7 Projects contributing to the $14 billion of development underway in Las Vegas
Las Vegas has always been a place averse to signs of aging, having new developments is never a surprise. This time we have more than $14 billion under construction, which is nothing short of amazing. The extraordinary impact of all the cranes is already being felt across the whole valley. Is the city remaking one of the worlds most recognizable roads in the world?
With that in mind, we created a list with some of the most impressive and interesting developments that are in construction right now and which might be finished either in 2019 or 2020 and beyond. One thing is certain, Las Vegas always tends to have something in development, and at this time you will find some amazing, massive projects that are under construction. It’s interesting to see how much the landscape has changed even in the past decade.
This is great for Las Vegas as a city, because it brings in great, new features for tourists. After all, Vegas is known for being a prime destination for people all over the world. Some of the projects listed below are related to tourism, but some of them are created specifically for locals. Either way, they are all amazing and you will be quite impressed to learn that there are more than $14 billion in development right now throughout Las Vegas!
The first phase will start with office spaces that cover 150k square feet, this also includes retail, parking garages, restaurants and 875 apartment units. People nearby are excited about this development. The idea is that this establishment is something innovative and also quite expensive. The groundbreaking part is set for early next year, phase one is estimated to be completed towards the middle of 2021. UnCommons is certainly one of the developments you need to keep an eye on.
2. Las Vegas Raiders Stadium
By far one of the most exciting developments in Las Vegas at this time is the Las Vegas Raiders stadium. This one has 65k seats and it’s an indoor football stadium. The overall cost is around $1.8 billion. This is a very interesting development that continues to impress everyone with the huge scale of this entire project. There’s no specific completion date, but that might be around mid-2020. Its construction started in September 2017, and there weren’t that many problems that would push the development. A lot of people suggest that the Las Vegas Raiders stadium will most likely be ready just in time for the 2020 NFL season. One thing is certain, this stadium is nothing short of extraordinary, having a domed stadium in Vegas does stand out quite a bit and the stadium is also set to bring in all the latest technologies and features as you might imagine.
3. Las Vegas Convention Center ExpansionThe Las Vegas Convention Center expansion is also a very expensive development that’s already in construction. This is more of an expansion rather than a new construction, but, it’s already visually impressive and the Las Vegas Convention Center is set to become one of the main attractions in the city. That being said, this expansion will cost around $935.1 million, so it’s very expensive, but it might be quite a great addition for people that are coming to the city for the first time. The economy of South Nevada is driven by tourism, so expanding the Las Vegas Convention Center will help bring in a much better way to serve tourists that visit this magnificent city. Since the tourism industry generates around $60 billion in total for Southern Nevada, it’s easy to see why expanding the current Las Vegas Convention Center and offering even more assistance and support to customers can pay off very well.
3. MSG Sphere
The MSG Sphere is a music and entertainment venue built in Paradise, Nevada and it’s set to be complete in 2021. It will have a capacity of around 18000 people and it will also include 19000 by 13500 resolution LED screens that will be spread within the venue’s interior. All seats have high-speed internet access, which will help make this venue even more impressive and interesting than it is at this particular time.
On top of that, the MSG Sphere is set to have a powerful sound system that will deliver sound through the floorboards. And to top it all off, the exterior of the venue will include a 360-degree IMAX display that will make it easy for people on the outside to see what’s happening inside the venue. This is a next-gen entertainment venue that’s set to impress everyone with its complexity and resounding features.
5. Resorts World Casino
Having yet another resort in Las Vegas might not seem like huge news. But Resorts World Casino wants to make things a bit different here. This development is built on an 87-acre site on the Las Vegas Strip and despite the construction starting in 2018, this project is set to be completed at some point in 2020. There are many great features related to the Resorts World Casino. The primary thing here is that Paul Curtis Steelman and the Steelman Partners managed the architectural design. As a result, the entire project looks downright amazing, and it will bring in lots of people excited by gambling to the city. That being said, the Resorts World Casino project is also located very close to the Sky Condominium Las Vegas. That alone makes it a very good investment and the condos also have quite a bit to earn from having a stellar, impressive resort located right near them.
