As states continue to reopen in phases following the COVID-19 pandemic, there is much uncertainty in the local Las Vegas marketplace as well as the overall US economy. Specifically in the retail sector of commercial real estate, it seems that most businesses that are reopening are implementing inconsistent procedures and observing constant changing guidelines in hopes of generating some sort of income but it’s still to be determined if that income generated will be enough to support expenses and allow retailers to stay in business.

Any retail business that was deemed non-essential during the government shut down and wasn’t allowed to operate is now actively looking to adjust their business model to hopefully remain open during any potential future shutdown. Examples of this would be soft goods retailers looking to expand into carrying food items in their stores in hopes of being deemed an essential business. Businesses that were allowed to operate during the shutdown are reviewing their business model to ensure they are able to operate in a more efficient and safe manner while attempting to maximize sales. Going forward, brands like Café Rio will continue to expand in Las Vegas but will modify their design to include a drive thru on future restaurant locations.

Landlords and Property Managers sure took on a burden during the shutdown. EVERY tenant was looking for and expecting some sort of concession from landlords even though the majority of landlords weren’t receiving concessions from their lenders. Some of the common requests our teams at Logic dealt with were requests for rent abatement, rent deferment or partial payment of rent and occupancy costs. Strategic landlords were proactive in working with tenants and commonly pushing towards awarding their tenants deferred rental payments and extending the term of the tenant’s lease. Some landlords were also successful in negating release of tenant exclusives or restricted uses in exchange for rental concessions to the tenant.

Most investors have been focused on actively sourcing capital and waiting to deploy funds in the marketplace if/when there is a decline in values. Other investors are using this time and low interest rates to upgrade the quality of assets they own and are aggressively chasing well located shopping centers with long term, credit worthy tenants. Single tenant NNN deals such as Starbucks, Chic-Fil-A, McDonalds and others are trading at historically low capitalization rates and sellers have multiple offers to choose from. NNN=Net, Net, Net.  In addition to rent, tenant pays pass through expenses to Landlord. An example would be tenants prorata share of real estate taxes, insurance and property management fees.

2020 is continuing to be a roller-coaster ride for us all, regardless of what sector of commercial real estate you focus on. When forecasting ahead, I recommend you keep your seatbelt on for this roller-coaster ride of a year isn’t over yet.

 

Jason Otter, Director
Logic Commercial Real Estate
jotter@logiccre.com

Name: Wendi Schweigart
Title: Director of Marketing
Company:  NDL Group, Inc.
Years in the Industry: 20+

Where are you originally from and how long have you lived in Las Vegas? I was born in Los Angeles but moved to Las Vegas when I was 4; so I consider myself a local.

What has NAIOP provided you that has helped you grow professionally or personally? NAIOP has provided me with genuine relationships with people in the industry who, without the organization, I probably never would have had the benefit of interacting with.  NAIOP gives a platform to spend time together, through various committees and events, that foster organic relationships which would be hard to come by in a different setting.

What has been your favorite experience or story that happened at a NAIOP event? My favorite NAIOP event is the Spotlight Awards.  I am on the Spotlight Awards committee and to see all of the hard work that the members put in to making the event successful. Watching the event come to fruition is a true highlight of my year.

Who have you met at a NAIOP event that has influenced you or that you have become close friends with? The person I’ve met through NAIOP who has both influenced me and I’ve become friends with is Cassie Catania-Hsu.  She is a powerhouse in our industry.  Always leading by example, she has shown me what it truly means to be a powerful woman in Commercial Real Estate.  As a woman in this industry we walk a fine line between being seen as powerful or aggressive, a leader or being bossy,  passionate or emotional.  By following Cassie’s example I hope I’ve been able to find the balance.

What do you want your legacy to be in the Southern Nevada community?  I hope my legacy in Southern Nevada will be that I was a good person who always tried to pay it forward.  Through hard work and a great amount of luck, I’ve been blessed with many amazing opportunities.  I hope that I can share the good fortune I’ve had with those around me and make our community a better place to be.

 

Click here if you’d like to submit a member highlight and return the completed questions and head shot to newsletter@credasnv.org.

Day 1, 285.  If I’m right, that every month has felt like a year, I’m not too far off. We’ve entered the twilight zone of the pandemic and it is anyone’s guess as to how and when this ends.  The energy it takes to embrace this disruption in our lives is enormous because it affects every part of our lives.  We didn’t create it and we can’t control it.  So we do the only thing we can do, we move forward and we figure out how to live with the changes it has had on our lives..  That’s not a bad thing.

