All of those 2014 investments should pay off in 2015.
That’s the word from international commercial brokerage Avison Young, which released 2015 forecasts for all of the real estate markets it covers, including Las Vegas.
“The dynamic of Las Vegas underwent a significant shift in 2014,” the company’s report said.
Avison Young researchers said projects that opened in 2014 — including The Linq’s shopping district and High Roller observation wheel, Downtown Summerlin’s 1.6-million-square-foot shopping, dining and entertainment center and hotel-casino SLS Las Vegas — “will greatly improve the number of visitors coming to Las Vegas in the year ahead.”
The city’s retail submarket in particular “continues to build steam” in early 2015, with Downtown Summerlin and improvements at Village Square, at Fort Apache Road and Sahara Avenue, helping drive activity. Village Square owner Westport Capital has invested more than $6.5 million in upgrading the center, boosting its occupancy from 45 percent to 90 percent in recent years. Plus, the late 2014 opening of the 220,000-square-foot big-box center at Sahara and Hualapai Way also “bodes well” for local retail in the year ahead, the analysis said.
Office space won’t enjoy such across-the-board gains, as a vacancy rate above 20 percent likely will keep rents relatively affordable. Expect tenants to continue favoring discounted higher-end space, leaving lower-quality space to languish. The trend won’t change until Class A lease rates get high enough to push tenants back toward Class B and C space.
Industrial vacancies should dip below 9 percent, though demand will be greatest for distribution spaces of 100,000 square feet or more. Developers including Dermody Partners and Panattoni Development have plans to bring on larger spaces in 2015 to meet some of that need.
Finally, local population gains will give a boost to investments in multifamily housing.
“Multiresidential occupancy is on the rise, and while not robust, development activity has improved,” the report said. “Many existing apartment buildings are primed for renovation and resale, while rents are still well below prerecession levels.”
OWNERSHIP CHANGE
A local HOA collections firm has new ownership.
Community association industry veteran Joel Just bought Nevada Association Services and is now its CEO.
David Stone, who founded Nevada Association Services in 1999, is staying on as licensed collections manager for the company, which collects overdue HOA assessments.
The two sides didn’t disclose the financial terms of the deal.
Just has worked in finance, real estate and engineering for companies including Texas Instruments, Philips Semiconductors, RMI/Red Rock Financial Services and Eagle Rock Asset Management. The University of Idaho graduate has designed speech aids for people who have voice cancer and amyotrophic lateral sclerosis (ALS).
HOME BUILDERS EVENT
The Southern Nevada Home Builders Association’s HomeAid Southern Nevada charity is holding its second annual Target Homelessness fundraiser March 19. The event, at the Pro Gun Club in Boulder City, will include sporting clays, refreshments and raffle prizes. For more information, contact Caitlin Shea at caitlin@snhba.com, or 702-794-0117, extension 100.
NAIOP ELECTS
NAIOP Southern Nevada chapter announced its 2015 officers, board, committee chairs and liaisons.
The commercial trade group’s president is Charles Van Geel of American Nevada Co. President-elect is Mike Shohet of Jones Lang LaSalle. Immediate past president is Mike Montandon of DC Building Group. Majestic Realty Co.’s Rod Martin is secretary, while John Restrepo of RCG Economics is treasurer.
Newly elected directors are broker Dana Berggren; Sallie Doebler of Business Source Nevada; Jeff Foster of Prologis; Jay Heller of Heller Cos.; Chris Larsen of PGAL; Jennifer Levine of Voit Real Estate Services; Adam Malan of The Equity Group; Mike Mixer of Colliers International; and Kyle Nagy of CommCap Advisors.
Committee heads are Restrepo, finance chair; John Ramous, government affairs chair; Doebler, goverment affairs state chair; Montandon, government affairs local chair; Matt Hoyt, membership chair; Brandon Wiegand, communications chair; Brett Bottenberg, golf chair; Dana Berggren, programs chair; David Jones, education chair; Courtney Murphy-Goffstein and Leroy Taylor, Spotlight Awards chairs; Jason Otter, community service chair; Nicole Palacios and Tracy Skenandore, sustainable development chairs; Jennifer Turchin, DLI chair; Bruce Follmer and Garrett Toft, bus tour chairs.
The chapter executive is Katrina Bruce of Alternative Management.
EXCLUSIVE AGENT
Commercial brokerage Marcus &Millichap won the exclusive right to market for sale the net-leased Walgreens location at the Strip and Convention Center Drive, across the street from the planned Resorts World Las Vegas megaresort. There’s no set list price, but brokerage representatives said they expect the property to sell in the mid-$40 million range.
The freestanding store, which sits on a 1.6-acre parcel, is open 24 hours a day and has a full liquor license and a cafe.
Marcus &Millichap’s Ray Germain, Lior Regenstreif, Dean Zang and Mark Taylor are representing the owners, a joint venture that includes Harbor Group International.
In a similar deal, a CVS store inside the Sky Las Vegas condominium tower at 2700 Las Vegas Blvd. S. sold in April for more than $30 million.
Contact Jennifer Robison at jrobison@reviewjournal.com. Follow @J_Robison1 on Twitter.