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					                                           las VeGas                                              oFFiCe                                     third Quarter | 2008
                                                       110000                                                                                                                                              0.975
                                                                          rn
                                                  C o l l i e r s i n t e97.0% at i o n a l                                             |       las VeGas, nV          Retail Jobs
                                                       108000                 96.9%                                 96.8%
                                                                                                                                                                       Occupancy Rate                      0.97
                                                                                                                                         96.6%
                                                       106000
                                                                                                                                                                                                           0.965




                                                  Market Research
                                                       104000                                                                                                   96.0%
                                                                                                                                                                                                           0.96

                                                       102000
                                                                                                                                                                                                           0.955
                                                       100000
                                                                                                                                                                                                           0.95
                                                        98000                                                                                                                            94.6%

                                                                                                                                                                                                           0.945
                                                  r e ta i l
                                                      96000                    | t h i r d Q u a rt e r                                  |      2008
                                                                                                                                                                                                           0.94
                                                        94000


                                                        92000                                                                                                                                              0.935


                                                  summary
                                                        90000                                                                                                                                              0.93
                                                                             2 Q 2007         3 Q 2007             4 Q 2007             1 Q 2008               2 Q 2008                   39661
                                                  Retail vacancy increased to 5.4% in the third quarter of 2008. This was 1.4 percentage points
                                                  higher than last quarter, and 2.4 percentage points higher than one year ago. The average asking
                                                  rent decreased as well, to $2.09 per square foot (psf) on a triple-net basis (NNN). This is $0.16
         Market indiCators                        lower than the peak asking rent recorded in the third quarter of 2007. New completions increased
                             Q4-2008              this quarter over last, but net absorption declined and remained negative for the second straight
                                                               1600000
                       Q3-08 Projected                                                    Absorption

                                                  quarter.
                                                         1400000                          Completions

             VaCanCy
                                                               1200000


   net absorPtion                                 Market & economic trends
                                                      1000000

                                                                    800000
                                                  According to the Nevada Department of Employment, Training and Rehabilitation (“DETR”), the
                                                          Square Feet




    ConstruCtion                                                    600000
                                                  Las Vegas MSA’s retail employment increased by 100 jobs between June 2008 and Aug 2008. The
                                                                    400000
         rental rate                              Las Vegas MSA has added 1,600 jobs since Sep 2008.
                                                         200000

                                                                        0
                                                                                   2 Q 2007             3 Q 2007            4 Q 2007                1 Q 2008            2 Q 2008                  3 Q 2008
                                                  Overall, the Las Vegas-Paradise MSA had an unemployment rate of 7.1% in August of 2008, higher
                                                         -200000


    Clark County eConoMiC data                    than the seasonally adjusted rate of 6.1% for the U.S., but lower than the 7.3% unemployment
                                                         -400000


                      Aug-08     Aug-07                     California (as of July 2008). The state of Nevada had a seasonally-adjusted unemployment
                                                  rate for -600000
  Unemployment                                    rate of 7.1%.
                       7.1%       5.0%
      Rate
  Visitor Volume      3.59M      3.74M
 Gaming Revenue      $759.3M    $838.1M                                                                       VaCanCy Vs rental rate

   Taxable Sales     $3,131M*   $3,238M*
New Home Permits       501        766
                                                             0.06                                $2.25                                                                                               2.3

* June 2008 / 2007                                                                                                  $2.19
                                                          0.055                                                                                                $2.15                                 2.2

                                                                                                                                                                                       $2.09
                                                                                                                                                                                       5.4%
                                                             0.05                                                                                                                                    2.1
                                                                               $2.03                                                    $2.03

                                                          0.045                                                                                                                                      2


                                                             0.04                                                                                                                                    1.9
                                                                                                                                                               4.0%

                                                          0.035                                                                                                                                      1.8


                                                                                                                                             3.4%
                                                             0.03                                                   3.2%                                                                             1.7
                                                                                3.1%
                                                                                                 3.0%

                                                          0.025                                                                                                   Vacancy                            1.6
                                                                                                                                                                  Asking Rental Rate


                                                             0.02                                                                                                                                    1.5
                                                                              2 Q 2007         3 Q 2007            4 Q 2007            1 Q 2008            2 Q 2008                  3 Q 2008
           www.lvcolliers.com

                                                                                                                                                           Colliers international                                  1
                      las VeGas                                       retail                  third Quarter | 2008




