The Job Duties of a Broker

Commercial real estate brokers take on many challenges and do a lot more than one would think.  The real estate world in itself is a tough industry, and professionals can be very busy.  The article below deeply describes the brokerage world and everything that brokers have to do.  You will likely work with a broker at some point in life, so it might come in handy to better understand everything they do.  Give this article a read.

Today’s World of Brokerage: What to Know

Larry Singer’s team at Newmark Knight Frank (NKF) has provided services to Ainsworth Game Technology Ltd. for years. First, the commercial real estate brokerage located a Las Vegas site for this gaming machines manufacturer and supplier’s 300,000 square-foot North American headquarters then helped them acquire, through auction, an additional 5-acre parcel from Clark County to square off the property. Having done so, Ainsworth had 5 acres of unneeded land, for which NKF recently helped find a buyer.

These transactions and this ongoing relationship exemplify commercial real estate brokerage work.

“We are advisors and strategic partners with our clients (large and small) on all aspects of commercial real estate ownership; acquisitions and dispositions, leasing, financing, project management, property management, facilities management, transaction management, to name a few,” said Las Vegas-based Michael Newman, CBRE’s managing director for Nevada and the industrial practice leader for the region. CBRE also has a Reno office.

The broker’s overarching task is to add value while serving their client’s best interest, said Brendan Keating, the CEO and co-founder of Las Vegas-based Logic Commercial Real Estate. Doing so requires collecting and analyzing data and researching and understanding the market—trends, opportunities, availability, pricing and more—for the asset classes in which they operate—retail, office, industrial, hospitality and land.

Other requirements are listening, advising, negotiating and anticipating. Developing and nurturing relationships with industry partners, such as bankers, title and escrow experts, architects, attorneys and the media, also are key, said Carol Cline-Ong, CCIM, who described brokers as “connectors.” Cline-Ong is the CEO and a principal of MDL Group, a commercial brokerage and commercial property manager firm in Las Vegas.

Finally, brokers must build and maintain a base of clients that include tenants, buyers, sellers, landlords and investors.

“Probably the least important thing that we do is take people out and show space,” said Singer, senior managing director of the international firm Newmark Knight Frank. His individual specialty is the office space market.

The Broker-Client Engagement

While the process of a commercial real estate broker providing services to a client can be complex with numerous factors involved, it can be boiled down to a handful of key steps.

First, a discussion ensues between the broker and client about the latter’s needs, aims and risk appetite. The broker surveys the market for products that meet the client’s criteria, obtaining all the information they’d need to underwrite the deal. Once the transactions are underwritten, the broker presents them to the client with lists of pros and cons. The two sides discuss the options, and the client narrows them down to a few. Then they tour those possibilities.

Depending on the type of client and their objectives, the next step could be creating a lease, acquiring a property, finding buyers or some other step. The broker-client relationship typically ends once that transaction is completed, but it doesn’t have to.

“You, [the broker], want it to be a life-long process because everything is relationships in the real estate world. You want to be a resource, be available to them and want them to know you’re here,” said Cline-Ong.

How Brokers Get Paid

Brokers get paid on commission. Usually that amount is a percentage of either the sale price or the total lease value of a lease transaction, said Mike Mixer, SIOR, the executive managing director of Colliers International Las Vegas. His specific area of focus is land and hospitality properties in Las Vegas’ resort corridor.

The commission percentage typically ranges from 1 to 7 or 8 percent, depending on the deal size. A 1 percent commission is common for huge projects, say $500 million or more, whereas 7 or 8 percent is more typical for smaller ones, around $1 million.

“It’s important for tenants, buyers and owners to understand the commission structure because it is part of the cost of the transaction,” said Singer.

Professional Broker Titles

Some brokers have designations, such as CCIM (Certified Commercial Investment Member) or SIOR (Society of Industrial and Office Realtors). These initials indicate that an individual has achieved a certain level of training and experience and has met the criteria for being recognized as an expert, Mixer said.

However, because a broker doesn’t have such an accreditation doesn’t mean they’re not proficient. Some have been in the field and successful for decades.

Advice for Prospective Clients

Experts offered these five tips for company executives or business owners who’re seeking a broker’s services. They should:
Jump into the process early and not wait.
Choose a specialist, an expert in whatever business they’re engaged in. “You want someone that knows all the intricacies of your particular product type,” said Mixer.
Select someone they connect and feel comfortable with and in whom they have confidence.
To select a broker, meet with prospective ones, maybe have lunch with them and test their knowledge and skill set.
Remember the broker is there to provide market knowledge, insight and analysis so the client can make a better real estate decision.

Post-Recession Changes

Today’s commercial real estate market in Nevada is “strong and steady,” a different landscape than in the many years following the recession, said Mixer. As a result, brokerage also has changed.

In Southern Nevada, the brokerage community has shrunk since the economic downturn, as it “weeded out a lot of the less experienced brokers in the market,” he added. Young professionals are entering the industry but not at the pace of those retiring, creating a gap.

Plus, consolidation in the industry continues. Larger companies are acquiring the regional ones to compete on a national basis, Newman said.

