Las Vegas Insider | March 2018

March 2018

LAS VEGAS

INSIDER A COMMUNICATION FOR BROKERS, EMPLOYEES, COLLEAGUES AND FRIENDS

Cleveland Clinic Lou Ruvo Center for Brain Health Designed by world-renowned architect: Frank Gehry

LAS VEGAS INSIDER | M A RC H 2 018

1

Accelerating success.

MIKE’S QUOTE OF THE MONTH:

Judge a man by his questions rather than by his answers – VOLTAIRE

KEEP EM COMING! LAS VEGAS AIRPORT SETS RECORD WITH 48.5M PASSENGERS IN 2017

FACEBOOK.COM/COLLIERSLV

TWITTER.COM/COLLIERS_LV

TABLE OF CONTENTS: COLLIERS LAS VEGAS PERKS 5 TRAJECTORY – LV RESEARCH 6 FEATURED DEALS 9

FEATURED LISTINGS 10 COLLIERS IN THE NEWS 11 UPCOMING EVENTS 13

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

T H E T R A J E C TO RY O F

GROWTH SOUTHERN NEVADA’S ECONOMY HAS BEEN GROWING FOR MANY YEARS, BUT HOW QUICKLY?

PAGE 06

LAS VEGAS INSIDER | M A RC H 2 018

3

FROM THE COVER

Designed by world-renowned architect: Frank Gehry

On March 10th, a Colliers team joined together at Town Square to participate in the Make a Wish of Southern Nevada’s Walk for Wishes.

COLLIERS PERKS

HAVE IDEAS FOR A MONTHLY PERK? EMAIL LASGRAPHICS@LVCOLLIERS.COM TO SHARE!

On March 13th, we gathered in the conference room to enjoy hot dogs, pop corn and a build your own nacho bar. We had melted cheese, shredded chicken, chili, salsas, guacamole, sour cream, jalapenos, olives, and of course tortilla chips. The hot dog steamer was a big hit and steamed the hot dog buns to perfection. We kicked off the March Madness tournament and filled in our brackets.

CHEESE

The tournament concludes in early April so stay tuned for final updates on who wins our cash prize.

LAS VEGAS INSIDER | M A RC H 2 018

5

LAS VEGAS RESEARCH

T H E T R A J E C TO RY O F

GROWTH Southern Nevada’s economy has been growing for many years, but how quickly?

Federal, state and local economic data has just entered 2018 (i.e. January numbers are finally out for most economic statistics), so I thought it was a good time to look not so much at the numbers, but at the pace of year-over-year growth to see if growth is accelerating or slowing down.

BY JOHN MATT STATER

EMPLOYMENT

RESIDENTIAL REAL ESTATE

Annual employment growth in Southern Nevada has been pretty steady since 2012, averaging 2.7 percent.

January 2018 saw 2.6 percent job growth, even with last year, but down from 3.8 percent growth in January 2015.

2015 inaugurated the current industrial boom, so that 3.8 percent growth might be important. Breaking it down by product type, we do see a clear trend of slowing growth of the jobs that flow into industrial buildings, from a peak of 7.4 percent growth in January 2015 to 4.1 percent growth in January 2018. The experience is similar for office and retail properties, though office saw peak growth just last year – not coincidentally a very strong year for office demand. Medical office job growth, on the other hand, appears to be accelerating – and again, not coincidentally, the medical office market is experiencing strong demand.

Rounding out the economic highlights in Southern Nevada is home building, our local pastime. Here we have some good news, with January 2018 new home sales growing 33.6 percent compared to January 2017 … and this after January 2017 had annual growth of 38 percent. The word from experts is that 2018 could be a huge year for new home sales if we were able to build enough homes to meet the demand. According to Home Builders Research, this is unlikely, so new sales will be constrained. The reason? Lack of available land in the Valley, a problem that will become more pronounced in the years to come. Annual growth in the new home median has averaged 3.2 percent over the past 10 years, and hit 7.1 percent in January 2018 compared to January 2017. If demand remains high and available land remains constrained, prices will likely continue to increase, making single family homes less affordable in Southern Nevada, and therefore stimulating demand for multi-family housing. Maybe someday we will build a bullet train to Mesquite or Pahrump, but in the meantime expect this aspect of local economic growth to be constrained.

