist-flo/

Paul Sweetland, SIOR Senior Vice President Please join us in welcoming back Paul Sweetland, SIOR to Colliers International - Las Vegas as a Senior Vice President in the industrial division. Paul is returning to Colliers after spending some time in the Phoenix, Arizona market. Paul will be responsible for leasing and sales efforts with Dan Doherty, SIOR and the Doherty Industrial Group.

Paul brings to Colliers nearly 20 years of experience in the industrial real estate market.

Paul leases and sells industrial properties with a specialization in freestanding owner/user buildings and multi-tenant developments.

Paul has his SIOR (Society of Industrial and Office Realtors) designation and is licensed in both Nevada and Arizona.

He attended the University of Nevada Las Vegas.

In his free time, Paul enjoys spending time with his wife and their five children, reading books and Crossfit training. Welcome aboard, Paul!

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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! MIKE DELEW, SIOR TOM NASEEF, SIOR, CCIM DAN DOHERTY, SIOR CHRIS CLIFFORD DAN GLUHAICH BRIAN RIFFEL GRANT TRAUB

AL TWAINY, CCIM DEAN WILLMORE, SIOR DAVID GRANT* GREG PANCIROV, SIOR* MIKE STUART*

*These brokers qualified for the plane in June

TH E STRO N G EST LI G HT B E AM IN THE WO RLD IS LO CATED O N TO P O F THE LU XO R .

IT SPORTS A BLINDING 42.3 BILLION CANDLE POWER AND IS MADE UP OF 39 INDIVIDUAL LAMPS. EACH XENON LAMP COSTS $1,200 AND WILL LAST ABOUT 2,000 HOURS. THE ELECTRIC BILL FOR THE LUXOR BEAM IS $51 AN HOUR.

UPCOMING EVENTS

MONTHLY LAND MEETING 9:00am Main Conference Room

AUGUST 1

MONTHLY RETAIL MEETING 8:30am Main Conference Room AUGUST 16

MONTHLY OFFICE MEETING 9:00am Main Conference Room AUGUST 23 NAIOP MORNING BREAKFAST 7:00am The Orleans Hotel & Casino AUGUST 17

MONTHLY OFFICE MEETING 9:00am Main Conference Room

AUGUST 2 CREW LUNCHEON 11:30am Las Vegas Country Club AUGUST 3

2:30pm Main Conference Room

SIOR LUNCHEON 11:30am Maggiano’s Fashion Show

MONTHLY INDUSTRIAL MEETING 9:00am Main Conference Room

AUGUST 9

AUGUST 17

AUGUST 16 MONTHLY BIRTHDAY CELEBRATION 2:30pm Main Conference Room AUGUST 24

ROOM TAX DISTRIBUTIONS:

ROOM TAX COLLECTIONS REACHED A RECORD $658.3 MILLION IN CLARK COUNTY IN FISCAL YEAR 2016.

Approximately 35 percent of countywide transient lodging tax revenues were used to promote tourism, both in southern Nevada and statewide. Roughly 39 percent was used to fund education initiatives, and another 22 percent was allocated to local governments for community uses, while the remaining 3 percent was distributed to the Nevada Department of Transportation (“NDOT”). All municipalities in Clark County, as well as the county itself, distribute a portion of collections to the state, the Clark County School District (“CCSD”) and the LVCVA. Each city also allocates a portion of its collection to the county for transportation projects. Beyond these major components, each municipality determines how room tax is allocated.

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THE NUMBERS:

OFFICE HAPPENINGS

OFFICE $45,348 3%

OTHER $155,082 11%

SALE 55%

JUNE

JUNE PROPERTY TYPES

RETAIL $373,058 27%

SALES VS. LEASE

LAND INDUSTRIAL $675,138

$159,050 11%

LEASE 45%

48%

TOP 10 AGENTS OF THE MONTH JUNE 2017 1.

2.

3.

4.

5.

Dan Doherty Mike Delew Keith Cubba Dean Willmore Chris Clifford

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6. Pat Marsh 7. Eric Molfetta 8. David Grant 9. Mike Stuart 10. Spencer Pinter

JUNE OFFICE TRANSACTIONS

JUNE 2017 ANNIVERSARIES Mike Stuart Greg Pancirov Dan Doherty Pat Marsh Jennifer Kennedy Sam Newman Chris Connell Frank Marretti Jerry Doty Tyler Jones Chris Sutton Teddie Hickey

1994 1997 1998 1998 2007 2010 2011 2012 2012 2012 2016 2016

23 Years 20 Years 19 Years 19 Years 10 Years 7 Years 6 Years 5 Years 5 Years 5 Years 1 Year 1 Year

BROKER RANKINGS YTD 2017 1. Mike Delew 2. Dean Willmore 3. Dan Doherty 4. Chris Clifford 5. Al Twainy 6. Brian Riffel 7. Tom Naseef 8. David Grant 9. Dan Gluhaich 10. Grant Traub 11. Mike Stuart 12. Greg Pancirov 13. Chris Connell 14. Eric Molfetta 15. Thomas Olivetti 16. Taber Thill

