Racetrack Plazaplaza 732 & 748 South Racetrack Road, Henderson, Nv 89015
RETAIL OR REDEVELOPMENT OPPORTUNITY RACETRACK PLAZAPLAZA 732 & 748 SOUTH RACETRACK ROAD, HENDERSON, NV 89015
LAS VEGAS STRIP DOWNTOWN LAS VEGAS
ST. ROSE PARKWAY
HORIZON DRIVE
BOULDER HIGHWAY
RACETRACK ROAD SITE LOCAL MARKET EXPERTS RACETRACK PLAZAPLAZA SCOT MARKER Senior Vice President VALUE-ADD POTENTIAL WITH 702.836.3782 [email protected] MULTIPLE EXITS
MICHAEL STUART MEDIAN HOUSEHOLD INCOME SURROUNDING THE CENTER IS 50% ABOVE THE NATIONAL Executive Vice President AVERAGE, AND POPULATION AND ROOFTOP GROWTH OF OVER 8% IS EXPECTED OVER THE 702.836.3739 NEXT 5 YEARS WITHIN 1, 3 AND 5 MILE RADII OF THE PROPERTY. [email protected] INVESTMENT OPPORTUNITY RACETRACK PLAZAPLAZA 732 & 748 SOUTH RACETRACK ROAD, HENDERSON, NV 89015
CONFIDENTIALITY AGREEMENT The material contained herein is confidential and is presented strictly as information for the exclusive use of the prospective purchaser. Receipt TABLE OF CONTENTS and review of this offering by the prospective purchaser constitutes an agreement not to divulge, share or distribute the information to any other party, except the prospective purchaser’s legal counsel and financial advisors, without the prior specific written authorization of the Seller. Each prospective purchaser shall also agree to and comply with the provisions of the confidentiality agreement executed by such prospective purchaser prior to receipt of the Offering. 4
This Offering is submitted subject to errors, changes, omissions, changes in price, market and other conditions. It contains selected information INVESTMENT SUMMARY pertaining to the Property and does not purport to be all-inclusive or to contain all of the information that prospective purchasers may desire. It Investment Highlights should be noted that any and all market analyses, estimates and projections contained in the Offering are provided for general reference purposes only and are based on assumptions related to the general economy, competition, real estate market trends, and other factors beyond the control Property Overview of the Seller. Such analyses, estimates and projections are therefore subject to material variation, and may not be consistent with the views or assumptions held by other professionals. 9 The owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or to terminate discussions with an entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall AREA OVERVIEW have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the City Overview Owner’s obligations therein have been satisfied or waived. County Overview
20 RETAIL MARKET OVERVIEW
114,231 SF APPENDIX LAS VEGAS MARKET OVERVIEW INVESTMENT OPPORTUNITY Copyright © 2018 Colliers International. Colliers ©2018 Copyright Copyright © 2018 Colliers International. Colliers ©2018 Copyright Copyright © 2018 Colliers International. Colliers ©2018 Copyright Copyright © 2018 Colliers International. Colliers ©2018 Copyright
COLLEGE DRIVE EAST HORIZONDRIVE Copyright © 2018 Colliers International. Colliers ©2018 Copyright Copyright © 2018 Colliers International. Colliers ©2018 Copyright
Copyright © 2018 Colliers International. Colliers ©2018 Copyright SOUTH BOULDER HIGHWAY BOULDER SOUTH Copyright © 2018 Colliers International. Colliers ©2018 Copyright INVESTMENT OPPORTUNITY 114,231 SF Copyright © 2018 Colliers International. Colliers ©2018 Copyright
RACETRACK DRIVE INVESTMENT HIGHLIGHTS
KMART HENDERSON Located one-quarter mile from S. Boulder Highway, a major commercial corridor, the Center includes 114,231 rentable square feet, comprised of an available 104,231 Address 732 & 748 South Racetrack Road RSF anchor box (vacated by Kmart in January 2018) and City, State Henderson, Nevada 89105 10,000 RSF of adjacent in-line space in four suites. The Offering Price $3,500,000 Property is 100% vacant. Rentable Square Feet ±114,231 SF Land Area ±8.62 Net Acres
Built as a retail center in 1992 and located in the southeast Year Built 1992 trade area of Las Vegas, this center could be an opportunity Number of Suites 5 including anchor box for a retail anchor to relocate to take advantage of this Parking 4.61/1,000 (530 Spaces) stable neighborhood. In addition, the center could be repurposed as a new home development for a single family or multifamily residential developer to benefit from the resurging residential market in a mature neighborhood.
