Research & Forecast Report LAND Q3 216 Land Sales Lighter in Third Quarter > > While land sales are up in 216 overall, they decreased in the third quarter Economic Indicators > > Apex continues to dominate land sales this year > > Development continues to be strong for multifamily and industrial COMMERCIAL Forward Supply RESIDENTIAL Permits COMMERCIAL Permits properties +61. -25.9-16.7 The third quarter of 216 saw land sales slow down compared to last quarter and compared to this time last year. This reversed five quarters of increasing land sales. In the third quarter, there were 36 land sales totaling 361.26 acres for a total sales volume of $81.7 million. The brought the year-to-date total for 216 to 3,379 acres sold for a total sales volume of $457. million. The average sales price for land in Southern Nevada in the third quarter was $5.19 per square foot (psf), higher than in the last two quarters, but lower than one year ago. Occupancy in industrial buildings increased to 94.8 percent in third quarter of 216, despite continued development of new warehouse/ distribution product. A total of 64,336 square feet of industrial space was completed in the third quarter of 216 on 25.2 acres. An additional 9.3 million square feet of industrial space is either under construction or planned on 947.52 acres of land. During the third quarter of 216, 199.4 acres of industrial land was sold, with total sales volume of $1.4 million. The average sales price of industrial land was $1.19 psf, a decrease from one year ago, and still impacted by sales of large parcels at Apex, the heavy manufacturing zone located to the northeast of the Las Vegas Valley. Market Indicators Relative to prior period Q3 216 Q4 216* NO. SALES SALES VOLUME PRICE PER SQUARE FOOT *Projected Land Sales Activity 2, 1,8 1, 1,4 $14. Occupancy in commercial buildings increased in the third quarter of 216 to 87.8 percent,.9 percentage points higher than in the third quarter of 215. Demand for office product in Southern Nevada has shown steady improvement over the past three years, and this trend should continue. Retail demand picked up significantly in the third quarter after a mid-year lull, and we think it will remain strong for the foreseeable future. That being said, speculative construction of 1, 1, 8 4 $2. $.
commercial projects should remain light in 216 as vacancy remains higher than normal. A total of 71,69 square feet of commercial product was completed in the third quarter of 216 on 38 acres. An additional 2.8 million square feet of commercial product is under construction or planned on 652.4 acres. Average hotel occupancy in the first seven months of 216 was 9.7 percent, a very strong number. Hotel occupancy has generally been on the rise over the past three years, and reductions in room inventory should keep this trend going in 216. Over 6,1 new rooms are under construction or planned in Southern Nevada on 229.1 acres. During the third quarter of 216, 21.4 acres of commercial land was sold. Total commercial land sales volume was $11.7 million. The average sales price of commercial land was $12.56 psf, a decrease of $2.41 psf from one year ago. While development of single-family residences has lagged behind other forms of real estate development for the past three years, multifamily development continues to be quite strong. New home sales totaled 4,61 units in the first seven months of 216. This is more than sold in the first seven months of 215, indicating that sales are improving. Residential permits totaled 8,715 in the first seven months of 216, compared to 6,615 units permitted in the first seven months of 215, another indication that the single-family market is improving, albeit slowly. During the third quarter of 216, 139.5 acres of residential land was sold. Total residential land sales volume was $59.5 million. The average sales price of residential land was $9.79 psf, a $4.147 psf increase from one year ago. A single down quarter does not point to an overall slowdown in land demand by developers and investors. Developers appear to be ramping up construction of industrial buildings, and as the retail and office markets improve, new commercial developments will begin construction as well. Multifamily development might slow down after next year, and if it does, assuming the market remains healthy, multifamily developers will likely get back into an acquisition frame of mind to prepare for future development. In-migration into Southern Nevada appears to be improving now, and if it is demand for land will increase. We think land sales will continue at the present level into the fourth quarter of 216, with the possibility for improvement by mid-year 217. Market Health Data Point 214 215 216 Commercial Building Occupancy 86.4% 86.9% 87.8% Industrial Building Occupancy 9.5% 94.5% 94.8% Hotel Occupancy (Annual Average) 86.8% 87.7% 9.7% New Home Sales (Jan-Jul) 3,151 3,564 4,61 Commercial Permits (Jan-Jul)1 183 183 215 Residential Permits (Jan-Jul) 