6. Marriott's 4000+ Mega Hotel Resort AKA The Drew
Marriott is known for the fact that they always try to push the boundaries with new developments. They have a new resort under construction in Las Vegas. The project is set to be named The Drew and it will feature more than 4000 luxury rooms. Including in this resort project there will be more than 500000 square feet of meeting and convention space for the business visitors as well. Another interesting thing about this project is that the Drew Las Vegas will feature more than 90000 square feet of gaming space. Obviously this will be more than enough to host thousands of players as they enjoy a great gambling experience. The story of this project is quite intriguing because it has been in development for quite some time. It was started back in 2005, and the project name was Fontainebleau Las Vegas. Then it entered bankruptcy in 2009, so it was put on hold for quite some time. Years later Marriot International decided to give this a shot, and now they are working hard to complete one of the most interesting and promising resorts in Las Vegas.
7. Las Vegas Ballpark
The Las Vegas Ballpark is a $150 million construction created specifically for baseball lovers. The project has an opening date of April 9 2019. The Howard Hughes Corporation owns this Las Vegas Ballpark and the entire project is set to bring in some astounding visual and feature upgrades when compared to many stadiums out there.
However, the construction process and more particularly the initial steps were a bit hard to complete mostly because the stadium’s sewage system backed up and that did end up being the reason why they invested in these new features. It’s certainly something unique and powerful, which might end up bringing in some rather interesting and powerful features to the table for the most part.
How can these projects help Las Vegas?It’s very important to note that most of these projects are commercial, so they are bound to bring in a lot of visitors to the city. Unlike anything you can find in the world, with the UnCommons development being a prime example in this regard.
Another important thing to note about Las Vegas is that it’s the perfect place for this type of developments. They are very creative, unique and distinctive, and they are changing the economic and touristic landscape quite a bit.
Having more than $14 billion in active developments clearly shows that Las Vegas is a prime destination for tourists and the economic landscape is very favorable for new developments. Which is why more and more developers are constantly trying to acquire new pieces of land as they invest in visually impressive, massive projects.
Tax Cuts and Jobs Act
This article is going to take a closer look at multiple topics including the following, and more
Before jumping into those topics, it’s important to understand the reality that many American’s face. 52 million American’s live in economically distressed communities. That’s 1 in 6 American’s. The communities that are struggling today have been completely sidelined by 21st century economic growth.
In non-prime communities, non-prime businesses are struggling with traditional modes of financing. Since 2008, nearly 1 in 4 community banks have disappeared. Small business lending is down by a quarter and 75% of all venture capital is concentrated in CA, MA, and NY.
Taking a look at mission-oriented capital shows that it is just as uneven. 27% of countries received no CDFI funding in the years of 2011 to 2015. Even philanthropies and foundations bypass many of the countries neediest communities in recent years.
What is Opportunity Zone?
Opportunity Zone has strong, bipartisan roots and builds on the lessons prior federal efforts to revitalize struggling communities. Opportunity Zone is so unique because it is designed to concentrate capital, rather than diffuse it. this is an investor incentive that pertains exclusively to capital gains. All of these incentives are tied to the longevity of investment, meaning it rewards patient capital. Opportunity zone provides no up-front subsidy, picks no winners, and unlocks scarce equity capital. Opportunity zone was designed with start-ups in mind and moves with the speed of the market. This truly gives investors a stake in a communities’ future by rewarding based on community success, not individual projects.
What Makes Opportunity Zone Promising?
There are a few things that make Opportunity Zone truly one of a kind and promising for positive results. First, the flexibility of Opportunity Zone is unmatched. Low-income communities have a wide range of financing needs. The flexibility of the incentive provides the potential to support a variety of mutually reinforcing activities within a single community as well as across a broad spectrum of communities.
The Scalability of Opportunity Zone is also very promising. There is no statutory cap on the amount of capital that can flow to Opportunity Zones in any given year. Because of this, Opportunity Zones have the potential to help fuel economic renewal in distressed communities on an unprecedented scale.
Finally, the simplicity of Opportunity Zone is one-of-a-kind. Complexity has often been the Achilles heel of policies aimed at unlocking private capital in low-income areas. Complexity adds cost, time, and risk to business transactions, biasing programs towards a narrower set of stakeholders and more risk-averse outcomes, often precluding the very types of business investments that are most likely to have transformative benefits for communities.
Three Core Elements
Opportunity Zone is based on three core elements.
