As many of you know, the Communications Committee in conjunction with the Government Affairs Committee surveyed the attendees at the April 2018 Breakfast. This survey was intended to provide Government Affairs with insight about the top issues impacting our industry. We collected more than 125 surveys and gathered some interesting data. Hopefully, many of those that answered the survey are reading this month’s newsletter.

Of all of the responses, the majority were Architects/Engineers followed by General Contractors, Brokers/Property Managers, Vendors, Developers and Bankers/Lenders (in order).

By far the biggest issue impacting our industry is a labor shortage/qualified (educated) work force. It appears that the next biggest issue is rising construction costs, followed by land availability, housing costs and taxes/tariffs. Some other issues mentioned were government/regulation, rising interest rates and infrastructure.

This information will help the Government Affairs Committee interview potential candidates that NAIOP Southern Nevada wants to support and hopefully guide issues brought to local law makers.

One thing is for sure, we are in this together!

If you’re on social media please make sure to follow NAIOP Southern Nevada and engage with us.

: NAIOP Southern Nevada Chapter

: NAIOP Southern Nevada (Company Page)

: @NAIOPSNV

Communications Committee Member
Cassie Catania-Hsu, Managing Director/Broker
Sun Commercial Real Estate, Inc.
Direct: 702-968-7324 | Cell: 702-556-7100
cassie@suncommercialre.com | www.suncommercialre.com

On February 6, 2018 the Henderson City Council voted to approve the sale of 55 acres of city-owned land near the Henderson Executive Airport to the (soon to be) Las Vegas Raiders for their corporate headquarters and practice facility.

Although the team was expected to locate the project somewhere in Southern Nevada, the process was still highly competitive with multiple sites throughout the valley under consideration.

The facility is expected to produce at least 250 jobs and up to $75 million in capital investment over the coming years. Jobs will include sales, marketing, administrative, financial, and other support functions.

In short, this is a huge win not only for the city, but also for the emerging West Henderson market.

West Henderson has long been regarded as one of the next frontiers for substantial investment in the valley. The area’s geographical position and its proximity to I-15 make it the closest location in the valley to Southern California’s population of more than 20 million people.

The area also features the Henderson Executive Airport, two highly regarded master planned communities (Inspirada and Anthem) and a friendly business environment supported by existing companies such as Levi’s and FedEx. Upcoming projects such as Turano Bakery, Sauvage’s “The Block” mixed-use development, a new Costco, and continued investments by developers such as Panattoni, Korte, and LaPour will continue to add value and shape the future of West Henderson.

I know what you are all thinking right now: “Yeah that’s great Ken, but what about the very attractive incentive the city gave to the Raiders?”

I’ve been practicing economic development for more than 15 years and there are few other topics that generate as much discussion as the incentivizing of a corporate entity by a state and/or local government.

The decision to offer a public incentive, in this case a reduced land price, is a serious choice that deserves careful consideration. But the opportunity to lure an NFL franchise, one of only 32 in the country, is rare and unique, offering the City of Henderson a chance to advance development in an area that was designated to create a viable and quality employment center as it builds out.

The City of Henderson was able to offer the Raiders a discounted rate on city-owned land because of Nevada Revised Statute (NRS) 268.063 – “Sale, lease or disposal of real property for redevelopment or economic development…”

Based on the guidelines outlined in the statute, municipalities have a pathway to offer their city-owned land for purchase at a discounted fee.

The city goes through a rigorous process of identifying the return on investment of projects seeking this benefit. Not only tax dollars are considered, but also how the project could attract increased investment in the community and its role in expediting the area’s strategic vision.

Second, cities must be very careful when exercising this ability as some may claim that it artificially impacts the natural flow of commerce by directly competing with the private sector.

