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Formerly Shea Commercial Brokerage Independently owned and operated T ABLE OF CONTENTS President's Letter 6 NAIOP The Voice of Commercial Real Estate Development 9 *ROEL Construction 10 *Faciliteq Architectural Interiors, Inc. 11 *Harsch Investment Properties 18 *Prudential CRES 20 *Marnell Properties 22 *Plise Companies LLC 28 *Majestic Realty Company 31 The Southern Nevada Office Market 32 The Southern Nevada Industrial Market 36 Public Affairs Position Paper 40 National NAIOP Organization 44 National NAIOP Awards 45 NAIOP Member Companies 46 2007 President's Circle Sponsors 47 NAIOP Presidents 48 2007 Officers, Directors, Committee Chairs 49 2007 Spotlight Awards 50 Mission Statement 54 * Paid Advertisers
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4 NAIOP 2007 ADVANCING THE EXPECTATIONS OF OUR CUSTOMERS AND THE MARKET
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The Park at Spanish Ridge was developed by Glen, Smith & Glen Development, designed by Perkowitz & Ruth Architects and built by SR Construction. A lot can happen in 21 years. As the Southern Nevada Chapter of the National Association of Industrial and Office Properties (NAIOP) celebrates more than two decades’ worth of networking, education and camaraderie, it may be the most energetic business organization in Southern Nevada. NAIOP is the trade association for developers, architects, consultants, bankers, brokers, designers, general contractors and engineers who focus on industrial and office development.
ith more than 800 mem- breakfast meetings, educational seminars, Bus Tour, Golf Tournament, Community bers, the Southern Nevada golf tournaments, mixers, award cere- Service, Industry Trends, Sustainable De- chapter is the fourth monies, bus tours and involvement with the velopment, Governmental Affairs and largest in the country. Na- various committees. Sponsorship. Wtionally, the organization is comprised of As one of the largest and most active Each committee is led by a chairperson nearly 15,000 members with 53 North chapters in the country, one might assume a who is responsible for various aspects of American chapters. full time staff is behind NAIOP’s efforts; that NAIOP’s efforts. The chapter’s board of direc- NAIOP provides members with business is not the case. While the chapter utilizes tors is comprised of 15 members who over- and networking opportunities, education Alternative Management to handle its exec- see the committees, create and maintain the programs, research on trends and innova- utive functions and other consultants to help budget and provide guidance to the chapter. tions, and legislative support. coordinate its communications and govern- “When you have as many members as “There is really something for every- mental affairs initiatives, the membership is we do, it may seem hard to please every- one,” said Tony Dazzio, president of the responsible for most of the activities. one all the time,” Dazzio said. “While that Southern Nevada Chapter. “Whether it’s “The most remarkable thing about NAIOP can be true, we think we do a great job of giving back to our community, staying in- is that it is a volunteer-driven organization,” offering our members a variety of activities formed of state and local issues, network- said Dazzio. “Our membership and commit- to chose from. Some members may just ing with friends and colleagues, learning tee chairs dedicate their own time for the come to network and build their business more about our industry or growing oppor- good of our industry and organization.” while others may be looking for support tunities for individual businesses, you can The majority of NAIOP’s outreach is co- dealing with a legislative issue. Whatever find it at NAIOP.” ordinated through its twelve committees the reason, we are excited to have them Members meet and network through a including, Membership, Programs, Educa- join us as members and think they will find variety of activities including monthly tion, Communications, Spotlight Awards, what they are looking for at NAIOP.”
NAIOP 2007 9 MEMBERSHIP Leaders” program and hosts mixers for Market Center, the Annual Putting Tourna- Becoming the fourth largest chapter in younger members. To entice these groups, ment, and the Annual Holiday Luncheon. the nation didn’t happen by accident. The as well as others, the Membership Com- Each event is always well attended. Membership Committee of the Southern mittee uses several outreach methods. Wilson said the events are held to allow Nevada chapter was established to bolster “We have two call-a-thons per year tar- members to meet each other in a social the organization’s ranks and develop geting people who have come to breakfast setting. After all, most people join the strategies to monitor growth and member meetings and didn’t join, or companies chapter to meet and network with indus- involvement. Each year, the Membership who have one representative who is al- try leaders. Committee sets a goal to attract potential ready a member and we encourage others “NAIOP allows you to meet people in the members, educate new members and pro- in firm to join,” said Bill Wilson, chair of the commercial real estate community that you vide value to current members. To that end, Membership Committee. might not otherwise meet,” Wilson said. the committee coordinates a variety of As the organization grows, the Mem- President Tony Dazzio says its not just activities throughout the year. bership Committee recognizes the need about meeting people but meeting the right Attracting new members to the organi- to help new members discover the ben- people that attract many to NAIOP. zation is one of the main focuses for this efits of their membership. “A large percentage of our members are committee. The organization continues its In 2007, the committee began hosting leaders in the industry,” said Dazzio. “If you outreach to encourage principal members, “New Member Orientation Workshops” to have a question, comment or observation, or developers and associate members, in- educate members about the organization the person sitting next to you is most likely dustry professionals who provide services and its outreach. More than 20 people at- part of the executive team in their organi- to developers, to the chapter. Equally im- tended the first workshop. zation responsible for making decisions portant is an increased emphasis on at- To reach its current members, the com- that shape the growth of the valley. You tracting a younger generation to the orga- mittee coordinates members-only net- never know who you may run into at a nization. The chapter has embraced the working events, including mixers at NAIOP event. That’s why we encourage national organization’s “Developing venues such as Celebrity Night Club, World members to get involved and attend.”
ROEL Construction Co. Delivering 90 Years of Construction Excellence
he Las Vegas office of ROEL Projects in Progress • Beck Professional Building - Construction is converging on ROEL is currently progressing on two-story 20,108-square-foot pro- Tanother record setting year the construction of the corporate of- fessional office building. since its launch in 1993. Founded on fices of Boyd Gaming. The complete • Colorado Place - 100,000 integrity, quality and trust, ROEL has build out of this four-story 109,000 square-foot rehabilitation of the been delivering construction excel- square-foot building includes demoli- mixed-use center. lence for nine decades. Whether the tion, concrete block, interior metal • Lamplight Square - 900 square- job involves small tenant improve- stud framing, landscaping, structural foot clubhouse includes a kitchen ments or large scale ground-up con- steel, and site work. and media area, as well as a struction, ROEL provides a wide array swimming pool and spa. of expertise to ensure an unparalleled 2006 – 2007 Completed Projects • Runvee Hobart Clubhouse - client experience. Most notably, ROEL completed 13,100 square-foot community ROEL attributes its continued suc- construction of the National Univer- clubhouse featuring a billiard cess to people, relationships and trust. sity campus in Henderson. This pro- room, fitness room, aerobics A testament to this ongoing dedication ject consisted of tenant improve- room, saunas, cabana and to client satisfaction, ROEL has eight ments of a new shell building. Today gatehouse. times been awarded both the American the university boasts a new state- • Towbin Hummer - 43,000- General Contractor of the Year and the of-the-art 11,323 square foot square-foot dealership including a Large General Contractor of the Year facility offering computer-equipped high-end showroom, state-of-the- from the American Subcontractors As- classrooms, a full-service computer art service department and corpo- sociation. Additionally, the 2006 Mc- lab, and multi-media lecture rooms rate offices. Graw-Hill Engineering News-Record for classes, meetings, and profes- • Dinners Ready - 1,775 square- ranked ROEL 186th amongst the na- sional rental. Additional completed foot kitchen and food preparation tion’s 400 largest general contractors. projects include: facility.
10 NAIOP 2007 PROGRAMS national market trends, children’s educa- Kyle Nagy, chair of the Education Com- tion, the Southern Nevada higher education mittee and member of the board of direc- One of the most important events NAIOP system and the challenges our transporta- tors, said the committee works hard to hosts falls under the responsibility of the tion systems will face as the economy con- offer members a variety of workshops to Programs Committee. Each month, the tinues to expand. choose from. membership comes together at its monthly The breakfast programs are extremely “We know that each of our members breakfast meetings held at The Orleans popular and typically attract between 300 want information about topics that impact Hotel & Casino. Members and their guests to 400 members and guests. their business,” Nagy said. “We look for op- are invited to hear speakers discuss a vari- “We are really proud of our breakfast portunities to provide this information in a ety of topics of interest to the commercial programs,” said Tony Dazzio, president of way where everyone walks away with real estate industry. the Chapter. “I think their importance and knowledge they did not have when they The Program Committee, led by chair impact on our membership is proven in the came in.” Ellie Shattuck, strives to secure the most number of people that join us each month. Last year, the committee introduced a notable speakers possible, often soliciting Our members and other leaders of the in- series of four permit-processing work- pillars of the community who happily agree dustry find them extremely informative.” shops to guide members through the to address the organization. Over the years necessary protocol for commercial devel- speakers have included the governor, state EDUCATION opment in the four Las Vegas Valley mu- representatives, the chairman of the Clark nicipalities. Each workshop was present- County Commission, mayors from each of One of the key benefits of joining NAIOP ed by representatives of the respective the local municipalities, the sheriff of the is the opportunity to learn more about the municipalities, so attendees learned the Metropolitan Police Department and repre- commercial real estate industry. The Edu- correct way to process commercial de- sentatives from public works, McCarran cation Committee develops informative velopments from the decision makers Airport and Nevada Development Authority. seminars and workshops aimed at enhanc- themselves. Other programs have included information ing members’ knowledge of the industry “Learning to navigate the municipalities, on green building, political races, local and and current trends. from concept through building, was a huge
Faciliteq Architectural Interiors, Inc. New Showroom Opening in Downtown Las Vegas
aciliteq Architectural Interi- careful consideration towards ors, Inc., an acclaimed Ha- ergonomics and space efficiency. The “We believe our showroom Fworth Preferred Dealer of of- evidence is in the materials, colors fice furniture and modular interiors, will demonstrate and innovative technology that will be will open a showroom in Las Vegas’ utilized in the showroom. growing art and design district. our commitment to Faciliteq Architectural Interiors, Inc. Faciliteq Architectural Interiors, office space designs add the function- Inc., a privately owned company sustainable design.” ality, organization and versatility of pro- based in Las Vegas, is known for its fessional offices to ease productivity cutting-edge design and innovative In addition to showcasing modular for all types of businesses. Office furni- integration of technology in the architectural design and sustainable ture, access floors for HVAC and tech- workplace. “We are very proud to materials, the showroom will feature nology, modular electrical and data, announce the new Las Vegas show- workstations in a variety of sizes. Fa- “smart” lighting and a movable walls room,” said Quentin Abramo, princi- ciliteq Architectural Interiors takes system demonstrated in our new pal of Faciliteq. “We believe our pride in creating collections that are showroom will offer our clientele the showroom will demonstrate our distinguished by a common thread: ability to review the fit and finish of commitment to sustainable de- office spaces should be a living cutting-edge modular interiors. sign.” The space will integrate the space, one that is functional and er- Faciliteq’s collections, displayed in the company’s working showroom, as gonomic. Faciliteq’s designs embody new showroom will offer spaces that well as displaying the wide array of a way of contemplating and utilizing appeal to the contemporary design of products and services that the com- space. The spaces are designed office furniture and meet the demand pany offers. around the user’s movements, with for innovation for decades to come.