The unique design of Opportunity Zone results in some major tax benefits for the tax payer. Tax payers can benefit from temporary deferral of a capital gain on any sale or exchange of property to an unrelated person. They can also benefit from a partial reduction of deferred gain. This means that income tax is still paid on a large portion of the deferred gain, but not all of it. Finally, tax payers receive forgiveness on the additional gain or the appreciation on investment. A deferred gain is defined as the aggerate amount invested that does not exceed the amount of the gain generated within 180 days of the sale or exchange. These tax benefits may apply to any individual, business entity, or trust.
What is an Opportunity Zone?
An opportunity zone, or O-zone, is a population census tract that is a low-income community, or LIC. There are 74,000 census tracts in the US, 37% of those are considered LIC’s. For example, Arizona has 671 LIC’s and 217 contiguous tracts. A LIC is based upon poverty rate (20%) and median family income (80%). O-Zone’s are to be timely nominated by each governor. 25% of LIC’s eligible for O-Zone status. This equates to roughly 8,00 census tracts (168 in AZ), 5% of those nominated could be a contiguous tract (9 in AZ).
What is an Opportunity Fund?
An opportunity fund is an investment vehicle organized for the purpose of investing in Opportunity Zone Property. This includes a certification process, penalties for non-compliance, and statutory requirements stating that it must be organized as a corporation or partnership and meet a 90% requirement. The opportunity fun certification is a self-certification that requires the taxpayer to complete a form attached to the taxpayer’s federal income tax return for the taxable year. This form will be released in the summer of 2018. The tax return must be filed timely, taking into account for extensions. There does not appear to be a cap on the number of O-Funds or the amounts that can be invested in the O-Funds. The 90% requirement mentioned above means that 90% of assets must be held in O-Zone Property, which is determined by the of the average of the percentage of O-Zone property held on the last day of the first six-month period of the fund’s taxable year and the last day of the fund’s taxable year. If the 90% requirement is not met, there will be a penalty placed on O-Fund Partners.
Investments that constitute an O-Zone Property include equity investment in an O-Zone Business or the direct purchase of an O-Zone Property. O-Zone Business Property is tangible property used in a trade or business that is acquired by purchase from an unrelated party after December 31, 2017. Original use in the O-Zone must commence with the O-Zone business. The other option is that the O-Zone Business or O-Fund substantially improves the property within a 30-month period by creating additions to basis that exceeds the adjusted basis of such property. During substantially all of the holding period, substantially all the use must be in an O-Zone.
Possible investments in Opportunity Zones include real estate development and significant rehabilitation, opening new businesses, acquiring an existing business and relocating it with expansion, and large expansions of businesses already within O-Zones.
Many of the terms and phrases used may need further explanation. These are a few pieces of additional information regarding the content.
Our team specializes in corporate real estate by representing clients in their leasing and purchasing. Dan Palmeri, SIOR and myself Natalie Wainwright have the experience, bandwidth, knowledge and most importantly, the determination to get corporate users the best possible deal terms for their needs. You can follow our team’s daily activities with our impressive client roster on Twitter & Instagram @vegascreteam.
I had the incredible benefit of working under a top landlord broker when I first got into the commercial real estate business. My first 6 months were filling out the landlord reports, opening doors on spaces and of most value to me now was listening to him on the phone with prospective tenants. Bob Hawkins would take sign calls as smoothly as you or I would order ice cream. It is under Bob’s tutelage that I saw what proper landlord representation should look like, which has been both a benefit and a burden. You can often walk by our teams desks and hear moans and groans of frustration. As tenant reps, we only use listing sites as way to scour the market for the property with suites that fit our clients requirements. We are at the mercy of the brokers that represent the properties to do their job. What should be a straight forward process can sometimes be an absolute beast, which is what has inspired this blog. We are fortunate to work in a thriving market, filled with some absolutely amazing brokers. 99% of the time we are doing deals with the same 15 or so brokers that are consummate professionals, the below is referencing that 1% you need to keep an eye out for.