                                                                     supply & demand                                             Net absorption this quarter was -416,887
                                                                     A total of 159,300 square feet (SF) of retail               SF, a sharp decline from last quarter. The
                     215                                             space was completed this quarter. This was an               highest net absorption (and only positive net
                              NORTH                                  improvement over last quarter, but remains                  absorption) in the valley was in the Southwest
                             LAS VEGAS
                95                                                   lower than normal for the Las Vegas market.                 submarket. All product types experienced
    NORTHWEST
                                    15                               A total of 1,656,214 SF of retail space has                 negative net absorption this quarter, with
                                                                     been completed in 2008, 84% of it during                    Community Centers having the lowest at
                                DOWN
                                TOWN       UNIVERSITY
                                                                     the first quarter.                                          -332,388 SF.
                  WEST                       EAST
                 CENTRAL
                                          95
                                                                     Currently, there is a total of 2,443,762                    Vacancy & rents
                             RESORT
                            CORRIDOR
                                                                     SF under construction in the Valley, with                   Retail vacancy increased to 5.4% this quarter.
                      215                                            another 3,513,498 SF of space planned                       Vacancy increased this quarter over last in
      SOUTHWEST                          HENDERSON                   to begin construction in the next twelve                    all submarkets except the Northeast, where
                                                                     months. Power Centers comprise 43% of                       it remained stable at 3.6%. All product
                                                                     this future space, Community Centers                        types experienced an increase in vacancy,
“Fresh & Easy has occupied                                           43%, and Neighborhood Centers 14%. The
several vacated Rite Aids and                                                                                                    with Community Centers having the largest
                                                                     majority of this space will be completed                    increase over last quarter. The Downtown,
Target has opened one store this                                     in the Henderson, North Las Vegas and                       Henderson, North Las Vegas and Southwest
year and plans to open three more                                    the Southwest submarkets. Significant                       submarkets had vacancy rates higher than the
in 2009.”                                                            projects beginning construction this quarter                Valley average. Downtown had the highest
                                                                     include Deer Springs Town Center, Desert                    vacancy rate in the Valley, at 11.5%. The
                                                                     Marketplace and the Target center at Decatur                lowest was in University East, at 3.4%. Among
                                                                     & I-215.




                                                                                              retail                                             GaMinG            oCCuPied
                                                                               year                              Visitor VoluMe          2
                                                                                          eMPloyMent        21
                                                                                                                                                reVenue 3          retail sF
                                                                               2002            93,500                35,071,504               $7,630,562,000        28,570,618

                                                                               2003           100,700                35,540,126               $7,830,856,000        31,430,871

                                                                               2004            96,700                37,388,781               $8,711,426,000        32,364,995

                                                                               2005           100,500                38,566,717               $9,717,322,000        33,819,615

                                                                               2006           103,500                38,914,889               $10,630,387,000       36,051,930

                                                                               2007           105,700                39,196,761               $10,868,029,000       38,545,968

                                                                             2008 YTD         101,900                25,331,316               $6,711,586,000        39,215,911
                                                                                                            1
                                                                                                             As of August 2008 according to DETR
                                                                                                           2
                                                                                                             As of August 2008 according to LVCVA
                                                                                                    3
                                                                                                      Clark County as of August 2008 according to LVCVA
1
 Forward supply is a combination of space
presently under construction in a quarter
and space planned to begin construction
within the next 4 quarters.

Market aCtiVity
third Quarter transaCtions



LEASE ACTIVITY
ProPerty address                                        lease date          lease terM          size sQ. Ft.          lease rate/sQ. Ft.                  tyPe
1200 s rainbow blvd                                     sep 2008            60 months             10,000                    $1.14 nnn                     Community Center
1000 n Green Valley Pkwy                                sep 2008            36 months               5,426                   $1.55 nnn                     neighborhood Center
10080 W tropicana ave                                   aug 2008            96 months               4,761                   $2.00 nnn                     neighborhood Center
4401 e bonanza rd                                       aug 2008            120 months              3,500                   $3.45 nnn                     neighborhood Center
11710 W Charleston blvd                                 aug 2008            65 months               3,044                   $3.33 nnn                     neighborhood Center



2      Colliers international
                                                       las VeGas                                           retail                                third Quarter | 2008