NAIOP 2007 11 success,” Nagy said. “We brought together rolled in the Lied Institute for Real Estate The chapter’s Web site is a useful tool the developers and representatives from Studies program. The Education Committee in communicating with members. The site the public sector to have an open conver- also oversees the mentor program. The includes links to news, events, member- sation and discussion on how to make program matches real estate students with ships, sponsorships, committees and things run smoothly for both parties.” NAIOP members who meet regularly other resources. Soon, it will offer inter- Over the years, NAIOP has teamed with throughout the semester. active registration where members can other professional organizations to host “Our Education Committee performs a sign-up for events and programs directly seminars. NAIOP joined the Associated great service to the membership and pro- on the site. Broader in scope than the General Contractors Las Vegas Chapter to vides value to members,” said Tony Dazzio, magazine, the web site offers members a educate members about the impact of ris- president of the Southern Nevada Chapter. quick way to contact key members of the ing land costs, labor and materials on the “Where else can you learn about how to organization, as well as an opportunity to industry. It partnered with the local chap- submit plans, request approvals and quali- learn more about what is going on within ter of the U.S. Green Building Council to fy for assistance from the direct source?” the organization. explore green building. The discussion in- NAIOP NOW is the chapter’s quarterly cluded defining the elements of green COMMUNICATIONS newsletter. The publication has grown in building, Leadership in Energy and Envi- size from a black and white newsletter to ronmental Design (LEED) certification and For an organization the size of NAIOP, a 50 page glossy magazine. The publica- sustainable development. communicating with members is ex- tion provides recaps of the chapter’s ac- In addition to educating its current tremely important. The chapter’s Commu- tivities, informs members about upcoming members, NAIOP is also committed to as- nications Committee’s primary focus is to events, profiles members and their com- sisting the next generation of industry let members know what is happening panies, and educates members on trends leaders. In 1993, the chapter established a both inside and outside the group. NAIOP in the industry. In addition to the editorial scholarship endowment with the UNLV keeps members informed with a number content, the chapter also sells ads to Foundation and has worked closely with of communication forums including its members allowing them to get in front of the university ever since. Each year, NAIOP Web site, its newsletter, NAIOP NOW, and other members who may utilize their ser- awards a scholarship to one student en- through the media. vices or products.
HONESTY • CUSTOMER SERVICE • INTEGRITY
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12 NAIOP 2007 We build more than structures. We build your business.
PLISE has developed more than two million square feet of property throughout the Las Vegas valley and has another three million square feet currently under development and construction. Founded by William Plise in 1994, we’ve earned an enviable reputation in the commercial real estate community by developing a portfolio of projects recognized for superior design, quality construction and development excellence.
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5495 S. Rainbow Blvd., Ste 202 • Las Vegas, NV 89118 702.871.4065 • www.plise.com “The best thing about the project awards is many times our members work as a team on the development.”
“Our focus is to keep members informed tendance at this year’s event, Spotlight is about what the organization and fellow NAIOP’s signature event. members are doing, making it easier for “Each year it gets bigger and bigger,” said member-to-member interaction and for Tony Dazzio, chapter president. “This year doing business with one another,” said we had more people in attendance than ever Communications Committee chair Karen before. It’s a wonderful evening for our mem- Marshall. “In the back of the newsletter we bers to celebrate their accomplishments.” have a section called ‘Newsbites.’ This To add to the event’s prestige, the chap- section gives members the opportunity to ter’s leadership has been successful in se- get the word out about their projects, new curing high-profile Masters’ of Cere- hires, deals, etc. to other members.” monies. This year, Gov. Jim Gibbons and Another way NAIOP communicates with first lady, Dawn Gibbons acted in this role members and the community is through and handed out trophies to more than 30 the media. Members of the Communica- projects, companies and individuals. In tions Committee work closely with Mass- years past, the chapter has welcomed Gov. Media, the organization’s communications Kenny Guinn, Mayor Oscar Goodman and agency, to promote the chapter’s activities Sen. Richard Bryan among others. and initiatives to the local press. The awards show is divided into two areas “We invite the media to every event we for members to enter. First are the project have,” said Tony Dazzio, president of the awards. Under this section there are 16 cate- chapter.“We think it’s important to have a re- gories ranging from master-planned office lationship with the reporters and editors who and industrial parks and buildings to common cover our industry. I think we serve as a great area interiors. Members must submit an ap- resource for them when they are writing ar- plication, as well as a binder of supporting ticles about commercial real estate.” materials for the project. These applications and binders are judged by a panel of industry SPOTLIGHT AWARDS leaders from a neighboring market. Winners are chosen by the judges based on a list of cri- One of the highlights of the year for the teria provided to applicants before submitting. NAIOP chapter is its Spotlight Awards “The best thing about the project awards event. Hosted annually, the event brings to- is many times our members work as a gether members to recognize and cele- team on the development,” Dazzio said. brate the top projects and leaders in the in- “So the winning project may encompass dustry. The Spotlight Awards Committee two or three member companies. It’s great oversees the planning and coordination of when the winning project is developed, de- the event. With more than 800 people in at- signed, engineered and built by members.”
14 NAIOP 2007 The chapter also recognizes members, companies and teams under its industry awards. These winners are selected based on nominations from general membership and decided upon by the board. For the majority of industry awards, there is an ap- plication that has to be submitted to the board for consideration. Hosted in the spring and generally held at a new and lavish venue, the event is an evening of celebration, entertainment, din- ning and networking.To add to the fun of the evening, the committee selects a theme for each year’s event. In 2007, the event was dubbed “Survivor Southern Nevada.” The committee worked for a full year to bring to life the theme through invitations, presenta- tions, gifts, décor and the program. Led by co-chairs Barbara Demaree and Grace Ferrell and overseen by board liaisons Sallie Doebler and Rick Myers, the committee is one of the most active in the chapter. “Members of the Spotlight Awards Com- mittee dedicate a large portion of their time to make this event successful,” Doebler said. “I don’t think people realize how much plan- ning goes into an event this size. I am really proud of our committee and the work they have done over the last few years.” As the event continues to grow, so does the need for full time support. This year Al- ternative Management added Courtney Mur- phy to the team as the account manager for the Spotlight Awards. She was responsible for coordinating all aspects of the event.
BUS TOUR
Every year NAIOP hosts its annual Bus Tour.The event tours members around town to different commercial, industrial, retail and office spaces, as well as other develop- ments. The tour gives members the oppor- tunity to visit projects developed by their peers. The Bus Tour is one of NAIOP’s most popular events, with more than 420 members boarding buses for a sightseeing tour around the valley.The tour is meant to educate mem- bers on the development activities throughout the Las Vegas Valley. In addition to the educa- tional component, the Bus Tour also gives at- tendees the chance to network with develop- ers and associate members who reserve booths at the exhibit fair.
NAIOP 2007 15 This year the chapter will host its 19th be played and teams will rally behind their developments and building trends occurring Annual Bus Tour. The theme is the “Amazing representatives to obtain clues that will help throughout the Valley,” said Chris Larsen, Bus Tour,” with thematic similarities to them win the tour. As usual, the tour will cul- Bus Tour Committee Chair. “It also offers CBS’s hit show. Attendees of the tour will be minate with a cocktail party, held this year at valuable networking opportunities through competing against each other, adding an el- the All American Sports Park on Sunset Road, our exhibit booths and cocktail party.” ement of fun, competition and interactivity. just south of McCarran International Airport. At each stop, along with learning detailed “The Bus Tour offers obvious benefits to GOLF TOURNAMENT information about the property, games will members who wish to learn more about the The Golf Tournament Committee is re- sponsible for planning and coordinating two golf tournaments hosted by NAIOP every year. The tournaments – one in the spring and another in the fall – are de- signed to give members the chance to net- work and compete in a social setting. The Golf Tournament Committee, led by long- term board member Lee Phelps, chooses the venue, secures sponsorships, pro- motes the event and handles all of the ac- tivities during the day of each tournament. In previous years, both the spring and fall tournaments completely sold-out of both sponsorships and participants, easily fulfilling the event’s 144-player capacity. This year, NAIOP held its 16th Annual Stated Commercial Loans Spring Golf Tournament at the Dragon TM Ridge Country Club on Stephanie Street in Introducing:The Smart Loan Program Henderson, with Southwest Gas sponsoring — Small Balance Commercial Real Estate Loans — the event. The 72-par golf course was de- signed by award-winning architect Jay No Appraisal Fee Floating Rate Available Morrish, along with rising architect David • • * • No EDR Fee at Prime + 1/2% Druzisky, and opened in 2001. • No Tax Returns The tournament was in the format of an • No Prepayment 18-hole, four-person scramble. Trophies and Penalty Available • 30-day Closing prizes were awarded for the 1st, 2nd and • 6.75% Minimum Rate • $250,000 to $1,500,000 3rd place finishers, as well as complemen- for 3-year Fixed* Loan Balance tary shirts, hats, shoe bags and a sleeve of balls given as gifts to all competitors. SMARTER MONEY™ The upcoming fall golf tournament will be a fundraiser for the Commercial Real Estate Political Action Committee (CREPAC). Proceeds, as well as funds from purchased mulligans and raffle ticket sales will go to support the CREPAC. “Anyone who has attended one of our golf tournaments knows it’s a lot of fun but also competitive,” said Tony Dazzio, presi- dent of the chapter. “People take the game DON SONSMA – 888.634.6174 seriously and want to win the trophy and [email protected] bragging rights. It’s a great social event for – our chapter and we are able to tie in our CHRISTINA LAREZ 310.614.1133 FDIC CREPAC, which is a very important compo- [email protected] *rates subject to change nent of our governmental affairs efforts.”
16 NAIOP 2007 “Giving back to the community we serve is very important to our chapter.”
COMMUNITY SERVICE ities with an emphasis on children and year we are starting the Casey Jones senior citizens. Foundation, which falls under this com- If you want to see NAIOP members In 2007, the chapter made a commit- mittee. Through the foundation, we will get really excited, ask them about the ment to enhance its community service ef- donate money, time and resources to as- Community Service Committee. Created forts and establish a fund in remembrance sist children and seniors in need.” in 2006, the purpose of the committee of one of its most dedicated members. This year, the chapter decided to partner is to recommend non-profit organiza- “Giving back to the community we with Community in Schools, an organization tions to support and coordinate efforts serve is very important to our chapter,” that supports low-income children and fam- to help the organizations. While the non- said Tony Dazzio, chapter president. ilies through the school setting, and Helping profit organizations may change, the “Every year we enhance our efforts. Last Hands of Vegas Valley, an organization that chapter’s primary focus is on local char- year we dedicated a committee to it. This offers a bag of free groceries once a week to
NAIOP 2007 17 Harsch Investment Properties Starts 2007 with Two Major Announcements
ith one of the largest port- Harsch is also pleased to announce Other Harsch properties to pay at- folios in the Las Vegas the recent hiring of Bruce Barton as tention in 2007 are the recently com- Warea of office, industrial Senior Vice President, Regional Man- pleted Phase II, 101,000 square feet and retail totaling more than 7.5 million ager for the Las Vegas office. With of light industrial buildings available square feet, Harsch Investment Proper- more than 30 years of experience in for lease at Cheyenne Commerce ties announced the completion of their development, finance and construc- Center which caters primarily to latest development - the $53 million, tion, Bruce most recently held devel- small- to medium-sized businesses 525,000 square-foot expansion of opment positions with several Las ranging in size from 1,000 square Speedway Commerce Center located Vegas developers, including Territory, feet to 5,000 square feet and the off I-15. It is not hard to imagine why Inc. and American Nevada Corp. Bar- new $34 million, 246,999 square Harsch is expanding it's already suc- ton is a past president of the Southern feet Phase II expansion of Henderson cessful 1.4 million square-foot Speed- Nevada chapter of NAIOP, as well as Commerce Center scheduled for way Commerce Center, currently 99 one of two non-public members on the completion for early 2008. percent occupied, with eight new light City of Las Vegas Capital Improvement Headquartered in Portland, Ore- industrial flex buildings accommodat- Advisory Committee. He also sits on gon, Harsch continues to seek ing users from 3,500 square feet to the City of Las Vegas Mixed-Use Steer- quality investment and develop- 11,000 square feet. The company ing Committee which is responsible ment opportunities in office, multi- built-out all 80 units with high-quality for establishing local standards for tenant industrial and retail in Las office and all are available for lease. mixed-use development. Vegas area.
