On Episode 002 of the #VegasCREteam Vlog, we launch Tuesday Tips for Tenants. This Tuesday the topic is:
-TIMING - The old adage timing is everything is never more true than when it comes time to discuss your real estate lease.
-How far out should you survey the market from time you intend to occupy?
-Should tenants just looking to renew survey the market?
-How long does it take to get a deal over the finish line?
Watch our video to get a better understanding of when to start talks with the landlord whether it be a renewal or time to relocate. We are a two broker team with Cushman & Wakefield based in Las Vegas, Nevada. With a combined 15 years of experience, exclusively representing tenants and users of office space.
We want to document and share our journey as we continue to grow ourselves, our relationships, our community, our company, our knowledge and experience. The niche we have chosen is due to our passion of giving back by providing value with no questions asked.
Please comment as to what questions you may have, insights as to what you would like to see documented, if you love us or hate us. We welcome all of you into our world.
Follow us online here: Website: http://www.vegascre.com/
Dan's Linkedin: https://www.linkedin.com/in/danpalmeri
Natalie's Linkedin: https://www.linkedin.com/in/natalie-w...
Other than the obvious soaring of shares for Whole Foods and Amazon, the recent purchase will have a serious impact on the grocery industry. Amazon now being dubbed the “robo-supermarket” is set to drastically change the way we shop, and what stores looks like. It is likely Amazon will start using the 460 stores throughout the U.S, Canada and Britain as distribution points to further drive the AmazonFresh grocery delivery business. The online giant could find ways to give their new customer base alternatives without having to turn stores into distribution centers. They have the option of offering customers the ability to order online or ordering a portion of your grocery list online. "Get it all delivered to your home or come in and maybe they put a little Amazon Echo and Amazon Fire Tablet showroom in some of these places," said Brad Stone, technology reporter for Bloomberg and Businessweek.
Amazon is feeling like a progressively powerful force in the sphere of commerce. That could also create an opening for small mom and pop like grocery stores that do not opt in for online sales. Perceiving they are out of there element in mega-deals, those smaller stores may suddenly align themselves with Google, who will need the inventory once they lose Whole Foods. Although many believe Acquiring Whole Foods represents a striking departure from its initial business model, the question to watch is whether that is really true. Or will Amazon bring its tech algorithms, operational know how and low prices to a trendy but very expensive retailer thus putting significantly more pressure on the rest of the industry. The ability to bring a physical effect is a game changer. Consumers want to smell, touch and sample what they buy. 74% of food dollars dished out by online customers are spent in traditional street side businesses.
The Wholefoods deal is the largest deal ever for Amazon, outpacing its acquisitions of Twitch for $970 million in 2014 and Zappos for $850 million in 2009. It was reported last month that Amazon was set to open a physical bookstore in Washington, adding to the portfolio that includes San Diego, Portland, Ore., and its hometown, Seattle. The Amazon store in Georgetown is on the same block that once housed an enormous, multistory Barnes & Noble, which closed in 2011 as part of a deep withdrawal that came after years of fighting a losing battle with Amazon.
Miscellaneous Amazon Endeavors
Available to Prime members, Amazon Restaurants promises to deliver meals from restaurants to customers in one hour or less.
Its logistics business includes warehouses, an army of workers and even planes. It is also testing drones for delivery to homes.
With its Fire Tablets, Amazon’s touch-screen devices are still far behind rivals Apple and Samsung.
A Cloud Computing
Its cloud computing business, Amazon Web Services, hauled in $12.2 billion in revenue last year from customers including Netflix and the Amazon Prime Video, which features a combination of new movies, TV shows and original programming.
The Echo, which uses its Alexa personal assistant, has been a breakout success.
Amazon has pilot tests of AmazonFresh Pickup stores and drive-through locations to pick up items ordered online and, if the deal goes through, it will have high-end markets with Whole Foods.
The Raiders announced earlier this week the successful purchase of 62 acres of land for their $1.9 billion stadium, which is scheduled for completion by the start of the 2020 NFL season. The land was purchased for $77.5 million or $1.25 million per acre. Now that we have a site, what’s next? There are multiple major projects that will be taking place over the next 39+ months to turn dream into reality.