Owner will consider allowing a potential developer time EXCELLENT LOCATION WITH STRONG DEMOGRAPHICS IN ESTABLISHED SUBMARKET OF LAS VEGAS to apply for zoning and close escrow on the property after receipt of the Notice of Final Action from the City of Henderson for Buyer’s intended use. This process could be • High visibility location, abundant parking (±500 parking spaces), located on the bus line, minutes away from Boulder completed in 4 to 6 months of submittal to the City Highway and (US) 95 freeway. of Henderson. • Zoning Description Henderson, Corridor/Community Mixed- In addition to the investor looking for a retail asset to Use (MC) revitalize, this project has strong potential for mini storage • There are approximately 107,311 households within a 5-mile radius or recreational vehicle storage. This property could also of the property with an average household income of $80,422 in be redeveloped as a multifamily-single family residential a 1-mile radius. project. Lastly, there is a long term lease with a cell tower • Strong traffic counts in excess of 36,000 cars per day at and the annual income is $18,000.00. the intersection.
114,231 SF
RACETRACK PLAZA – Colliers International 5 INVESTMENT HIGHLIGHTS (cont.)
DOMINANT TRADE AREA WITH FUTURE DEVELOPMENTS & GROWTH
• Henderson is the second largest city in Nevada and part of the Las Vegas Metro and was ranked 7th in U-Haul’s list of Top 10 US Growth Cities for 2015 and is continuing to grow with several major development projects currently planned or underway.
• Another major development underway in Henderson is Cadence, a 2,200 acre master planned community focused around active lifestyles, featuring 450 acres of open space and a 100 acre sports facility.
• Future Union Village, which will be the first Integrated Health Village in the world. It is listed as the largest healthcare building project in the U.S. by Health Facilities Management. The visionary model for health care will offer a world-class hospital complex and health center, residential, entertainment and specialty retail space, a vibrant senior retirement community and a civic and cultural arts center integrated into a master-planned community.
IMPROVING LOCAL ECONOMY
• Las Vegas’s retail vacancy is currently at 8.3%, down from a recession peak of 14% in 2011. The market has also seen a strong housing recovery with prices appreciating approximately 9.6% annually over the last year.
• The unemployment rate in Las Vegas continues to drop and new jobs are projected to grow over 5.2% annually over the next three years. VALUE-ADD & • Demand for land increased in the 3rd Quarter of 2018- specifically residential land sales in the third quarter of 2018 were 385.4 acres REDEVELOPMENT totalling over $155 Million. POTENTIAL
6 PROPERTY OVERVIEW The project is located in an established area of Henderson, one-quarter mile northeast of the signalized intersection of S. Boulder Highway (State Route 582) and S. Racetrack Rd. On average, approximately 36,000 vehicles per day cross this intersection.
Specific traffic drivers include Club Fortune Casino, Camping World Service Center, Albertson’s Grocer, Lowes Home Improvement, and shop retailers and restaurants. Nearby, there is a well-known park with soccer & lacrosse fields, as well as a community center for swimming and other public gatherings.
The property’s 104,231 RSF anchor box was previously occupied by Kmart, which closed the store and moved out in January 2018 upon lease expiration. This space offers two dock-high doors and an overhead door.
The property is surrounded by a number of stable residential communities, which could be an opportunity for a new home builder to benefit from a site that was not available a year ago. This is a truly new found site with tremendous potential for a savvy investor.
RACETRACK PLAZA – Colliers International 7 SALES COMPARABLES
COMPARABLE COMPARABLE COMPARABLE COMPARABLE COMPARABLE COMPARABLE COMPARABLE COMPARABLE 1 2 3 4 5 6 7 8
Property Sunset Place Russell/Pecos 24 Hour Fitness 179-05-612-001 179-34-202-009 179-07-511-001 178-13-401-015 178-14-312-002 Name: (former Kmart) 3760 E. Sunset 3325 E. Russell 4440 E. Tropicana Cadence Crest SW Conestoga Warm Springs Fiesta Henderson Address: 20 N. Gibson Rd. Rd Rd Ave. Ave. Way & NV Dr. Rd.& N. Water St. Blvd. Year Built: 1988 1987 1979 N/A N/A N/A N/A N/A Anchor Size: 90,921 50,584 49,115 N/A N/A N/A N/A N/A Sale Price: $5,000,000 $3,600,000 $3,300,000 $8,672,400 $5,630,000 $3,970,800 $3,225,000 $4,964,133 Acreage: 9.54 10.53 4.33 23.76 15.69 10.93 10.54 13.36 Date Sold: January 2018 April 2017 January 2017 July 2015 March 2018 November 2016 January 2018 May 2015 Intended EOS Fitness 24 Hour Fitness Owner/User Raw Land Raw Land Raw Land Raw Land Raw Land Use: (tenant-in-tow) (tenant-in-tow) Church South Las Constantino Richmond Greystone Richmond Nevada West Buyer: Trop 4440 LP Woodside Homes Vegas Noval American Homes Nevada, LLC American Homes Development Las Vegas Somerville Las Pecos Capital 840 Alvarado Ent. The LandWell GST Henderson, The LandWell The LandWell Seller: Investments & Vegas LLC LLC Company L.P. LLC Company L.P. Company, L.P. Realty
8 COMP #3 $67 PSF / $3.3 MM ANCHOR-IN-TOW AT SALE
COMP #2 $71 PSF / $3.6 MM ANCHOR-IN-TOW AT SALE
COMP #4 $8.24 PSF / $8.6 MM COMP #1 OWNER/USER $55 PSF / $5.0 MM OWNER/USER
COMP #6 $8.34 PSF / $3.9 MM COMP #8 OWNER/USER $8.03 PSF / $4.9 MM OWNER/USER
COMP #7 $7.02 PSF / $3.2 MM OWNER/USER
COMP #5 $8.24 PSF / $5.6 MM OWNER/USER
RACETRACK PLAZA – Colliers International 9 OUTSTANDING INVESTMENT OPPORTUNITY
HENDERSON, NEVADA
4.61/1,000 (530 SPACES) 10 AREA OVERVIEW CLARK COUNTY HIGHLIGHTS
• Clark County is the most populous of Nevada’s 17 counties with 2.1 million residents and 70 percent of the state’s population.