18 NAIOP 2007 low-income seniors, as well as respite care lished the Industry Trends Committee and the membership about impact. It worked for hospice workers and transportation for serves as its chair. closely with the Education and Program seniors who are unable to drive. When the committee was formed, the Committees to schedule seminars and Recently, NAIOP donated $10,000 to Com- initial topic was the emergence of green meetings to discuss the topic. The chap- munities in Schools for furniture for its Cynthia buildings and Leadership in Energy and En- ter’s leadership identified this trend as a Cunningham Elementary School health clinic. vironmental Design (LEED) certification. growing issue in the valley. To further edu- The healthcare facility is being built for low-in- The committee followed the trend and cate and assist members, it formed the come and homeless children attending the identified the people who could educate Sustainable Development Committee. school who may not otherwise have access to Continues on Page 23 important medical and dental services. Communities in Schools’ pilot program at Reynaldo Martinez Elementary School in North Las Vegas aided more than 6,000 at- risk students in its first year of operation. NAIOP President Tony Dazzio recalls the It’s about more than just keeping the lights on… tour of the school he took last year. “There are more than 150 homeless children at the school,” Dazzio said. “Those that are not homeless are near or at the poverty line and need a lot of help. We went out to the school to tour the facility and it was heart breaking. When I saw how desperate some of these children are for the bare essentials that you and I take for granted, I thought if there is something that NAIOP is going to get in- volved in and help with it is going to be this.” It’sIt’s The organization is also in the midst of it’s middle of the year a food drive for Help- ing Hands. aboutabout “We pass out paper bags with list of food items needed to members and encourage members to fill them up,” said Community Service Committee Chair Barbara Demaree. business.business. “Helping Hands serves more than 150 fam- ilies per week. The reason we do a food Jim Doubek drive in the spring is because it’s about the time they start running out from the I’m general manager Thanksgiving food drives. Last year, we pro- of Nevada Power’s vided 45 cases of food and more than $500 three new power in donations to the organization.” plants which added 1,800 megawatts INDUSTRY TRENDS and help Nevada to Keeping abreast of industry trends is continue to grow. critical for NAIOP members. Three years ago, NAIOP established a committee to identify and monitor industry trends that impact the commercial real estate industry. It is this committee’s responsibility to edu- cate members and leadership about the ef- fects these trends may have on the indus- try and the community as a whole. Rick Myers, past president of NAIOP,estab-
NAIOP 2007 19 Prudential CRES Commercial Real Estate Commercial Real Estate Outlook in Las Vegas
evelopment is in full swing in erties that are not easily accessible and incorporating retail and residential Las Vegas. Land prices are with good exposure. elements, enabling businesses to cap- Dstabilizing, lease rates are in- Those marketing inventory in grey italize on close proximity to high-den- creasing and small office buildings are shell will need to offer more creative sity residential space. selling. With low unemployment and a incentives. Rising construction costs Green building answers the con- growing population, national busi- have shifted the responsibility to land- cerns of the environmentally con- nesses want to establish a presence in lords to offer higher tenant improve- scious. The Molasky Corporate Center our market. It makes good financial ment allowances or pick up the entire is at the forefront of green building and sense for business owners to capital- cost. Some owners have built out spec is almost fully leased before construc- ize on the benefits of office space suites for immediate occupancy. Al- tion is complete. Look for more devel- ownership in a booming area. though this is risky and costly, it could opers, both commercial and residen- In the near future, buyers can pick significantly reduce the marketing time tial, to follow suit. and choose from more than 4 million and costs of carrying the property. square feet of office space in the Val- Mixed-use development and “green About the Author ley. Industry experts agree that it will building” are up and coming trends in Dana Berggren is an associate advisor take 18 to 24 months for demand to Las Vegas. To compensate for the cost at Prudential CRES Commercial Real catch up. It will be difficult for devel- of land, development is going vertical Estate in Las Vegas Valley. Dana can opers to pre-lease and pre-sell prop- with office buildings adding stories be reached at 702.363.7600.
20 NAIOP 2007
Marnell Properties Opens Five-Story Building in Marnell Corporate Center
division of Marnell Corrao As- offers flexible open floor space, a dra- 736,000 square feet of office space, sociates, Marnell Properties, matic two-story lobby entrance, retail and other amenities. Ais a real estate development scenic views from all levels and the The multi-tenant buildings in this and management company that fo- highest quality of service and ameni- center feature highly efficient floor cuses on the acquisition, development ties. The architectural environment of plans, state-of-the-art facilities, on- and management of commercial, rev- MCC-5 is designed for adaptability, site management services, access to enue-producing real estate holdings. visibility, and innovation. high-speed data infrastructure, lush In May 2007, Marnell Properties Marnell Corporate Center is strategi- landscaping, covered parking, distinc- opened a new 112,400-square-foot cally located at the intersection of In- tive public area finishes of the finest Class A office building, marking the terstate 15 and I-215 and adjacent to materials available and 360 degree latest addition to one of Las Vegas’ McCarran International Airport and views of the city. Tenants of the Mar- most distinguished master planned provides its tenants with the only Class nell Corporate Center enjoy many corporate campuses. A office environment in the airport amenities including the popular fine MCC-5 is Marnell Corporate Center’s submarket providing high visibility and dining Panevino Restaurant and at- first five-story office building and ease of access to all major points in tached gourmet deli, retail services, comes complete with a unique inde- the Las Vegas Valley. At build-out, the ATM conveniences and the location of pendent five story parking structure master-planned office campus will sit choice for companies positioned for exclusively for MCC-5 tenants. MCC-5 on 37 acres and will feature nearly growth in the new century.
22 NAIOP 2007 Continued From Page 19
“This example is exactly what the group is trying to accomplish – identifying new trends and mobilizing the membership,” said Myers. Of current concern, is the lack of avail- able land for commercial development in the Valley. This is specifically an issue with the majority of NAIOP’s industrial develop- ment members. As housing demand has increased in recent years, much of the land suitable for warehouse development and distribution buildings was rezoned and pur- chased by home builders, creating a con- cern that the distribution facilities needed to support a rapidly growing economy, would become far more difficult to develop. NAIOP worked closely with local and na- tional elected officials to bring this issue to the forefront and develop solutions to the emerging problem. Members have been researching the di- minishing supply of industrial land caused by BLM policies, escalating land costs, re- zoning to residential use and other factors and educating elected officials. The group is planning to commission a study to eval- uate future alternatives. “We feel it is our responsibility as a chapter to stay ahead of these trends,” Dazzio said. “The committee continues to be forward-thinkers, presenting the most pressing emerging trends to members.”
SUSTAINABLE DEVELOPMENT
In 2006, NAIOP formed its newest com- mittee led by Pamela Vilkin who is also the president of the local chapter of the US Green Building Council. The Sustainable De- velopment Committee’s main focus is to ed- ucate the membership about the benefits of green building and responsible development. “Sustainable Development is an issue that’s time has come,” said Tony Dazzio, chapter president. “It is critically important to the community at large and the industry, specifically.” Las Vegas has more than 25 buildings registered for Leadership in Energy and En- vironmental Design (LEED) and three of those have received the designation. Sev- eral categories are judged to be certified including the site, water efficiency, energy efficiency, material and design.
NAIOP 2007 23 The committee is already making an im- pact on the organization. The committee has identified four main goals including identifying and understanding criteria for LEED Building Certification, promoting the use of best practices among NAIOP mem- bers, gathering and monitoring information regarding sustainable development, and attending key conferences and educational events about sustainable development. The Sustainable Development Commit- tee has studied samples of environmental- ly-friendly construction materials, such as wall coverings and durable flooring prod- ucts. Research is available on the chapter’s Web site to provide members with a simple source for sustainable resources. The Sus- tainable Development Committee coordi- nated Education Committee to present “The Greening of Nevada,” an educational seminar that was the first opportunity for the new committee to inform the member- ship about their growing scope of activities. Other topics of interest are the incentive programs being offered by local utility com- panies. During a recent meeting, the group learned of trends in the construction recycling industry and will soon make a presentation on the building commissioning process.
GOVERNMENTAL AFFAIRS
While the organization is well known for TODAY, ARCHITECTS HAVE A LOT OF HELPFUL INSTRUMENTS AT THEIR DISPOSAL. STILL, NOTHING IS its networking and educational opportuni- MORE EFFECTIVE THAN SOMETHING THEY’VE HAD SINCE KINDERGARTEN — THE ties, its main focus has always been on ABILITY TO LISTEN. FOR HELP WITH YOUR NEXT PROJECT, IT’S SAFE TO SAY THAT government affairs. The chapter was WE’RE ALL EARS. JUST GO TO KORTECO.COM. formed in 1986 by a group of developers who wanted to create a unified voice to represent its interests in the community and with legislators. “The fundamental purpose of NAIOP is to represent the industry’s interests and inter- act with government at every level,” said Michael Newman, past president of the chapter and former chair of the govern- ment affairs committee. In 1990, the chapter formed its Govern- mental Affairs Committee. The purpose of the committee was to create an entity that could serve as the liaison between the NAIOP membership and state and local municipalities. Membership was com- prised of people who had an interest in im- proving the legislative and regularity climate for the chapter. 9225 W. FLAMINGO ROAD • SUITE 100 • LAS VEGAS, NV 89147 • WWW.KORTECO.COM • 702.228.9551 “The committee has been a very effec- tive group for NAIOP members,” said Tony
24 NAIOP 2007 NAIOP 2007 25 Dazzio, chapter president and past chair of public affairs position paper that formally the Governmental Affairs committee. documents the most important issues af- “Every year it has grown and become fecting NAIOP members and the commer- stronger.” cial real estate industry. The paper details NAIOP representatives regularly meet positions on taxation and construction law with politicians at all levels to provide them at the state level, and on permit processing with input on important issues to commer- time, fees for development approvals and cial development. NAIOP provides written availability of land for future development position papers, briefs on the general prin- at the local level. ciples and philosophies of NAIOP. “Together with our lobbyist groups, we “We have relationships with many of our monitor a variety of issues ranging from leaders in government,” Dazzio said. imminent domain, impact fees, construc- “Many of our accomplishments revolve tion law, land use. growth management, around relationships. Translating those rela- and tax related issues,” Dazzio said. “We tionships into a value for members and rep- McDonald Carano Wilson to represent its work to ensure our members’ interest are resenting the interests of our members at interest at the state level and continued its represented.” the very highest levels of government is our relations with Strategic Solutions at the In 1994, the committee reached an- focus. We don’t stand on sidelines with our local level. Members of the committee met other milestone when it formed the hands on our hips demanding action. We with all the legislative leadership, including Commercial Real Estate Political Action prefer to act as a resource. They can call us the senate majority leader, the speaker of Committee (CREPAC). The purpose of up and ask for assistance and we will be the assembly and all legislative committee CREPAC was to enhance the publics and happy to provide guidance on any issue that chairmen in both houses. public officials understanding of the im- has an impact on our community.” In 2006, under the leadership of then portance of commercial real estate de- In 2006, the chapter divided its govern- chapter President Ralph Murphy, the velopment through donations made to ment efforts into two categories. It hired Government Affairs Committee developed a candidates. Continued on Page 30
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26 NAIOP 2007
Plise Companies, LLC Developing Quality Construction and Aesthetic Appeal
lise Companies, LLC (PLISE), a Neva- da limited liability company, is one of Pthe leading commercial real estate development firms in Southern Nevada. Na- tive Las Vegan William Plise founded Plise Development & Construction, LLC in 1994, and in 2004, separated the development and construction operations into two sepa- rate businesses. PLISE provides a full range of development services, including, without limitation, land use and zoning, planning, fi- nancing, construction management, leasing and property management. By specializing in strategic land acquisi- tion, quality design and construction, and operational expertise, PLISE has devel- oped award-winning professional and medical office parks, retail centers and light industrial facilities that are known for quality construction and aesthetic appeal. PLISE also provides development consult- ing services for third-party real estate in- vestment opportunities while serving as the fiduciary manager. PLISE has developed more than 2 mil- lion square feet of property throughout the Las Vegas Valley, and has another 3 mil- lion square feet currently under develop- ment and construction. The projects in- clude award-winning professional and medical office parks, retail centers, healthcare facilities, light industrial facili- ties and mixed-use centers. PLISE is one of the select few develop- ers that build true Class A office space and retail centers. “We pride ourselves on being a leader in the industry,” said Mitchell Stipp, chief operating officer and general counsel for PLISE. “Our team is involved in every step of the process, from design to construction, to ensure that we’re building the very best.” PLISE has earned a reputation for devel- opment excellence. For more information, visit www.plise.com or call 702.871.4065.
