The Las Vegas apartment market saw an increase in the average asking rent and a decrease in the vacancy rate this quarter, according to data from the Lied Institute’s Apartment Market Trends report. This was the sixth consecutive quarter where the average asking rent increased. This quarter saw a 1.5% increase in the average asking rent and the average asking rent is now $880.
Richards Cosmetic Surgery Inc., purchased the approximately 5,500 square foot medical office property located at 3860 S. Hualapai Wy. in Las Vegas. The transaction value was $2,500,000. Stacy Scheer, CCIM, LEED GA and Grant Traub of Colliers International represented the seller, Weiland Island LLC. Pat Marsh, SIOR of Colliers International represented the buyer.
A lively panel discussion by local real estate gurus will highlight a commercial real estate symposium being presented Sept. 28 by the Commercial Alliance Las Vegas (CALV).
CALV is hosting its 11th annual Commercial Alliance Educational Symposium from 7:30 a.m. to 4 p.m. on Wednesday, Sept. 28, at the Gold Coast hotel-casino for commercial real estate professionals in Nevada and neighboring states.
In addition to educational sessions where real estate professionals can earn continuing education credits to help them maintain their real estate licenses, members of the media and the public are invited to attend the annual luncheon and panel discussion.
The luncheon panel discussion is billed as “Las Vegas Real Estate Legends – When Cocktail Napkins Were Contracts III.” It continues a tradition of featuring longtime local real estate legends and industry veterans discussing how the local industry and community have evolved over the decades. Scheduled panelists include longtime local developer Randy Black Sr. and Las Vegas business leader Terry Wright. The moderator is Las Vegas commercial real estate broker Kevin Higgins, SIOR. Panelists will take questions from the audience.
The symposium will include morning and afternoon classes taught by nationally known commercial real estate instructors. Instructor Rick Kolster will teach a morning keynote class called “Strategic Planning for Your Career and Business.” During the afternoon, Gene Trowbridge will present a class on “Crowdfunding for Real Estate,” while CALV President Soozi Jones Walker, SIOR and CCIM, will teach a course called “Law and Legislative Update – I am a Commercial Agent: How Does It Affect Me?”
Real estate professionals can earn up to six hours of continuing education credits by attending the classes. Participants will also be treated to a continental breakfast.
On-site registration begins at 7:30 a.m. Participants can register in advance or at the event. All-day admission is $99 for CALV and GLVAR members, or $149 for others. For more information or to register for the symposium, download the registration form at www.CALV.org, or call the CALV at (702) 784-5050.
RAAMCO LV, LLC purchased the 192 unit Alterra Apartments located at 2701 N. Decatur Blvd, in Las Vegas for $17,700,000. Built in 1996, the property was 96% occupied at the time of sale. This all cash transaction featured a 5.51% CAP on in-place income and closed in 40 days. Art Carll and Patrick Sauter with NAI Vegas’ Sauter Multifamily Group represented the seller, 2701 Decatur, LLC.
Panattoni Development Company, Inc. and Hillwood Investment Properties have broken ground on a +/-482,000 square foot speculative warehouse distribution facility as Phase II of the 150 acre South 15 Airport Park in the west Henderson area. The South 15 Airport Center is a master-planned business park on Executive Airport Drive, located directly east of the Henderson Executive Airport and approximately one mile from the interchange of I-15 and St. Rose Parkway. The project is already home to a 320,000 square foot FedEx Ground facility, which was Phase I of the park. Neighbors include the Levi Strauss fulfillment center, Maverick Airlines, Southwest Gas Training & Operations Center, Cox Communications, Cashman (CAT) Equipment and the M Resort & Casino, to name a few. The Class A distribution building will include the following features: high image design, cross-dock configuration, 36′ clear height, LED light fixtures, dock and grade level loading positions, ample car and trailer parking. The Panattoni/Hillwood partners are planning for project completion by the fourth quarter of 2016.
Phase III at South 15 Airport, set to begin in approximately the 3Q of 2017 but it will start sooner if first building lease-up goes well, will include the introduction of over 680,000 square feet across four industrial distribution buildings ranging in size from 91,000 square feet to 200,000 square feet. These buildings can be offered both for sale or lease.
The Colliers International industrial team of Dan Doherty, SIOR, Susan Borst, SIOR, CCIM, Chris Lane and Jerry Doty represent the owners of the planned industrial development.
According to the Colliers Doherty Industrial team, “Logistically, the South 15 Airport Center is viewed as a new emerging submarket in an ideal and superior location, given access to the neighboring FedEx Ground facility and its proximity of only ±30 miles to the California border, where the majority of incoming product arrives from daily.”