If you have ever attended an NFL game, you know too well the stresses on infrastructure when 65,000 people leave at once. With direct access to the Las Vegas Strip, exits in all directions and immediate interstate availability, diligent design and planning can potentially provide a great user experience when getting to and leaving a game.
The next questions is whether the stadium will bring improvement to the immediate surrounding neighborhood, which consists of a truck stop, industrial buildings, hotels and a few high-rise towers. We have already seen the immediate impact on the high-rise condo market, as sales jumped the day of the NFL owners vote. Will we experience gentrification in a long-time undesirable area? Will new construction and higher-end mixed-use projects come out of the ground? With the proximity to the strip, many don’t believe so, but only time will tell.
https://www.reviewjournal.com/business/stadium/las-vegas-freeway-projects-would-clash-with-raiders-stadium-opening-in-2020/ (link to RJ of Tropicana Interchange Rendering)
What do all the below office markets have in common? A Strong economy and a limited inventory of prime office space. We are now approaching a completely new stage in commercial real estate, where cities are battling to attract the top corporations, appeal to the top talent and draw in funds.
1. HONG KONG CENTRAL - $278.50/SF/YR
No surprises here, undeterred by the slowdown in China, Hong Kong’s CBD is holding strong at being #1.
2. Beijing Financial Street - $179.00/SF/YR
Although still #2 on the list, the current rate has decreased $9.00/SF/YR from last years high of $188.00/SF/YR
3. Beijing Central Business District - $156.00/SF/YR
Leasing demand for quality office space is at an all-time high in Beijing’s Central Business District
4. London West End - $148.30/SF/YR
Just barely beating out Midtown Manhattan this year with occupiers and investors responding positively in the first quarter
5. Midtown Manhattan - $144.30/SF/YR
Still considered the world’s biggest financial hub, Midtown Manhattan is holding strong in the United States as the most attractive market for businesses.
The Raiders have officially started the process of relocating their team and organization to Las Vegas. After years of being considered a market not worthy of a professional sports franchise, Las Vegas will now be home to the NHL and NFL. This is a game changer for what has always been considered the gambling capital of the world. The fears that the sports would be corrupted by gambling have been eased, especially with the growth of gaming nationwide. With statistics showing $95 billion being wagered on NFL and NCAA football during a season, 98% or $93 billion of that figure will be wagered through illegal channels, not Las Vegas casinos.
Las Vegas has transformed its identity as a community by focusing growth in major industries that do not revolve around the green felt and one armed bandit. We have witnessed businesses diversify in aerospace & defense, agriculture, information technology, energy, logistics & operations, manufacturing and mining. This has evolved the local workforce by creating new jobs and relocating key talent from other markets.
The Raiders will now follow suit and begin the transition to Southern Nevada. This will bring hundreds of staff and players, many of whom will immediately contribute to the local community, charities and high-end housing market. The Raiders are estimated to begin playing in Las Vegas by 2020 with their current lease in Oakland expiring after the 2018 season.
The proposed 65,000 seat, $1.9 billion stadium is slated to be completed for the 2020 season. With $750 million in public financing already approved by the State of Nevada, the NFL couldn’t discount that Nevada was fully invested in the team and the stadium. The remainder of the money is expected to come from a $650 million loan from Bank of America and, $200 million from the league and revenue from naming rights and other deals.
The location of games in between the Oakland lease expiration and the Las Vegas stadium being available is still up in the air. There are talks of playing through in Oakland, possibly in San Antonio or at UNLV’s current home, Sam Boyd Stadium..
As Las Vegas was hit hardest in the recession and was the face of National foreclosures and short-sales, experts are now feeling optimistic about Nevada’s economy with numbers nearing or at pre-recession figures. The Las Vegas Raiders is another giant step towards substantiating Las Vegas as a major city in the United States. Known as the transplant city, it is being said that a NFL football team is just the thing to unite locals both young and old.
The stadium is already being considered for a post 2022 Super Bowl and will be host to a wide range of non-football events during the offseason. Should crowds exceed the 20,000 seat T-Mobile Arena capacity, the stadium will host soccer friendlies, college games, Rugby Sevens Series, MMA fights; and concerts and perhaps and NHL game at some point.