28 NAIOP 2007
Continues From Page 26
“Our association is now recognized as the voice of commercial real estate devel- opment in Southern Nevada and our voice is getting stronger,” said Ralph Murphy, past president of the chapter and current Experts in Commercial Investment Real Estate chair of the Governmental Affairs Commit- tee. “As a result, we are able to offer greater service to our members, be more responsive to the needs of our community, Site Selection • Development • Brokerage and enhance our influence with federal, Leasing • Valuation • Investment Analysis state and local elected representatives.”
SPONSORSHIPS
With all of the activities and events hosted by NAIOP, the Sponsorship Com- mittee has a vital role in the success of the chapter. Led by Chair Mike Carroll, the team raises money each year to fund NAIOP’s numerous events, programs and tournaments. To contact a CCIM expert in your market, call The chapter’s main sponsorship 702-798-5156 or visit www.ccim.com source is its President’s Circle Sponsor- ship program. President’s Circle Spon- sors make up the majority of the oper- ating budget NAIOP uses throughout the year. The highest sponsorship levels in- clude free ads in NAIOP NOW and posi- tioning as the presenting sponsor of the chapter’s signature events such as Spotlight Awards, Bus Tour and the Golf Tournaments. True to form, the chapter also offers even its smallest member firms the oppor- tunity to participate as a sponsor. “We offer our members and their companies a long list of opportunities to choose from,” said Katrina Ferry, the chapter’s executive director. “Who they IN A WORLD OF CONTENDERS are trying to reach or connect with real- ly determines which sponsorship level MAP BUILDS INDUSTRY LEADERS they choose. We have them at all mon- etary levels and commitments.” Delivering premier business and technical services Each year the organization raises more to Nevada’s Industry since 1995 money through sponsorships. Often times In Nevada: 1.800.637.4634 or 702.651.4360 the best opportunities sell out quickly and members miss out. www.mapnv.com “They have the chance to get their company’s message and information in front of 800 industry leaders,” said Tony
manufacturing • construction • mining Dazzio, president of the chapter. “I think that is why we have been so successful Call with this code for a complimentary financial analysis: MAX-FA in our fund raising efforts.” The Industrial Extension Program of the Nevada System of Higher Education.
30 NAIOP 2007 Majestic Realty Co. Expanding in Las Vegas Marketplace
s one of the region’s largest com- mercial real estate developers, AMajestic Realty Co. currently has 850,000 square feet under construction in the Las Vegas area, which will bring its local portfolio total to more than 6.2 million square feet. With a develop-and-hold ap- proach and fully integrated services – from design and construction to in-house leas- ing and management – Majestic provides turn-key solutions to its tenants in Nevada and nationwide. Indeed, Majestic’s Las Vegas area client list reads like a “Who’s Who” of Nevada businesses, from high-profile gaming and hospitality companies to leading conven- tion services firms and numerous service- oriented companies that do business with area casinos. By offering prime locations, close to McCarran International Airport and the world-famous Strip, Majestic stands out. Company officials believe it is Majes- tic’s commitment to offering the finest of- fice and industrial properties that keeps tenants coming back. Majestic also has a partnership with Thomas & Mack on the 400-acre Beltway Business Park which was launched with a record-breaking $40 million, 856,000- square-foot, build-to-suit for GES. The Majestic Realty Foundation provides support to its local communities in five key investment areas – Youth, Education, Fam- ily, Health and Violence Prevention. In 2006, the Foundation placed more than 300 grants, totaling nearly $2 million, in- cluding 20 grants to worthy Nevada non- profits, including the Nevada Partnership for Homeless Youth, Classroom on Wheels, the YMCA of Southern Nevada and the Vol- unteer Center for Southern Nevada. Founded in 1948, Majestic is one of the nation’s oldest and largest privately held real estate firms, with an office, retail and industrial portfolio totaling more than 70 million square feet nationwide. For infor- mation, visit www.majesticrealty.com. Ma- jestic’s chairman and CEO, Edward P. Roski, Jr. also owns and operates the Sil- verton Resort Lodge and Casino.
NAIOP 2007 31 The Southern Nevada Office Market
The Marnell Corporate Center - MCC-4 was awarded the 2007 Office Building of the Year Spotlight Award. It was developed by Marnell Properties, designed by Marnell Architecture and built by Carson Taylor Construction Company. n Q1, 2007, the Las Vegas Valley’s Using the past four quarters’ average quar- ing Q1, 2007, the largest increase was in speculative office space vacancy rate terly absorption, it’s estimated that it will the Professional & Business Services sec- Iincreased by 1.5 percentage points to take approximately 13.4 quarters (3.4 tor, with 6,200 new jobs added, followed by 10.8 percent when compared to Q4, 2006. years) to absorb all the forward supply plus Health care and Social Assistance, with The increase in vacancy was also accom- total available space (3,965,193 SF). 2,400 new jobs added, and Financial Ser- panied by a rise in the average monthly Overall, the MSA had an unemployment vices Sector with 2,000 new jobs added. asking price, from $2.39 PSF to $2.51 PSF rate of 4 percent in March of 2007, lower FSG . The office market saw a slow start in than the seasonally adjusted rate of 4.3 VACANCY & RENTS 2007 with Q1 absorption versus comple- percent for Nevada, and below the U.S. tions showing a weak performance. Ab- seasonally adjusted rate of 4.4 percent. The Q1, 2007 office vacancy rate was up sorption lagged with 602,487 SF, resulting across the board, except for medical space in absorption-to-completion ratio of 0.47:1, MARKET & ECONOMIC TRENDS that went down by 0.2 percentage point to or .47 foot of demand for every foot of new 7.8 percent. Class A went up by 2.2 per- supply. 1.3 million SF of new office space March 2007 office employment was up centage points to 7.1 percent, Class B by entered the market in Q1, increasing the from March 2006 (the most recent month 1.9 percentage points to 11.7 percent and Valley’s office inventory to 35,507,762 SF. of data available), indicating continued Class C by 2.0 percentage points to 12.7 The amount of office space under con- growth in the Las Vegas MSA (“the MSA”) percent. Among the submarkets, vacancy struction and planned projects in Q1, 2007 office market. According to the Nevada De- dropped in the East Las Vegas submarket. amounted to 2,062,176 SF and 3,122,056 partment of Employment, Training and Re- Every other submarket posted an increase SF, respectively. habilitation, 230,300 office-related jobs in vacancy rates, with the largest being in Whether forward supply of 5,184,232 SF, were recorded in March 2007, an increase the North Las Vegas. assuming all of it was built, will lead to a of 10,600, or 4.8percent, from March Office projects completed in Q1, 2007 rise in vacancy in subsequent quarters and 2006. The MSA’s office-using employment were 47.7 percent vacant. Those completed depend on how quickly it is completed and posted growth for the 13th consecutive between Q1, 2003 and Q4, 2006, some of the rate of office-oriented job creation. quarter. During the 12-month period end- which were still leasing up, had an average
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NAIOP 2007 33 vacancy of 7.3 percent, an increase from Q4, 2006’s 9.07 percent. Projects built be- tween 2000 and 2002 averaged 5.0 per- cent vacant, up from last quarter’s 4.8 per- cent. Projects built between 1995 and 1999 were 6.3 percent vacant, a 1.0 percentage point increase from last quarter. Finally, projects completed prior to 1995 averaged an 8.0percent vacancy, a 0.2 percentage point increase from last quarter. Overall, the Valley’s average monthly asking office rent increased to $2.51 PSI. Rents rose in every submarket this quarter except North Las Vegas. The three largest increases were in the Airport ($0.19), Downtown ($0.13) and Northwest ($0.12). All product types saw a rise in average asking rents, with the largest being in Class A ($0.19). (Note: rents are based on the va- cant space reported by quarter, not the total building square footage). Office projects completed in Q1, 2007 rented for an average of $2.88 PSI per month, while those between Q1, 2003 and Q4, 2006 had an average monthly asking rent of $2.72 PSI in Q1, up from $2.28 PSI in Q4. Those projects built between 2000 and 2002 averaged $2.42 PSI, up from $2.32 in Q4. Projects built between 1995 and 1999 averaged $2.39 PSI, and those completed prior to 1995 averaged $1.02 PSI, each showing increases from Q4, 2006. The consumer price index for the west- ern urban regions has risen by 16.6 per- cent since 2001. Adjusting office rents in Q1 for inflation, the average asking rent of $2.51 PSI equaled $2.15 PSF. The graph illustrates the inflation-adjusted asking rents using Q1, 2001 as a base- line. As the chart shows, office rents, on average, did not keep pace with inflation for 22 quarters (5.5 years) until Q4, 2006. This situation was helped by of the his- torically low mortgage interest rates that existed for much of the period. Office completions in Q1, 2007 totaled 1,283892 SF, increasing from the 785,817 SF recorded in Q4. This should be taken as welcomed news, as office demand was generally soft. Most of this new office space was located in the airport submar- ket. The Valley’s oldest office submarkets (Downtown, West Central and East Las Vegas) saw very few completions in Q1, and East Las Vegas saw no new comple-
34 NAIOP 2007 tions. By product type, most completions in Q1 were in Class B (312,191 SF) and Class C buildings (1,742,641 SF), with 32.5 per- cent and 37.1 percent of the total, respec- tively. Although no new Class A office pro- jects were completed in 2006, Q1, 2007 saw a 29 percent share of completions. Forward-supply decreased in Q1 from Q4, dropping by 1,568,214 SF to 5,184,232 SF. Approximately 37.9 percent of the for- ward supply in Q1, was under construction, representing approximately 5.8 percent of the existing office inventory. Most of this forward-supply was concentrated in the Southwest submarket (2.86 million SF). If all of the office space presently under construction or planned is completed (which is not likely), it would represent a 14.6 per- cent increase in the Valley’s speculative of- fice inventory. Additionally, if all available space in existing buildings were added (3,965,193 SF) to this forward-supply, it would take approximately 13.4 quarters (3.4 years) to absorb it all at the past 4 quarters’ average absorption rate of 681,265 SF.
DEMAND
Net office absorption increased in Q1, 2007 to 602,487 SF from 485,161 SF in Q4. However it represented only 47percent CPS offers permanent & temporary of new completions in Q1. Absorption this Security Solutions quarter is higher than Q1, 2006, when 385,040 SF were absorbed. The resulting absorption-to-completion ratio was 0.47:1 at the end of Q1. On a positive note, net ab- sorption was positive for all products. Pro- fessional Class A office space had the high- CPS Security (USA), Inc. • Construction Protective Services • Commercial Protective Services • eCamSecure™ est net absorption in Q1 with 344,632 SF, followed by Class C (145,964 SF), Class B Security Packages to Fit Your Needs & Budget (86,256 SF) and Medical (25,635 SF). • On-site Security Trailers & Motion Detection/Alarm Systems Net office absorption was positive in Airport (132,809 SF), Downtown • Mobile Video Surveillance Units (MSU) with Remote (234,509 SF), East Las Vegas (60,397 Client Viewing Capabilities & On-site Video Recording SF), Henderson (33,547 SF), Northwest • Certified Security Officers for Patrol or to Enhance (79,916 SF) and Southwest (120,265 Any Security Package SF). West Central and North Las Vegas recorded negative absorption.