All of these new jobs were doing a good job of decreasing the local unemployment rate – from a high of 14 percent in January 2011 to 5.1 percent last year.

But despite adding jobs this January, we also saw the unemployment rate increase to 5.4 percent. Why? The local labor force – meaning people with jobs or actively looking for jobs – jumped by 2.9 percent. The last similar jump in labor force occurred in 2015. When people who have been inactive for years decide to jump back into the job market, it is a sign of confidence in the economy, and hopefully is a good sign for the year to come.

TAXABLE SALES Unfortunately, the January 2018 taxable sales numbers have not yet been released – they unfortunately lag by a few months. We do know that January 2017 saw a massive year-over-year increase of 10.4 percent, after a very weak showing in 2016 of 0.8 percent growth.

Taxable sales have been growing, annually, since 2011, and have averaged 6.0 percent growth in January. We can hope that 2018 fares well in this respect.

HOSPITALITY Visitor volume started growing reliably in 2010, and experienced its first annual decrease this year, posting negative 3.3 percent growth in January 2018. Visitor volume growth appears to follow a pattern. Other than during the depths of the Great Recession, visitor volume appears to have a very strong year followed by two to four weak years in terms of growth. January 2011 saw 8.6 percent growth in visitor volume, followed by two years in which growth averaged 0.1 percent. January 2014 saw another big jump, with 8.2 percent growth. This has been followed by four years of weaker annual growth, averaging 0.1 percent growth.

THE TRAJECTORIES AND THE FUTURE If I had to nail down a trajectory for these data points, I would say visitor volume growth is slowing (or even reversing), labor force growth is accelerating along with new home prices and sales, and employment growth is just cruising along at a steady pace.

Having just attended the March sponsor’s seminar for CBER, I can report that there are few signs of a coming recession in 2018, though there was agreement that trade wars could be just the spark to set things off. The overall picture was one of continued growth in 2018, with an increasing potential for recession in 2019 or 2020.

LAS VEGAS INSIDER | M A RC H 2 018

7

24TH ANNUAL LINKS FOR LIFE GOLF TOURNAMENT :: MAY 17 :: SIENA GOLF CLUB

SADDLE-UP

REGISTRATION

NOW OPEN 600

$

INDIVIDUAL

2,000

$

FOURSOME

GOLF ALL MORNING! PARTY TILL WE KICK YA OUTLAWS OUT!

RAFFLE PRIZES GALORE

HOSTED BY:

REGISTRATION @ 7:45AM

SHOTGUN START

9:00AM

BUT NO BOOTS

THEIR RULES NOT OURS

FEATURED DEALS

RETAIL SALE

INDUSTRIAL LEASE

±77,997 SQUARE FOOT RETAIL PROPERTY A sale to Paradise Marketplace, LLC. The ±77,997 square foot retail property is located in Paradise Marketplace at 3810-3870 East Flamingo Road in Las Vegas. The transaction amount was $15,750,000.00. Al Twainy, CCIM and Amelia Henry of Colliers International represented the buyer.

±30,000 SQUARE FOOT INDUSTRIAL PROPERTY A lease to Dawn Food Products, Inc. The ±30,000 square foot industrial property is located in Beltway Business Center (Bldg. 7) at 7055 South Decatur Boulevard, Suite 110 in Las Vegas. Spencer Pinter of Colliers International represented the tenant.