As residents of Las Vegas, we have the unique opportunity to be on the front row of an ever growing community and city. We can’t wait to see what’s next!
1. Does the building portray the message you’re trying to deliver?
We have heard from many clients over the years they are not seeking anything “too lavish”, wisely choosing to be cautious about sending a signal that the luxury office setting is where all their clients’ money goes. Gone are the days, or should I say dwindling, are the days of all marble, chic, and high end finishes being selected for law firms and the like. On the other hand, opting for a property with faded striping in the parking areas, an old elevator and missing lightbulbs may send out a struggling business vibe. Find a property and suite that projects a relatable message to your targeted client base.
2. Can the building handle your business should you grow?
A sign of a successful, strong business is growth. Signing a 5 year deal on a space and bursting at the seams with time left on the lease is never a comfortable scenario. A building with ample suites in all size ranges or that offers adjacent suites is the best option if you foresee growth in your future. Your tenant rep should negotiate a first right of refusal for all or a portion of any adjacent suites on the floor you plan on occupying that become available during your tenancy. Landlords will gladly offer you a larger suite within their building should you need to expand. Look at it from their point of view, a quality tenant that wants to take down more space? Yes please!
3. I know you know – Location Location Location
This is a Biggie! Obviously, you have an area in mind for your office. Two primary factors we hear frequently are ease of access and drive time for your employees and clients. As employment rates decline the stakes are raised to attract quality employees. Having a building clear on one side of town vs. a more central location, could mean not only limiting your hiring pool but your client base as well. A location offering nearby amenities is also important to consider, having healthy options to grab lunch and get the heck out of the office can make everyone a lot happier. Safety should play a role as well. We recently represented a nonprofit that had only female staff. Buildings without a security guard present were automatically eliminated in some submarkets because safety is an utmost concern.
4. Does the layout work for you or are you making it work?
I can’t tell you how many tenants we have toured and each space we walked into was “perfect”, but as we measured and discussed which department would go where, which exec would want which office, we would quickly deduce that the space in its current configuration did not make the cut. Providing you have enough time, tenant improvements can be completed and the space can be configured to meet your needs. If time is a factor, and you’re limited to strictly second generation spaces. DO NOT “Make the Space Work.” If you need a breakroom, hold out for a space that provides one. Trust me after 8 months of cleaning out your coffee cup in a common area restroom you will want to scream. This is your business, you will spend hours and hours within the selected suite, really make sure you feel comfortable. As you walk the suites presented to you, imagine the flow of your business and make sure they are aligned. Remember when everyone is happy and comfortable - productivity, creativeness and moral all rise.
5. Do you have proper representation?
Ideally you have engaged a tenant rep within your market. (If you have not, call our team. We have a global reach and would be happy to match you with the perfect team in your market.) Confirm that your tenant rep specializes in commercial, and most importantly has the knowledge, experience and resources to get you the best deal terms possible. Does your lease include often looked over items like renewal rights, covered/reserved parking, and reasonable holdover language? If the above terms look foreign, it may be time to engage a professional. Your tenant rep should always recommend you have a real estate attorney review your lease draft before you sign. We are known to wear many hats, and are well versed on the lease language, but we are not attorneys. Leave room in your budget, often that small hit up front can save you thousands of dollars and heart ache down the line.
This is just to get you started. Office space is our teams main and only lane, and our passion. Everyone is good at something, our team excels in surveys, tours, proposals and negotiations of office leasing. Vacancy rates and new developments are what we dream about, and happy, returning, referring clients are what we strive for. Your interests are our interests.
Team Palmeri – Wainwright are exclusive tenant representatives within the Las Vegas market, by not representing any landlords in town are able to offer 100% fiduciary to their clients. Can your rep claim that?
Blog written by Natalie Wainwright - Tenant Representation Cushman & Wakefield Commerce
You've made a great business decision and decided to engage Exclusive Tenant Representation to help you in your company’s real estate needs. Are you familiar with what to look for and what you can expect from your broker? The following are keys items to be aware of when selecting a broker and their team should they have one.