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NAIOP 2007 35 The Southern Nevada Industrial Market
The Southeast Loft District was awarded the 2007 Industrial Building of the Year Spotlight Award. It was developed by Familian of Nevada, Inc., designed by C2G Architecture Design Construction and built by Familian Development Group. n Q1, 2007, the Las Vegas Valley’s VACANCY & RENTS west, East Las Vegas and North Las Vegas all speculative industrial vacancy rate in- had vacancies higher than the Valley aver- Icreased by 0.3 percentage points to The overall direct vacancy rate was 4.3 age. The Valley’s lowest vacancy rate was in 4.3 percentage. The increase in vacancy percent in Q1. This was 0.3 points higher the Airport submarket (2.9 percent). was also accompanied by a rise in the av- than vacancy recorded in Q4, 2006 (4.0 per- Industrial projects completed within Q1, erage monthly asking price, from $0.77 per cent). Among the submarkets, vacancy de- 2007, some of which were still leasing up, square foot (PSF) to $0.81 NNN. The indus- creased in North Las Vegas, Airport and East had a 7.7 percent vacancy rate. Those be- trial market saw a strong start in 2007 with Las Vegas submarkets. Every other submar- tween Q1, 2003 and Q4, 2006, had an aver- Q1 absorption showing an above average ket posted an increase in vacancy, with the age vacancy of 9.1 percent, an increase performance in relation to completions. In- largest being in the Northwest industrial sub- from Q4, 2006’s 8.5 percent. Projects built dustrial space saw 2.27 million square feet market by 6.0 percentage points. The South- between 2000 and 2002 averaged 2.2 per- (SF) of new space entering the marketplace higher than the record breaking 2.0 million SF recorded since we jointly began track- ing the industrial market in 2001. This increased the Valley’s inventory by 2.5 percent to 94,741,497 SF. Direct net absorption in Q1 (1,901,339 SF) was higher than that recorded in Q4, 2006 (331,188 SF). This resulted in an absorp- tion-to-completion ratio of 0.84:1, or .84 foot of demand for every foot of supply. Given the amount of industrial space under construction (2,804,040 SF) and planned projects (5,326,605 SF), it will take approximately 9.4 quarters (2.3 years) to absorb all forward supply (there is no guarantee that it will all be built) plus existing vacant space (4,211,943 SF), using the past four quarters’ average quarterly absorption of (1,314,244 SF).
MARKET & ECONOMIC TRENDS
March 2007 industrial related employ- ment was up from March 2006 (the most recent month of data available), indicat- ing continued growth in the Las Vegas MSA (the MSA) Industrial market. Accord- ing to the Nevada Department of Employ- ment, Training and Rehabilitation, 169,000 industrial related jobs were recorded in March 2007, an increase of 2,700, or 1.6 percent from March 2006. During this 12-month period, the largest increase was in the transportation and warehousing sector, with 1,900 new jobs added, followed by manufacturing, with 1,400 new jobs added. Construction lost approximately 600 jobs. Overall, the MSA had an unemployment rate of 4.2 percent in March of 2007, lower than the seasonally adjusted rate of 4.3 percent for Nevada, and below the U.S. seasonally adjusted rate of 4.4 percent.
NAIOP 2007 37 cent vacancy, down from last quarter’s 2.5 percent. Projects built between 1995 and 1999 were 3.0 percent vacant, a 0.2 per- centage point drop from last quarter. Finally, projects completed prior to 1995 averaged a 3.5 percent vacancy, a 0.2 percentage point increase from last quarter. Overall, the Valley’s average monthly asking industrial rent increased to $0.81 PSF. Rents rose in North Las Vegas ($0.11), Northwest ($0.29), Southwest ($0.03) and West Central ($0.03). Rents fell in three submarkets like Airport ($0.20), East Las Vegas ($0.02) and Hen- derson ($0.10). All product types, except Light Industrial, saw a rise in average ask- ing rents with the largest being Warehouse Distribution ($0.08). (Note: rents are based on the vacant space reported by quarter, not the total building square footage). Industrial projects completed in 2007 rent- ed for an average of $0.74 PSF per month, while those completed between Q1, 2003 and Q4, 2006 had an average monthly asking rent of $0.94 PSF Q1, 2007, up from $0.76 PSF in Q4. Those projects built between 2000 and 2002 averaged $0.90 PSF, down from $0.99 in Q4. Projects built between 1995 and 1999 averaged $0.81 PSF, and those com- pleted prior to 1995 averaged $0.74 PSF. The consumer price index for the western urban regions has risen by 16.6 percent since 2001 (the base-year). Adjusting the Q1’s in- dustrial rents for inflation, the average asking rent of $0.81 PSF equaled $0.70 PSF. The graph illustrates the inflation-adjusted asking rents with Q1, 2001 as baseline. As the chart shows, industrial rents, on average, did not keep pace with inflation for 20 quarters (5 years) until Q1, 2006. This situation was helped by the historically low mortgage inter- est rates that existed for much of the period.
SUPPLY
Industrial completions in Q1, 2007 to- taled 2,271,923 SF, an increase from 834,750 SF in Q4, 2006. Most of this new industrial space was located in the South- west (1,404,319 SF) submarket. East Las Vegas and Northwest submarkets saw no new completions. By product type, 74 per- cent completions in Q1 were in Ware- house Distribution space (1,690,713 SF). There were no completions recorded for
38 NAIOP 2007 Incubators. By submarket, the Southwest led the Valley in Q1 with 1,404,319 SF, fol- lowed by North Las Vegas 508,644 SF,Air- port 336036 SF, Henderson 15,971 SF and West Central 6,953 SF. Forward-supply decreased in Q1 from Q4, dropping by 565,229 SF to 8,130,645 SF. Approximately 34 percent of this for- ward supply in Q1, 2007 was under con- struction (2,804,040 SF), representing approximately 3 percent of the existing inventory. Forward-supply was concen- trated in the North Las Vegas submarket (1.45-million SF). Most of this forward- supply was Warehouse Distribution, R&D Flex and Light Distribution space. If all of the industrial space presently under construction or planned is completed (which is not likely), it would represent an 8.6 percent increase in the Valley’s indus- trial inventory. Additionally, if all available space (4,211,943 SF) in existing buildings were added to this forward-supply, it would take approximately 9.4 quarters (2.3 years) to absorb it all, using the past 4 quarters’ average absorption of 1,314,244 SF.
DEMAND
Net industrial absorption increased in Q1, 2007 to 1,909,339 SF from 331,188 SF in Q4, 2006. However, this represented only 84 per- Full Service cent of new supply, resulting in an absorption- to-completion ratio of 0.84:1. Absorption this Commercial quarter is also higher than Q1, 2006, when 1,756,838 SF were absorbed. Net absorption Real Estate was positive for all products except Incubator (125,610 SF) and Light Distribution (43,462 • Property Managment SF). Warehouse Distribution industrial space • Leasing had the highest net absorption in Q1 with 1,557,616 SF, followed by Light Industrial • Sales (154,676 SF) and R&D Flex (74,923 SF). Net industrial absorption was positive in Airport (431,794 SF), East Las Vegas (8,726 SF), North Las Vegas (623,720 SF) and Southwest (1,146,319 SF) submar- Marge Landry kets. Henderson, Northwest and West Central recorded negative absorptions.
John Restrepo is principal of Restrepo Con- sulting Group LLC (RCG), an authoritative source of information, research and strategic 702-837-5880 advice related to the economic, demograph- ic, and real estate development of Nevada [email protected] and the Southwest.
NAIOP 2007 39 PUBLIC AFFAIRS POSITION PAPER
National Association of Industrial and Office Properties Southern Nevada Chapter
AIOP members are dedicated to 4. Ensure development approvals are ob- personal income tax, gross receipts tax, in- improving the quality of life in our tained in a reasonable time so development ventory tax, franchise tax, inheritance tax, Ncommunity and sustaining the vi- projects can be delivered on schedule. estate tax or gift tax. However, Nevada is tality of our local economy. The Southern 5. Manage responsible growth using a bal- faced with the challenge of financing the Nevada Chapter of NAIOP supports our mem- anced approach employing sustainable de- capital and human infrastructure for one of bers’ commitment to creating the office, in- velopment practices. the fastest growing states in the nation. dustrial and mixed use facilities necessary for 6. Improve the quality of education in our the continued growth of our community. state to ensure our system produces a pro- NAIOP Supports ductive future workforce. • The current tax structure in Nevada Objectives: Our public affairs agenda is 7. Ensure all levels of our workforce are which will sustain our competitive position guided by the following objectives that are able to secure housing in our community. in the region and the country. essential for the long term health of our • Reasonable tax incentives for businesses economy and the improved quality of life in Issues: and individuals to secure a competitive ad- Southern Nevada: Our public affairs program is focused on vantage over neighboring states. the following state and local issues: • The authority of our elected officials to 1. Maintain our business friendly tax struc- set tax policy. ture to sustain our competitive advantage TAXATION – The State of Nevada has a fa- in the regional and national marketplace. vorable tax structure. The economy of NAIOP Opposes 2. Ensure the continued availability of of- Nevada is unlike any other state and re- • Implementation of new taxes that would fice, distribution, industrial and mixed use quires a tax policy that is fairly balanced impose an unfair imbalance among its facilities needed to maintain our economy. among its tax payers. Our tax system is taxpayers, an unreasonable burden on 3. Ensure that development fees remain at one of the least burdensome in the country, businesses or reduce Nevada’s competi- levels which do not have a negative impact providing individuals and businesses a tive position. upon the financial viability of development competitive advantage over other states in • Imposition of different tax rates for differ- projects. the region. Nevada has no corporate or ent types of real estate properties.