• Clark County is today known as a major tourist destination, with 150,000 hotel rooms, among the world’s top convention destinations, and is home to the world famous Las Vegas Strip.
• Clark County is the nation’s 13th-largest county and provides
extensive regional services to more than 2.1 million citizens and
more than 45 million visitors a year.
• Includes the nation’s 9th-busiest airport, air quality compliance, ABOUT CLARK COUNTRY social services and the state’s largest public hospital, University Medical Center. Clark County is the nation’s 13th-largest county • Tourism’s economic impact for 2014 was $29.8 billion, including and provides extensive regional services to more $9.6 billion spent on gambling in Clark County. than 2.26 million citizens and more than 46 million • Clark County employs more than 10,000 in 38 departments. It has a fiscal year general fund budget of $1.35 billion and a total visitors a year. Known as a major tourist destination, budget of $6.2 billion. Clark County is home to over 150,000 hotel rooms, • The County is known for its strong ending-fund balance, overall the world’s top convention destinations, and the financial strength and an investment-quality credit rating. It retains the best bond ratings of any local government in the state with an world famous Las Vegas Strip. Tourism’s economic “Aaa” from Moody’s Investors Service and an “AA+” from Standard & Poor’s. impact on Clark County for 2016 was nearly $60
• Clark County is home to four gaming headquarters, making billion, including $6.4 billion spent on gambling Nevada one of Fortune Magazine’s “States That Dominate” on the Las Vegas Strip, according to Las Vegas meaning states that have more than 50 percent of all company headquarters in a specific industry. Convention and Visitors Authority data.
RACETRACK PLAZA – Colliers International 11 DOWNTOWN LAS VEGAS
UNLV LAS VEGAS STRIP SUBJECT PROPERTY
MCCARRAN INTERNATIONAL AIRPORT
12LAS VEGAS, NEVADA Henderson is located in Clark County, Nevada, 16 miles southeast of downtown Las Vegas. It is the second largest city in Nevada, after Las Vegas, with an estimated population of 302,070 in 2018. In 2011 and again in 2017, Henderson was ranked as one of the top ten “Safest Cities in the United States” by Forbes Magazine. In addition to the City’s low crime rate, it has been named as “One of the Best Cities to Live in America” by Bloomberg Businessweek and one of “the best places to retire” by Money Magazine. In 2018 Standard & Poor’s (S&P), upgraded the City of Henderson’s bond rating to AA+ with a stable outlook, making it one of the highest bond ratings of any city in Nevada.
• Henderson’s 22 Master Planned Communities are looked at as models throughout the HENDERSON, NEVADA southwestern United States. Developers fund roads, water, sewer and other infrastructure through Limited Improvement Districts. Developers also contribute land for school sites, park sites and fire stations. The costs for this infrastructure and amenities are included in the sale price of the home.
• Sports and Entertainment The NFL Raiders practice facility will be located in Henderson, NV. Southern Nevada is home to the Vegas Golden Knights NHL championship finalist and will soon be home to the NFL Raiders and is a hub for many other professional franchises such as the longtime home of the 51’s Triple A baseball, the WNBA and the new Las Vegas Lights FC.
• Convention Centers While Las Vegas has historically been known as a gaming destination, the city’s diverse non- gaming allure continues to strengthen and has far surpassed gambling demand. One such demand driver is the unparalleled convention and meeting space capacity available throughout the city. In 2017, Las Vegas held nearly 20,000 conventions and hosted over 6.6million convention delegates.