More national companies have joined the mix, both on the brokerage and client sides, Singer said.

Fewer agents vying for the same transactions has heightened competition. Therefore, brokers have had to become more knowledgeable about the market and what’s happening within it, broadly and within specific regions.

“You have to be on your game,” Cline-Ong said. “If I go into Henderson, I better know where the next medical facility or campus is going to be—know your product, know your area, know your client.”

Also to compete, many firms have shifted from offering only the core business of brokerage and investment sales to providing a wider array of services, such as workforce analysis for companies moving to the region and investigating business incentives for businesses that want to relocate or expand, Newman said.

Northern Nevada has more people in the brokerage business and more firms today than pre-recession, including some national brands, said Ken Stark, president and co-owner with Bradley Elgin of Reno-based Stark & Associates Commercial Real Estate. Stark specializes in office and investments. Competition is “fierce but friendly,” he added. While there’s not a lot of attrition out of the field, young people are entering it.

In both ends of the state, the investor pool is more diversified today, Keating said. For one, more of them are institutional versus private equity owners. Second, many of today’s investors are high net worth people seeking stabilized cash flow instead of turnaround projects. They’re investing directly into real estate rather than investing in companies that own and operate properties.

Challenges in the Industry

Currently, Northern Nevada is experiencing a market that has some brokers uneasy, as the industry as a whole is struggling to satisfy demand, said Stark.

Prices for land and industrial and investment property are higher than they were at the peak in 2005-2006, said Stark. This is unusual given the lending is tight and the financing process is more structured.

“We’re not sure that the lenders can keep up with the momentum of what the properties are worth,” he added.

The rise in prices, though, is being driven by a lot of cash in the market, high demand and low supply. Stark described a scenario where many people are spending $3, $4 or $5 million in cash in a transaction.

“We’re starting to see tangible speculative development and speculative development when a tenant is not already in place for it. It’s a little concerning to us, the pace of play,” Stark said. “There are not enough properties out there for the buyers that we’re seeing.”

With these fundamentals as a backdrop, on the leasing side, existing tenants are being forced to pay higher rents to stay in a property. If they don’t, the landlords will find a lessee that can. Similarly, in Southern Nevada, once landlords reach a certain level of leasing with their project, they can afford to wait to get the terms they want. However, tenants or buyers who need space for operating their business may not be able to wait.

For brokers representing landlords, in this market it’s difficult to obtain financing, to get deals structured the way they want to maximize the return on investment, Singer said.

The state’s Southern region is experiencing a shortage of Class A and Class B office space due to minimal construction, Singer said. For example, if a tenant is looking for Class A space between 10,000 and 20,000 square feet, they’re limited to about 10 available properties. If they’re looking in the 20,000 to 30,000 square foot range, they’re down to five or six options, and for 50,000-plus square feet, two choices. Consequently, they’re forced to look perhaps at space to be developed in the future, creating a time challenge.

“[The broker] needs to consider properties that are in the planning and predevelopment stages, which are going to take 12 months to 24 months to complete,” Singer said. “[Clients] need to leave a lot more time.”

Also slowing the process is clients throughout the Silver State tending, in general, to be more cautious in their decision-making, taking the time to consider costs, which are rising, and how they may control them.

Another challenge for brokers is catching and keeping up with technological changes in an industry that’s lagged behind others in adopting advances. For instance, more online tools for analyzing and understanding the market exist today than ever, which is a plus, yet professionals need to learn how to use them. Also, more and more previously secret or proprietary data are being aggregated and sold.

“It’s data overload,” Mixer said. “Unless you understand how to use it and analyze it, it’s daunting to keep up with.”

Technology has yet to “disrupt” the brokerage business but no doubt will, Keating said.

“We are focusing on how that is going to change our business model, while keeping a nimble and high-liquidity approach to be ready to adapt to those changes,” he added.

Expectation for the Future

Consensus is commercial real estate brokerage in both Southern and Northern Nevada will see steady activity for the next two to three years, at least.

“I think our industry will continue to prosper for the foreseeable future,” concluded Newman.



Stable Development Helps San Gennaro Festival

I love being able to support things around the city and community events with my company, Stable Development.  Las Vegas has tons of events happening all the time, and recently was the 38th anniversary of the San Gennaro Festival.  The article below gives you more details on the event and how much of a success it was.  You will not want to miss this event the next time it happens.

San Gennaro Festival Great Success With Help of Stable Development

Lance Bradford and Stable Development donate $25,000 to bolster the Annual San Gennaro Festival in Las Vegas, Nevada

News provided by Stable Development

Oct 17, 2017, 11:00 ET

LAS VEGAS, Oct. 17, 2017 /PRNewswire/ — Celebrating their 38th anniversary in Las Vegas, Nevada, the San Gennaro Festival is the biggest Italian food and music festival held bi-annually in Las Vegas, Nevada in honor of Saint Gennaro, the Saint of Naples, Italy.

The festival features a wide variety of ethnic food vendors, arts and crafts, home exhibits, pony rides & petting zoo, face painters, live international acts hourly on the main concert stage, and amusement rides and games fun for the whole family. The festivities are always a major attraction in Vegas and are a favorite among many of the patrons, and this last year was a major success. Though their goal is always to out-do the last, this time it was taken above and beyond expectations.