Public entities try to avoid situations where their actions can be perceived as picking winners and losers. The Raiders deal however, was very distinct and offered an opportunity for the City of Henderson to recruit a once-in-a-lifetime project with proven effectiveness demonstrated in 31 other communities with NFL franchises throughout the United States. This, along with a stringent due diligence process, gave the city all the significant information needed to feel comfortable invoking such a selectively used local incentive.

If you are interested in continuing to stay informed about all the great things going on throughout our city, I urge to follow us on twitter (@HendersonEcDev) and check our website (www.HendersonMeansBusiness.com). While you’re there, please sign up for our quarterly newsletter.

By: Ken Chapa, Economic Development Officer
City of Henderson Office of Economic Development &Tourism
Twitter: @KenChapa Email: ken.chapa@cityofhenderson.com

The 6th DLI Class covered the topic of Construction and featured presenters and sponsorship from Burke Construction Group. The class was held at Burke’s recent flagship project, the Credit One Corporate Headquarters.

The Burke team presented information accounting for each step of the construction process to include: preconstruction services, estimating, operations and close out. Jim Colegrove, Managing Partner, spoke about tenant improvements and the types of information collected before moving forward with a perspective client. Thad Lawrence, VP of Preconstruction Services discussed the different types of contract methods, as well as emerging technology in the construction industry. Dimitri Mihaloliakos, VP of Estimating discussed the risks and rewards of bidding projects, materials and the nuances of getting a bid right! John Travassos, VP of Operations discussed staying on schedule and on budget and Kevin Burke, President and CEO discussed the history of Burke and the changes that have occurred in the construction industry in the last 20 years.

The class concluded with a tour of the Credit One Headquarters. Did you know they have their own state-of-the-art bistro and Tier III data center? The class content was very informative and well received.

2018 DLI Class Vice President
Brenden Graves, Director of Client Services
DC Building Group
702.434.9991 C: 702.957.0600
E: BrendenG@BuildWithDCBG.com

We are collecting food, water & supplies for Street Teens in April. Street Teens is a volunteer based, non-profit organization dedicated to assisting homeless, abandoned and at risk youth ages 12-21 in the Las Vegas Valley. Their primary goal is to meet the survival needs of youth by providing basic necessities in a safe, compassionate environment.

Click here for details and donation list. Please bring your donations to the Thursday, April 12th Breakfast Meeting at the Orleans 7 a.m and help make a difference in the life of a homeless teen.

Community Service Committee Chair
Chris Teachman, LEE & SAKAHARA ARCHITECTS, INC.
702-270-6600 | cteachman@leesaklv.com| www.leesak.com

Our 26th Annual Golf Tournament is at Spanish Trail Country Club. Player registrations are sold out. There are three 9-hole courses this year.

Volunteers! If you are a NAIOP Member and would like to volunteer on the day of the tournament contact Stacy Blattner at 702-430-8109 or stacy.blattner@communityvision.com

 

Now collecting $100 minimum valued raffle prizes. If you’d like to donate, please contact either:
 David Logsdon                                Eric Reich
       702-239-8265                               702-283-3272
david.logsdon@actus-nv.com              ericr@randoco.com

 

NAIOP Developing Leaders recently attended their Architecture class sponsored by Martin-arris Construction and held at the Cushman & Wakefield office. The class was treated to insights and expertise from Jennifer Turchin, Principal of Coda Group, Chris Larsen, Principal of PGAL, LLC along with Julie Cleaver, Vice President, Planning & Design at The Howard Hughes Corporation.

The class learned about the role of the architect, building design versus urban design and the design process in addition to reviewing case studies from local projects. Jennifer spoke in-depth about the architectural process and different types of contracts. Chris provided acumen on some of the current large scale projects including, the convention selection process, the College of Southern Nevada expansion and on-going hotel renovations. Julie spoke on space planning, parking, landscape, and the importance of scenery, ingress/egress and logistical portions of a project.

Now four months into their year-long DLI Program, this group of young leaders are excited to begin work on their class projects!

