Las Vegas Insider | July 2018

July 2018

LAS VEGAS

INSIDER A COMMUNICATION FOR BROKERS, EMPLOYEES, COLLEAGUES AND FRIENDS

FOOTBALL IS BACK

The 2018 NFL Season has officially started. Training camp for the Raiders opened this week. Will you be following along?

LAS VEGAS INSIDER | JULY 2 018

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RAIDERS TO THE DESERT The Raiders’ new stadium is going up rapidly — just as the price of game tickets and personal seat licenses surely will. Nearly 500 construction workers are on the site daily, pouring cement for concrete wall forms and columns to support the upper levels of the stadium. By the end of the month, prefabricated steel will arrive from mills in Wisconsin to begin the first major vertical construction of the project.

Accelerating success.

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TABLE OF CONTENTS: WHEN, WHAT & HOW – LV RESEARCH 4 FEATURED DEALS 9 FEATURED LISTINGS 10

COLLIERS IN THE NEWS 11 RIB THROWDOWN WRAP-UP 12 UPCOMING EVENTS 13

VEGAS BY THE NUMBERS 14 BROKER OF THE MONTH 15 DIRECTORY 16

SOUTHERN NEVADA GAINING TOURISM ASSET WITH LAS VEGAS RAIDERS STADIUM. Because of the high-profile nature of the National Football League and the Oakland Raiders, it’s easy to lose sight of the fact that Southern Nevada is gaining a new tourism asset in 2020: the 65,000-seat stadium itself.

LAS VEGAS REVIEW-JOURNAL

LAS VEGAS INSIDER | JULY 2 018

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LAS VEGAS RESEARCH

WHEN,WHAT

AND HOW When the economy was in the dumps, people wanted to know when it was going to get better.

Now that the economy is humming, people want to know when it will be back in the dumps.

BY JOHN MATT STATER

The answers floating around right now range from “never” to “tomorrow”, which nicely accommodates whatever narrative you are trying to push. Clearer heads seem to be landing on mid- to late 2019 or 2020 for the likeliest timing of the next recession.

Does anyone really know – of course not. Well, maybe the Trilateral Commission, what with the advanced thinking machines they got from the U.F.O.’s, but earth-bound economists can do nothing more than guess. For my part, the best I can do is look at what has been and extrapolate from there…

To do that, let’s look at the old Recovery Index, which I created in 2008 in an attempt to figure out just how “in the hole” we were economically in Southern Nevada, and to try to predict when we could expect demand for commercial real estate to pick up. I took 2005 as my benchmark – the “100” of the index – and then extended things back to 1996. That means the index now covers a 20 year span, measuring several factors that contribute in one way or another to demand for commercial real estate.

The graph shows slower, steadier growth from the depths of the Great Recession to the present. The factors we track have the index nearly matching the peak experienced in 2006. In fact, we would have exceeded the peak if not for one key factor that lags behind all of the others – new home sales. Before you curse the home builders and buyers for not pushing us over the goal line, though, keep in mind this is not necessarily a bad thing.

Southern Nevada Commercial Real Estate Recovery Index (Jan 2005= 100)

I opened this article looking at when the next recession may appear. The more important question, is what kind of recession it will be. For our purposes, we will consider that there are two basic sorts of economic recessions. The first we will call a “manufacturing recession”. These are the most common and regular sort of recessions. They are usually caused by manufacturers getting too far ahead of consumers, building up their inventories and then having to lay off employees while they sell off their extra inventory. Manufacturing recessions tend to be short, as a recession of this sort corrects itself without too much trouble.

People pull back their money for a bit, extra inventory is sold off, things get back to normal, and the economy recovers.

The last recession, however, was not a business cycle recession. It was a financial recession, not unlike the Great Depression. In a recession of this sort, millions of people, and many huge corporations, make very risky investments (i.e. bets) on the economy and fail en masse. The Great Depression of the 1930’s was largely caused by people buying stock on credit with the expectation that the stock would increase in value quickly enough that they could sell it at a profit and pay off their loan before it came due.

Sound familiar? The Great Recession took this brilliant idea and applied it to real estate. In either event, the losses were massive and widespread, and the time it took to recover was extended.