Strong market knowledge
In addition to providing you with quarterly reports on the overall market, your broker should have their finger on the pulse of the local office market. A sophisticated, experienced broker will have the ability to successfully leverage their relationship with landlord brokers to know all current listings, rates of both market and off market properties. A broker should have a deep, intricate understanding of their entire market, enabling them to offer you the most thorough survey and negotiate the best possible deal. A broker with a long, successful standing within the brokerage community will also be aware of any spaces coming to the market due to expirations, which may be ideal for your business. Landlords favor a deal presented by a knowledgeable broker with whom they know will negotiate based off strong market knowledge and has the capabilities to bring the deal over the finish line. Keeping current on build-out costs, employment rates and working closely with economic development groups are all things you should expect your broker to be involved in.
Strong Communication Skills
One of the most common things our team hears from our tenants is how disappointed they were with their previous representative’s response time and what they felt was a lack of care and or a sense of urgency. Your broker will handle numerous activities from detailed surveys, booking of tours, negotiations on proposals for all identified properties, lease review and countless other important detail oriented tasks. Establishing your expectations from the very start is a key way to ensure you meet deadlines, stay in front of the landlord’s broker, and don’t lose an opportunity. As the Las Vegas market continues to tighten, the adage “time kills deals” has never been so true. Your broker sitting on a counter proposal from the landlord’s broker, not responding to any follow up requests, or having a slow response time in general could give any competing tenants the advantage needed with the landlord, ultimately ending with you losing the space.
The Proper Bandwidth
As we touched on above, your broker will have their hands in numerous buckets in the interest of your company’s real estate needs. A lot of brokers take the “lone wolf” approach, which can offer benefits, however, when dealing with more than one client it is often unrealistic to assume that a single broker can effectively navigate the entire deal from start to finish as efficiently and timely as a team can deliver. Another option is a broker that leads a team, allowing them to not only keep the deal process flowing but even stay ahead of any and all processes. A team with more than one Exclusive Tenant Representative and additional staff is the ideal structure when overseeing large national clients and local clients. Combine a four-person team with the backing of a Global Commercial Real Estate Firm and that can be the ultimate recipe for at or below market deals, preferable deal terms and the vast amount of resources needed. There is no “I will get to it later”, “I didn’t have the time” or any other completely reasonable excuse for a single operator you may hear when engaging a sole broker. Delays and an inability to perform the needed steps can be detrimental to your business’s launch within the Market.
Exclusive means Exclusive
It is important to confirm your broker is indeed exclusively representing tenants within the market. The Broker will not have ANY listings, other than those that are being subleased by their tenants, meaning there are no loyalties that must be honored or incentives for negotiating on any particular buildings. The end game for your broker should they be exclusive is to get you the best possible rate and deal terms your business requires. Each tenant’s requirement is unique and having representation with only your interests in mind is the key piece to the puzzle. This would also be a good time to touch on specialties. Your broker should not specialize in any other facets of real estate other than commercial real estate. Would you contract a handy man for a home remodel or a company that specializes in home remodels? We would all choose the contracting company, which comes with the promise of knowledge, deep resources and the protection needed when signing anything that involves a contract.
Remaining cognizant of the above when engaging help with your real estate needs can be the difference between simply finding a space that will do, and creating an environment you, your company and your employees can feel comfortable in, and the flow of work can be at optimal levels. Keep this in mind and you’re sure to find the perfect broker for your company, should you require further information or are in a different market feel free to call our team and we can connect you with the market leader in your city.
Team Palmeri – Wainwright specialize in exclusively representing office users within the Las Vegas Market. Blog written by Natalie Wainwright.
With the second half of 2016 underway, Las Vegas is on the verge of becoming the next great American City. As so many of you that live in Las Vegas know, outsiders can’t comprehend how somebody can “live in Las Vegas”. Whether they’re 22 or 72, the majority of them know Las Vegas as Sin City and their two to three day stint on the strip. We ask our out of state clients if they’ve ever been off the strip, 95% never have. There is a stigma about Las Vegas that has eliminated Southern Nevada as an option for many corporate relocations, without exploring the true community we locals call home.
We feel this is all about to change. We are on the doorsteps of what is going to be a new Las Vegas for years to come. Why all of the sudden? Well it’s been a work in progress for years and is now just starting to shed light on those efforts.