  Retail MaRKet StatiStiCS
  thiRd QUaRteR 2008


 eXistinG ProPerties            direCt VaCanCy          sublease VaCanCy                     total VaCanCy              net absorPtion sF                      u/C & ProPosed sF                   aVG rents
                   total                                                                                  Vacancy                                  Completed
                                                                                                                      Current                                       Completed        under
type    bldgs    inventory        sq Ft       rate       sq Ft        rate        sq Ft      3Q - 08       rate                        ytd           this Qtr                                           rate
                                                                                                                       Period                                         ytd           Constr
                   sq Ft                                                                                Previous Q                                     sq Ft

 sub Markets

doWntoWn subMarket
PC     -         0       0                     n/a               0     n/a             0        n/a          n/a               -            -                  -              -              -             $-
CC     5   684,340 133,338                    19.5%              0     0.0%      133,338       19.5%        18.8%        (4,890)    (121,775)                  -              -              -          $1.14
nC     5   518,070   5,500                     1.1%              0     0.0%        5,500        1.1%         1.1%              -       38,220                  -              -              -          $3.00
total 10 1,202,410 138,838                    11.5%              0     0.0%      138,838       11.5%        11.1%        (4,890)     (83,555)                  -              -              -          $1.22

henderson subMarket
PC      7  2,514,355             108,750       4.3%        25,569      1.0%      134,319        5.3%         3.5%      (20,440)      (93,170)                  -              -     450,000             $1.69
CC     19  2,688,350             244,628       9.1%         7,713      0.3%      252,341        9.4%         4.6%     (121,920)     (175,353)                  -              -           -             $1.72
nC     25  2,796,250             282,156      10.1%        14,156      0.5%      296,312       10.6%        13.4%        91,702     (125,517)                  -              -           -             $2.11
total 51   7,998,955             635,534       7.9%        47,438      0.6%      682,972        8.5%         7.3%      (50,658)     (394,040)                  -              -     450,000             $1.89

north las VeGas subMarket
PC      1     300,000   5,025                  1.7%              0     0.0%        5,025        1.7%         1.7%              -      294,975                  -      300,000       687,713             $3.32
CC     10   1,755,463 136,131                  7.8%              0     0.0%      136,131        7.8%         7.7%          (388)       10,249                  -            -             -             $2.21
nC     14   1,855,468  88,459                  4.8%              0     0.0%       88,459        4.8%         3.8%       (17,943)      158,333                  -      150,000       312,099             $2.61
total 25    3,910,931 229,615                  5.9%              0     0.0%      229,615        5.9%         5.4%       (18,331)      463,557                  -      450,000       999,812             $2.39

northeast subMarket
PC     -            0                  0       n/a               0     n/a              0       n/a          n/a               0             -                 -              -           -                $-
CC     8    1,398,026             64,163       4.6%              0     0.0%        64,163       4.6%         4.4%        (2,289)       (3,902)                 -              -      90,700             $1.44
nC    13    1,134,765             27,118       2.4%              0     0.0%        27,118       2.4%         2.5%          1,237         2,674                 -              -           -             $1.92
total 21    2,532,791             91,281       3.6%              0     0.0%        91,281       3.6%         3.6%        (1,052)       (1,228)                 -              -      90,700             $1.58

northWest subMarket
PC     7   2,840,703  53,115                   n/a          1,266      n/a        54,381        n/a          1.0%      (25,014)       (15,864)                 -            -             -             $2.65
CC    16   3,585,512 173,239                   4.8%             0      0.0%      173,239        4.8%         3.4%      (51,802)       (86,321)                 -            -       390,000             $2.77
nC    30   3,655,508 174,828                   4.8%        85,102      2.3%      259,930        7.1%         2.5%      (84,565)         11,771                 -      102,600             -             $2.27
total 53 10,081,723  401,182                   4.0%        86,368      0.9%      487,550        4.8%         2.4%     (161,381)       (90,414)                 -      102,600       390,000             $2.54

southWest subMarket
PC     1     944,314              45,665       4.8%             0      0.0%       45,665        4.8%         4.8%              -      898,649               -          944,314            -             $3.17
CC     8   2,789,171              98,968       3.5%         2,000      0.1%      100,968        3.6%         2.0%       (44,183)      (56,878)              -                -      427,250             $2.67
nC    12   1,537,100             174,161      11.3%         1,447      0.1%      175,608       11.4%         6.3%         72,581      101,279         159,300          159,300       86,000             $2.34
total 21   5,270,585             318,794       6.0%         3,447      0.1%      322,241        6.1%         3.7%         28,398      943,050         159,300        1,103,614      513,250             $2.56

uniVersity east subMarket
PC       3   1,250,362    5,000                0.4%             0      0.0%         5,000        0.4%        0.4%              -       (5,000)                  -             -              -          $1.75
CC      19   2,761,018 113,576                 4.1%             0      0.0%       113,576        4.1%        2.3%       (50,522)      (42,186)                  -             -              -          $1.95
nC      18   2,075,953  89,544                 4.3%        27,984      1.3%       117,528        5.7%        3.8%        (9,757)      (39,899)                  -             -              -          $2.38
total 40     6,087,333 208,120                 3.4%        27,984      0.5%       236,104        3.9%        2.4%       (60,279)      (87,085)                  -             -              -          $2.13