Continued on Page 7

LAS VEGAS INSIDER | JULY 2 018

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GREAT WHITES

SHARK WEEK RAN UNTIL SUNDAY, JULY 29

There are countless theories as to why Great White Sharks have not yet been successfully bred and kept in captivity. Despite the successes of the recent five week record and previous 16 day survival of a Great White Shark in captivity, a single Great White Shark has never survived in a tank in an aquarium.

DID YOU KNOW? A REINDEER’S EYES CHANGE COLOR THROUGH THE SEASONS. THEY’RE GOLD DURING THE SUMMER AND BLUE IN THE WINTER.

A S M A LL C IT Y PA S S E S TH RO U G H TH E H OTE L , DA I LY H ote l s t af f e s t im ate t h at 70,0 0 0 p e o p le p a s s t h ro ug h t h e h ote l e ach day. S o, ro u g h ly t h e s a m e s ize a s S cr a nto n , PA . T h is crowd is t h e re to h it t h e c a s in o o r s t ay in o n e of M G M G r a n d ’s 6 , 8 5 2 ro o m s .

WHEN,WHAT AND HOW Recovery Index (2006 Peak to Present)

So, what are we expecting in 2019/2020 – a nice, neat manufacturing recession, or a deep, dark financial recession?

Again, the experts are divided, with probably most expecting a light recession of the manufacturing variety, and a minority warning that the potential for a financial recession exists and may come to pass. Again, there’s no sure way of knowing. Overall economic numbers look pretty good. A lack of workers to fill job openings suggests that economic growth moving forward might be moderated, and wages should improve.

There are a few things to consider when predicting the impact of the next recession on Southern Nevada. The first is that the Valley is no longer “recession proof”. That concept, which was never entirely accurate to begin with, stemmed from very high levels of inmigration into the area. These new citizens, often bringing built-in incomes, helped to increase the size of the local economy even while the economies of other areas were shrinking. In-migration into Southern Nevada is not as strong as it used to be, so we can expect to experience the next recession in much the same way as the rest of the United States.

On the other hand, the terrible impact of the last recession on Southern Nevada was caused by the aforementioned real estate speculation, and that is a danger the Valley is not currently facing. That would be better news if the next financial recession was likely to come from residential real estate speculation. The fact is, the cause of the next financial recession will probably be debt - of individuals, businesses and governments. The world is awash in debt, and more than it can reasonably pay back. Defaults in one area of the global economy could very well spread to other areas, thus creating another large-scale financial recession.

That leaves us with the final question about the future that will remain unanswered … how do we solve this problem?

LAS VEGAS INSIDER | JULY 2 018

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FEATURED DEALS

INDUSTRIAL LEASE

INDUSTRIAL SALE

±40,320 SQUARE FOOT INDUSTRIAL PROPERTY A lease to Desiccare, Inc. The ±40,320 square foot industrial property is located in Blue Diamond Business Center, Building 6 at 3930 West Windmill Lane in Las Vegas. Dan Doherty, SIOR, Dean Willmore, SIOR, Paul Sweetland, SIOR and Jerry Doty of Colliers International represented the landlord, Blue Diamond Business Center - Building 6, LLC. Chris Lane of Colliers International represented the tenant.

±8,000 SQUARE FOOT INDUSTRIAL PROPERTY A sale to Sage Baron LLC. The ±8,000 square foot industrial property is located at 2545 West Cheyenne Avenue in North Las Vegas. The transaction amount was $825,000.00. Al Twainy, CCIM and Amelia Henry of Colliers International represented the seller, Robin International 2013.

OFFICE LEASE

INDUSTRIAL LEASE

±25,211 SQUARE FOOT OFFICE PROPERTY A lease to Knoah Solutions, Inc. The ±25,211 square foot office property is located at 6320 South Pecos Road in Las Vegas.

Andrew Kilduff of Colliers International represented the landlord, C-2 Development, LLC. Taber Thill, SIOR and Patti Dillon, SIOR of Colliers International represented the tenant.