2018 DLI Class Vice President
Brenden Graves, Director of Client Services
DC Building Group
702.434.9991 C: 702.957.0600
E: BrendenG@BuildWithDCBG.com

As many of you know, the Communications Committee surveyed the attendees at the February breakfast. This survey was intended to give us insight about our member’s social media habits. We had over 105 survey responses and gathered some interesting data. Hopefully, many of those that answered the survey are reading this month’s newsletter.

According to the survey results:

  • Over 66% of the audience receives our newsletter and find it informative
  • Over 75% of the audience use Facebook and LinkedIn
  • 43% use Instagram,
  • 28% use Twitter
  • 20% use YouTube
  • Facebook and LinkedIn are visited most often

I know that my company has made a big push over the past year to be present on social media and we will continue to do so. Does your company use social media to engage with clients?

If you’re on social media please make sure to follow NAIOP Southern Nevada and engage with us.  You can follow us at:

: NAIOP Southern Nevada Chapter

: NAIOP Southern Nevada (Company Page)

: @NAIOPSNV

Communications Committee Member
Cassie Catania-Hsu, Managing Director/Broker
Sun Commercial Real Estate, Inc.
Direct: 702-968-7324 | Cell: 702-556-7100
cassie@suncommercialre.com | www.suncommercialre.com

Click here for a link to a podcast that explores learning from the wisdom of others below.

Rick Myers is the President of Thomas & Mack Development Group – a commercial real estate development company with projects throughout Las Vegas, Nevada. Hayim Mizrachi is the President | Principal of MDL Group – a commercial brokerage and property management company in Las Vegas. They are both active in NAIOP of Southern Nevada.

In fact, Rick and Hayim met in 2009 through the NAIOP Southern Nevada Developing Leaders Institute. Rick was the instructor, Hayim the student. Hayim always envisioned that Rick would be the first guest for this podcast. Rick was the one who taught Hayim to consider “what are you going to say when you get the microphone.” He also taught him about “stature” and how “it matters”… how technical proficiency matters. Those concepts are revisited in this episode.

What is amazing is how much more there is to learn from Rick during this conversation. Like, what does Rick mean when he says “dealing from the middle”? And most surprising was how Rick was coached in high school basketball by John Wooden and college football by John McKay!! These are legendary coaches!! There are so many more Takeaways in the Episode. Let’s not spoil the fun. Enjoy!! And please share your Takeaways in the comments.

Hayim Mizrachi, CCIM
President | Principal
MDL Group
T 702.388.1800 | C 702.340.9600 | hmizrachi@mdlgroup.com
www.mdlgroup.com

Click Here for the DLI Class #5, Architecture Class Overview

DLI Class #4, Commercial Finance, was held on January 8th at the Cushman & Wakefield office and began with a sponsored message from Bank of Nevada. The point was driven home that these are relationships that will last throughout our careers, and these are the people that will rally around us and make sure that we have solutions for our clients. This is something we have already started to see throughout our first few months in DLI. The first speakers were Paola Gonzalez and Carla Jewell with Nevada State Development Corporation. They went into detail about the SBA 504 Program, the qualifications, types of clients that would benefit, and types of properties that qualify.

Dennis Balletto from Bank of Nevada then spoke about construction financing and how that financial instrument can be used during the building process. He also covered the underwriting criteria lenders review when evaluating a project and borrower. Lastly, Kyle Nagy with CommCap Advisors walked us through permanent finance along with the different loan programs available from Life Insurance Companies, CMBS Lenders and Banks. The class was well received and everyone now has a better understanding of how to finance their projects!

2018 DLI Class Vice President
Brenden Graves, Director of Client Services
DC Building Group
702.434.9991  C: 702.957.0600
E: BrendenG@BuildWithDCBG.com

“It was the best of times….”