RACETRACK PLAZA – Colliers International 13 DEMOGRAPHICS
POPULATION 1 MILE 3 MILES 5 MILES 2018 Estimate 4,264 33,879 103,611 2023 Projection 4,611 36,039 111,291
2018 HOUSEHOLD 1 MILE 3 MILES 5 MILES INCOMES AVERAGE $92,295 $74,256 $75,332 MEDIAN $68,367 $57,360 $60,912
EMPLOYER # OF EMPLOYEES* CITY OF HENDERSON 2,924 ST. ROSE DOMINICAN HOSPITAL 1,500 - 1,999 GREEN VALLEY RANCH STATION CASINO 1,500 - 1,999 SUNSET STATION HOTEL & CASINO 1,500 - 1,499 *Approximate
DISTANCE TO/FROM PROPERTY LAS VEGAS STRIP 12 MILES 16 MINUTES LOS ANGELES 260 MILES 4 HOURS 30 MINUTES LOCATION OVERVIEW
SOUTHEAST LAS VEGAS SUBMARKET - SHOPPING CENTERS
According to CoStar, the Property is located in the Southeast Las Vegas submarket, which has the largest inventory of shopping center space of the 13 submarkets in the larger Las Vegas market.
The submarket contains 183 shopping centers comprising over 11.9 million SF, and vacancy was reported to be 8.1% at the end of June 2018. The average quoted NNN rental rate as of June 2018 was $16.47/SF, in line with the $16.41/SF average. Additionally, the submarket experienced positive net absorption of 148,000 SF in 2017 and 16,851 SF during the 6 months ending June 2018, reflecting approximately 16% of marketwide shopping center absorption.
For comparison, the submarket had 30,000 SF of shopping center space under construction at year-end 2017, reflecting approximately 19% of the Las Vegas market’s shopping center delivery pipeline.
Southeast Las Vegas Las Vegas Market Submarket Shopping Shopping All Retail All Retail Centers Centers Overall Vacancy: 6.9% 10.0% 8.2% 8.1%
Quoted Rate (PSF): $16.84 $16.41 $17.14 $16.47
Number of Buildings: 7,434 1,026 1,275 183 YTD Net Absorption 1,822,353 937,063 197,324 147,636 (SF): 21,336,33 Total RBA (SF): 114,544,973 53,175,627 11,927,093 4 Under Construction (SF): 498,822 162,783 62,732 30,143
RACETRACK PLAZA – Colliers International 15 LOCATION OVERVIEW
SOUTHEAST LAS VEGAS SUBMARKET -
LAND Activity Fluctuates in Third Quarter
Southern Nevada’s land market saw 52 sales in the third quarter of 2018, slightly fewer sales as were recorded one year ago, and less than half the number of sales one quarter ago. A total of 1,242 acres were sold, with a sales volume of $245.8 million and an average price of $4.54 per square foot. Year-to-date, Southern Nevada has seen more acreage sold than in 2017, and is not on pace to surpass 2016. Sales volume in the third quarter of 2018 was higher than sales volume one year ago.
Approximately 1,553 units of multifamily were completed in the first half of 2018 on 62.6 acres. There were 10,504 units of multifamily under construction or planned in Southern Nevada on 431.9 acres. Residential land sales in the third quarter of 2018 were 385.4 acres with sales volume of $155.4 million. The average sales price of residential land was $9.26 psf, an increase of $3.86 psf from the third quarter of 2017.