40 NAIOP 2007
• Imposition of artificial limits on property NAIOP Supports assessments or property tax rates if such • Policies that recognize that growth is es- limits would create serious shortfalls in sential to economic vitality. state and local government revenues. • Policies that balance growth of residen- tial with growth of facilities that support CONSTRUCTION LAW – The construction employment opportunities. industry in Nevada is, arguably, the most • Dynamic and on-going planning processes robust of any state in the nation. The leg- that anticipate and accommodate develop- islature is challenged with enacting laws ment needs in response to market demand. that address the changing needs of our • Designation of federal land for industrial state without unfairly placing interests of and office park development. one group above those of another. Sensi- • The development of mixed use commer- tivity to legislative proposals is necessary cial projects to create concentrations of to ensure legislation is not enacted that density in certain designated areas to pro- complicates the development process and vide a balance of employment with the sur- adds to the cost of individual projects. rounding residential development. • Adoption of sustainable development NAIOP Supports practices to improve the energy efficiency • Governing the relationship between the and environmental sensitivity of our devel- parties involved in development projects by opment projects. the terms and conditions contained in the • Revitalization of urban centers and older contractual agreements between the parties. suburbs through policies that encourage infill development and redevelopment of NAIOP Opposes brownfields sites. • Laws that do not fairly balance the rights of all parties regarding payment for services. NAIOP Opposes • Laws that do not fairly balance the rights • Conversion of land appropriate for indus- of all parties regarding the right to repair trial or office development to primarily res- defective work. idential use unless substitute land is iden- tified and designated for such use. LAND USE AND GROWTH MANAGEMENT – • The dissipation of the present inventory Southern Nevada continues to experience a of unimproved industrial land in the Las sustained rate of growth that is nearly un- Vegas Valley without measurable attempts precedented. As a result of this growth, the by local municipalities and the county to supply of land suitable for future development replenish this diminishing supply of land to is limited and land prices have more than dou- support the growth of the local economy. bled in the last few years. The cost of land no longer supports development of industrial facil- DEVELOPMENT FEES – NAIOP members ities in many cases and some properties have make significant contributions to public been rezoned for residential development. revenues through the payment of taxes and Land zoned for office and especially industrial fees on real estate development projects. development is in critically short supply and Fees associated with these projects include could be exhausted by the next decade if new fees for project entitlements; environmen- sites are not entitled. There are no easy an- tal, traffic and drainage studies; building swers for the complex issues that encompass permits; and utility connections. Taxes on the concept of smart growth management. developers include property taxes, transfer NAIOP is a resource for citizens, businesses taxes, business license fees and other and governmental bodies that want to forge so- taxes. Developers also contribute rights-of- lutions built on objective information and sound way for street dedications and pay for road development principles. NAIOP as a policy improvements, utility installations and other does not support or oppose individual develop- off-site costs. Agencies have increased ment projects; however, it does encourage fees as they transition to an enterprise fund each municipality and county to adopt and sup- structure where fees for services are set at port a general plan that provides for balanced levels to pay for the cost of the services and managed growth over the long term. provided. NAIOP members are monitoring
42 NAIOP 2007 enterprise fund agencies to ensure fees are NAIOP plan check procedures. maintained at competitive levels. • The use of enterprise fund surpluses for members are dedicated capital improvements or outsourced plan NAIOP Supports to improving the checks and inspections. • Competitive fees for service and entitle- quality of life in our community ment approvals provided the fees are pre- NAIOP Opposes dictable and services are delivered and sustaining the vitality • Imposition of increased fees for project promptly. of our local economy. approvals without delivery of timely and • A fair and equitable allocation of impact consistently predictable projects reviews fees for capital infrastructure improve- and approvals. ments that are clearly warranted. checklists, planning constraints and building • Mandated formal impact reports that codes have an impact on the viability of would impose an undue burden on private NAIOP Opposes every commercial project. The financial development projects. • Imposition of additional conditions or in- consequences of delays can be detrimental creased fees on development projects to to developers and users of real estate facili- COMMUNITY CONCERNS – NAIOP mem- cover shortfalls in public revenues from ties. NAIOP members are working with local bers are concerned about the quality life in other sources. governments and agencies to simplify and our community, the effectiveness of our ed- streamline processing and approval time. ucational system and the availability of PROJECT APPROVALS – The financial housing that our workforce can afford. success of each real estate development NAIOP Supports project is contingent upon the prompt ap- • Prompt approval of plans and submittals NAIOP Supports proval of the project by all governmental ju- by government and regulatory agencies • Improving the quality of the education in risdictions and regulatory agencies. The commensurate with the levels of fees Nevada. growing complexity of the entitlement charged for project reviews. • Innovative programs to address the process, environmental reviews, regulatory • Streamlined processes or accelerated shortage of workforce housing.
NAIOP 2007 43 Outside is a beautiful The National NAIOP Organization
thing he National Association of Indus- strengthened on all levels, from Capitol trial and Office Properties is the Hill to every chapter and throughout the nation’s leading trade association industry. The accomplishments from T 2005 are innumerable; below is a sam- for developers, owners, investors and other professionals in industrial, office pling of the successes NAIOP and its and mixed-use commercial real estate. members achieved. NAIOP provides communication, net- • Established an exclusive summit series working and business opportunities for all studying mixed-use success stories from real estate related professionals, provides across the country. These in-depth, high- a forum for continuing education, and ly interactive programs focused on the in- promotes effective public policy, through dustry’ s hottest trend in commercial real At The Groundskeeper, we provide its grassroots network, to create, protect estate development. companies and communities of and enhance property values. • Instituted the NAIOP Green Develop- all sizes solutions they can feel Founded in 1967, NAIOP’ s extensive ment Award to honor a NAIOP company confident knowing will keep their network comprises 52 chapters in North that has best exemplified innovation, effi- grounds and appearance up to America that provide members opportu- ciency and quality in the field of green only the highest standards. nity to participate and enhance their busi- development. In 2005, the award was ness through educational programs, net- presented to Corporate Office Properties Call us at 702-657-0087 or visit working and government affairs on a Trust. www.groundskeeper.com today to • Supported efforts to improve industry see how over 30 years experience local level. Nationally, members may par- diversity via minority apprentice pro- outside can help your business be ticipate in numerous educational confer- more confident and profitable on ences and the National Forums for pro- grams, new membership services for the inside. fessional development. young professionals and career resources NAIOP is a member-driven association, for students. • maintenance with a national staff headquartered out- • Grew the association and topped the • improvements side Washington, D.C. The association is 13,000-member mark – the highest in • installations guided by a 10-member executive com- NAIOP history. • turf conversions mittee and a 68-number board of direc- • Increased political and networking tors. The national chairman, executive strength by establishing a new NAIOP committee and board help set the associ- chapter in Detroit, Mich. and exploring ation’s agenda. new chapter growth for 2006. NAIOP offers education programs, re- • Hosted seven national education oppor- search on trends and innovations, net- tunities, with courses ranging from fun- working opportunities and strong legisla- damental development courses to capital tive representation. Its members are the markets, as well as the Annual Confer- principal players who shape the industry. ence that provided expert assessments of NAIOP has partnered with AMPIP (Mex- the economy, markets and industry NEVADA • ARIZONA • NEW MEXICO ican Association of Industrial Parks) to ex- trends. EMPLOYEE OWNED SINCE 1993 pand the association’s international • Broadened education opportunities for 1427 GRAGSON AVENUE joint-venturing on a capital markets con- LAS VEGAS, NV 89101 reach. 702-657-0087 ference with the International Council of Accomplishments in 2005 Shopping Centers. WWW.GROUNDSKEEPER.COM • Published a new guide – “Rules of NEVADA CONTRACTOR Under the leadership of 2005 Chairman Thumb for Distribution/Warehouse Facili- LICENSE NO. 29824 C10 Joseph Taylor, the united voice of ties Design” – that provides guidance on NAIOP members across North America developing efficient industrial facilities.
44 NAIOP 2007 Southern Nevada Chapter Received National Recognition
he Southern Nevada Chapter of lands committee which is heavily involved with monthly breakfast meetings and reaching NAIOP was recognized at the nation- the future availability of industrial land in out to new members. Greeters at the break- T al level with two awards this year at Southern Nevada. His emphasis on quality pro- fast meetings introduced members to one the Annual Chapter Merit Awards ceremony gramming for the breakfast meetings, semi- another and the chapter president made a held in Washington, D.C. Ralph Murphy re- nars and workshops provided members with point to welcome guests and new members. ceived the Outstanding Contribution by a up to date information on issues such as fi- At the monthly meetings, the list of new Chapter President Award and the Member- nancing, green buildings, power and gas avail- members was parceled out to committee ship Committee was recognized for member- ability and hookup. members who would personally contact them ship growth at the awards ceremony, which Two new committees were formed under his about educational, networking and volunteer is the highlight of the Annual Chapter Leader- leadership: Community Service and Sustain- opportunities within the organization. The ship and Legislative Retreat. able Development. Both of these will improve mentor would also invite them to become part Murphy served as president of the Southern the quality of life in the broader community, as of standing committees and monitor them to Nevada Chapter in 2006, when the chapter well as provide leadership and substance to the ensure that they integrated into the chapter. celebrated its twentieth birthday. His leader- general membership. “Ralph’s philosophy of Finally, exclusive members-only mixers ship strengthened and inspired the already ac- mentoring has helped to uncover and develop and parties increased the cachet of mem- tive chapter. “Ralph has forged a functioning the untapped talent within our chapter mem- bership and added another reason to join. and closely-knit membership as never seen bership,” wrote Sallie Doebler, NAIOP Board In December of 2005, the committee made before,” wrote 1997 Chapter President Tim Member, in her letter of recommendation. a goal of increasing membership from 686 Snow. “He has accomplished this by stimulat- “Under his direction members feel they are a to 750, by the end of the year. NAIOP ing our 15 or so standing committees and vibrant part of the growth of our chapter, and counted 758 members on January 1, 2007. forming new task-forces for pertinent local is- new leaders for tomorrow are developed.” sues (LEED certified buildings, industrial land scarcity, community giving and total chapter MEMBERSHIP AWARD communications). In this manner Ralph has given a substantial portion of the membership Murphy’s leadership added a vibrancy to a feeling of involvement and ownership in the the organization that may have been most INNOVATIVE well-being of the chapter.” reflected in the Membership Committee’s During his presidency, Murphy enhanced the goal to establish a firm hold as the fourth EXTRAORDINARY chapter’s political presence at the state and largest chapter in the country. The Member- local levels. Through his initiative, NAIOP began ship Committee developed a strategic plan VISIONARY to provide council and input to draft bills for the to increase new members and add value for 2007 legislation and the executive branches of existing members. During a December 2005 the state’s government. It made a goal of meet- retreat, the 23-member committee created EVOLVED ing with a wide array of elected leaders and be- four subcommittees to help the team reach coming involved in the campaign process, in- out to potential and existing members: So- cluding contributing more than $75,000 cial Events, Mentoring, Recruitment, and through the chapter PAC in election or re-elec- Marketing. They also decided that increased tion of state and local candidates. The chapter membership retention could be obtained also developed white papers on key issues to best by increasing member recognition at Southern Nevada commercial builders includ- breakfast meetings and improving new ing such topics as eminent domain, land take, member interaction at all NAIOP events. BLM land policies and property tax limitations. They also decided to increase the number Because of his leadership, the governor, as well and quality of members-only events, includ- as the senate majority and minority leaders, are ing the highly successful party at Red Rock Evolution of Development turning to NAIOP for advice on various legisla- Resort and Casino celebrating the chapter’s tion related to NAIOP interests. 20th anniversary. 5525 South Decatur Blvd., Ste. 101 In addition to upping the ante on govern- The committee made a commitment to en- Las Vegas, NV 89118 ment affairs, he raised the bar for other com- hance interaction with new and existing P: 702.222.3022 - F: 702.222.0961 mittees. Murphy established an industrial members by sitting at different tables at the www.lapour.com
