SBV signed an 87-month $207,000 lease for 1,614 SF of retail space at Canyon Lakes located at 9134 W. Sahara, #2A in Las Vegas. Douglas Crook of Douglas Crook & Associates represented the tenant and Liz Clare, CCIM and Jackie Young of Avison Young represented the landlord, Canyon Lakes. The reported average rent equals $1.47 per square foot.
Category – August 2016
Colliers International announced the following transactions:
A sale to CP 121 LLC. The approximately 12,320 square foot industrial property is located in Corporate Park Industrial at 121 Corporate Park in Henderson. The transaction value was $1,663,200. Mike DeLew, SIOR of Colliers International represented the seller, Elevon Corporate Park LLC. Greg Pancirov, SIOR of Colliers International represented the buyer.
A sale to Empire Mesa Development LLC. The approximately 0.76 acre industrial land parcel is located in Hillside Business Park at 931 and 939 Empire Mesa Wy in Henderson. The transaction value was $281,401. David Grant of Colliers International represented the seller, Blue HUD LLC. Eric Molfetta, CCIM and Chris Zunis of Colliers International represented the buyer.
A sale to Regi and Annie Mathew. The approximately 2,500 square foot office property is located at 3413 S. Eastern Ave. in Las Vegas. The transaction value was $280,000. Tom Naseef, CCIM, SIOR and Jeff Naseef of Colliers International represented the buyer.
A lease to Cinnamons Las Vegas LLC. The approximately 3,664 square foot retail property is located in the Shoppes at Summerlin Parkway Shopping Center at 7591 W. Washington Ave., Suite 110-120 in Las Vegas. Phillip Dunning, CCIM of Colliers International represented the lessee.
A lease to Silver State Empire LLC. The approximately 3,221 square foot industrial property is located in Harsch Post Commerce Center at 6209-6211 Dean Martin Dr. in Las Vegas. Chris Clifford, Steve Neiger and Brett Rather of Colliers International represented the lessee.
A lease to Abdiel Garcia Maltese & Gamal D. Garcia dba TGM Fabrications. The approximately 2,537 square foot industrial property is located in Craig Business Center at 3853 E. Craig Rd., Suite 8 in North Las Vegas. Greg Pancirov, SIOR and Mike DeLew, SIOR of Colliers International represented the lessor, T Properties, LLC.
A lease to ESPN Regional Television. The approximately 2,100 square foot office property is located in Pebble Place Business Center at 2140 E. Pebble Rd. in Las Vegas. Suzette LaGrange and Kara Walker, CCIM of Colliers International represented the lessor, CVK LLC.
A lease to Artform Salon LLC. The approximately 1,530 square foot retail property is located in Gramercy Commons at 5752 S. Fort Apache Rd., Suite 150 in Las Vegas. Chris Clifford, Steve Neiger and Brett Rather of Colliers International represented the lessors, BK National Solutions LLC, 12223 Gorham LLC and Stetson Ranch LLC.
A lease to Deep Beauty Spa LLC. The approximately 1,190 square foot retail property is located in Vegas Valley Plaza at 2775 S. Nellis Blvd. in Las Vegas. David Grant represented the lessor, L.D. Nellis LLC.
Marcus & Millichap announced the sale of 2407 West Charleston Boulevard, a 4,320-square foot, multi-tenant retail building located in Las Vegas, Nevada. The asset sold for $1,175,000. Dustin R. Alvino represented the seller, Charleston Property, LLC, in the transaction.
The Las Vegas economy is progressively improving as more than 22,000 jobs were added in a year-over-year basis. The unemployment rate in Las Vegas is still higher than the national average; however, it has decreased 0.9 percentage points since Q2, 2015 and these trends are expected to continue.
“Commercial real estate in the Las Vegas area continues the recovering process during the second quarter,” said Michael Dunn, market leader for the Las Vegas office of Cushman & Wakefield/Commerce. “The market remains active, the tightening of availability will linger as the limited supply of quality space continues to drop. Through this trend, we have seen job growth continue to increase. Nevada was ranked as third for job growth, which is a result of the increase of expansion as established companies grow and new companies moving into the area from around the country.”