Homebuilders are running low on improved lots in the Valley, and large contiguous acreage on which to build, and industrial developers are finding parcels well suited to development harder to find. Lack of available land is putting upward pressure on prices, and this could potentially slow land sales going into 2018. Land Market
AVERAGE SALES PRICE SUBMARKET SALES ACREAGE SOLD SALES VOLUME (PER SQUARE FOOT)
HENDERSON 3 35.94 $11,907,237 $7.61 Commercial 1 4.57 $2,582,237 $12.97 Industrial - 0.00 $0 n/a Residential 2 31.37 $9,325,000 $6.82
SAUSALITO DRIVE RESIDENTIAL LAND SALES ACTIVITY SITE
HOMEBUILDERS ARE RUNNING LOW ON IMPROVED LOTS IN
RACETRACK ROAD THE VALLEY
RACETRACK PLAZA – Colliers International 17 TYPE NEIGHBORHOOD SHOPPING CENTER
APNs 179-21-311-009 & 179-21-311-010 HIGH VISIBILITY LOCATION, ABUNDANT PARKING LAND AREA 8.62 ACRES / 375,488 SF (±500 PARKING SPACES), LOCATED ON THE BUS LINE, ZONING CORRIDOR/COMMUNITY MIXED-USE MINUTES AWAY FROM BOULDER HIGHWAY AND US YEAR BUILT 1992 95 FREEWAY. PARKING 4.64/1000 SITEPLAN
CELL TOWER
2 000 SF 2 000 SF 2 000 SF 4 000 SF BOULDER HIGHWAY
104 231 SF D
SOUTH RACETRACK ROAD
RACETRACK PLAZA – Colliers International 19 RETAIL MARKET OVERVIEW Extending the Streak
>> Demand increased for the second straight quarter Economic Indicators
>> Retail inventory expanded faster than demand, increasing the vacancy rate RETAIL RETAIL RETAIL Employment Taxable Sales SF/Job >> Asking rental rates decreased slightly in the third quarter of 2018
+6.7 +0.9% After a short pause at the beginning of 2018, Southern Nevada’s retail market is +3.6% Q3 back on track and growing. Net absorption improved for the second straight quarter, 2018 reaching 137,573 square feet in the third quarter of 2018. Vacancy increased to 8.2 percent due to the addition of 184,000 square feet to retail inventory. Asking rental Market Indicators Relative to prior period Q3 2018 Q4 2018* rates decreased to $1.36 per square foot (psf) on a triple-net (NNN) basis from last VACANCY
quarter’s $1.38 psf NNN. NET ABSORPTION
CONSTRUCTION
RENTAL RATE
*Projected Historical Vacancy Rates and Asking Lease Rates Summary Statistics Las Vegas Market Q3-17 Q2-18 Q3-18 8.6% $1.42 Vacancy Rate 8.4% 8.1% 8.2% 8.5% $1.40 “The retail market was the first Asking Rent (PSF, NNN) $1.34 $1.38 $1.36 8.4% $1.38 commercial real estate segment Net Absorption (SF) 68,470 124,512 137,573 8.3% $1.36 to recover after the Great
8.2% $1.34 Recession, and appears to have New Completions (SF) 119,220 25,400 184,000 settled into a new normal with 8.1% $1.32 higher vacancy rates than in the Overall Asking Rents 8.0% $1.30 pre-recession era.” Per Square Foot Q3-17 Q2-18 Q3-18
7.9% $1.28 Power Center $1.52 $1.51 $1.42 4 Q 2016 1 Q 2017 2 Q 2017 3 Q 2017 4 Q 2017 1 Q 2018 2 Q 2018 3 Q 2018 Community Center $1.33 $1.37 $1.42
Vacancy Asking Rental Rate Neighborhood Center $1.42 $1.37 $1.32
Strip Center $1.24 $1.34 $1.32
20 Las Vegas Retail Market Overview According to the Nevada Department of Employment, Training and Rehabilitation, Southern Nevada’s retail job market improved in July 2018, adding approximately 2,800 jobs since July 2017. Over this Historical Net Absorption vs. period the Valley added 400 jobs in the food & beverage sector and 200 jobs in the health & personal Completions care sector. In the food services and drinking places sector, which is not technically included in the retail category, Southern Nevada added 1,900 jobs since July 2017. 350,000 300,000
250,000 According to our formula, retail employment that directly impacts the retail centers covered in this report 200,000 increased by 3,223 jobs over the past twelve months. Unemployment in the Las Vegas-Paradise MSA 150,000 stood at 4.7 percent in July 2018, down from 5.4 percent in July 2017. From July 2017 to July 2018, total employment in Southern Nevada increased by 37,600 jobs, a 3.9 percent increase. 100,000 50,000
0
The Nevada Department of Taxation reports that Clark County’s taxable retail sales for the past twelve -50,000 months (July 2017 to June 2018, the most recent month of data available) totaled $30.4 billion, up from 4 Q 2016 1 Q 2017 2 Q 2017 3 Q 2017 4 Q 2017 1 Q 2018 2 Q 2018 3 Q 2018
$29.4 billion in the previous twelve months. In the past twelve months taxable sales were $4.8 billion in Net Absorption Completions the automotive sector, $10.8 billion in food service and $14.5 billion in other retail (excluding gas stations).