The new year always seems to start of with an air of enthusiasm and excitement. Listening to the State of the City addresses for Henderson, Las Vegas and North Las Vegas certainly supports that. Though all three cities have similar goals and long range plans, each approach in execution is markedly different. I’m going to concentrate mainly on the issues impacting economic development with respect to property development, construction and real estate.

All three cities are primarily devoting their time, energy and monies toward three issues:

  1. Quality Education
  2. Infrastructure Expansion and Upgrades
  3. Economic Diversification

Quality Education: All three mayors recognized quality education, at all levels, as one of the top factors needing improvement for continued advancement and success. This translates to new schools – public, charter and private – and to new after-school programs. It also means new workforce training programs for new businesses locating in their respective cities and expanding higher education programs to service new business types not presently in the valley. While some of this is out of their jurisdiction with existing school systems, each touted new charter schools, private schools and CCSD schools completed within the past year and others planned for the upcoming year.

Infrastructure Expansion and Upgrades: With added growth and development in all three cities, the mayors acknowledged the need to expand the infrastructure reach and upgrade existing aging infrastructure. They agreed that this includes basic utility services, streets and roadway design, public transportation, technology (fiber, wi-fi, communications, data, etc.) and public amenities (parks, recreation and related services). Henderson and Las Vegas remarked on Smart Cities and Complete Streets as influencers in designing infrastructure and pedestrian friendly, walkable streets with integrated bike lanes and mass transit lanes. Also for consideration are alternative mass transit systems (autonomous vehicles, bike share programs, etc.) to promote sustainable growth. Additionally, each city had a list of new parks, libraries, fire stations and recreation facilities supporting expansion.

Economic Diversification: Probably the biggest topic discussed was Economic Diversification – and this is where they differ in execution. All three cities have recently completed Master Plans identifying growth, types of growth, expected growth locations and the benefits associated with the growth.

City of Henderson:  In her first State of the City, Mayor March identified Economic Diversification in three key areas for development/redevelopment, each of which support their three major growth/diversification markets of Healthcare, New Commercial and Entertainment and SPORTS.

  1. Union Village surrounding area,
  2. Downtown Water Street District
  3. West Henderson

Union Village has become synonymous with Healthcare growth and has a strong anchor with the recently opened Henderson Hospital and related MOB. 2018 plans for growth there include: a Wellness Center, 200 unit independent and assisted living facility, 100 unit memory village, dialysis facility, 8 acres of retail, 2 additional 100 bed hospitals and an acute care hospital.

Downtown Water Street is being revitalized with infrastructure upgrades to support the new commercial, residential and entertainment locating there. 2017 saw a new coffee house, restaurants, and offices opening in downtown as well as Last Friday events and other expanded happenings on the plaza. 2018 has additional office and residential planned for downtown and an expansion of Water Street to include additional entertainment areas and commercial locations.

The big news for Henderson was, of course, the Raiders practice facility and management offices being located in West Henderson. Fifty-five acres will be sold to the Raiders for their facilities, firmly anchoring sports in the West Henderson area. The $75M facility adjacent to the Henderson Executive Airport will house practice fields,  the corporate HQ, Sports MOB and the Operations and Support buildings. In that same area, but independent of the Raiders announcement, a developer recently announced a 110 acre project just east of the M Resort. The Block is a development planned for 3,000 dwelling units in low-rise, mid-rise and hi-rise mixed-use and 500,000 SF of retail, office and entertainment venues.

These areas don’t include the continued expansions in Inspirada, Cadence and north along Boulder Highway. One word to sum up the City of Henderson is EXCITING.

City of Las Vegas: Mayor Goodman began her address on a somber note by touching on the 1 October event but quickly moved forward on a positive note. Like Henderson, the City of Las Vegas plan also has three key areas for development/redevelopment in the areas supporting growth and diversification of markets – Healthcare, New Commercial and Entertainment and SPORTS.