5,936 6,615 8,715 Commercial Forward Supply2 (SF) 1.57 MM 1.66 MM 2.79 MM Industrial Forward Supply2 (SF) 3.93 MM 9.29 MM 9.67 MM Hotel Forward Supply2 (Rooms) 4,124 3,634 6,137 Taxable Sales (Jan-Jun) $17.5 BB $18.8 BB 19.5 BB Employment (Annual Average) 883,9 917, 933,1 1 Includes permits for industrial projects 2 Includes projects that are under construction or planned 3 Data as yet unavailable Commercial Land Sales Activity Commercial Land Sales Activity 25 15 1 5 Residential Land Sales Activity 8 Residential Land Sales Activity 8 7 7 5 5 4 4 1 1 Land Sales Year Sales Volume Acres Sold Price/SF 216 YTD $456.8 MM 3,379 $3.1 215 $625.9 MM 2,32 $6.24 214 $763.2 MM 2,761 $6.35 213 $613.3 MM 2,636 $5.34 212 $264.1 MM 1,374 $4.41 211 $16.1 MM 83 $4.58 21 $51.3 MM 172 $6.86 9 $198. MM 599 $7.65 $16. $14. $11. $11. $9. $9. $7. $7. $5. $5. $3. $3. $2. $2. 2 Las Vegas Research & Forecast Report Q3 216 Land Colliers International
NORTHWEST 95 215 NORTH Significant Land Sale Activity Apex Power & US-93 91.8 Acres - $3,441, $.86/SF March Industrial - Apex SUMMERLIN 15 DOWNTOWN NORTHEAST Apex Power & US-93 81.9 Acres - $3,71, $.86/SF Industrial - Apex WEST 95 EAST Corporate Center & Pecos 5. Acres - $2,48, /SF North Las Vegas - Industrial AIRPORT 215 SOUTHWEST Windmill & Lindell 9.5 Acres - $5,675, $1.23/SF Residential - Southwest HENDERSON Olympia Chase & Oakland Hills 29. Acres - $17,, $13.46/SF Residential - Southwest Land Sale Activity Continued Property Name Sale Date Acres Price Price/SF Submarket Land Type Sunridge Heights & Seven Hills Aug 216 12.7 $2,, $6.67 Henderson Residential Post & Riley Aug 216 5. $1,9, $8.72 Southwest Residential Brooks & Clayton Sep 216 9. $1,176, $3. North Las Vegas Industrial Blue Diamond & Santa Margarita Aug 216 1.4 $1,, $16.64 Southwest Commercial Gary & Fort Apache Jul 216 2.5 $75, $6.89 Southwest Residential 3 Las Vegas Research & Forecast Report Q3 216 Land Colliers International
Market Comparisons - Las Vegas Land Market SUBMARKET SALES SALES VOLUME AVERAGE SALES PRICE (PER SQUARE FOOT) AIRPORT -. $ N/A Commercial -. $ N/A Industrial -. $ N/A Residential -. $ N/A APEX 3 18.23 $6,758,625 $.86 Industrial 3 18.23 $6,758,625 $.86 DOWNTOWN -. $ N/A EAST -. $ N/A HENDERSON 2 11.88 $3,, $5.8 Residential 2 11.88 $3,, $5.8 NORTH 5 26.62 $3,79,36 $3.27 Industrial 1 9.49 $2,48,36 Residential 4 17.13 $1,31, $1.76 NORTHEAST 3 9.72 $1,125, $2.66 Industrial 3 9.72 $1,125, $2.66 NORTHWEST 4 9.39 $2,652,5 $6.48 Commercial 2 3.39 $2,147,5 $14.54 Residential 2 6. $55, $1.93 RESORT CORRIDOR -. $ N/A SOUTHWEST 17 117.86 $63,385,82 $12.35 Commercial 4 13.36 $8,7,57 $14.95 Residential 13 14.49 $54,685,763 $12.1 SUMMERLIN 1 4.62 $85, $4.22 Commercial 1 4.62 $85, $4.22 WEST -. $ N/A SUBTYPE TOTALS Commercial Total 7 21.37 $11,697,557 $12.56 Industrial Total 7 199.44 $1,363,931 $1.19 Residential Total 21 139.5 $59,5,763 $9.79 MARKET TOTAL 35 36.32 $81,562,251 $5.2 QUARTERLY COMPARISON AND TOTALS Q3-16 35 36.31 $81,562,251 $5.2 Q2-16 78 1,794.47 $23,549,98 $2.6 Q1-16 87 1,224.2 $171,697,465 $3.22 Q4-15 97 61.53 $22,91,246 $8.28 Q3-15 92 467.84 $143,792,68 $7.6 Q2-15 61 324.47 $91,474,4 $6.47 Q1-15 92 899.6 $17,589,5 $4.36 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. 4 Las Vegas Research & Forecast Report Q3 216 Land Colliers International
52 offices in 66 countries on 6 continents United States: 153 Canada: 34 Latin America: 24 Asia Pacific: 231 EMEA: 112 $2.5 billion in annual revenue* COLLIERS INTERNATIONAL 396 Howard Hughes Parkway Suite 15 Las Vegas, Nevada 89169 USA +1 72 735 57 www.colliers.com/lasvegas MARKET CONTACT: Mike Mixer Executive Managing Director Las Vegas +1 72 735 57 mike.mixer@colliers.com John Stater Research & GIS Manager Las Vegas +1 72 836 3781 john.stater@colliers.com 2. billion square feet under management 16, professionals and staff *All statistics are for 215 and include affiliates. About Colliers International Colliers International Group Inc. (NASDAQ: CIGI; TSX: CIG) is an industry leading global real estate services company with more than 16, skilled professionals operating in 66 countries. With an enterprising culture and significant employee ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include strategic advice and execution for property sales, leasing and finance; global corporate solutions; property, facility and project management; workplace solutions; appraisal, valuation and tax consulting; customized research; and thought leadership consulting. Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice that help clients accelerate their success. Colliers has been ranked among the top 1 outsourcing firms by the International Association of Outsourcing Professionals Global Outsourcing for 11 consecutive years, more than any other real estate services firm. For the latest news from Colliers, visit Colliers.com or follow us on Twitter (@Colliers) and LinkedIn. Copyright 216 Colliers International. The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.