The highest year-over-year growth in taxable retail sales were in miscellaneous retail (39.4 percent), food and beverage stores (11 percent growth) and health and personal care stores (6.3 percent growth). Occupancy vs. Year-over-year taxable sales also increased in the automotive, home and garden, clothing, gas station Retail Employment and general merchandise categories. Taxable sales decreased in furniture, sporting goods and hobbies and electronics and appliances. Non-store retailers posted 5.2 percent year-over-year growth. 90,000 92.0% 89,000 91.9%
88,000 91.8%
Two retail projects were completed in the third quarter of 2018, a 51,000 square foot neighborhood 87,000 91.7% center in the University East submarket and a 133,000 square foot community center in the Southwest 86,000 91.6% submarket. The fourth quarter of 2018 should see the completion of 312,804 square feet of new retail 85,000 91.5% space. Over 2.0 million square feet of retail is planned for completion in 2019 or beyond, with just over 84,000 91.4%
1.0 million square feet of it likely to be completed. 83,000 91.3%
82,000 91.2%
81,000 91.1% Net absorption was 137,573 square feet in the third quarter of 2018, bringing total net absorption this 4 Q 2016 1 Q 2017 2 Q 2017 3 Q 2017 4 Q 2017 1 Q 2018 2 Q 2018 3 Q 2018 year to 236,282 square feet. This is an increase from the 178,669 square feet of net absorption in the Retail Jobs Occupancy Rate first three quarters of 2017. Year-to-date net absorption was highest in neighborhood centers at 169,877 square feet. It was lowest in power centers, at negative 143,755 square feet. Community centers had 120,971 square feet of net absorption, while unanchored strip retail centers had 89,189 square feet of net absorption.
RACETRACK PLAZA – Colliers International 21 APPENDIX LAS VEGAS MARKET OVERVIEW
22 Las Vegas Retail Market Overview APPENDIX LAS VEGAS MARKET OVERVIEW
RACETRACK PLAZA – Colliers International 23 LAS VEGAS ECONOMIC TRENDS (Las Vegas Convention and Visitors Authority)
Statistic 2013 2014 2015 2016 2017
Visitor Volume 39,668,221 41,126,512 42,312,216 42,936,109 42,208,100 Las Vegas Gaming Revenue $9.6bn $9.5bn $9.6bn $9.7bn $10.8bn
Room Occupancy 84.3% 86.8% 87.7 % 89.1% 88.6% Area Overview
Average Daily Room Rates $110.72 $116.73 $120.67 $125.96 $129.05 Clark County, the most populous of Nevada’s 17 counties, is home to more Convention Delegates 5,107,416 5,169,054 5,761,366 6,310,616 7, 2 59,10 0 than two million residents, about 73%
Total En/Deplaned of the state’s population. The estimated 41, 8 557,0 0 9 42,878,346 45,389,074 47,43 5,640 48,500,194 Passengers median household income is approximately
Room Inventory 150.103 150,126 149,612 149,339 147, 26 8 $55,303. The city of Las Vegas sits at the heart of Clark County and is internationally renowned as the world capital of entertainment. Las Vegas’ gaming, dining, VISITOR VOLUME VS. GAMING REVENUE shopping and business conventions are major attractions for national and international visitors. Las Vegas has approximately 147,268 hotel rooms.
Over 42.2 million people visited Las Vegas in 2017.
COLLIERS INTERNATIONAL – LAS VEGAS MARKET OVERVIEW 2 Las Vegas Employment Overview As of 2018, Las Vegas unemployment stands at 4.8%, which is about 30 basis points lower than it was in 2017 at 5.1%. Tourism is the largest job sector in Las Vegas, representing 29.5% of the market, but professional and business services and retail trade have a significant impact as well, representing 14.0% and 10.3% of the market, respectively.
LAS VEGAS TOP EMPLOYERS Firm Employees Gaming, government, tourism and education are the leading areas of Station Casinos Inc. 13,000-13,499 Nellis Air Force Base 12,000-12,499 employment in Las Vegas. Although in recent years, several new industries Boyd Gaming Corp. 9,000-9,499 Las Vegas Sands Corp. 8,500-8,999 such as data centers, high tech manufacturing and healthcare services are Wynn Las Vegas LLC 8,000-8,499 helping to diversify the local economy. MGM Resorts International 8,000-8,499 Bellagio LLC 8,000-8,499 Aria Resort & Casino 7,000-7,499 300,000 new jobs Prestigious Companies Mandalay Bay Resort & Casino 7,000-7,499 Wal-Mart Stores Inc. 6,000-6,499 Expected In The Next 20 Years With Major 8 Fortune 1000 Companies Headquartered Gains In Technology, Healthcare & In Las Vegas Caesars Entertainment Corp. 5,500-5,999 Infrastructure Sectors The Valley Health System 5,000-5,499 University of Nevada-Las Vegas 5,000-5,499 Las Vegas Metropolitan Police Department 4,500-4,999 $2.5 Billion+ $4 Billion+ Mirage Casino-Hotel 4,500-4,999 In Manufacturing/Tech Facility In Public Infrastructure The Venetian Casino Resort 4,000-4,499 Investment Underway Investment Underway SUPERVALU Inc. 4,000-4,499 Cosmopolitan of Las Vegas 4,000-4,499 The Palazzo Casino Resort 3,500-3,999 University Medical Center of Southern Nevada 3,000-3,499
COLLIERS INTERNATIONAL – LAS VEGAS MARKET OVERVIEW 3 Las Vegas Highlights
20,000 Seats NHL Expansion The Las Vegas Raiders T-Mobile Arena, a multi-use indoor arena T-Mobile Arena will host over 150 events The relocation of the Oakland Raiders on the Las Vegas Strip opened in April 2016 per year and is the current home of the is anticipated to create a $600+ million NHL Golden Knights economic impact add 450,000+ incremental visitors and host 45+ events annually
Mandalay Bay LVCC Expansion $1 billion public Convention Center Las Vegas Convention Center works project is currently undergoing a $2.5 billion, recently underwent a 350,000 square foot underway to modernize and expand 600,000 square foot expansion to absorb expansion and is now one of the largest in Las Vegas vehicular infrastructure North America excess demand
Steady Growth MSG Sphere A revolutionary new 18,000-seat venue for The University continues to grow with a concerts, sports and live entertainment that total student headcount of 30,471 (2017) will be completed in 2020.