Q2, 2016 marks the seventh consecutive quarter for the office market to see a positive absorption with an overall absorption of 68,000 square feet, and 235,778 square feet year-to-date. The West market showed the most positive absorption, while Henderson South market experienced the highest level of negative absorption. The total overall vacancy has continued to decline, and currently stands at 7.8 million square feet. Compared to Q1, 2016, vacancy rates decreased from 18.3 percent to 18.1 percent.
As rental rates increase slightly, and vacancy rates continue to decline, new construction will remain limited. The Las Vegas office market saw 7,894 square feet of completed buildings in Q2, 2016, a slight increase from zero square feet in the first quarter. The ongoing trend of tenants renewing at their current buildings and signing longer term leases, rather than moving locations has continued in this market. New construction is expected to remain very low for the next several years as developers want to wait to develop until the vacancy rate declines and rental rates increase enough to support development costs.
Q2 of 2016 has been reported as the eleventh consecutive quarter of positive absorption, with a total overall absorption of 455,327 square feet. The second quarter saw 12 speculative building projects. New buildings are under construction, Henderson had 163,000 square feet; the Southwest had 547,514 square feet and North Las Vegas had 886,126 square feet, totaling 1,596,640 square feet of speculative construction underway. The total overall vacancy did not change from 2016’s first quarter, and remained at 6.6 million vacant square feet. In addition to the speculative buildings mentioned above, Chinese-backed car company, Faraday Future, which began development on a 3 million square foot factory in North Las Vegas at the Apex Industrial Park.
Increasing land prices and labor costs in the industrial market will force developers to raise rental rates to justify new construction. For new mid-bay multi-tenant buildings to be constructed, rental rates will need to rise from the current average $0.58 monthly per square foot triple net (NNN) to approximately $0.70 monthly per square foot NNN to justify the cost for construction. Tenant demand should continue to remain positive during the rest of the year and vacancy rates are expected to remain consistent in the 6 percent range with supply and demand in relative balance.
For three consecutive quarters, vacancy rates remained the same but have decreased by 0.1 percent during each quarter of the first half of 2016.quarters. The overall vacancy rate in the Las Vegas retail market was at 7.8 percent at the end of the second quarter which was nearly a half percent decrease from the first quarter. The Downtown submarket continued to have the lowest vacancy rate, which stayed below 3 percent for the first half of 2016. Rental rates remained stable at $1.35 monthly per square foot NNN, which decreased slightly from the 2016 first quarter’s $1.36 monthly per square foot NNN.
The total overall positive absorption was near 460,000 square feet at the close of the second quarter. The second quarter of 2016 marked the third consecutive quarter of positive absorption, as well as increased activity for each quarter, which indicates market growth and stabilization. Ikea occupied its 351,000 square foot building which accounted for majority of positive absorption during the second quarter. Outside of Ikea’s absorption, the overall market absorbed 109,000 square feet. Overall absorption is expected to remain positive and vacancy rates should slowly decline and rental rates should slowly increase moving forward.
Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of Pecos Patrick Retail Center, a 7,505-square foot, multi-tenant retail property located in Las Vegas, Nevada. The asset sold for $2,000,000, according to Todd R. Manning, sales manager of the firm’s Las Vegas office.
Chris Cunning, First Vice President Investments, in Marcus & Millichap’s Las Vegas office, had the exclusive listing to market the property on behalf of the seller, a private investor. The buyer, AJL Properties, LLC, a private investor, was secured and represented by Tina D. Taylor,Vice President Investments, in Marcus & Millichap’s Las Vegas office.
Marcus & Millichap announced the sale of Sage Point Apartments, a 128-unit apartment property located at 1400 E Reno Ave., in Las Vegas. Built in 1982, the property is located just minutes from UNLV, McCarran International Airport, and the Las Vegas Strip. The asset sold for $7,000,000, according to Todd R. Manning, sales manager of the firm’s Las Vegas office. Cameron Glinton, a senior associate in Marcus & Millichap’s Las Vegas office, had the exclusive listing to market the property on behalf of the seller DT Las Vegas IV LP. The buyer, Westland Sage Poiint LLC, was also secured by Glinton.