The festival was supported through its expanding following as it’s continually a hit for locals and tourists alike. It shouldn’t come as much of a surprise that parking, traffic, and overall event population have risen as concerns and issues surrounding the event. After having met the goal of attendance exceeding 90k at their second event this year, moving it to larger accommodations was necessary.

Avenue off the 215 and S Durango at 6555 S Riley St. Las Vegas, NV 89148 was selected as an alternative to the previous occasion’s venue. Parking and traffic assistance was generously donated by Lance Bradford, and therein the whole team at Stable Development. Valued at $20k+, the donation ended up being as much a necessity as it was a convenience for the consumers in attendance. It is certain that those who took advantage of the closer parking, clean adjoining facilities, and other related assistance right next door to the festival were thankful for risk and worry-free accommodations!

About Lance Bradford and Stable Development: Lance Bradford has demonstrated himself to be a well-trusted and respected among real estate professionals local and abroad. As his reputation of success and generosity expands nationally, he is transitioning past experiences, and an entrepreneurial spirit to become a valuable partner in several ventures responsible for ensuring their growth and success. Serving as President of a NASDAQ compliant real-estate company that garnered $500 million in the capital and generated over $1 billion in transactions since its IPO in 1999, Bradford has demonstrated great leadership.

Through great leadership, Stable Development has experienced tremendous growth. Conquering eight years of business in Las Vegas, Nevada real estate while enduring one of the worst downturns in its history, Bradford, his team, and their business have become known for its Shared Equity Ownership Model as well as its success. Bradford, through Stable Development, identified a need in their local market and met it with a team that truly understands the City of Lights and beyond.

Learn More About the San Gennaro Festival and Lance Bradford by visiting:

Media Contact: Anthony Harding– 602-740-8334



High Price Tags on Land Near Raiders’ Future Stadium

Buyers are paying top dollar for pieces of land around the site of the future Las Vegas Raiders.  Most of the land is being said to be purchased for “industrial use”, but only time will tell as things are built.  A new football stadium adds value to an area as it draws in more businesses.  We could see a lot of change to the Las Vegas landscape in the next three years with the addition of this stadium and our market doing so well.  Learn more about the latest property sale in the article below:

Investors pay premium for land near Raiders Stadium in Las Vegas

By Eli Segall Las Vegas Review-Journal

August 11, 2017 – 5:29 PM

The Raiders are still a few years away from throwing the pigskin in Las Vegas. But one investor group is getting in on the NFL team’s neighborhood early – and it paid a premium.

Global Trust Group this week bought a vacant 2.5-acre parcel on Hacienda Avenue, just north of where the Raiders plan to build their stadium. The $7.25 million sale closed Monday, property records show.

That amounts to $2.9 million an acre — about six times the average sales price for Southern Nevada land in the second quarter, as tracked by brokerage Colliers International.

Listing broker Bill Lenhart told me the buyers were “never specific on their intent” for the site. He said one reason Global Trust beat other bidders was that it did not have an entitlement contingency, or a precondition that it would finalize the sale after it obtained project approvals from Clark County.

A sign for the company at its newly acquired property proclaims it a “development site.”

“Create and defend wealth,” the sign says.

Efforts to reach Global Trustfor comment were unsuccessful.

Lenhart, founder of Sunbelt Development & Realty Partners, said he received offers from seven qualified prospective buyers, or those who provided proof of funds, and some from people who “were not so qualified.”

The Raiders are expected to start construction of their 65,000-seat domed stadium in January and finish by mid-2020. According to Lenhart, investors were interested in his client’s parcel because of the football team’s pending arrival.

“It just shined a light on it,” he said.

Investors also have eyed a property adjacent to Global Trust’s: a 1.8-acre spread with a boarded-up, two-story commercial building on Dean Martin Drive that was torched in a fire in May. But a deal with the site’s owner has ended up in court.

ABC Land & Development sued the owner, Itai Investments, in late June in Clark County District Court.

ABC alleged it reached a deal effective March 30 — three days after NFL owners approved the Raiders’ move from Oakland to Las Vegas — apparently to buy the property for $3.2 million. But Itai “has failed and refused without just cause or reason” to comply with the terms of the sale and finalize the transaction, ABC alleged.

ABC’s attorney in the case, James Smyth of law firm Kaempfer Crowell, would not comment Thursday.

The case docket online does not show an attorney for Itai. Efforts to get comment this week from the ownership were unsuccessful.

It’s still too early to say whether the Raiders will spark a real estate bonanza. There are some empty parcels near the stadium site, but the neighborhood is almost entirely built out, mostly with industrial properties.

But with one property owner able to fetch nearly $3 million an acre, don’t be surprised if others start salivating — if they aren’t already.


Las Vegas’ Current Commercial Real Estate Market

There will always be examination of real estate markets across the country, and for industry professionals there is always benefit in knowing how the market looks in your area.  The latest in Las Vegas commercial real estate news is positive.  Fellow industry professionals speculate that the market is heading in a good direction thanks to dropping vacancy rates and big land purchases. Learn more about where our market is at in the article below.