NAIOP 2007 45 NAIOP Member Companies 2007
1 Velocity, Inc. Diversified Communications Solutions, Inc. LaPour Rice Silbey Reuther & Sullivan, LLP 1st Commerce Bank Diversified Realty Las Vegas Development Company, LLC RMI Investment Services Access Commercial Mortgage Domingo Cambeiro Corp. Law Office of Garry L.Hayes Roche Constructors, Inc. Action Building Group DP Partners Leavitt Insurance Agency Roel Construction Company, Inc. ADT Security Services, Inc. DSA Development Ledcor Construction Inc Romano Realty, Inc. Affordable Concepts, Inc. Dunn-Edwards Paints Lee & Associates RRC Consulting Group, Inc. All World Promotions Durango Construction, Inc. Lee & Sakahara Architects RSM McGladrey American Asphalt & Grading Co. Dwyer - Curlett & Company Lied Institute for Real Estate Studies Sansone Companies American Nevada Company Dynamic Commissioning Solutions, Inc LND Construction Scott L. Baker Architect, Inc. AmPac Development Company Ed Vance & Associates Lucchesi Galati Architects, Inc. Service 1st Bank of Nevada Amtec Communications EJM Development Co. Majestic Realty Co. SH Architecture Anchor Development EKN Engineering, Inc. Manning Finance LLC Sierra Health Services, Inc. Applied Analysis Embarq Marcus & Millichap Signature Homes ARGO Corporation Encore Commercial Inc. Mark IV Capital Silver State Bank Aspen Communications Equipment Management Technology Services Mark L. Fine & Associates Sky Mesa Realty Asset Preservation, Inc. Equity Advisors Group Marnell Properties Sletten Companies of Nevada Inc. Assurance Ltd. Equity Title of Nevada Martin-Harris Construction Co. Snell & Wilmer, LLP Asylum Design, LLC Ernst & Young LLP MassMedia Southern Nevada IBEW/NECA - LMCC Aztec Engineering ESG Construction Consultants Matt Construction, LLC Southwest Engineering Bank of America Nevada Ethos/Three Architecture McCarthy Building Companies, Inc. Southwest Gas Corporation Bank of Nevada Facilitec of Nevada, Inc. McDonald Carano Wilson LLP Southwest Title Company Bank of the West Familian Development Group, Inc. McFadden Insurance Agency Inc Spectrum Surveying & Engineering Barker Drottar Associates, L.L.C. Fidelity National Title Agency of Nevada, Inc. Metro Commercial Properties SR Construction, Inc. Bergelectric Corporation First Horizon Construction Lending Molasky Group of Companies SSA Architecture Blue Heron LLC First National Bank of Nevada Mountain West Small Business Finance Stable Development, LLC Bonneville Mortgage Company FKC Properties, Inc. Nadel Architects Inc. Stantec Consulting, Inc. Brian Berg Insurance Services, Inc. Fluoresco Lighting & Signs NAI Horizon Stewart Development Company Brooks Corporation General Contractors G.C. Garcia Planning & Development Services Nevada Business Journal Stoltz Management Brown & Brown Insurance GE Real Estate Nevada Commerce Bank Strata Building Group, LLC Builders Capital, Inc Gensler of Nevada Nevada Commerce Bank Studio VBM, LLC Burke & Associates, Inc. Geotechnical & Environmental Services, Inc Nevada Pacific Realty Capital Summit Builders of Nevada Burnham Real Estate GeoTek, Inc. Nevada Power Company Sun Commercial Real Estate Business Bank of Nevada Glen, Smith & Glen Development Nevada Real Estate Group LLC/ Mission Sunland Asphalt Business Community Capital Golden City Mortgage Completed Contractors Tate Snyder Kimsey Architects Business Properties Group Goldwater Capital Nevada Nevada State Development Corporation Terra West Realty BusinessSuites Granite Exchange Services New Growth Real Estate Company Terracon Capital West Development, LLC Greenspun Media Group NextGen Integrated Solution Territory Incorporated CapSource Inc. Grubb & Ellis | Las Vegas Nigro Development The Bentley Group Real Estate Advisors Carpenter Sellers Associates Architects Harris Consulting Engineers Noggle Exchange The Business Press Cartmill Rogers Construction Company Harsch Investment Properties, LLC Oakview Construction The Gilmore Company CB Richard Ellis Hatcher Constuction Company Oakwood Corporate Housing The Howard Hughes Corporation Chicago Title Haworth, Inc Office Furniture USA The Korte Company Christopher Commercial Hedley Construction & Development OGI Environmental, LLC The Regus Group CIP Real Estate Helix Electric Olympia Development Corporation The Ribeiro Corporation Citation Property Group Heller Companies OneCap The Staubach Company City National Bank Henriksen/Butler Design Group Opulence Studios Inc. The WLB Group, Inc. City of Henderson Economic Development Hollister Construction Company Orgill/Singer & Associates Thomas & Mack Development Group City of Las Vegas Houldsworth, Russo & Co. Origin Properties, LLC Ticor Title City of North Las Vegas Indigo Architecture, Inc. P G A L TitleOne Civil Works, Inc. Inter-Tel Technologies, Inc. Panattoni Construction Inc. Tower Realty & Development. LLC Clark Construction Group, LLC Investment Equity Development Panattoni Development Company Town & Country Bank Clark County Comprehensive Planning IPG Commercial Real Estate Services Panelized Structures, Inc. Tradewinds Construction Clark County Las Vegas Township Constable IPX1031 Parker Scaggiari Trammell Crow Company Coldwell Banker Commercial ETN Real Estate Services Irwin Union Bank Parsons Behle & Latimer TRC Colliers International, Inc. J & D Inc. PCI Group Trident Property Management, Inc. CommCap Advisors J.D. Construction, Inc. Perkowitz & Ruth Architects TWC Construction, Inc. Commerce CRG/Cushman & Wakefield Alliance Jackson Shaw Company Perlman Architects, Inc. United Construction Company Commercial Executives Jaynes Corporation Pezzillo Robinson Venture Corporation Las Vegas Commercial Roofers, Inc. JMA Plise Companies, LLC VenturePoint Development Communication Electronic Systems Joel Laub & Associates Poggemeyer Design Group, Inc. Voit Commercial Brokerage Community Bank of Nevada Johnson Jacobson Wilcox Post, Buckley, Schuh & Jernigan, Inc. Walter P. Moore Conde Del Mar Properties Juliet Land Company Progressive Roofing d.b.a. Progressive Watt, Tieder, Hoffar & Fitzgerald, LLP Construcion Testing Services, LLC Kaercher Campbell & Associates Insurance Services Inc. Wells Fargo Bank Construction Consultants. Inc. Brokerage ProLogis WESTAR Architectural Group/NV, Inc. CORE Construction Kalb Construction Company Prudential Americana Group, REALTORS Western Realco Cornerstone Company Keller Williams Realty Prudential CRES Western Risk Insurance CORT Business Services Ken Templeton Realty & Investments, Inc. R & O Construction Western Technologies Inc Creative Wealth Strategies Williams Group KeyBank RAFI Architecture Westland Enterprises Crescent Real Estate Equities, Ltd. Kimley-Horn & Associates, Inc. RBF Consulting Whiting-Turner Contracting Company Crisci Builders Kitchell Contractors RDS Associates, LLC Windermere Prestige Properties Dekker/Perich/Sabatini, Ltd. KKE / HFTA Architects RE/Max Extreme WPH Architecture. Inc Desert Community Bank Kummer Kaempfer Bonner & Renshaw Regal Financial Bank WRG Design, Inc. Design Concepts, Inc. L.M. Construction Company, LLC. ReMax Millennium Commercial Wright Engineers DesignCell Architects Land America Commercial Services Remax Platinum XO Communications DFD Cornoyer Hedrick Land America Financial Group Resource Reality Inc. Young Electric Sign Company Distinctive Real Estate & Investments, Inc. Landry & Associates, Inc. Restrepo Consulting Group LLC Zions Small Business Finance Diversified Capital Funding Langan Engineering & Environmental Services RG Group Zone Engineering
46 NAIOP 2007 NAIOP Southern Nevada Chapter 2007 PRESIDENT’S CIRCLE SPONSORS
PLATINUM GOLD Burke & Associates, Inc. Glen, Smith & Glen Development CB Richard Ellis Majestic Realty Co. Cox Communications Marnell Properties EJM Development Co. Plise Companies, LLC Embarq Roel Construction Company, Inc. Southwest Gas Corporation Thomas & Mack Development Group
SILVER American Nevada Company Bank of America Nevada CIP Real Estate Colliers International, Inc. Commerce CRG/Cushman & Wakefield Alliance CORE Construction DP Partners Grubb & Ellis | Las Vegas Harsch Investment Properties, LLC JMA L M Construction Co., LLC LaPour Lee & Associates Marcus & Millichap Molasky Group of Companies Nevada Power Company 1 Velocity, Inc. Prudential CRES Silver State Bank Stanley Consultants, Inc. Tradewinds Construction Trammell Crow Company TWC Construction, Inc. United Construction Company Voit Commercial Brokerage Wells Fargo
BRONZE
Access Commercial Mortgage OGI Environmental, LLC Affordable Concepts, Inc. Opulence Studios Inc. Amtec Communications Orgill/Singer & Associates Bank of Nevada Panattoni Development Company Bergelectric Corporation RBF Consulting Business Bank of Nevada Real Estate Group Nevada LLC CENTRA Properties, LLC ReMax Millennium Commercial Christopher Commercial Restrepo Consulting Group LLC CommCap Advisors Roche Constructors, Inc. Community Bank Sansone Companies Dekker/Perich/Sabatini, Ltd. Southwest Engineering Granite Exchange Services, Inc. SR Construction, Inc. Helix Electric Stoltz Management Irwin Union Bank Strata Building Group, LLC Jackson Shaw Company Sun Commercial Real Estate Jaynes Corporation Terracon Juliet Land Company Ticor Title KeyBank The Korte Company KKE / HFTA Architects The Penta Building Group, Inc. Langan Engineering & Environmental Services TRC Lee & Sakahara Architects WESTAR Architectural Group/NV, Inc. Martin-Harris Construction Co. Western Risk Insurance Martin & Martin, Inc. WPH Architecture. Inc Nevada State Bank WRG Design, Inc.
NAIOP 2007 47 NAIOP Presidents
Tony Dazzio 2007 President
#VJMEJOH'SPN"OPUIFS1FSTQFDUJWF6/-74UVEFOU6OJPO ] 2006 • Ralph Murphy PVQDPN QFOUBCMEHHS 2005 • Casey Jones 2004 • Rick Myers THE PENTA BUILDING GROUP 2003 • Kevin Higgins 2002 • Rod Martin 2001 • Mark H. Bouchard We’ve Got You Covered 2000 • Richard D. Smith 1999 • Edward C. Lubbers, Esq. McFadden Insurance Agency is recognized as a premier insurance provider based 1998 • Michael Newman in Southern Nevada and has cultivated a reputation for exceptional performance 1997 • Robert A. “Tim” Snow, Jr. in three areas: Superior customer service, innovative and integrated products, 1996 • Steven O. Spaulding and retention of the highest caliber of professionals in the industry. 1995 • Micki Johnson
• Construction 1994 • William R. Borinstein • Personal Protection 1993 • Bruce G. Barton • Business Protection 1992 • Mark T. Zachman • Workers Compensation • Surety Bonds 1991 • Vernon L. Danielson (PSOR\HH%HQHÀWV 1990 • Donald R. Sanborn • Home and Automobile • Professional Liability 1989 • Wai-Nung C. Lee 1988 • Kevin M. Buckley 1987 • Donald W. Haze 1986 • Donald W. Haze 6180 W. Viking Road Las Vegas, NV 89103 Tel (702) 365-9800 • Fax (702) 221-4920 www.mcfaddeninsurance.com
48 NAIOP 2007 2007 Officers, Directors and Committee Chairs
EXECUTIVE COMMITTEE DIRECTORS OTHER COMMITTEE CHAIRS President Director Tony Dazzio Dan Doherty Communications Committee Chair Burke & Associates Colliers International Karen Marshall Roel Construction Director President-Elect Kevin Higgins Programs Committee Chair John Restrepo Voit Commercial Brokerage Restrepo Consulting Group Ellie Shattuck Director Martin-Harris Construction Suzette LaGrange Immediate Past President Colliers International Government Affairs Committee Chair Bus Tour Committee Chair Ralph Murphy Director Chris Larsen Jackson-Shaw Company Jeff Manning Dekker / Perich / Sabatini Action Building Group Community Service Committee Chair Treasurer Director Rick Myers Rod Martin Barbara Demaree Thomas & Mack Development Group Majestic Realty Co. Southwest Gas Corporation
Director, Education Chair Sustainable Development Secretary Kyle Nagy Committee Chair Sallie Doebler CommCap Advisors United Construction Co Pamela Vilkin Director, Golf Tournament Chair Tradewinds Construction Lee Phelps Chapter Executive Nevada Real Estate Group Katrina Ferry Sponsorship Committee Chair Mike Carroll Alternative Management Director John Ramous L.M. Construction Company, LLC Harsch Investment Properties Membership Committee Chair Director Bill Wilson Brad Schnepf Nevada State Development Corporation Marnell Properties
NAIOP 2007 49 NAIOP Spotlight Award Winners Announced
The Southern Nevada Chap- Office Building of the Year: Marnell Corporate Industrial Building Incubator/Flex: Southeast Center – MCC-4, developed by Marnell Properties, Loft District, developed by Familian of Nevada, Inc., ter of NAIOP held its 10th designed by Marnell Architecture and built by Car- designed by C2G Architecture Design Construction annual Spotlight Awards on son Taylor Construction Company. and built by Familian Development Group.