  1. Las Vegas Medical District
  2. Symphony Park
  3. Downtown

The Las Vegas Medical District is slated for major expansion in the healthcare arena anchored by the new UNLV School of Medicine soon to break ground. The existing UMC Medical Center has planned a new tower expansion and a 1,000 vehicle parking structure to be shared by all uses in the area. These major developments have spurred a lot of private developers in the district for mixed used residential, MOB’s and related support developments.

In Symphony Park, the city has released a number of lots making it more attractive to developers and Planning has reviewed two 300+ unit mixed use residential developments, a 1,000 vehicle shared garage and a hotel/casino on the northern most parcel. The new owners of the World Market are looking expand existing facilities to accommodate their trade show and convention growth. This area will also benefit with direct access to I-95 as part of the Project Neon Expansion. Downtown Las Vegas is continuing the expansion of entertainment (casinos), the cultural corridor and residential. A number of downtown casino properties completed remodels in 2017 and the D and Las Vegas Club are renovating/expanding in 2018 along with a remodel and upgrade of the Fremont Street Experience canopy. Mayor Goodman also hinted at the possibility of another El Cortez expansion. Downtown is expanding the cultural corridor to the Neon Museum and will relocate the Natural History Museum to the library (and old Discovery Museum) across the street. Downtown is encouraging and expanding residential downtown with Fremont 9’s 231 unit/ 15,000 SF retail mixed-use development nearing completion. This will help fill an identified 5,500 residential unit shortage in the city.  Not to be outdone by Henderson and the Raiders, the number one sport in the world will have a home at Cashman Field. The Las Vegas Lights will share the field with the 51’s until their new home is completed in Summerlin. (No fireworks or cheerleaders to accompany this item – point goes to Henderson.) One word to sum up the City of Las Vegas is EXCITING.

City of North Las Vegas:   Mayor Lee started his address with a drive to reinforce their city’s financial stability. They have a balanced budget and are no longer junk bond status. He built a strong case that North Las Vegas is easy to do business with and is a great investment opportunity for investors, developers and businesses. The key areas for development/redevelopment are spurred by the abundant availability of land and support their two major growth/diversification markets – Industrial/ e-Commerce and New Commercial/ Entertainment.

1.) The industrial areas from the Las Vegas Motor Speedway north to APEX

2.) Downtown North Las Vegas

3.) Planned residential communities to the west

The city’s  goal is to be the premiere Industrial/e-Commerce area in the region with national distribution centers – even with Faraday (the new “F” work of CNLV) pulling out of Apex. Mayor Lee described the expansion of the Prologis, VanTrust, Amazon and Hyperloop developments and teased a non-announcement of two “game changing” developments coming to Apex in 2018. With new infrastructure extending to Apex for water, developers have fewer roadblocks. Aligned with their push for development is a revamping of city departments to make it easier and simpler to do business there (i.e. self-certification of design professionals).

The downtown area of the North Las Vegas is experiencing a renaissance with a new 14 screen, $75M, Maya Entertainment Center, a new library and a learning campus all connected by a new park –located adjacent to the City Hall development. With an abundance of land, North Las Vegas saw 14,000 residential lots come on line in 2017 and expects a similar number in 2018. Another key point is their plan to grow the tax base through economic development without stealing from other local cities and attracting NEW businesses to the area.  And they are doing it all without a major sports franchise! One word to sum up the City of North Las Vegas is EXCITING.

All three cities presented optimistic, aggressive outlooks for 2018 and beyond. Each addressed opportunities for growth in different areas and offered a growth friendly environment for new businesses and expanding existing businesses. In closing, the full quote from the beginning sounds a little foreboding but “It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of light, it was the season of darkness, it was the spring of hope, it was the winter of despair.”* Only one city had fireworks.

* A Tale of Two Cities, Charles Dickens (1859).

 

Curt Carlson, AIA, NCARB, LEED AP  |  Principal
SH Architecture
direct 702.341.2230 | ccarlson@sh-architecture.com
www.sh-architecture.com

 

 

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