Most Arrows Pointing in Positive Direction for Local Commercial Real Estate Market

July 11, 2017 By Press Release Wire

LAS VEGAS – A report released by Xceligent in partnership with the Commercial Alliance Las Vegas (CALV) shows the commercial real estate market in Southern Nevada posting mostly positive results through the first half of 2017.

“Most of the arrows continue to point in a positive direction, especially when compared to the past several years,” said CALV President Jennifer Ott, CCIM, and a longtime local commercial real estate broker who specializes in the retail market. “The retail market is a good example. After a relatively slow first quarter, we saw the retail sector pick up during the second quarter. That trend should continue through the rest of 2017.”

According to the report, the total vacancy rate for the local retail market went from 9.8 percent in the first quarter of 2017 to 9.5 percent during the second quarter. The local retail market recorded 177,756 square feet of positive absorption during the second quarter of 2017, up from 17,202 square feet during the first quarter of this year.

Tina Hickman, director of analytics for Xceligent for the Las Vegas market, said more than 200,000 square feet of retail space is under construction in Southern Nevada, with a new Walmart Supercenter in the Southwest part of Las Vegas accounting for most of that.

Meanwhile, Ott said the local office market continues to improve after seeing vacancy rates approach record highs during the recession. One reason for that, Ott and Hickman agreed, is Southern Nevada’s overall economic and job growth.

The total office vacancy rate continued to decline, dropping from 15.1 percent in the first quarter of 2017 to 14.9 percent in the second quarter. At the same time, the local office market recorded 125,089 square feet of positive absorption during the second quarter, compared to 178,805 square feet during the first quarter of 2017.

Brenden Graves, sales executive for Xceligent in Las Vegas, noted that “although office vacancies are high, this is largely due to obsolete product on the market in the central and northeast markets. The office market actually has felt a compression in space that will likely soon affect rates.”

Hickman said 286,876 square feet of office space is now under construction in Southern Nevada, with most of it being built in the Southwest part of Las Vegas.

“Construction activity is gaining ground even more than last quarter, as we continue to see more plans in the pipeline for office development,” she added. “An additional 430,000 square feet of office space is currently planned and proposed for the Las Vegas metro area. Absorption is expected to remain positive during 2017.”

The story is similar in the Southern Nevada industrial market, where Xceligent is tracking 13 industrial buildings under construction, adding more than 3.3 million square feet of space to the market. Another 2 million square feet of space has been proposed.

Hickman said the local industrial market recorded 1.8 million square feet of positive absorption during the second quarter of 2017, more than triple the amount of activity recorded during the first quarter of 2017. Still, the total industrial vacancy rate increased to 6.0 percent during the second quarter, up from 5.6 percent during the first quarter.

“Industrial vacancy rates have experienced a slight increase due to the new inventory,” she explained. “Much of this space is scheduled to be occupied within 2017, and absorption is expected to continue an upward trend.”

Graves also commented on rising land costs and the increasing number of multifamily developments being built around Southern Nevada.

“In regard to land, we’re seeing that prices on a per-acre basis have outrun most product types’ appetite,” he said. “This has created an influx of land purchased for multifamily, and we’re not sure where the renters are going to come from.”

Xceligent, a growing provider of commercial real estate information locally and nationally, partners with CALV and local commercial real estate professionals through their Quarterly Advisory Boards to produce quarterly reports on trends and conditions in the office, industrial and retail markets in Southern Nevada. The report released this week covers activity through the second quarter of 2017.

Ott, whose professional designations include being a Certified Commercial Investment Member (CCIM), is one of dozens of leading local brokers who volunteer to serve on advisory boards that help verify and produce these reports.

About the Commercial Alliance Las Vegas
The Commercial Alliance Las Vegas (CALV) is the commercial real estate division of the Greater Las Vegas Association of REALTORS®. It organizes and empowers the industry in Southern Nevada through education, networking, promoting professionalism and shaping public policy. Membership in CALV is open to REALTORS® and non-REALTORS® alike. For more information, and to access the full reports on the commercial real estate market, visit

About Xceligent
Xceligent is a leading provider of verified commercial real estate information across the United States. Its professional research team pro-actively collects: a comprehensive inventory of commercial properties, buildings available for lease and sale, tenant information, sales comparables, historical trends on lease rates and building occupancy, market analytics, and demographics. This information assists the real estate professionals, appraisers, owners, investors, and developers that make strategic decisions to lease, sell, and develop commercial properties. Xceligent, backed by dmg information, has launched an aggressive national expansion that will provide researched information in the 100 largest United States markets. For more information on Xceligent, visit


Avoiding CRE Mistakes In Your City

Every city has vacant properties that have not spiked interest from buyers or developers in years.  Those properties, however, can be the gateway to recreating a whole neighborhood with the right development.  Learn how real estate professionals in big cities, including Las Vegas, across the country look at their surroundings and how they avoid major commercial real estate mistakes in the article below.