Mike Delew David Grant Tom Naseef Chris Clifford Dan Doherty

85/15 CLUB

17. Spencer Pinter 18. Ryan Martin 19. Pat Marsh 20. Stacy Scheer 21. Patti Dillon 22. Keith Cubba 23. Scot Marker 24. Andrew Kilduff 25. Mike Mixer 26. Garry Cuff 27. Steve Haynes 28. Phillip Dunning 29. Frank Marretti 30. Scott Gragson 31. Chris Lobello 32. Kara Walker

Greg Pancirov Grant Traub Chris Connell Dan Gluhaich Mike Stuart

33. Suzette Lagrange 34. Vince Schettler 35. Chris Lane 36. Susan Borst 37. Patrick McNaught 38. Alexia Crowley 39. George Connor 40. Rebecca Staniec 41. Brian Fike 42. Robert Torres 43. Steven Neiger 44. Joe Bonifatto 45. Chris Bentley 46. Phillip Frank 47. John Kilpatrick

Dean Willmore Ryan Martin Al Twainy Taber Thill Brian Riffel

Thomas Olivetti Eric Molfetta Spencer Pinter Pat Marsh

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BROKER OF THE MONTH

CO NG RA T UL A T IO NS JENNIFER KENNEDY Property Manager REMS Division

DAN DOHERTY, SIOR

Executive Vice President Industrial 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 A

Q

What is one important skill everyone should have?

Jennifer Kennedy serves as a Property Manager for the Las Vegas Office of Colliers International.

Jennifer is a native of Las Vegas and earned her Bachelor’s Degree in Business Administration at Northern Arizona University in Flagstaff, AZ.

Q A

Do you have any phobias?

My biggest fear is spiders even fake ones.

My toes literally curl when I see one, fake or real.

Listening. Amazing how tough it can be for some people to really listen.

Not talk, not get ready to talk, but just listen.

What is your favorite movie line?

A

Q

What famous person do other people say you most resemble?

A

John Slattery of Mad Men and Mike Pence.

Basically any old grey dudes!

Q

You were just given a yacht. What would you name it?

A

Jenny(aaa), like the way Forest Gump says it

Q

What is your favorite song?

A

At this moment in time, my favorite song is, “In Case You Didn’t Know” by Brett Young.

I’m a country girl

LAS VEGAS INSIDER | Jul y 2 017

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LAS VEGAS PHONE DIRECTORY LAND

INDUSTRIAL Susan Borst Chelsy Cardin Mike DeLew Dan Doherty Jerry Doty Tyler Jones Suzette LaGrange Chris Lane Pat Marsh Eric Molfetta Sam Newman Greg Pancirov Spencer Pinter Brian Riffel Alexander Stanisic Paul Sweetland Kara Walker Dean Willmore Chris Zunis

+1 702 836 3719 +1 702 836 3793 +1 702 836 3736 +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 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 Teddie Hickey Andrew Kilduff Ryan Martin Rebecca Staniec Taber Thill

+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

+1 702 836 3709 +1 702 836 3790 +1 702 836 3775 +1 702 836 3700 +1 702 836 3718 +1 702 836 3780 +1 702 836 3792 +1 702 836 3796

+1 702 836 3746 +1 702 836 3738 +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

MEDICAL OFFICE Alexia Crowley Stacy Scheer

+1 702 836 3778 +1 702 836 3762

VALUATION SERVICES Tom Hoover

+1 702 836 3749

PROPERTY MANAGEMENT HOTEL/RESORT Mike Mixer Dharmesh Patel

+1 702 836 3777 +1 702 836 3713

INVESTMENT SERVICES Joe Bonifatto Brian Fike Frank Marretti Tom Naseef Grant Traub

+1 702 836 3729 +1 702 836 3744 +1 702 836 3758 +1 702 836 3720 +1 702 836 3789

GOLF COURSE

RETAIL Chris Clifford Garrett Connor George Connor Phillip Dunning Dan Gluhaich David Grant Amelia Hyden Scot Marker Steve Neiger Brett Rather Al Twainy

Scott Gragson Steven Haynes John Kilpatrick Pat McNaught Vince Schettler Mike Stuart Robert Torres

Keith Cubba

+1 702 836 3733

Erica Aulino Gawaan Hureskin Jennifer Kennedy Gretchen Lee Angelina Scarcelli

+1 702 836 3745 +1 702 836 3726 +1 702 836 3772 +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

MULTI-FAMILY Christopher Bentley Garry Cuff Jeff Naseef Tom Naseef Thomas Olivetti

+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