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Category – January 2016

Virtus Leases Space at 3977 W. Oquendo To Saraphine, Inc.

3977 OquendoBrian Bolanowski of Virtus Commercial represented 3977 Oquendo Rd, LLC in the lease of 1,250 square feet of industrial space at 3977 W. Oquendo Road, Las Vegas, NV 89118. The tenant, Saraphine, Inc, will occupy Suite B. The total transaction value of this 12.5 month lease is $10,876.

The approximate aggregate value of the transaction is $0.70 per square foot.

701 Bridger Building Continues Leasing Activity

701 Bridger 2Robert S. Hatrak II of Virtus Commercial represented 701 Bridger, LLC in the lease of 2,928 square feet of office space at the 701 Bridger Office Building, 701 E. Bridger Avenue, Las Vegas, NV 89101. The tenant, LMBC, LLC will occupy Suite 120. The total transaction value of this 37 month lease is $216,117.

The approximate aggregate value of the transaction is $1.99 per square foot.

New Hotel Project Planned Near Las Vegas Motor Speedway

Chris Beavor HeadshotCAI Investments, a Las Vegas company, has executed a term sheet to developan $18 million, 125-room Starwood Hotels-branded limited-service hotel near Las Vegas Motor Speedway.  Construction of the hotel at Speedway Boulevard and South of Interstate 15 is slated to start in July 2016 and last 12 to 14 months.

Christopher Beavor, managing partner of CAI, said the company chose the 2.5-acre site near the Speedway for its nearness  to Interstate 15, the Veterans Affairs Hospital and newly released manufacturing sites.   The deal includes a 20-year deal with Starwood. Crescent Hotel Management will manage the finished property, which will include a restaurant and an outdoor pool.

Beavor said CAI has been negotiating the deal with Starwood for 18 months.  The project will create 59 construction jobs and 29 permanent jobs. CAI is aggressively looking to build hotels throughout the Southwest. The company said it expects to announce another Las Vegas hotel-condominium project within six months.

CBRE Releases 2015 Yearly and 4th Quarter Reports

CBRE_LogoThe CBRE Las Vegas office announces the release of the firm’s 2015 yearly and fourth quarter market statistics for the industrial, office and retail sectors in southern Nevada.

Highlights:

  • Industrial – In 2015, the Las Vegas Industrial market posted 4.9 million sq. ft. of positive net absorption, which is a record level for the market. New construction in 2015 was at the highest level since 2008, with about 2.8 million sq. ft. of new space completed.
  • Office – 2015 net absorption totaled 913,870 sq. ft., marking the 16th consecutive quarter of positive absorption.
  • Retail – The vacancy rate at 9.8% reached its lowest level since 2008.

More detail for each sector appears below.

Industrial

According to Kevin Higgins, executive vice president, the record-level positive net absorption in 2015 was driven by demand for new product type. “As we enter 2016 and vacancy rates continue to decrease, the challenge for the Las Vegas market is supplying the appropriate space to meet the demand.”

  • In 2015, the Las Vegas Industrial market posted 4.9 million sq. ft. of positive net absorption, a record level for the market.
  • For Q4 2015 the vacancy rate was 5.08%, representing the lowest fourth quarter level since Q4 2006.
  • Construction activity in 2015 was relatively strong, with about 2.8 million sq. ft. of new space completed, which is the highest level since 2008. Three buildings comprising 986,235 sq. ft. were completed during Q4 2015:

o   ProLogis completed a ±153,700 sq. ft. distribution building that was preleased to Western Group Packaging

o   Dermody Properties completed a ±381,804 sq. ft. building preleased to Priority Wire & Cable, and Southern Enterprises

o    The Pauls Corporation completed phase I of the Lone Mountain Corporate Center, which totaled ±450,731 sq. ft.

  • About 2.7 million sq. ft. of projects is planned to break ground over the next 12 months.  Speculative development comprises nearly 86% of the total space under construction.  These projects include:

o   Panattoni has two projects under construction: Henderson Freeway Crossing and Jones Corporate Park

o   ProLogis’ Black Mountain Distribution Center in Henderson

o   SunCap Property Group’s SunPoint Business Center in North Las Vegas

o   Juliet’s Blue Diamond Business Center in the Southwest

o   A joint project between LaPour and Jackson Shaw, Parc Post, broke ground during Q4 2015

Office

According to Randy Broadhead, senior vice president, 70% of the Las Vegas market office absorption was along the 215 beltway near Summerlin and Summerlin South. “As the remaining office space in this area continues to be filled in 2016, other submarkets should see growth.”

  • 2015 Net Absorption totaled 913,870 sq. ft.

o   16th consecutive quarter of positive absorption

o   All submarkets, other than Downtown, saw positive absorption in 2015

o   The West submarket saw the most demand, accounting for about 40% of the overall absorption for the year at 368,119 sq. ft., followed by the Southeast submarket with 191,359 sq. ft., and the Southwest submarket at 146,910 sq. ft.

  • Fourth Quarter the Vacancy Rate was 19.52%

o   This is 167 basis points lower than the fourth quarter of 2014

o   The Central East submarket saw the highest vacancy rate at 27.64%, followed by the Northwest at 26.32%, then Central West at 22.64%, Downtown at 20.43%, Southeast at 19.59%, Airport at 19.08%, Southwest at 16.74%, North Las Vegas at 15.20%, and the West submarket at 12.32%

  • Total new space completed in 2015 was 242,772 sq. ft.

o   Currently there is 348,379 sq. ft. of space under construction

Retail

According to Matt Bear, vice president, brokerage services, Global Gaming Group Retail, the outlook for 2016 is for occupancy levels to continue to increase for all retail classes. “Rental rates also will continue to rise for most properties and more retail is expected to be added to the Strip corridor.”