Real estate professionals can avoid

costly mistakes with advanced

drive-time analyses

Every community has a failed site that prominently stands on a corner or next to a grocer. These sites continue to consume resources from land owners without benefit and can hurt neighborhood businesses. While in some cases a business closes because of the management, far too many close because the site was not right for that business.

A prominent commercial real estate consultant once told me that in real estate “if you’re off by an inch, you’re off by a mile … you make a mistake; you’re dead.”

With so much at stake, commercial real estate professionals cannot afford to make decisions based on intuition or conventional wisdom. Successful companies understand the importance of making decisions based on accurate data and sound statistical methodologies. However, few analytical platforms today enable analysts to thoroughly understand their neighborhoods.

Much of the market analysis software on the market fails to provide an accurate description of local consumers. This is evident in the choice to use linear distance from a site, which is subject to statistical misrepresentations due to natural barriers like mountains and bodies of water that separate populations. Even when examining a large, densely populate areas like Los Angeles, rings can skew the data.

The analysis is made worse when a liner ring crosses a separated population and aggregates the two populations. In compact metropolitan areas like Seattle, a 5-mile ring can cross several separated communities that would not access the site. Although these communities are connected by bridges or tunnels, these areas are not an idea representation of the target consumer.

The same is true in Orlando, Florida, which has a large number of small lakes separating the populations. The communities may be close, and even accessible, but they may not be in a likely consumer group.

Commercial real estate professionals need a way to practically examine a neighborhood, moving beyond old cartographic techniques to see how people behave in a market to determine suitability.

A new way to know your neighborhood

Last month I attended a convention of professionals in the shopping center and commercial real estate industry in Las Vegas, where I met with a real estate developer from Orlando. He told me that success in commercial real estate comes down to finding “a place for people and people for place.” His statement made me realize that far too often, sites are examined without regard to the people who will use them. While many developers look at traffic counts, median age, and income, they fail to look at and understand who is going where and for what reason.

To avoid costly mistakes based on statistical misrepresentations, Esri developed a way to examine a local market, focusing on the people who will most likely use the space. Using Esri Business Analyst, commercial real estate professionals have access to practical analyses-based on driving and walking times, both to and from a site.

Above is the same site in Orlando based on a 5-, 10-, and 15-minute drive time to the site. From this analysis, a real estate profession can see there is a higher concentration of people that can easily access the site who are outside of the original rings and also communities that were within the original rings what would have a more difficult time accessing the site.

The same is true of walking time. In densely populated urban areas, commercial real estate professionals need to examine a much smaller area. Seattle, for example, is a highly walkable city. Looking at the corner of First and Pike, the entrance to the well-known Pike Place Market, a commercial real estate professional can examine the local population to determine proper site suitability.

By changing the way commercial real estate professionals think about the borders of a neighborhood or community, they are in a better place to analyze and determine the gaps and opportunities in the marketplace. If real estate professionals don’t challenge antiquated thinking or dated statistical methodologies, the risk of misrepresenting a site’s potential becomes more likely.


Retail Real Estate’s Challenges

Commercial real estate is in an awkward place right now.  Between store closings, bankruptcies, and a new president the market is not what it used to be — especially in the retail industry.  In the article below Mark Dufton, a real estate exec, gives his take on retail real estate and the market right now.

Q&A: Gordon Brothers Real Estate Executive Weighs in on Challenging Retail Real Estate Landscape

Mark Dufton Leads Specialized Restructuring Firm Involved in a Hefty Amount of Resizing, Repurposing, Renegotiating and Relocating Retailers
May 4, 2017

With retailers and shopping center owners heading to Las Vegas later this month for RECon, the world’s largest retail real estate convention, we asked Mark Dufton, CEO of the Real Estate practice of Gordon Brothers, for his take on the evolving retail real estate market. 

Gordon Brothers is among the handful of retail restructuring specialists capturing the lion’s share of restructuring work involving store closings and dispositions. Dufton has more than 25 years of real estate and management experience. He is also a managing director for Dinosaur Capital Partners, a Boston-based real estate investment and development company, as well as a member of the International Council of Shopping Centers and the Turnaround Management Association. 

Q: We’ve seen at least nine major retailer bankruptcy filings this year alone. How much restructuring may be going on below the surface at other retailers that the market is not seeing? 

Actually, it’s not as prevalent as people think. It has become very difficult to conduct out-of-court restructuring. It used to be much more commonplace, but now the vast majority of retail restructurings are done through bankruptcy. It’s essentially become the accepted standard practice, and banks don’t seem to mind. 

Q: While a lot of news on struggling retailers has been focused on major anchor tenants, inline retailers face the same challenges as anchors, but they are also dealing with the decreased foot traffic those anchors are expected to bring in. What adjustments are they making in their real estate decisions? 

The impact on inline retailers can be viewed through two angles: new store openings and lease renewals. 

The number of new store openings has slowed dramatically. And when new stores are opened, they are being scrutinized in a way we haven’t seen before. 

That’s largely because lease deals take twice as long as they used to. It used to take six months to close a deal on a new store, now it’s a year-long process. 

Another reason why these deals are taking longer is the added importance being put on the decision. New store decisions used to be made by an internal real estate committee, but new store decisions may now go all the way up to the board for input. 