±15,350 SQUARE FOOT INDUSTRIAL PROPERTY A lease to Gold Star Insulation, Limited Partnership. The ±15,350 square foot industrial property is located in Arroyo North Business Center (Phase I) at 6630 Arroyo Springs Street, Suite 700 in Las Vegas. Spencer Pinter of Colliers International represented the tenant and the landlord, EJM Arroyo North I Property LLC.

RETAIL SUBLEASE ±3,469 SQUARE FOOT RETAIL PROPERTY A sublease to BBC Group NV, LLC. The ±3,469 square foot retail property is located at 9595 West Tropicana Avenue in Las Vegas.

Al Twainy, CCIM and Amelia Henry of Colliers International represented the sublessor, MD Nevada, LLC.

LAS VEGAS INSIDER | JULY 2 018

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FEATURED LISTINGS

2460 PASEO VERDE PARKWAY, SUITE 100

4870 WEST OQUENDO ROAD

SUZETTE LAGRANGE, CCIM AND KARA WALKER, CCIM • ±5,267 SF Professional Office – Green Valley Corporate Center, Suite 100 • Newly remodeled • Surrounded by Life Time Fitness, Green Valley Ranch Resort and Spa, The District at Green Valley Ranch Lifestyle Center (anchored

by Whole Foods), and high-end residential

PAUL SWEETLAND, SIOR AND JERRY DOTY

2020 MENDENHALL DRIVE

±2.0 ACRES NWC OF N. DURANGO ROAD AND BRENT LANE

DEAN WILLMORE, SIOR AND MIKE WILLMORE • ±53,200 SF building on ±2.57 acres • Located near Craig Road and Losee Road, just West of the I-15 Freeway Interchange • Lease Rate: $0.55/SF with $0.07/SF CAM

•

±10,000 SF Freestanding Showroom Office / Warehouse Building

•

100% HVAC building

•

Sale Price: $1,900,000

STEVEN HAYNES •

±2.0 acres of northwest land

•

Zoning - Residential

•

MAKE AN OFFER *The owner will allow time for zoning changes if needed

320 WARM SPRINGS ROAD

6360 SOUTH RAINBOW BOULEVARD

THE OFFICE BY THE AIRPORT exterior rendering

ANDREW KILDUFF AND ALEXIA CROWLEY, CCIM, LEED GA

GRANT TRAUB AND CHRIS CONNELL

•

±1,827 SF - ±6,590 SF available for lease

•

•

The ±40,646 square foot two story building is brand new

•

Grey shell condo office buildings ranging from ±2,500 to ±12,000 SF

construction and the home of the Greater Las Vegas Association

•

Prime location in the Airport Submarket

of REALTORS®.

•

Purchase Price - $200 PSF

$2.00-$2.25/RSF/Mo. NNN

TUESDAY, JULY 31

JOIN THE HABIT BURGER GRILL IN SUPPORT OF LINKS FOR LIKE FOUNDATION

IN THE NEWSFOR LINKS

LIFE LinksF for Life Foundation O U N D A T I O N

st 11:00am to 4:00pm SAN FRANCISCO BUYS 5 OFFICE Tuesday JulyFIRM31 BUILDINGS IN HENDERSON https://www.reviewjournal.com/business/ san-francisco-firm-buys-5-office-buildings-inhenderson/

TUESDAY, JULY 31 // 11:00AM TO 4:00PM June 29

THE HABIT BURGER GRILL WILL DONATE 20% OF SALES FROM

THE NOTES: COMMERCIAL REAL ESTATE HAYNES IS ASSOCIATE THIS EVENT- STEVEN TO BENEFIT YOUR LINKS FOR LIFE FOUNDATION. VICE PRESIDENT AT COLLIERS INTERNATIONAL-LAS VEGAS SIMPLY PRESENT PRINTED FLYER TO CASHIER UPON ORDERING https://vegasinc.lasvegassun.com/business/ notes/2018/jul/02/the-notes-commercial-realestate-july-2-2018/

.