LAND SALE

MEDICAL OFFICE LEASE

±5.0 ACRE LAND PARCEL A sale to Jason Gerber & LaNostra LLC. The ±5.0 acre land parcel is located on Badura Avenue near South Buffalo Drive (APN: 176-03-302- 008) in Las Vegas. The transaction amount was $2,200,000.00. Robert Torres and Scott Gragson of Colliers International represented the seller, Beltway 4.77 LLC.

±10,462 SQUARE FOOT MEDICAL OFFICE PROPERTY A lease to United Healthcare Services, Inc. The ±10,462 square foot medical office property is located in Cheyenne Fairways Business Center at 8670 West Cheyenne Avenue, Suite 105 & 8680 West Cheyenne Avenue in Las Vegas.

Stacy Scheer, CCIM, LEED GA and Steven Haynes of Colliers International represented the landlord, Ali Farootan.

INDUSTRIAL LEASE ±44,800 SQUARE FOOT INDUSTRIAL PROPERTY A lease to Arrowhead Electrical Products, Inc. The ±44,800 square foot industrial property is located in Henderson Interchange Center at 820 Wigwam Parkway, Suite 120 in Henderson. Dan Doherty, SIOR, Paul Sweetland, SIOR, Chris Lane and Jerry Doty of Colliers International represented the landlord, Henderson Interchange Center, LLC.

LAS VEGAS INSIDER | M A RC H 2 018

9

FEATURED LISTINGS

7373 PEAK DRIVE

9225 WEST FLAMINGO ROAD

TABER THILL, SIOR AND PATTI DILLON, SIOR

CHRIS CONNELL AND GRANT TRAUB • ±2,813 - ±4,130 SF Build to Suit/Grey Shell Office Space • Newly constructed ±24,000 SF single story office building with excellent visibility along the busy Flamingo Road retail corridor • Rates at $1.35 PSF/Month NNN; CAMs at $0.29 PSF/Month

•

±33,132 SF building providing a sheltered courtyard with access from both floors and has available space to accommodate tenants from ±1,400 SF - ±8,800 SF

•

Two-Story Class A Office Building

•

Estimated CAM ±0.30/SF per mo

3990 EAST SUNSET ROAD

±7.08 ACRES OF LAND

DAVID A. GRANT

MICHAEL STUART • ±7.08 acres of land available for sale at Ann Road and Revere Street • This parcel is not in a 100 year flood zone • Asking Price: $2,655,000 or $375,000 per acre

•

±5,000 SF Freestanding Commercial Building

•

Excellent Opportunity for User or Investor

•

$1,075,000 or $215 PSF

4460 EAST CHEYENNE AVENUE

±0.87 ACRES OF LAND

DEAN WILLMORE, SIOR, ALEX STANISIC AND MIKE WILLMORE

CHRIS LANE, JERRY DOTY AND PAUL SWEETLAND, SIOR

•

±13,090 SF Warehouse/Distribution Building For Sale

•

•

Less than 10 minutes from I-15 Freeway Interchange

•

Asking Price: $1,450,000

±0.87 Acres of Land Located in Collins Business Park near Craig Road and Lamb Boulevard Available For Sale or Lease

•

Frontage on Arctic Springs Avenue with easy access to I-15 Freeway at Craig Road Interchange

•

Sale Price: $450,000 / Lease Rate: $2,400 per month

Breakfast & Learn 3 CE Credits Included Thursday, April 26 8:30am – 12:00pm

Main Conference Room This class will be offered exclusively to the Colliers International team for 3 CE Credits (Property Management or General Credits towards your Real Estate License) We encourage the attendance of Brokers, Property Managers & Leasing Agents.