This level of thought and scrutiny for new stores is a good thing for the industry, it’s important to have greater discipline when adding new locations.

As for lease renewals, we’re seeing a much greater focus on the timing of lease renewals, and determining if that lease is at market value. Retailers now want to know what other factors are associated with the lease and whether they should renew or close. They are paying much more attention to this decision than in the past. 

Previously, if a store’s sales were mediocre and the renewal came with a nominal rent increase, most retailers would renew. Now, retailers are looking at every detail. For marginal stores they’ll go out and look at the market and try to restructure the lease to make it more profitable. There is more attention to overall occupancy expense than ever before. 

Also in the current retail environment, lease renewals are no longer a secondary consideration. It is now the biggest expense for retailers after their people. 

Q: When it comes to store closings and lease cancellations, retailers are increasingly choosing between Class A properties and Class B and C properties. How is this showing up in efforts to find new tenants for vacated space? And how is it showing up in the renegotiation of leases? 

There is a clear bifurcation between Class A retail properties and Class B and C. Owners of Class A properties actually like having vacated spaces. They have leverage because everyone wants to model Class A traffic. This also means owners at those centers have the power when renegotiating rents. 

However, malls no longer publish traffic numbers, which in itself is telling. Owners of B and C centers have little leverage with retailers for vacated spaces and are willing to renegotiate rents. We expect to see Class A properties continue to do well and Class B and C struggle. The divide between A and B and C will simply become greater. 

You will see more and more vacancies and lower rents at these properties as retailers are desperate to restructure. There may be many unknowns, but retailers and landlords will choose to repurpose and restructure to improve cash flow, which impacts debt restructure and has an overall cascading effect on the property. 

The future for the bottom market B and C retail space is going to look like repurposed quasi-retail, we’re talking schools, churches, call centers, gyms and medical clinics. 

All this is part of the big shift going on in retailing – instead of the 1,200 malls we see in the U.S. today, I expect that number to shrink to 800 or 900. 

Q: Beyond closing under-performing stores, retailers are trying to become more efficient in their current space allocation and occupancy dollars, as well as selecting new locations. Not counting closures, where is this additional shrinkage coming from and how much are you seeing? 

One area where we are seeing retailers conserve capital is in lease mitigation. Instead of spending capital on a lease buyout, more retailers are deciding to ride out the remainder of the lease and then close and maybe relocate. 

For many retailers, downsizing is an easier-said-than-done proposition. Some big box retailers don’t lend well to splitting up. With challenging configurations, the cost to split and utilities, they may not get the return on investment (from downsizing) without certain rent levels. 

Downsizing is much more challenging to execute. More likely it is easier to relocate and downsize when the lease comes up for renewal. 

Q: We tend to associate retail troubles with real estate and blame downsizing on an ‘oversaturation’ of retail space. But how much of the trouble in the retail industry is associated with real estate? What other forces are at work? 

The way I view it is real estate is the cart and slowing sales is the horse. The oversaturation in the retail market was caused by lagging sales in stores. This only became a real estate problem when sales did not keep up with the market and leases became unprofitable. 

The other forces at work that are affecting retailer sales, and eventually retail real estate, include: income stagnation, which continues to put a damper on the mass consumer; the growth of online retail and increasing preference for the channel over bricks and mortar, and the preference among millennial consumers to spend on experiences instead of retail goods. 

As I mentioned, those factors have led to lower sales, which in turn has resulted in the sheer size of the retail footprint being too large and the store count too great. 

Shoppers’ needs and wants have evolved, and retailers have struggled to keep pace with the trends of younger generations. Also, not all retailers have done a good job integrating their online presence with their brick and mortar operations. We see some retailers who do this exceptionally well and others who have not kept pace. 

Q: Even as Class A properties seem to be thriving, there has also been a rise in the number of discount retailers and outlet stores. These aren’t the type of tenants associated with Class A space. How are they doing in the current environment? 

Yes, value shopping has become prevalent at every level of the market, including luxury. We see Nordstrom Rack, Saks Off Fifth and Last Call by Neiman Marcus exceeding margins and (sales) levels never anticipated. 

However, even though value retailers like TJX concepts have held up reasonably well, outlets and Class A properties are not performing as they once were. The former darling of the retail industry, outlet stores and Class A are now reporting downturns in their traffic, which makes it more difficult to terminate their leases. 

Historically, outlets and high streets like Fifth Avenue in New York and Newbury Street in Boston were minimally affected by industry shifts. But now we’re seeing more softness among outlets and high streets. In both categories there are more vacancies than we have seen in years.


The Raiders’ New Neighborhood

As news surfaced of the Oakland Raiders officially moving to Las Vegas in 2020, talks began of building the stadium.  Not only will the build be good for the Las Vegas construction industry, but, overall, the move will help the city’s economy and nearby businesses.  The team hasn’t officially bought the talked about property on Russell Road, but the article below highlights what it will do for that neighborhood if they do.


What a stadium might mean to Russell Road neighborhood

A view of the 63-acre Russell Road site for the proposed Las Vegas Raiders stadium Wednesday, March 29, 2017. This photo is taken northbound from Russell Road.