Saturday, March 24 at Red Industrial Building of the Year: Southeast Loft Industrial Building Mid Bay/Distribution: De- Rock Resort – Spa – Casino. District, developed by Familian of Nevada, Inc., de- catur Crossing, Phase II, Building 3, developed by signed by C2G Architecture Design Construction LaPour, designed by HFTA/KKE Architects and built Chapter President Tony and built by Familian Development Group. by TWC Construction. Dazzio joined Governor Jim Special Purpose Industrial: G&K Services, devel- Common Area Design: Corporate Gateway II, Belt- Gibbons in hosting the event, oped by Larry Baker, designed by Lee & Sakahara way Business Park, developed by Thomas & Mack which brought together 800 Architects AIA, Inc. and built by Martin - Harris Development Group, designed by Cleo Design and professionals from the com- Construction. built by Martin - Harris Construction. mercial real estate industry Special Purpose Office: The Stanley P. Jones Office Interiors: Burrwhip Place, developed by to celebrate the best commer- Building, Southern Nevada Regional Headquarters GRG Inc., designed by Parker Scaggiari and built by for the Department of Employment, Training & Re- GRG Inc. cial real estate projects and habilitation, developed by the State of Nevada De- industry professionals of partment of Employment, Training & Rehabilitation, Office/Warehouse Interiors: Konami Gaming, de- designed by Dekker Perich Sabatini and built by veloped by Stoltz Management, designed by JMA 2006 including: Roche Constructors, Inc. and built by Martin – Harris Construction.
Principal Member of the Year: Associate Member of the Year: Lifetime Achievement: Special Recognition: Ralph Murphy of Jackson-Shaw Company Kyle Nagy of CommCap Advisors Tim Snow of Thomas & Mack Rick Myers of Thomas & Mack Development Group Development Group
Trendsetter Firm of the Year: Development Firm of the Year: Architecture Firm of the Year: General Contractor Firm of the Year: The Molasky Group of Companies Beltway Business Park, LLC JMA Martin-Harris Construction Medical Office Building: Center for Maternal Large Industrial Business Park: Sunset Park- Associate Member of the Year: Fetal Medicine, developed by Dr. Iriye, designed way Business Center, developed by Majestic Re- Kyle Nagy of CommCap Advisors by Carpenter Sellers Architects and built by alty Co., designed by Commerce Construction Lifetime Achievement: Breslin Builders. and built by Commerce Construction. Tim Snow of Thomas & Mack Development Group Special Recognition: Office Building – Single Story: The Park at Master Planned Office/Flex Park: Northport Rick Myers of Thomas & Mack Development Group Spanish Ridge Building 10, developed by Glen, Business Center, developed designed and built Trendsetter Firm of the Year: Smith & Glen Development, designed by by the Jackson-Shaw Company. The Molasky Group of Companies Perkowitz & Ruth Architects and built by SR Development Firm of the Year: Construction. Small Building Office Park: Oquendo Business Park, developed by S&S Unlimited, designed by Beltway Business Park, LLC Architecture Firm of the Year: JMA Office Building – Two Story: 2550 Nature Park Perlman Design Group and built by Desert West Drive at Aliante Corporate Center, developed by Development. General Contractor Firm of the Year: American Nevada Company, designed by JMA Martin-Harris Construction Multiple Use Business Park: The Park at Span- and built by The Korte Company. Engineering Firm of the Year: WRG Design, Inc ish Ridge, developed by Glen, Smith & Glen De- Brokerage Firm of the Year: velopment, designed by Perkowitz & Ruth Archi- Office Building – Three Story+: Marnell Cor- Colliers International – Las Vegas tects and built by SR Construction. porate Center – MCC-4, developed by Marnell Office Broker of the Year: Properties, designed by Marnell Architecture and In addition to the number of Honor Awards Charles W. Witters, SIOR, of Lee & Associates Dan built by Carson Taylor Construction Company. handed out during the evening’s festivities, NAIOP Industrial Broker of the Year: presented Industry Awards to NAIOP’s chapter Dan Doherty, SIOR of Colliers International Small Industrial Building Park: Northeast members. The Industry Award winners by cate- Office Brokerage Team of the Year: Crossing Commerce Center – Phase 1, developed gory include: LaGrange Partners of Colliers International by Jackson-Shaw Company, designed by DHA Ar- Principal Member of the Year: Industrial Brokerage Team of the Year: chitects and built by LM Construction Company. Ralph Murphy of Jackson-Shaw Company Higgins Team of Voit Commercial
Engineering Firm of the Year: Brokerage Firm of the Year: Office Broker of the Year: WRG Design, Inc Colliers International – Las Vegas Charles W. Witters, SIOR, of Lee & Associates Dan
Industrial Broker of the Year: Office Brokerage Team of the Year: Industrial Brokerage Team of the Year: Dan Doherty, SIOR of Colliers International LaGrange Partners of Colliers International Higgins Team of Voit Commercial Lifetime Achievement Award Robert A. (Tim) Snow, Jr.
t the 2007 NAIOP Spotlight his retirement set for June 20. Group, senior vice president of Awards ceremony, the “The Lifetime Achievement Homart/Sears, president and CEO of chapter honored Robert Award is an honor that we do not City Investing Real Estate Group and A give out to just anyone,” said Tony vice president of Great Southwestern (Tim) Snow with the Lifetime Achievement Award. As the chapter’s Dazzio, chapter president. “Tim is Industrial District. most prestigious award, it has only an icon in our industry.” He has been a member of the been given to two other people in the His dedication and commitment to the Southern Nevada Chapter of NAIOP history of the chapter. Recipients are chapter is unprecedented. While we are since moving to Las Vegas in 1997. leaders who have made a significant sad to see him retire this year, we wish He has held numerous leadership impact on the industry and overall him the best in his future endeavors. ” roles including, president, treasurer, growth of the community. Snow has more than 35 years of director and has served as a mem- Snow has been the chief develop- commercial real estate experience in bers of the executive committee. ment officer of the Thomas & Mack Co. Chicago, Southern California and Las Snow is an active member in the Las real estate holdings for more than 12 Vegas. He has developed more than Vegas community serving on UNLV’s years and currently serves as Presi- 12 million square feet of office, in- School of Business Executive Adviso- dent of the Thomas & Mack Develop- dustrial and retail buildings as presi- ry Board and on the executive board ment Group. Snow recently announced dent of Thomas & Mack Development of the Las Vegas Art Museum.
52 NAIOP 2007 Principal Member of the Year Ralph Murphy, Jackson-Shaw Company
s immediate past-president of sponsible for creating and directing of- Trading Real Estate Properties. the Southern Nevada Chapter fice and industrial development oppor- Murphy has been a member of Aof NAIOP,Ralph Murphy’s stellar tunities in Southern Nevada, Arizona NAIOP for more than 12 years and has leadership has gained him national recog- and Southern California. Prior to join- served the NAIOP Southern Nevada nition. Murphy recently received the 2007 ing Jackson-Shaw, Murphy was Exec- Chapter as an active member of the NAIOP National Merit Award for Outstand- utive Vice President at Marnell Proper- Government Affairs Committee, Com- ing Contribution by a Chapter President. ties. He moved to Las Vegas in 2000 munications Committee, and Bus Tour During his presidency in 2006, the and served as Senior Vice President, Committee. Prior to joining the local chapter celebrated its 20th anniversary Regional Manager with Harsch Invest- NAIOP chapter, he served as president and enhanced its political presence at ment Properties in Southern Nevada. of the Inland Empire Chapter in South- the state and local levels. Murphy re- With more than 25 years of experi- ern California during 1998. ceived the merit award in acknowledg- ence in commercial real estate, Mur- Murphy spends his time doing more ment of his efforts to position the chap- phy has developed more than four mil- than just managing portfolios, he also ter as the voice of commercial real lion square-feet of office, industrial and volunteers for several community or- estate development within the South- apartment properties. He started his ganizations and fund-raising events. ern Nevada community. real estate career in Los Angeles with Currently, Murphy serves on the Board Murphy is currently Senior Vice Pres- Kilroy Industries and later was Vice of Directors of the Nevada Ballet and ident of Jackson-Shaw where he is re- President Western Region for American Las Vegas Philharmonic.
Associate Member of the Year Kyle Nagy, CommCap Advisors
yle Nagy, founder and part- breakfast seminars, educational tinues to serve as the chairman of ner of CommCap Advisors, workshops and to further grow the Education Committee. He also a commercial real estate fi- NAIOP’s relationship with the Uni- directs the student mentor program K versity of Nevada Las Vegas. The in- for Lied Institute for Real Estate nance company, has been a great asset to the Southern Nevada NAIOP troduction of the member’s only Studies at UNLV, serves on the Exec- chapter over the past several years. workshop series focusing on specif- utive Council for the Lied Institute He started attending NAIOP meet- ic components of commercial real and is a soccer coach for the Hen- ings in 1999 and quickly became estate was embraced by member- derson United Youth Soccer League. active in committees and events. ship, leading to nine workshops in Kyle received his Bachelor of Sci- Kyle first served on the education 2006. Under his direction, the edu- ence degree in Business Adminis- and government affairs committees cation committee has attracted the tration and Economics from UNLV, and then focused specifically on the involvement of a greater number of graduating Cum Laude. educational needs of the Chapter. members, tripled the number of ed- CommCap Advisors represents a In 2004, Nagy was asked by the ucational opportunities and en- wide variety of mortgage debt and Board of Directors to chair the Edu- hanced the NAIOP/UNLV joint stu- equity sources, including life insur- cation Committee. As the education dent Mentor Program. ance companies, pension funds, in- committee chairman, he expanded Kyle was elected to the NAIOP vestment banks and high leverage the role of the committee to offer Board of Directors in 2006 and con- lenders.
NAIOP 2007 53 National Association of Industrial and Office Properties Southern Nevada Chapter
MISSION The mission of the Southern Nevada Chapter of the National Association of Industrial and Office Properties is to represent and promote quality commercial development in Southern Nevada.
VISION Our vision is to be the leading respect- ed authority on issues affecting com- mercial real estate development in Reserve Your Space Today • 702-735-7003 Ext. 6333 Southern Nevada that will: • Include all commercial developers and owners in Southern Nevada as ac- tive, engaged members. • Be an information resource delivering NAIOP SPOTLIGHT AWARD WINNER OF 2007 value and knowledge to all our members. • Be recognized by state and local pub- The Best Industrial Building Of The Year lic policy makers as a resource for in- The Best Incubator/Flex Building Of The Year formation and advice regarding pro- posed regulations and legislation. GOALS • To represent those who are involved in the design, construction, develop- ment, sale/leasing, ownership and op- eration of commercial real estate. • To encourage interaction and in- creased understanding among the professionals involved in all aspects of commercial real estate. • To enhance the public’s and public 4534 W. Hacienda Ave. officials’ understanding of the impor- Las Vegas, Nevada 89118 tance of commercial real estate. 702-227-9267 fax: 702-227-9273 • To provide member education and en- www.familian.org courage educational programs in [email protected] Southern Nevada.
54 NAIOP 2007
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