I recently read an article on the path of change that states, “Change is not part of the process, it is the process.” It goes on to describe the seven stages of change and how our lives are always in one of these stages. We may bump along for years in a relatively balanced, “status quo” kind of life, and then we experience a “wake up call” that presents us with feelings of uncertainty, fear, anxiety, depression, anger, and bewilderment. While we might find it comfortable to remain in denial and resist what is happening around us as long as possible, life teaches us that the best thing we can do is to let go and embrace the change. We can’t sidestep it, we have to go through it to get to the other side. It is only then that we can begin to heal, to see hope and redefine our purpose so that we’re open to the new opportunities that change has brought with it.

The pandemic was our wake-up call. It has pushed us to find creative solutions to deal with the weak links in our supply chains, to realize that “just in time” inventory may not work for all products and “safety inventory” may need to be accommodated, to consider new technologies that allow for vertical storage and reduce the amount of land needed for warehousing, to design distribution centers that can be located closer to residential neighborhoods and accommodate the rapid acceleration of E-commerce that now accounts for 35-40% of all retail transactions, to right size our retail centers, to focus on the well being of employees and their health as well as the cleanliness and safety of our office buildings, to reflect on the organizational structure of our companies and create ways to advance diversity in our workforce and leadership, and finally, to have a conversation about systemic racism, bias, and discrimination, so that we can figure out how to go forward in a way that strengthens our communities and blends our talents.

I’m proud that our local chapter has embraced the times we live in and in this process, discovered new opportunities and talents previously unrealized. Our Executive Director, Katrina Bruce, became our resident Zoomologist in order to virtually host all committee and board meetings and breakfast programs on a monthly basis (I understand the power of the mute button is not to be underestimated). The Programs Committee has continued to produce virtual breakfast programs with interesting and relevant content that have attracted hundreds more viewers than have ever participated in-person and given us the opportunity to expose non-members to the benefits of our organization. The Spotlight Committee aired its first virtual awards ceremony producing the entire event in a studio with a “green screen”, incorporating celebrity cameos and light-hearted sketches to make it a fun event worth tuning in to. It also helped launch my first kazoo tour of the U.S. I have a manager. It’s not going very well.

Not to be underestimated, the membership, community service, education, bus tour, and golf committees have all continued to operate effectively implementing new ways to connect, contribute, and put on events that make us smarter and happier. And the Government Affairs Committee, through our lobbyists Jon Leleu and Kerrie Kramer, led the way to eliminate our industry’s involvement in the evictions mandate included in Governor Sisolak’s first directive — a significant accomplishment that will help all commercial landlords negotiate more effectively with their tenants. The GA committee also managed the update of the Land Study, commissioned by the Board of Directors and prepared by RCG Economics, that warns of the shortage of land for commercial development in the Las Vegas Valley and the negative effects this will have on our economy. Just last week Michael Brown, Executive Director of the Governor’s Office of Economic Development, requested a copy of the study for the Governor’s Recovery Program that will be discussed in the upcoming special session of the state legislature. We expect that this study will provide state and federal legislators justification for earmarking additional land for commercial use around the valley.

In the midst of change we are charging ahead, redefining our purpose, and preparing to meet the challenges that come our way. Let’s continue to figure this out together. Our game is strong!

In good health,

Julie

 

 

Julie Cleaver
The Howard Hughes Corporation
NAIOP Southern Nevada President

 

Applications for the 2020 NAIOP National Developing Leaders Award are now open.  This award honors up-and-coming commercial real estate professionals, 35 years of age and under, for their valued contributions and commitment to the industry. The 2020 Developing Leaders Award will be presented to recipients who have shown exemplary achievements and demonstrated outstanding professional accomplishments in the commercial real estate industry.  Award recipients will be honored at CRE.Converge 2020 in Las Vegas, Nevada, October 6-8, 2020, in addition to receiving publicity and unrivaled networking opportunities.

If interested in applying, please click here for more information.

DLI Committee Chair
Samantha Flaherty
samanthajflaherty@gmail.com
602.931.9134

NAIOP Corporate Uninterrupted Membership Guarantee: We’ve Got You Covered

• Extension of your NAIOP membership if you lose your job. Current members and those who join before September 30 will have membership extended up to one year or until you’re reemployed. Even if your dues were paid by your company, your benefits won’t stop.
• Access to our online job bank where you can search for your next position, browse candidates, and find career guidance, salary resources and hiring trends.
• Chapter support that provides tools and resources to continue programming and deliver strong member value in your local market.

Be sure to sure to reach out to our office if your contact information has changed at info@credasnv.org.