COLLIERS INTERNATIONAL – LAS VEGAS MARKET OVERVIEW 4 Las Vegas #1 Trade Show Destination for 24 consecutive years -Trade Show News Network
#3 and #9 Largest Convention Centers in the U.S. are Located in Las Vegas Convention Centers While Las Vegas has historically been known as a gaming destination, the city’s diverse non-gaming allure continues to strengthen and has far surpassed gambling demand. 66,500 jobs and generates One such demand driver is the unparalleled convention and meeting space capacity more than $9.3 billion in available throughout the city. In 2017, Las Vegas held over 21,000 conventions and hosted over 6.6 million convention delegates. economic impact. The Las Vegas M.I.C.E . Las Vegas also hosted 5 of the top 10 and 9 of the top fifteen largest (meetings, incentives, conferences, and events) sector conventions/trade shows held in the U.S.
Las Vegas visitation numbers hit a new peak of 42.9M visitors in 2016, a 10% increase over its pre-recession peak.
There was a 17.8 increase in International visitation from 2013-2015. McCarran International Airport has benefited from the increased visitation, making it the No. 27 busiest airport in the world i n 2 017.
COLLIERS INTERNATIONAL – LAS VEGAS MARKET OVERVIEW 5 Developments in the Las Vegas valley
NFL - LAS VEGAS RAIDERS $1.9 Billion estimated cost Professional Sport Franchises Las Vegas’ First NFL Team – On March 27th, 2017, the NFL owners approved the Raiders’ relocation to Las Vegas. The $1.9 billion stadium is expected to take As a means to continue the diversification three years to build and will be located near the southern end of the Las Vegas of its economy, Nevada successfully Strip (near Mandalay Bay). This new stadium will also host world-class events received its first professional sports including college football games, big-name concerts, major UFC fights, March franchise in 2016 concurrent with the Madness, soccer matches and political events. The Raiders are expected to completion of its T-Mobile Arena. play in the 65,000-seat domed stadium by the 2020 season. The Southern Furthermore, in November 2016, Las Nevada Tourism Infrastructure Committee (SNTIC) estimates that Las Vegas Vegas approved a hotel tax ordinance to can expect $100 million worth of media exposure a year from the Raiders help fund the stadium for the NFL’s which is excellent publicity across the Las Vegas community. Oakland Raiders relocation.
COLLIERS INTERNATIONAL – LAS VEGAS MARKET OVERVIEW 6 Developments in the Las Vegas Valley This popular destination is the 28th largest Metropolitan Statistical Area in the United States with over two million residents. With its strong economic recovery, Las Vegas has about $15 billion in construction projects that are planned, proposed or under construction. The following pages include a summary of these projects.