July 02

365 Hughes Center Dr Las Vegas NV 89169

COLLIERS INTERNATIONAL – LAS VEGAS RELEASES 2ND QUARTER REPORT https://www.nevadabusiness.com/2018/07/ colliers-international-las-vegas-releases-2ndquarter-report/

July 19

365 HUGHES CENTER DR LAS VEGAS NV 89169

LAS VEGAS INSIDER | JULY 2 018

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Bbq Rib th rowdown

BBQ RIB THROWDOWN

On July 12th we were treated to a spread of famous recipes from grillmasters Grant Traub, Taber Thill and Phil Dunning! Each woke up in the early morning hours to prepare/marinate/smoke/baste and grill their baby back ribs. We numbered each batch and voted on our favorite.

We enjoyed some yummy side dishes prepared pot luck style by the rest of the office. In the end, Phil Dunning’s Ribs inched ahead of the competition to secure BBQ bragging rights and a $100 gift card to BBQ Concepts. Thank you to all that contributed to our July celebration.

WINNER WINNER

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

BRIAN RIFFEL, SIOR

SPENCER PINTER

DAN DOHERTY, SIOR

PAT MARSH, SIOR

AL TWAINY, CCIM

MICHAEL STUART

SCOTT GRAGSON

GRANT TRAUB*

CHRIS BENTLEY

PAUL SWEETLAND, SIOR

DAN GLUHAICH*

DEAN WILLMORE, SIOR

CHRIS CLIFFORD

*These brokers qualified for the plane in June

UPCOMING EVENTS

LINKS FOR LIFE

ONE: MARKETING AND RESEARCH CONFERENCE OMNI HOTEL – NASHVILLE AUGUST 22–24

F O U N D A T I O N

2:30pm Main Conference Room

AUGUST 16

MONTHLY INDUSTRIAL MEETING 9:00am Main Conference Room AUGUST 30

TUESDAY, JULY 31

MONTHLY RETAIL MEETING LINKS FOR LIFE FUNDRAISER 8:30am Main Conference Room JOIN THE HABIT BURGER GRILL AUGUST 21 HABITIN BURGER SUPPORT OF LINKS FOR LIKE FOUNDATION

JULY 31

LIFEOFFICE MEETING MONTHLY SIOR LUNCHEON LinksLINKS for LifeFOR Foundation F O U N D A T9:00am I OMainNConference Room 11:30am Maggiano’s TuesdayFashion JulyShow 31st 11:00am to 4:00pm AUGUST 22 AUGUST 8

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

TUESDAY, JULY 31 // 11:00AM TO 4:00PM HABIT BURGER GRILL WILL DONATE 20% OFLUNCHEON SALES FROM CCIM NAIOPTHE BREAKFAST THIS EVENT TO BENEFIT YOUR LINKS FOR LIFE FOUNDATION. 7:30am The Orleans Hotel & Casino 11:30am Westin Las Vegas Hotel SIMPLY UPON ORDERING. AUGUST 16 PRESENT PRINTED FLYER TO CASHIER AUGUST 22

365 Hughes Center Dr Las Vegas NV 89169

365 HUGHES CENTER DR

DID YOU KNOW? LIGHTNING STRIKES MEN ABOUT SEVEN TIMES MORE OFTEN THAN IT DOES WOMEN.

LAS VEGAS INSIDER | JULY 2 018

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OFFICE HAPPENINGS

THE NUMBERS: OFFICE 8%

MULTIFAMILY 10%

JUNE PROPERTY TYPES

RETAIL 30%

JUNE

SALES VS. LEASE

INDUSTRIAL 43%

LAND 9%

TOP 10 AGENTS OF THE MONTH JUNE 2018 1.

2.

3.

4.

5.