  • The vacancy rate, at 9.8%, is at its lowest level since 2008
  • The Southeast/Henderson submarket saw the strongest demand in 2015, comprising about 48% of the total net absorption in the market
  • Some of the tenants that were most active in 2015 include:

o   Planet Fitness

o   Goodwill of Southern Nevada

o   Hobby Lobby

o   Conn’s

o   Lee’s Liquor

o   Save-A-Lot

o   IKEA

  • In 2016, new construction will likely start to pick up again, though not to the extent of historical averages, and will likely be concentrated in areas of new home developments.  Additionally, IKEA is expected to open in June and will generate significant interest in the surrounding area.
  • Retail owners are looking at creative ways to drive traffic to their centers. We are seeing an emerging trend of medical tenants (quick cares, dentist offices, general practitioners, etc.) actively leasing within retail centers.
  • “Big box” retail space is being repurposed into office space:

o   A former Dillard’s at the Boulevard Mall is being repurposed as a possible call center

o   A former Target located at Decatur and Meadows Lane was purchased by the Southern Nevada Health District and will be its new headquarters

Burlington Coat Factory Finds a Big Closet to Lease

2189craig_wBurlington Coat Factory of Nevada, LLC signed a 120-month $6,125,000 lease for 50,000 square feet of retail space at 2189 W. Craig Road in North Las Vegas.  Jeff Mitchell and Joe Cooley with Virtus Commercial represented the lessee and  Bob Touma and Chuck Creigh with New Market Advisors represented the lessor, Brixton Craig, LLC. The reported average rent equals $1.02 per square foot.

Dapper Companies signs new tenants for Las Vegas retail properties, including Capriotti’s, Golden Entertainment and Goodwill

J Dapper PhotoDapper Companies, headed by Las Vegas native and longtime local real estate broker and developer J Dapper, announced that three new tenants have leased space at their local properties.

Capriotti’s Sandwich Shop franchisee Vegas Cap 7, LLC signed a 10-year lease for 1,800 square feet of space in a multi-tenant building on the northwest corner of Blue Diamond Road and Decatur Boulevard. J Dapper and Andrea Catalano of Dapper Companies represented the landlord, Ten15 Blue Diamond Decatur, LLC, a Dapper Companies entity.

In a second transaction at the same center on Blue Diamond Road and Decatur Boulevard, Goodwill Industries of Southern Nevada, Inc. leased 3,528 square feet of retail space. Penny Mendlovic with CBRE represented the tenant. J Dapper and Andrea Catalano with Dapper Companies represented Ten15 Blue Diamond Decatur, LLC.

In a third transaction, Golden Entertainment, Inc. leased 4,500 square feet of inline retail space for a tavern at the southwest corner of South Buffalo Drive and Warm Springs Road. J Dapper and Andrea Catalano with Dapper Companies represented the landlord, Ten15 Buffalo Warm Springs, LLC, a Dapper Companies entity.

Sun Commercial Adds To Their Professional Staff

Mathew Patroscassie catanialinda gonzalesron branson

 

 

 

 

 

 

 

Sun Commercial Real Estate  is pleased to welcome to our Las Vegas Office Linda Gonzales, Vice President, and Cassie Catania-Hsu, Senior Vice President. Linda is affiliated with many well-known commercial real estate organizations, including NAIOP. She serves on the Membership and Sponsorship Committees and Co-chairs the Events Committee. As a graduate of the inaugural class of NAIOP’s Developing Leaders Institute, Linda has strong relationships within the commercial real estate industry and is pursuing a CCIM designation. Cassie comes to SCRE from IMC where she was the Director of Leasing and prior to that, the Managing Director of Prudential-IPG Commercial Real Estate in Las Vegas. She is a member of NAIOP and working towards her CCIM designation. As native Las Vegans, they have an extensive knowledge of the city’s history and a valuable understanding of the market.

A fixture in the real estate industry since 1979, Ron Branson began his career in Coeur d’Alene, Idaho where he was a perennial top producer. He is a twice recipient of Realtor of the Year Award and past president of the Idaho Association of Realtors. He is the founding member of Kootenai Charities, a non-profit that raises scholarship funds for North Idaho College. He relocated to Las Vegas in 2001.Some of his past clients include Albertsons, Outback Steak House, Olive Garden, and Chevron. His experience encompasses developing strip malls, land, and build-to-suits. He is highly experienced in 1031 tax deferred exchanges and investment properties. He enjoys working with investors and developers.

Matt’s Bishop Gorman / UNLV education was driven by excitement and passion for the commercial real estate industry. His family worked in retail commercial development and instilled in him a strong work ethic. With an immediate focus is on retail tenants and landlords, he will utilize his ability to identify and foresee future investment opportunities for his clientele. Matt is involved with NAIOP Southern Nevada and is working toward his CCIM designation. As part of the Retail Sales and Leasing team, Matt works diligently to meet the objectives of his clients.

NV Network Insurance Takes Space at The Grove

the-groveNV Network Insurance signed a 38-month $50,400 lease for 900 square feet of retail space at The Grove located at 445 W. Craig Road, Suite 104, in North Las Vegas.  Alma Catalan with Desert Vision Realty represented the lessee and Jakke Farley with Virtus Commercial represented the lessor, High Valley VI, LLC. The reported average rent equals $1.47 per square foot.


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