Commercial Real Estate Improving

Commercial real estate in Las Vegas is showing signs of improvement in the retail and office sector, with industrial running at full speed. Absorption stayed strong in the industrial market, as millions of square feet of space came online in the market in 2017, a second-quarter report by Colliers International Las Vegas showed.

“I would say the state of the market is pretty good across all sectors,” said Jay Heller, the 2017 president of NAIOP Southern Nevada and co-owner of Heller Cos. in Las Vegas.

Las Vegas Journal Review

United Healthcare Leases 98,000 SF In Area

unitedhealth

United Healthcare Services, a health plan servicer and subsidiary of UnitedHealth Group, signed a 10-year lease for 98,000 square feet in The Oakey Building at 4750 W. Oakey Blvd. in Las Vegas, NV.

The four-story, 98,000-square-foot, 4-Star office building was constructed in 1988 on 3.2 acres in the West Las Vegas submarket of Clark County. The previous tenant, the Las Vegas Police Department, also occupied the entire building until vacating in 2011.

Trans-Aero Land & Development Company acquired the asset in 2006 for $22.3 million, according to CoStar data. Shortly after, the company built an adjacent four-story parking structure. 

The proximity of local restaurants and shopping facilities will see a rather large increase of business due to the large number of employees that will now be in the vacinity on a daily basis.

Bret Davis of JLL represented United Healthcare. Mark Rua of Realty Executives of Nevada represented the landlord.

 

Galleria Commons Purchased

Henderson, Nev. — NKF Capital Markets has arranged the sale of Galleria Commons, a 278,411-square-foot shopping center in Henderson.

Rob Ippolito of NKF Capital Markets arranged the transaction on behalf of the seller, Brixmor Property Group. The property was purchased for an undisclosed price. At the time of sale, Galleria Commons was fully leased to tenants such as T.J. Maxx, Stein Mart, Babies ‘R’ Us, Burlington, Dollar Tree, Tuesday Morning and Kirkland’s.

Healing seen in Las Vegas commercial real-estate market

Las Vegas Real-Estate MarketSouthern Nevada’s homes market isn’t the only real estate sector seeing falling loan delinquencies.

An improving economy means fewer commercial borrowers are in danger of default, too.

New numbers from Trepp, a New York-based commercial real estate and banking research firm, show a substantial drop recently in late commercial loans. The Las Vegas Valley in December had 53 properties with real estate loan payments that were more than 90 days late, for a 10.7 percent delinquency rate. That was down from 14.9 percent in December 2013.

It was also less than half of the rate in mid-2011, when 24 percent of local commercial properties were behind on their real estate loans, said Sean Barrie, a Trepp research analyst.

Nearly 150 local properties were delinquent in mid-2012.

Delinquencies are an important economic indicator because they reflect whether commercial landlords can make their payments. That’s driven in turn by economic expansion and business formation.

Delinquencies are falling as more borrowers and banks look for loan-workout strategies, Barrie said.

Those alternatives to default are available because the local market has stabilized, said Bob Ybarra, an analyst with commercial brokerage CBRE Las Vegas.

“You’re seeing a lot more absorption (leasing of space) in industrial, office and retail properties,” Ybarra said. “The overall fundamentals are better: You have a strong economy, businesses are rebounding, there’s more job creation, and there’s more wealth. We’re not breaking records, but some of these centers are starting to fill up with tenants again. And when they fill up, the landlords can service their debt.”

Written by Jennifer Robison

Read the full article at the Las Vegas Review Journal.

Las Vegas Review Journal Article

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