IN THE NEWS INVESTORS PURCHASE IN LAS VEGAS OFFICE MARKET ON THE RISE https://www.reviewjournal.com/local/local-lasvegas/investor-purchases-in-las-vegas-officemarket-on-the-rise/

February 15 OFFICE SUMMARY; FOURTH QUARTER 2017 - SOUTHERN NEVADA https://www.nevadabusiness.com/2018/03/officesummary-fourth-quarter-2017/

March 01 ACCOLADES: NAIOP SOUTHERN NEVADA CHAPTER WINNERS OF 21ST ANNUAL SPOTLIGHT AWARDS - BROKERAGE FIRM OF THE YEAR — COLLIERS INTERNATIONAL’’ https://businesspress.vegas/in-brief/accolades/ accolades-stephen-sullivan-wins-pastry-chef-ofthe-year/

LINKS FOR LIFE

F O U N D A T I O N

• St. Baldrick’s Foundation $1,000

• CASA Foundation $5,000

• Schettler Family Foundation* $250

• Boy Scouts of America $5,000

• Horses 4 Heroes $500

• Down Syndrome Organization $1,000

• Make A Wish Foundation Southern Nevada $1,040

• Candlelighters* $250

$14,040 YTD DONATIONS *Broker of the Month Charity Choice

March 21 LAS VEGAS INSIDER | M A RC H 2 018

11

BBQ FOOD TRUCK

APRIL18

11:30AM-1:30PM GRASSY AREA IN FRONT OF 3960 BUILDING

RSVP TO COURTNEY X3710

COME HUNGRY! LEAVE HAPPY!

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 DAN DOHERTY, SIOR

MICHAEL STUART* CHRIS BENTLEY*

*These brokers qualified for the plane in February

UPCOMING EVENTS MONTHLY RETAIL MEETING 8:30am Main Conference Room APRIL 17 APRIL 1 SIOR LUNCHEON 11:30am Maggiano’s at Fashion Show Mall APRIL 4 CREW LUNCHEON 11:30am Las Vegas Country Club APRIL 5 CCIM POKER TOURNAMENT 4:30pm Binions Poker Room APRIL 5

BBQ FOOD

MONTHLY OFFICE MEETING 9:00am Main Conference Room APRIL 25 CCIM LUNCHEON 11:30am Westin Las Vegas Hotel APRIL 25

TRUCK

11:30am Grassy Area in front of 3960 Building APRIL 18 IREM GOLF TOURNAMENT Revere Golf Club APRIL 20

BROKER MEETING 8:00am Main Conference Room APRIL 11

INTERFACE LAS VEGAS – MULTIFAMILY CONFERENCE 8:00am Four Seasons Hotel APRIL 24

NAIOP BREAKFAST 7:30am The Orleans Hotel APRIL 12

INTERFACE LAS VEGAS – INDUSTRIAL CONFERENCE 12:00pm Four Seasons Hotel APRIL 24

BREAKFAST & LEARN: SHOPPING INSURANCE 8:30am Main Conference Room APRIL 26

MONTHLY BIRTHDAY CELEBRATION 2:30pm Main Conference Room APRIL 26

LAS VEGAS INSIDER | M A RC H 2 018

13

OFFICE HAPPENINGS

THE NUMBERS: OFFICE 12%

SALE 68%

MULTIFAMILY 31%

FEBRUARY PROPERTY TYPES

INDUSTRIAL 27%

RETAIL 5%

FEBRUARY SALES VS. LEASE

LAND 25%

LEASE 32%

TOP 10 AGENTS OF THE MONTH FEBRUARY 2018 1.

2.

3.

4.

5.

Mike Stuart Chris Bentley Dan Doherty Dean Willmore Brian Riffel

63

6. Pat Marsh 7. Paul Sweetland 8. Patti Dillon 9. Taber Thill 10. Stacy Scheer

FEBRUARY OFFICE TRANSACTIONS

FEBRUARY 2018 ANNIVERSARIES Patricia Watts

2004

14 Years

Phillip Dunning

2013

5 Years

Susan Borst

2014

4 Years

Kara Walker

2015

3 Years

Nicole Cauilan

2015

3 Years

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

Vince Schettler Dan Doherty Mike Stuart

85/15 CLUB

17. Grant Traub 18. Eric Molfetta 19. Chris Lane 20. Scot Marker 21. Chris Connell 22. Alexia Crowley 23. Scott Gragson 24. Al Twainy 25. Jerry Doty 26. Steve Neiger 27. Kara Walker 28. Suzette Lagrange 29. Robert Torres 30. Susan Borst 31. Steve Haynes 32. Rebecca Staniec