Dan Doherty Dean Willmore Mike Stuart Mike Mixer Grant Traub

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6. Chris Connell 7. Paul Sweetland 8. David Grant 9. Spencer Pinter 10. Susan Borst

JUNE OFFICE TRANSACTIONS

JUNE 2018 ANNIVERSARIES Mike Stuart Dan Doherty Pat Marsh Jennifer Kennedy Sam Newman Chris Connell Jerry Doty Tyler Jones Chris Sutton Taylor Schettler

SALE 68%

1994 1998 1998 2007 2010 2011 2012 2012 2016 2017

24 Years 20 Years 20 Years 11 Years 8 Years 7 Years 6 Years 6 Years 2 Years 1 Year

LEASE 32%

BROKER RANKINGS YTD 2018 1. Mike Stuart 2. Dan Doherty 3. Vince Schettler 4. Dean Willmore 5. Pat Marsh 6. Paul Sweetland 7. Chris Clifford 8. Scott Gragson 9. Spencer Pinter 10. Brian Riffel 11. Christopher Bentley 12. Al Twainy 13. Grant Traub 14. Dan Gluhaich 15. Patti Dillon 16. Taber Thill

17. Chris Connell 18. David Grant 19. Mike Mixer 20. Chris Lane 21. Tom Naseef 22. Scot Marker 23. Phillip Dunning 24. Garry Cuff 25. Keith Cubba 26. Pat McNaught 27. Susan Borst 28. Jerry Doty 29. Steve Haynes 30. Steve Neiger 31. Robert Torres 32. Brian Fike

33. Alexia Crowley 34. Stacy Scheer 35. Eric Molfetta 36. Jeff Naseef 37. Sam Newman 38. Kara Walker 39. Suzette Lagrange 40. Phillip Frank 41. Rebecca Staniec 42. Andrew Kilduff 43. Chris Lobello 44. Joe Bonifatto 45. George Connor 46. John Kilpatrick

Vince Schettler Brian Riffel

Scott Gragson Dean Willmore

Spencer Pinter Al Twainy

Patti Dillon Taber Thill

Dan Doherty Chris Clifford

Pat Marsh Chris Bentley

Dan Gluhaich Mike Mixer

Chris Connell David Grant

Mike Stuart

Paul Sweetland

Grant Traub

85/15 CLUB

1

BROKER OF THE MONTH

CO NG RA T UL A T IO NS DAN DOHERTY, SIOR Executive Vice President Industrial Division

Dan goes to Kamchatka, Russia

.O.T.M. ONATION

We were there 8 days. Flew from Las Vegas to Seattle then to Anchorage, AK then to Petro, Russia. Then a 3.5 hour helicopter ride to the eastern Kamchatka Peninsula. Went with 5 buddies including Darren Peterson and Brian Schumacher from Las Vegas. Very exciting trip, incredible trout fishing and very remote. Kamchatka has over 109,000 rivers that exceed 10-miles in length and since Russia opened up fishing in this area only 82 have been fished. It is basically like Colorado or Montana 150 years ago.

PATTI DILLON Senior Vice President Office Division

Patti Dillon is a Senior Vice President in the office division of the Colliers International Las Vegas office. She has over 18 years of experience in commercial real estate resulting in millions of square feet being lease and sold for a notable client list. Patti is experienced in all aspects of office real estate including investment sales, acquisitions, comparative financial analysis, site selection, real estate consulting and landlord and tenant representation.

Q

What is your favorite film?

A

THE BEST OF YOUTH

Q

Would you rather lock yourself out of your house or your car?

A

My car. I can stay home.

LINKS FOR LIFE

F O U N D A T I O N

The Links for Life Foundation is donating in Dan Doherty’s name to the Las Vegas chapter of the Ronald McDonald House Charities of Greater Las Vegas

Q

If you could rule the world for a day state something that you’d ban.

A

National dress your pet day LAS VEGAS INSIDER | JULY 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 Eric Molfetta Sam Newman 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 3756 +1 702 836 3724 +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 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 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

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

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

Alexia Crowley Stacy Scheer

+1 702 836 3778 +1 702 836 3762

VALUATION SERVICES Richard Koldewyn Evan Ranes

+1 702 836 3738 +1 702 836 3749

PROPERTY MANAGEMENT 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

+1 702 836 3733

MULTI-FAMILY RETAIL

MEDICAL OFFICE

Christopher Bentley Garry Cuff Jeff Naseef Tom Naseef

+1 702 836 3779 +1 702 836 3716 +1 702 836 3731 +1 702 836 3720

Nicole Cauilan Courtney Goffstein Sara Johansson Gina Jones Megan McInerney 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