Virtus Commercial announced the following deals:
Dermody Properties, a national industrial real estate owner-operator headquartered in Reno, Nev., recently started construction on a 550,000-square-foot industrial facility on Las Vegas Boulevard near North Walnut Road. United Construction Company is the design-build contractor on the project. The companies expect to complete construction in the Second Quarter of 2017.
Upon completion, LogistiCenterSM at Las Vegas Boulevard will feature 36 feet of clear height and above-standard auto and trailer parking. The facility will be ideal for distribution, e-commerce, manufacturing and warehouse operations. LogistiCenterSM at Las Vegas Boulevard issuitable for up to four tenants, depending on their building requirements. The site offers an additional eight to nine acres of excess land for retail or office building development.
“We are pleased to be starting construction on another facility in Las Vegas,” said George Condon, Partner, Dermody Properties West Region Office. “It is a highly desired market, particularly for Internet fulfillment centers and e-commerce companies, and we expectLogistiCenterSM at Las Vegas Boulevard will be fully leased shortly after construction is complete.”
Dermody Properties has been involved in the Las Vegas industrial market since 1974 and has developed more than four million square feet in the market since that time. Earlier this year, the company completed and fully leased its LogistiCenterSM at Cheyenne facility, a 381,804-square-foot facility also located in the North Las Vegas submarket.
LogistiCenterSM at Las Vegas Boulevard is strategically located in the heart of the Interstate 15 corridor, with ability to reach customers in the southern California and Arizona submarkets overnight.
Dan Doherty, Executive Vice President, and Susan Borst, Vice President, of Colliers International Las Vegas are representing LogistiCenterSM at Las Vegas Boulevard on behalf of Dermody Properties. Adam Malan, Director, and Deana Marcello, Senior Brokerage Associate, of Logic Commercial Real Estate are representing the site’s excess acres of land on behalf of the company.
- The University of Phoenix, Inc leased 10,597 SF of office space at Bank of America Plaza, 300 S 4th St, Las Vegas 89101. Jayne Cayton, Matt Kreft, and Lauren Tabeek of Cushman & Wakefield/Commerce represented the lessor, CCRP/AG BOFA Plaza Owner, LLC.
- RBSM, LLC leased 3,454 SF of office space at Siena Office Park, 871 Coronado Center Dr, Ste 110, Henderson 89052. Jayne Cayton and Matt Kreft of Cushman & Wakefield/Commerce represented the lessee.
- Gregory A Bowman, DDS & Celine Bowman renewed 2,396 SF of office space at Moneyworld Plaza, 8010-8020 W Sahara Ave, Ste 230, Las Vegas 89117. Nick Barber and Jeremy Foley of Cushman & Wakefield/Commerce represented the lessor, WCCP I&II Sahara, LLC.
- OptionCare Enterprises, Inc, leased 12,150 SF of retail space at Sahara Pavilion North, 4708 W Sahara Ave, Las Vegas 89102. Neil Sorkin and Bob Hawkins of Cushman & Wakefield/Commerce represented the lessee.
- HipChix, LLC renewed 1,721 SF of office space at Canyon Plaza, 7925 W Sahara Ave, Ste 103, Las Vegas 89117. Bob Hawkins of Cushman & Wakefield/Commerce represented the lessor, Winner Properties, LLC.
- RSG USA, LLC a Nevada limited liability company, renewed 802 SF of retail space at Craig & Lamb Plaza, 4348 E Craig Rd, Ste 120, Las Vegas 89129. Dan Hubbard and Jason Park of Cushman & Wakefield/Commerce represented the lessor, Craig & Lamb, LLC.
- Armens, LLC dba Crazy Kebab leased 1,382 SF of retail space at Whitney Ranch, 641 N Stephanie St, Henderson 89014. Dan Hubbard and Jason Park of Cushman & Wakefield/Commerce represented the lessor, 601-699 Whitney Ranch Center, LLC, a Delaware LLC.
- Mind Over Matters leased 1,794 SF of office space at Red Feather Plaza, 3231 N Decatur Blvd, Ste 228, Las Vegas 89130. Pete Janemark of Cushman & Wakefield/Commerce represented the lessee.
- Church & Casualty Insurance Agency, Inc leased 7,054 SF of office space at 810 S Durango Dr, Ste 110, Las Vegas 89145. Pete Janemark of Cushman & Wakefield/Commerce represented the lessee.