Panattoni partner Doug Roberts added,” we are excited to continue the growth of the west Henderson industrial market and look forward to building a world-class park to serve the south end of the Valley.”
Lynne Berardi LLC & Rebecca Love MFT, Ltd leased 849 SF of office space at Pines Office Center, 7371 W Charleston Blvd, Ste 120, Las Vegas. Nick Barber and Jeremy Foley of Cushman & Wakefield/Commerce represented the lessor, Pines Office Center, LLC.
MBIT Productions leased 1,963 SF of industrial space at Palms Business Center North, 3021 Rigel Ave, Las Vegas. Leo Biedermann of Cushman & Wakefield/Commerce represented the lessor, Fisher Brothers Las Vegas, LLC.
Advantageclean of Las Vegas Metro leased 2,550 SF of industrial space at Palms Business Center IV, 2968 Meade Ave, Las Vegas. Leo Biedermann of Cushman & Wakefield/Commerce represented the lessor, Fisher Brothers Las Vegas, LLC
Whiting-Turner Contracting Company renewed 3,600 SF of industrial space at Desert Inn Commerce Center, 3230 W Desert Inn Rd, Ste 170, Las Vegas. Leo Biedermann of Cushman & Wakefield/Commerce represented the lessor, Paradise Las Vegas, LLC.
Seneca Holdings, LLC leased 4,320 SF of office space at Westbay Office Park, 3016 W Charleston Blvd, Ste 170, Las Vegas. Jayne Cayton and Matt Kreft of Cushman & Wakefield/Commerce represented the lessee.
Cash America West, Inc renewed 5,954 SF of retail space at Horizon Pointe, 2646 W Horizon Ridge Pkwy, Henderson. Dan Hubbard of Cushman & Wakefield/Commerce represented the lessor, Villa La Paloma, LLC, a California LLC.
Anderson Audiology, PC renewed 1,200 SF of retail space at Horizon Pointe, 2642 W Horizon Ridge Pkwy, Ste A-11, Henderson. Dan Hubbard of Cushman & Wakefield/Commerce represented the lessor, Villa La Paloma, LLC, a California LLC.
The GLVAR-Lied Institute Quarterly Sentiment Index for the third quarter of 2016 rose to 108.1 from its baseline value of 100.0 in the second quarter, indicating greater confidence in the health of the Las Vegas residential real estate market going forward.
That’s the key finding from a new survey conducted by UNLV’s Lied Institute for Real Estate Studies in partnership with the Greater Las Vegas Association of REALTORS® (GLVAR). It asks a select group of respondents drawn from GLVAR leaders about their expectations for home prices, sales and construction over the next quarter.
“This new survey is the result of our expanded and mutually beneficial partnership between GLVAR and the Lied Institute for Real Estate studies,” said 2016 GLVAR President Scott Beaudry, a longtime local REALTOR®. “It provides useful information for the public, our members and members of the real estate industry. The results so far this year show that our members are fairly optimistic about where the local housing market is headed. I think this is also a reflection of local home prices and sales increasing so far this year, despite a tight housing supply.”
According to Lied Institute Director Ed Coulson, the Lied Institute compiles the responses to all the questions into an index. The rise of the index signals increased positive sentiment for the third quarter of 2016.
“Respondents overwhelmingly indicated positive expectations for the next quarter,” Coulson said. “For example, 61 percent of the respondents replied that the Las Vegas real estate market would improve over the next quarter, while 39 percent thought it would stay roughly the same. No respondent thought it would get worse.”
The survey also asks about longer-term expectations over the next year. Again, Beaudry and Coulson said, optimistic sentiment prevails, with 61 percent of the REALTORS® surveyed indicating positive expectations generally, another 31 percent saying that things would stay roughly the same, and 8 percent expecting that things would get worse.
The GLVAR-Lied Institute Annual Sentiment index measuring the longer-term sentiment moved from a value of 130.6 in the second quarter of 2016 to a value of 109.7 at the beginning of the third quarter of this year.
“These numbers indicate that our local REALTORS® have a far more positive outlook for the long run versus the short, but that these longer-term expectations were dialed back a bit between the beginning of the second and third quarters,” Beaudry said.
Coulson suggested this is largely due to lowered long-term expectations about home prices not increasing as much as previously expected. In the second quarter survey, he said 77 percent of respondents thought that prices would be higher over the next year, while in the latest survey this number dropped to 58 percent. This is “probably due to the very optimistic expectations about home building over the next 12 months,” he added.