Back when the Great Recession occurred, our state made an effort to identify other industries to draw to Nevada to diversify our economy and not be solely reliant on gaming and construction. Those efforts continue today, creating a drastically different landscape in the business community of Southern Nevada.
We are in the forefront of the advancement of transportation (Tesla, Faraday, UAV Testing, Hyperloop 1, Autonomous Vehicles, etc.). We are advancing in medical studies with a UNLV Medical School, Cleveland Clinic Lou Ruvo Center for Brain Health, and Roseman University leading the charge. Technology companies like Switch, Zappos.com and Banjo calling Las Vegas home. Logistics and Operations with millions of square feet of new distribution space being developed and leased by major corporations.
With all of the new companies and successes to Southern Nevada, none are more important than the NHL and potentially the NFL. What makes a professional sports team different? It’s what it is going to do for us as a community. Las Vegas is one of the most transient cities in North America, with roughly 80% of the population coming from somewhere else.
When we look back at what was the change that brought Las Vegas into the conversation of those companies looking to establish a significant presence here, it will be major sports. It will bring greater attention to a market that has always been known for gambling and conventions.
But most importantly it will give all residents of Las Vegas a true sense of home. A common bond we as locals have never experienced before. A team we can identify with to support, cheer, cry and grow with for generations to come.
During the great recession, of all the commercial real estate sectors, none were affected greater than the office market. For a company the two biggest cuts to the bottom line during the downturn were in space needs and staffing. The need to survive by going lean provided companies the opportunity to reassess their ability to provide services with less overhead than previously believed.
As the market has recovered, we have not experienced the same pre-recession organic growth within the traditional sectors of legal, finance and professional users. The majority of businesses continue to be very cautious as it pertains to taking on too much space for too long of a term without the appropriate flexibilities to adapt quickly to the ever-changing economy.
What has transpired is a new outlook on how the office space is utilized to build collaboration, efficiency and productivity. These new trends have spawned from the massive growth within the tech industry and the success in the open plan workplace. With senior employees and executives giving up their private offices work side-by-side with their colleagues, pressures are now being put on the traditional sectors to incorporate many of the same trends to attract the new millennial work-force.
Depending on the industry, there is a fine-line of how much you veer from the traditional layout. Law firms and financial companies still maintain the private office concept, however we are seeing a massive shift to same-size offices for the senior partners to the new hire, as well as full glass offices to incorporate natural light and collaboration and café style break rooms.
How does this affect your tenancy, particularly in Las Vegas? With Las Vegas historically 12-24 months behind the national trends in office space design, we are quickly catching up. The difference between Las Vegas and the major markets seeing these changes are:
· Minimal New Development – With the lack of new office development in Las Vegas (The Gramercy Phase II, only active office development), we are seeing tenants build-out the open plan workplace in buildings that were not designed for these layouts.
· Restrooms – With companies using less space, but not decreasing employees, existing buildings were built to a code based off a certain amount of private offices vs. open work space. This original design dictated how many restrooms were required in a building. With companies using 20-40% less space, this leaves the landlord the ability to lease additional space in the building, which equates to more people using the facilities. Landlords may have to start incorporating additional restrooms to accommodate these new open plan.
· Parking – Much like the restroom concern, parking is just as much, if not more of an issue and concern. With the market recovering, and landlords leasing up their buildings, what used to be an oversight when it comes to parking allocation, is being taken much more seriously. With the new open plan concepts, the existing inventory was not designed to accommodate the new parking ratios of 6-10 per 1,000 square feet of leased space. With traditional parking ratios of 3.5-5 per 1,000, landlords are either going to have to buy additional land, build a parking structure, leave space unoccupied in the building to accommodate the tenant’s high ratio, or focus on tenants that don’t require todays parking needs.
· Live-Work-Play – Unlike many of the traditional cities across the United States, Las Vegas is lacking Live-Work-Play options. With the majority of development happening in the suburban market, having an urban environment that provides a true live-work-play lifestyle in Las Vegas isn’t in the cards for the foreseeable future.
When exploring your office space needs, be sure to understand your needs today versus those same needs in 3-5 years from now, and how todays trends are going to affect your tenancy for the entire lease term. Having a complete and comprehensive strategy to align your facility needs with your business objectives will help overcome unforeseen obstacles down the road.