West Central subMarket
PC      3  1,138,667   39,200                  3.4%             0      0.0%        39,200        3.4%        2.8%        (7,620)         8,434                  -             -              -          $1.38
CC     15  1,649,179   86,379                  5.2%         1,350      0.1%        87,729        5.3%        1.8%       (56,394)      (16,231)                  -             -              -          $1.52
nC     14  1,591,822   99,542                  6.3%             0      0.0%        99,542        6.3%        0.9%       (84,680)      (72,545)                  -             -              -          $1.79
total 32   4,379,668  225,121                  5.1%         1,350      0.0%       226,471        5.2%        1.7%      (148,694)      (80,342)                  -             -              -          $1.62



 M a r k e t tota l
PC     22        8,988,401       256,755       2.9%       26,835       0.3%       283,590       3.2%         2.3%      (53,074)     1,088,024               -        1,244,314    1,137,713             $2.14
CC    100       17,311,059     1,050,422       6.1%       11,063       0.1%     1,061,485       6.1%         4.1%     (332,388)     (492,397)               -                -      907,950             $1.97
nC    131       15,164,936       941,308       6.2%      128,689       0.8%     1,069,997       7.1%         5.0%      (31,425)        74,316         159,300          411,900      398,099             $2.22
total 253       41,464,396     2,248,485       5.4%      166,587       0.4%     2,415,072       5.8%         4.0%     (416,887)       669,943         159,300        1,656,214    2,443,762             $2.09




 Q u a rt e r ly C o M Pa r i s o n a n d t o ta l s
Q3-08    253    41,464,396     2,248,485       5.4%      166,587       0.4%     2,415,072       5.8%         4.5%     (416,887)       669,943         159,300        1,656,214    2,443,762             $2.09
Q2-08    254    41,305,096     1,672,298       4.0%      195,283       0.5%     1,867,581       4.5%         3.7%     (150,315)     1,086,830         102,600        1,496,914    1,041,399             $2.15
Q1-08    254    41,202,496     1,419,383       3.4%      107,071       0.3%     1,526,454       3.7%         3.3%     1,237,145     1,237,145       1,394,314        1,394,314      990,799             $2.03
Q4-07    252    39,808,182     1,262,214       3.2%       54,559       0.1%     1,316,773       3.3%         3.1%       535,867     2,485,226         618,302        2,718,613    1,995,013             $2.19
Q3-07    250    39,189,880     1,186,486       3.0%       47,852       0.1%     1,234,338       3.1%         3.3%       466,366     1,949,359         417,000        2,100,311    2,268,213             $2.25


                the inForMation Contained in this rePort Was ProVided by sourCes deeMed to be reliable, hoWeVer, no Guarantee is Made as to the aCCuraCy or reliability. as neW, CorreCted or uPdated
                                 inForMation is obtained, it is inCorPorated into both Current and historiCal data, WhiCh May inValidate CoMParison to PreViously issued rePorts.



                                                                                                                                                           Colliers international                               3
                          las VeGas
                          las VeGas                                                 retail
                                                                                    oFFiCe                               third Quarter 2008
                                                                                                                         third Quarter || 2008