Thursday, March 30, 2017 | 2 a.m.

Business owners near the intersection of Russell Road and Polaris Avenue are anticipating how the landscape will change when the Raiders construct a domed 65,000-seat stadium in time for the 2020 season.

The Raiders have yet to purchase the barren 62 acres, currently owned by Nevada Land Group LLC. But John Knott, executive vice president of the CRBE commercial real estate firm, which represents Nevada Land Group, confirmed the team has an option in place to buy the land.

Knott declined to explain the stipulations of the potential deal, citing confidentiality, but the Raiders also confirmed to the Las Vegas Sun that the Russell Road site is their target.

Brad Meyers, regional director for EJM Development Co., which owns land zoned for a hotel-casino directly across from the proposed stadium site, said inquiries about the parcel have increased with the Raiders speculation.

“It’s been building over the last year, but I don’t even know how many calls we’ve taken on it since just (Monday, when the NFL approved the Raiders’ move), but it’s definitely picked up,” Meyers said.

No specific plans were revealed to Meyers, but he said the interest is there.

EJM Development also owns several buildings and another plot of land close to the site. If the Russell Road site is officially chosen, the price of the vacant lot and the other buildings in the vicinity are set to rise.

Myers said that EJM Development has a long history in the area. The company even owned the Russell Road site (through Weststate Land Partners) at one point and was instrumental in the infrastructure development in the vicinity, he said.

“We were the developers that actually put in that intersection (Russell Road and Polaris Avenue) in a joint public-private partnership with the state, which essentially created that Raiders site,” he said. “We sold off everything except that little piece of land.”

Meyers said EJM Development owned a large section of land, including property on which the Convention Center at Mandalay Bay was built and the southwest corner of Polaris Avenue and Russell Road where a group of hotels is located.

Meyers said the group to which EJM sold the Russell Road site had plans for a hotel-casino, but the economic downturn curbed those plans.

Meyers said the Raiders have not approached him about EJM’s land or buildings, but he would listen to any offers. “It’s hard to speak on that now, but I’m sure we would be listening to just about anything,” he said.

With the area surrounding the stadium now largely industrial, Meyers said he could see that character changing to capitalize on the droves of fans who will be looking for something to do before filling the seats.

“I could see a lot of things going on around the stadium just because the draw that will be there and highest and best use for the property around there,” he said. “It may not be industrial anymore.”

If everything goes as planned and the stadium is built on the land, Meyers said it would be a little more special to them than the average resident.

“There would be a little sense of pride, that we developed that intersection and we pretty much created that corner here,” Meyers said. “Back when we did it there, it was the end of the Strip, there really wasn’t anything there. The owners took a big risk, and it paid off really well.”

One business a few hundred feet from the intersection of Russell Road and Polaris Avenue is gentleman’s club Crazy Horse lll.

Crazy Horse lll general manager Keith Ragano said the business is excited about the possibility of the Raiders becoming their neighbor and plans to capitalize on the increased traffic in the area.

“We are right there in the shadow of the new stadium, so it will have a huge impact on us,” Ragano said. “Considering that sports fans and a gentlemen’s club go hand in hand, well, for us the location couldn’t be better. We expect a lot of positives from being at the site, from increased foot traffic to being a great party spot for players and fans.”

Ragano said that he’s not worried about the traffic issues affecting his club on game days. The club’s peak hours are late night, so the rush should be gone by then, he added.

When the Raiders arrive in a few years, Ragano said that the club would beef up staffing to ensure they have enough employees during days with games or special events.

Ragano said the Crazy Horse lll is willing and ready to assist with the football festivities.

“If anything, we’ll have the opportunity to host tailgates and after-parties on game days,” Ragano said. “For us, it’s just great for business. As much as we’re a gentlemen’s club, we’re a party destination. We’ll have some great tailgates.”


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New Office Building Announcement

Lance Bradford Real Estate Announces Office Building

LAS VEGAS, NV–(Marketwired – Mar 9, 2017) – Lance Bradford, Founder of Stable Development announces construction of a 51,850 square feet building in Henderson, Nevada. Expected to start in the second quarter of 2017, the building will house a combination of retail, medical and professional office space. The two-story structure is scheduled for completion by the end of 2017.

Lance Bradford, a trusted and respected real estate executive and financial advisor, states, “We are delighted to not only announce the Henderson project, but the fact that it is already over 50% pre-leased. This reflects the quality of the project and its superb location.”

The new project will feature a two-story parking structure. It is near local restaurants, St. Rose Hospital and a future Costco site. With the amazing pre-leasing progress, the success of the project is already assured.

Bradford established Stable Development in 2005 to promote his unique Shared Equity™ financing model to the Las Vegas area. The Shared Equity™ approach creates long-term partnerships that provide a ‘win-win’ scenario for those involved. This model incorporates tenant ownership and has out-performed the market in the recent challenging economic environment. This format is market tested and has resulted in more than 500,000 square feet of commercial, medical and professional real estate owned in Southern Nevada.