400,000 SF RESORTS WORLD CONVENTION CENTER $4 Billion estimated cost CONSTRUCTION LAS VEGAS PARK MGM & Broke ground May of 2015. Upon their Also restoring the 18-hole Tom CONVENTION CENTER 2020 completion date, this $4 billion NOMAD LAS VEGAS Asian-themed resort will include 3,000 Fazio-designed golf course EXPANSION $450 Million estimated cost hotel rooms and will consist of 175,000
Wynn Resorts Ltd. is moving forward $2.3 Billion estimated cost square feet of gaming. It’s estimated that there will be 3,500 slot machines MGM Resorts International and Sydell with its 400,000 SF Convention and table games. Genting BHD, Group announced a partnership to Center construction. The convention The Las Vegas Convention and Visitors Southeast Asia’s largest casino rebrand Monte Carlo Resort & Casino center is under construction just Authority (“LVCVA”) has a planned operator, is developing this property in with two distinct hotel experiences north of Sands Avenue and east of the expansion and renovation project multiple phases. The first phase is — Park MGM and NoMad Las Vegas. Wynn Las Vegas tower. They’re also intended to make the Las Vegas expected to be completed in 2019. Costing approximately $450 million to restoring the 18-hole Golf Course. “We Convention Center the best meeting Once fully finished, there will be three construct, the renovation and rebrand actually went back and re-engaged and convention facility in the World. towers totaling the room count to will touch every aspect of the Tom Fazio, who was the original The $2.3 billion project, named the Las 3,400. Resorts World Las Vegas will property. Experiences include: designer of our golf course to come in Vegas Global Business District, is the help the Las Vegas employment market “a Las Vegas version of Sydell’s widely and take a look at the couple holes largest economic development by employing 13,000 direct and indirect acclaimed NoMad Hotel, and the that were disrupted by this initiative the LVCVA has undertaken jobs. It will also contribute greatly to launch of a new luxury hotel named 400,000-square-foot convention since the Las Vegas Convention the Las Vegas economy which is Park MGM.” Construction is expected center and see if we can design a new Center was originally built in the late projected to generate $155 million in to commence in late 2016 and 18-hole golf course connected to 1950s. The expansion project is annual tax revenue. conclude in late 2018. Wynn and Encore and have that back expected to lead to an additional in back in action before our 480,000 new attendees as current convention center opens.” conventions grow and through attracting an estimated 20 new trade shows and conventions. COLLIERS INTERNATIONAL – LAS VEGAS MARKET OVERVIEW 7 Developments in the Las Vegas valley
Developers closer to beginning work on MSG Sphere Las Vegas
18,000-SEAT MSG SPHERE LAS VEGAS 360 feet tall and just off the McCarran International Airport flight pattern
The facility, to be built on a 63-acre lot east of the Sands Expo Center, The Venetian and the Palazzo, will be connected to the convention center by a pedestrian bridge. The 400,000-square-foot facility will be built on an open-air storage lot at Sands Avenue between Koval Lane and Manhattan Street. COLLIERS INTERNATIONAL – LAS VEGAS MARKET OVERVIEW 8 Developments in the Las Vegas Valley This popular destination is the 28th largest Metropolitan Statistical Area in the United States with over two million residents. With its strong economic recovery, Las Vegas has about $15 billion in construction projects that are planned, proposed or under construction. The following pages include a summary of these projects.
UNION VILLAGE LAS VEGAS MEDICAL DISTRICT $1.6 Billion estimated cost & UNLV MEDICAL LAS VEGAS PROJECT NEON Union Village is the first Integrated SCHOOL Health Village in the world and is listed ALL NET ARENA $900 Million estimated cost as the “largest healthcare building $3.6 Billion estimated cost project in the United States,” $1.4 Billion estimated cost Project Neon is the largest public according to Health Facilities Manage- works project in Nevada history. The Las Vegas Medical District was ment. This +/-$1.6 billion project is The All Net Arena’s site is located on Costing $900 million to complete, this initially concieved in 2002 in order to located at U.S. 95 and Galleria Drive in the north end of the Las Vegas Strip project will widen 3.7 miles of created a cohesive area for medical Henderson, Nevada. Sitting on where the former Wet ‘n’ Wild site Interstate 15 between Sahara Avenue education and healthcare that was 228-acres, this mixed-use healthcare was once located (just south of the and the “Spaghetti Bowl” interchange central to the Las Vegas Valley. It is complex is projected to create more SLS Resort). Construction is in downtown Las Vegas. This is known currently undergoing a $3.6 billion than 17,000 direct, indirect and underway on this $1.4 billion project for being the busiest stretch of expansion which is inclusive of a UNLV construction jobs. Once fully complete and will consist of +/-860,000 square highway in Nevada with 300,000 Medical School. This district is in 2022, it is expected to attract feet once completed in 2019. vehicles per day (one-tenth of the expected to bring in $181 million in 15,000 to 30,000 people a day. Additionally, the All Net Arena will state population). Currently, this Government revenue, as well as 24,182 Henderson Hospital opened fall of include a 22,000 seat retractable corridor has approximately 25,000 jobs by 2030. 2016 and is located inside the Union roof, a Victory Plaza shopping/dining lane changes in an hour and it’s been Village development. Costing $168 district, and a 44-story hotel with 500 predicted that traffic will double along million to construct, this local specialty suites. this stretch by 2035. Project Neon has acute-care hospital is part of the an estimated completion date of 2019. Valley Health System.
COLLIERS INTERNATIONAL – LAS VEGAS MARKET OVERVIEW 9 114,231 SF INVESTMENT OPPORTUNITY
LOCAL MARKET EXPERTS
SCOT MARKER MICHAEL STUART Senior Vice President Executive Vice President 702.836.3782 702.836.3739 [email protected] [email protected]