Top 5 things to look for in a landlord broker
1. Detail oriented – Make sure your property is represented online in full detail. Check for things like, rate, rate type, rentable square footage of each suite, useable square footage, parking capabilities, power capabilities and most importantly make sure that there are floor plans that are easily accessible, and a layout description. Why is this number one? I can tell you first hand of times a client needs a quick turn around on a survey, going into the listing site and 80 properties pop as possibilities. It is my job to open each property, go to each suite and see if it fits the bill. What doesn’t work is going into the property page, clicking the suite and there is no information on the layout and for extra fun there is no brochure attached or at least one with floor plans available. I don’t have the time to call each individual broker, and ask for the layout, wait for them to call me back and then have it added to the survey. Your property will undoubtedly be passed over simply because your broker doesn’t have it dialed in online.
2. A hustler- Now before you roll your eyes let me explain. Is your broker going to work your listing as hard as he’s working maybe a higher end listing she has in her portfolio? Even if your property is a Class A or B do you have a frame of reference into their response time, eagerness to drive across town, and willingness to learn the various nuances of the property? This is important. I witnessed Bob answer calls of people in their cars calling off the sign asking for him to show up right away, and should he not be on a deadline, Bob would grab his brochures and be out the door. The most impressive part was watching him dash out across town on his Class C properties as eager as he would on all his Class A product. That to me is brokering. There was no prequalifying them over the phone, asking them to find a lock box or setting up the appointment the next day. That’s what you want, you want someone that’s going to work your property like it’s his own and as if his livelihood depends on it. As a top broker at Cushman & Wakefield Las Vegas, Mr. Hawkins could have taken liberties and prioritized but that just isn’t the way he operates. Years later, as I call brokers and try to set up appointments, and am met with questions designed to disqualify them from having to show up and show the property, I appreciate his way more and more.
3. CRE is their Main & Only lane- Having someone that primarily does residential real estate isn’t preferable. There is a lot that goes into learning the market, making relationships with fellow brokers and understanding how commercial works. Coming across listings that have the rate, but then the type is set to gross, full service gross, and modified gross is one of the tell tale signs I am about to call a resi agent. This means they have no idea what the difference of a NNN, MG, or FSG is and were hoping to wing it. Knowledge is important, the only thing that trumps that is relationships. All of us office brokers know one another, brokers know when we call with a tenant it means they are qualified to be represented by our team, they know we know how to get a deal over the finish line and most importantly we know how to effectively guide our client. Of equal importance for us is to know that should we tour, and the building be shortlisted that the broker on the other end can get the deal done with their landlord. There is nothing worse than a client getting excited about a building, going through the proposal process to find out that the landlord is using an inexperienced broker that is giving them poor information. If your broker is telling you that it is inline with market to offer no free rent, no tenant improvements and to not wiggle off your face rate at all, you’re getting bad advice and risk alienating the entire brokerage community.
4. Respected – This is one that may be harder to gauge. Does your broker have a respected reputation in the market? Is this person celebrated as being a knowledgeable top broker? Do you notice they are spoken about with admiration and respect? If you finance an open house to get some buzz going on your property will brokers show up? This is important. We would never dissuade a client from selecting a property with a less than stellar broker on the other side, but we aren’t exactly eager to work with someone if they have proven to be unreasonable or slow to respond.
5. Creative – is your broker going to stick a sign outside, put it on the listing sites and call it a day? That’s not the way to fill buildings. So many of our colleagues call us to make sure we are current on the latest availabilities in their portfolio, let us know new space is coming on the market or email the brochure whenever there is an update. Social media is another way to ensure you reach a broader audience. Eblasts and open houses are also great ways to stay top of mind. With tech changing the CRE game it is important that your broker not only adapts but utilizes any software, listing site or app that gets your property in front of the right people.
More landlords are representing their buildings themselves than ever before, when asked why they express frustration in finding the right broker for the job and often state they can stick a sign up just as easily as the rest of them. Proper landlord representation can be key in stabilizing your property. The person you hire will be plugged into the market, have relationships they can leverage, are motivated to work hard and fast to respond. Are you in a different market and want insight into who to use? Call our team and we will make sure you are properly represented, after all, our main lane is filling buildings.
Our team specializes in corporate real estate by representing clients in their leasing and purchasing. Dan Palmeri, SIOR and myself Natalie Wainwright have the experience, bandwidth, knowledge and most importantly, the determination to get corporate users the best possible deal terms for their needs. You can follow our teams daily activities with our impressive client roster on Twitter & Instagram @vegascreteam.
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.