Dean Willmore Chris Bentley -

33. Sam Newman 34. Thomas Olivetti 35. Tom Naseef 36. Brian Fike 37. Keith Cubba 38. Andrew Kilduff 39. Pat McNaught 40. Mike Mixer 41. Garry Cuff 42. Chris Lobello 43. Joe Bonifatto 44. George Connor 45. Phillip Frank 46. Jeff Naseef 47. John Kilpatrick

-

-

1

BROKER OF THE MONTH

CO NG RA T UL A T IO NS MICHAEL STUART

ERIC MOLFETTA, CCIM

Executive Vice President Land Division

Michael was a founding broker with Stuart Mixer Commercial, which became Colliers International in 1997. With more than 23 years of experience in all aspects of land assemblage and sales, Michael has been a top producer with over $1 billion dollars in sales and was the Colliers Broker of the Year 2009, 2010, 2011, 2013 & 2014. In 2013 alone, Michael had over $125 million in sales and received Colliers Everest Award for Top Land Broker in the United States in years 2010-2017.

ALSO BROKER OF THE MONTH FOR THE COMPANY!

Q A

What is your favorite drink?

Vice President Industrial Division

Eric Molfetta is a Vice President in the Industrial Division of Colliers International, the leading commercial real estate firm in Nevada. Mr. Molfetta is experienced in many phases of industrial real estate including landlord/owner budgeting, forecasting, quarterly analysis and reports, site selection, design, and leasing.

Q

THE GOLDEN NECTAR OF SCOTLAND

Q

If you could invite five famous or noted people (past or present) to dinner who would you choose?

A

Lizzie Velasquez, Paul Mason, Larry Gomez, Junrey Balawing and Chandra Bahadur Dangi

Q

Which planet in the solar system would you visit?

A

NOT URANUS

Q

Where would you most like to live?

A

CARMEL BY THE SEA

SURVEYS LIKE THIS! Q

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

A

CLOTHING

Q

Would you rather be clever or beautiful?

CLEVER I’m already beautiful. Lol

LINKS FOR LIFE A

.O.T.M. ONATION

What irritates you the most?

F O QU N D A T I O N

If you had magical powers name something that you’d change.

A The Links for Life Foundation is donating in Michael Stuart’s name to Candlelighters Childhood Cancer Foundation

POVERTY

LAS VEGAS INSIDER | M A RC H 2 018

15

LAS VEGAS PHONE DIRECTORY INDUSTRIAL Susan Borst Dan Doherty Jerry Doty Tyler Jones Suzette LaGrange Chris Lane Pat Marsh Eric Molfetta Sam Newman 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 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 Gaberiel Skerlich Grant Traub

+1 702 836 3729 +1 702 836 3744 +1 702 836 3720 +1 702 836 3708 +1 702 836 3789

GOLF COURSE Keith Cubba

+1 702 836 3733

MULTI-FAMILY 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

Christopher Bentley Garry Cuff Jeff Naseef Tom Naseef Thomas Olivetti

MEDICAL OFFICE Alexia Crowley Stacy Scheer

+1 702 836 3778 +1 702 836 3762

VALUATION SERVICES Rosa Haley Richard Koldewyn Evan Ranes

+1 702 836 3702 +1 702 836 3738 +1 702 836 3749

PROPERTY MANAGEMENT Erica Aulino Valerene Corbin Jennifer Kennedy Breanna Lara Gretchen Lee Angelina Scarcelli

+1 702 836 3745 +1 702 836 3761 +1 702 836 3772 +1 702 836 3753 +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

+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