GLVAR’s most recent monthly report on the local housing market showed that the median price of existing single-family homes sold in Southern Nevada during June through its Multiple Listing Service (MLS) increased to $235,000. That was up 6.8 percent from $220,000 one year ago.
According to GLVAR, local home sales in 2016 have been running more than 8 percent ahead of the pace from 2015, when GLVAR reported 38,578 single-family home, condominium, townhome and high-rise condo sales. That was more than in 2014, but fewer sales than during each of the previous five years.
A report released by Xceligent and the Commercial Alliance Las Vegas (CALV) shows the office, industrial and retail sectors of the commercial real estate market in Southern Nevada all continued to gain ground during the second quarter of 2016.
“The strengthening of our market is continuing as anticipated,” said 2016 CALV President Soozi Jones Walker, CCIM, SIOR, and a longtime local commercial real estate broker. “The market continues to absorb the additional industrial space being delivered, but we’re still seeing office space absorption lag behind industrial and retail vacancy rates.”
In another sign of a stronger commercial real estate market, Walker said fewer building owners are offering concessions to attract tenants to their local properties.
According to the latest quarterly report from Xceligent and CALV, the local industrial market absorbed 401,528 square feet of space during the second quarter of 2016 to maintain a total vacancy rate of 6.0 percent, matching the first quarter vacancy rate. Through the first half of 2016, the local industrial market has absorbed nearly 1.3 million square feet. Even with the industrial space that is being built or recently completed, Walker said demand for such space could exceed the available supply by the end of 2016.
“The industrial sector continues to see gains in both inventory and absorption, and a good portion of new deliveries continues to be pre-leased,” said Tina Reith, director of analytics for Xceligent in the Las Vegas market. “It will be great to see what new projects are erected in the Northeastern and Southwestern portion of the Las Vegas area once construction is complete for a number of buildings that are scheduled to be delivered in third quarter. We’ve seen nothing but positive activity in the local industrial sector from the time we launched our dataset here at Xceligent.”
The local retail market also progressed during the second quarter, absorbing 459,528 square feet of space and seeing its overall vacancy rate drop to 7.8 percent. At the same time, Walker said retail lease rates have been increasing over the past year or so.
“The retail market closed out the second quarter with more net absorption being reported than over the last eight recorded quarters,” Reith added. “The market is still making a comeback from the negative absorption that we saw in 2014, even after having new deliveries added to the local inventory, such as the IKEA on the southwest side of the metro area.”
Second quarter retail highlights included IKEA opening its first Nevada location near Sunset Road and the 215 Beltway on May 18, marking the largest single store of any kind in the state. Walker expects retail momentum to continue this year, when popular restaurant chains like Cracker Barrel, Dave & Buster’s and Chick-fil-A plan to open their first Southern Nevada locations.
In the office market, Walker said vacancy rates dropped again to 18.1 percent in the second quarter, but remained higher than historic norms. The office market absorbed more than 68,000 square feet in the second quarter, absorbing less space than during the first quarter. The local office market has been the slowest sector to recover from the economic downturn, though Walker said she is seeing more businesses leasing office space in central areas of Las Vegas as lease rates continue to rise for newer space in suburban areas.
“While it may seem that the office sector is slow to recover, we’ve seen positive absorption for the market throughout 2015, and the trend has continued through the second quarter of 2016,” Reith explained. “The majority of office space being occupied for 2016 falls into the category of Class B product.”
Xceligent, a rapidly growing provider of commercial real estate information locally and nationally, partners with CALV and local commercial real estate market professionals through their Quarterly Advisory Boards to produce quarterly reports on market trends and conditions in the office, industrial and retail markets in Southern Nevada. The report released today covers activity through the second quarter of 2016.
Walker, whose professional designations include being a Certified Commercial Investment Member (CCIM) and a member of the Society of Industrial and Office REALTORS® (SIOR), is one of dozens of leading local commercial real estate brokers who serve on advisory boards that help verify and produce these reports. She thanked her fellow brokers and others for sharing their time and expertise to help verify this data and to ensure these reports are the most accurate overview possible of the local market.
Be-Fit Training leased 2,800 square-feet of industrial space located at 4275 Bell Road, Las Vegas, NV. The total value of the transaction was $119,280.00. Lisa Hauger and Tim Behrendt of Sun Commercial Real Estate, Inc., represented the Landlord, The Prince Group and Dapper Development represented the Tenant.