                                                                                                                                                                     293 oFFiCes in 61 Countries
product types, Power Centers had the lowest                                         Not surprisingly, retail vacancy is rising                                       on 6 Continents
vacancy rate (2.9%), and Neighborhood                                               and demand for retail space is weak. Net
Centers the highest (6.2%).                                                         absorption has been negative for two
                                                                                                                                                                     usa 99
                                                                                    quarters now, and it has lagged behind
After increasing last quarter, the average                                          new completions for the past four quarters.                                      Canada 19
asking rental rate for retail space decreased                                       There are still deals being done in the                                          latin america 18
by $0.06 this quarter to $2.09 psf NNN. The                                         Valley; Fresh & Easy has occupied several                                        asia Pacific 62
largest increases were seen in the University                                       vacated Rite Aids and Target has opened                                          eMea 95
East and West Central submarkets.                                                   one store this year and plans to open three
                                                                                    more in 2009. That being said, with all signs                                    $73 billion in annual transaction
                                                                                    pointing to a weak economy through 2009                                          volume
Conclusion                                                                          and with the eminent closure of Mervyns
                                                                                                                                                                     868 million square feet under
Current economic conditions suggest                                                 locations in the Valley (totaling almost
that the Las Vegas Valley is in the midst                                           275,000 SF), we think the Valley can expect                                      management
of a recession. Visitor volume, gaming                                              to see vacancy rates continue to rise at least                                   11,000 Professionals
revenue and taxable sales are all down.                                             through mid-year 2009.

                                                                                                                                                                     ContaCt inForMation
                                                                 estiMated Per                                            oCCuPied
                                   PoPulation      PoPulation                                                                                            retail
    subMarket
       110000                                                    CaPita inCoMe                                         retail sPaCe                0.975
                                 (2008 estiMate) (2013 estiMate)                                                                                  establishMents
                                            97.0%
                                                                     (2008)                                                  (Q3-08)
                                                                                                                   Retail Jobs                                       Colliers International
        108000                  96.9%                                   96.8%
                                                                                                                   Occupancy Rate                 0.97               3960 howard hughes Parkway
      Downtown                            87,368                       92,784               96.6%$15,452                   1,063,572                      1,295
        106000
                                                                                                                                                                     suite 150
                                                                                                                                                  0.965
      Henderson                           235,628                     274,534                    $32,751                   7,363,421                      1,665      las Vegas, nV 89169
        104000                                                                                                96.0%                                                  united states
                                                                                                                                                  0.96
    North Las Vegas                       253,306                     328,277                    $19,673                   3,681,316                       912       tel:   702-735-5700
        102000                                                                                                                                                       Fax: 702-731-5709
      Northeast                           278,308                     300,867                    $18,778                   2,441,510              0.955   1,270
        100000
      Northwest                           442,093                     516,902                    $31,937                   9,680,541              0.95    2,387
         98000                                                                                                                      94.6%                            Mike Mixer
      Southwest                           152,592                     200,254                    $32,636                   4,951,791              0.945   1,313      Managing Partner
         96000
                                                                                                                                                                     email: mmixer@lvcolliers.com
    University East                       190,098                     207,102                    $26,599                   5,879,213              0.94
                                                                                                                                                          2,343      tel:   702-836-3777
         94000
     West Central                         104,071                     106,142                    $22,467                   4,154,547                      2,278
         92000                                                                                                                                    0.935              John Stater
        TOTAL                           1,743,464                     2,026,862                  $26,252                  39,215,911                      13,463     research Manager
         90000                                                                                                                                    0.93               email: jstater@lvcolliers.com
                               2 Q 2007            3 Q 2007            4 Q 2007            1 Q 2008          2 Q 2008               39661                            tel:   702-836-3781




                                                    historiCal net absorPtion Vs CoMPletions                                                                         this report and other research materials may
                                                                                                                                                                     be found on our website at www.lvcolliers.
                                                                                                                                                                     com. this quarterly report is a research
                                                                                                                                                                     document of Colliers international – las Vegas,
                 1600000                                                                                                                                             nV. Questions related to information herein
                                             Absorption                                                                                                              should be directed to the research department at
                 1400000                     Completions                                                                                                             702-836-3781. information contained herein has
                                                                                                                                                                     been obtained from sources deemed reliable and no
                 1200000                                                                                                                                             representation is made as to the accuracy thereof.
                                                                                                                                                                     Colliers nevada, llC dba Colliers international is
                 1000000                                                                                                                                             an independently owned and operated business and
                                                                                                                                                                     a member firm of Colliers international Property
                      800000                                                                                                                                         Consultants, an affiliation of independent
                                                                                                                                                                     companies with over 293 offices throughout more
            Square Feet




                      600000                                                                                                                                         than 61 countries worldwide.

                      400000

                      200000

                           0
                                     2 Q 2007              3 Q 2007             4 Q 2007          1 Q 2008            2 Q 2008              3 Q 2008
                   -200000

                   -400000

                   -600000



                                                                                                                                                                     www.lvcolliers.com

4      Colliers international                                                                                                                                      Colliers international                          4

				
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