With Bradford’s remarkable experience and entrepreneurial spirit, Stable Development has become one of most successful commercial office developers in the Las Vegas area. According to Bradford, “We’re very excited about this real estate opportunity. It not only gives us a stronger presence in Henderson, but we are proud to create employment opportunities for the area.”

Stable Development is expanding its unique business model to new markets, including California, Texas, Kansas and New York. The company has enjoyed tremendous success and growth and has now added a full-service architectural division. Bradford’s remarkable experience and experience will assure the successful expansion of Stable Development into new markets. and

Land Sales Across Southern Nevada

Our Economy’s “Boom and Bust”

Sullivan Square was supposed to be an urban enclave built from scratch in the Las Vegas suburbs, with high-rises, bike lanes, a dog park, art fairs and fitness centers.

Today? It’s a giant hole in the ground.

The project, at the southeast corner of Sunset Road and Durango Drive, was one of dozens last decade that was supposed to bring soaring towers to flat, sprawling Las Vegas. And like most high-rise proposals from the bubble years, Sullivan Square never materialized, amid a heap of lawsuits over the project.

Now, this gaping reminder of the real estate boom and bust can be yours.


Dublin, Ireland-based Harcourt Developments, a partner in the failed project, put the 14.9-acre property on the market this month. It’s looking to sell the site but doesn’t have an asking price, though its “focus” is finding a partner for a possible development, said listing broker Aman Lal, an associate with The Hoffman Co.

The fenced-off, dirt property is across Durango from the Ikea furniture store, and Lal said the excavated portion is roughly 30 feet deep.

Other mixed-use projects in the valley faced steep problems during the recession, ranging from foreclosure and litigation to outright abandonment. But properties like Town Square, The District at Green Valley Ranch and The Gramercy are up and running today, not massive craters.

“You look at that site today,” Lal said of Sullivan Square, “this was one of the big lessons of the downturn: you can’t build urban projects in suburban locations.”

A sale could bring new life to a long-abandoned property in perhaps the fastest-growing area of the valley, the southwest. And while this sort of land may seem unique, it’s not the only one in its neighborhood.

A short drive away, off Buffalo Drive just south of the 215 Beltway, Spanish View Tower was designed to have three 18-story condo towers. It’s now a massive hole in the desert, 40 to 50 feet deep, with a rust-streaked, partially built underground parking garage, and an abandoned construction trailer with broken windows that’s visible to passersby.

The site’s owner, Las Vegas broker and investor Jack Woodcock – a lender to Spanish View’s original developer – has been trying to sell the 15-acre property for $18.9 million.

Lal said it would cost about $1.3 million to fill the hole at Sullivan Square with dirt. He said Harcourt owns the site free and clear, without debt on it, and that to his knowledge none of the lawsuits over the project are still open.

Harcourt, led by founder Pat Doherty, and Las Vegas-based Glen, Smith & Glen Development Co. partnered in summer 2006, around the peak of the bubble, to build the mixed-use project, court records show.


With a reported price of $800 million, Sullivan Square called for 1,380 residential units, 45,000 square feet of retail and 272,000 square feet of office space, Clark County records show.

This huge undertaking seems highly unlikely to be tried today, but it fit with the era. Flooded with easy money, Las Vegas’ real estate market was going wild, and perhaps few projects epitomized the frenzy as much as high-rises. Investors laid out plans for dozens of condo, hotel and other towers last decade, in what supporters called the “Manhattanization” of Las Vegas.

Drilling and blasting for Sullivan Square was slated to start in spring 2007, and the developers held a groundbreaking ceremony that summer with an early-morning launch of eight hot-air balloons, reports said.

But like most proposed high-rise projects from those years, Sullivan Square never came out of the ground. And, like numerous other projects from the boom era, it was hit with litigation.

An architecture firm sued the developers, claiming it was owed about $650,000. Sullivan Square’s general contractor sued the developers, claiming it was owed $1.1 million. And the developers sued a contractor that performed blasting work, alleging the company was overpaid by $32,000 but refused to return the money.

The project’s partners also fought.

Glen, Smith & Glen sued Harcourt in spring 2008 in Clark County District Court, claiming its partner “failed to timely and sufficiently fund the project,” which led to lawsuits and liens and “a halt in construction.”

Glen, Smith & Glen does not appear to be in business anymore, and efforts this week to get comments from Harcourt were unsuccessful.

In hindsight, with Las Vegas and Irish developers teaming up in 2006 on a high-rise project here, Sullivan Square’s outcome seems almost inevitable.

Las Vegas was a poster child for America’s real estate boom and bust – soaring prices and construction followed by widespread foreclosures, job losses and bankruptcies, with abandoned projects littering the valley. Fueled by bank lending, Ireland also had a big housing bubble last decade that, after it burst, left the country with a reported 2,800 abandoned projects by 2010.

Moreover, Harcourt reportedly secured financing for Sullivan Square from Anglo Irish Bank, a heavy real estate lender that was nationalized in 2009 and liquidated.

The bank, according to The Irish Times newspaper, was “synonymous with Ireland’s economic collapse.”

Contact Eli Segall at 702-383-0342 or Follow @eli_segall on Twitter.

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