Compiled by John Stater, research director for Colliers International - Las Vegas, the report cites continued positive performance, a decline in vacancy and a continued improvement in taxable sales figures as positive indicators for the retail market. Southern Nevada's retail vacancy dropped to 10 percent in the fourth quarter, representing a year-over-year decrease of 1.4 percentage points.

"The retail recovery we have been waiting for is finally here, and while it might not be stellar, it is real and appears to have legs," said Stater.

Despite these economic increases, experts from Colliers International anticipate slow growth in Southern Nevada in 2013, citing vacancy increases in the industrial and medical office sectors. Medical office absorption decreased 54,018 square feet from last year, and industrial vacancy decreased by 364,552 square feet from last year.

"We think we will continue to see the medical office market bounce along the bottom in 2013 while medical office users survey the new medical landscape and prepare for the future," said Stater. "We think 2013 holds the possibility of slow growth for the industrial market, but it is more likely that 2013 will be another difficult year for the industrial market, with as many negatives as positives."

Year-over-year, Southern Nevada's hotel industry has continued its path toward recovery, with 2012 being no exception. Occupancy increased almost 2 percentage points, while the average daily rate (ADR) increased 3.7 percent from 2011. Visitor volume in Clark County totaled more than 33.5 million visitors through the first 10 months of 2012. This figure is less than the same time period in 2011, but does not include what was expected to be a strong November and December.

Sales activity involving hotels remained weak in the fourth quarter, with the majority of sales involving full service properties without casinos on the Strip and full service properties with casinos off the Strip. Gaming revenue increased in 2012, with the revenue per available room (RevPAR) increasing 4.6 percentage points from 2011.

"The local hospitality industry is recovering. That's the good news. The bad news is that Southern Nevada does not entirely control its own destiny, relying as it does on strong national and international economies producing enough people with disposable income to make the pilgrimage to Sin City and deposit their cash in our coffers," said Stater.

Other key findings of the report, broken down by market segment, include:

Industrial

• Industrial vacancy now stands at 15 percent. This is 0.2 points higher than one quarter ago and 0.3 points higher than one year ago.
• The industrial average asking rent now stands at $0.48 per square foot on a triple-net basis. This is the same as one quarter ago and a $0.03 decrease from one year ago.
• Industrial net absorption was 169,641 square feet this quarter. This is a 340,030-square-foot decrease from one quarter ago, and a 364,552-square-foot decrease from one year ago.
• There were zero square feet of industrial completions this quarter. This is as it was one quarter ago and a 131,154-square-foot decrease from one year ago.
• Weakness in the construction industry overshadowed job growth in other industrial sectors this year.
• There are many companies that want to do business in Southern Nevada, but find themselves in the position of either needing to construct their own buildings due to a lack of suitable supply, or find the low construction costs and land costs too enticing to pass up.
• Much of the activity in the market is clearly lateral in nature, consisting of tenants looking for less space, better-located space, or cheaper space, or some combination of the three.
• Texas-based buyers were more conspicuous in the fourth quarter than in previous quarters, contributing $24.1 million of the total investment sales volume this quarter.
• The recent collapse in demand for warehouse/distribution space is impossible to ignore, and when coupled with the significant number of warehouse/distribution build-to-suit properties floating about, points to a fundamental mismatch in available inventory and current demand.

"The industrial market is engaged in a very slow and uneven recovery - a recovery marked by a difficult transition from an infrastructure designed to service the construction sector to one that must serve the transportation and warehousing sector," Stater said.

Office

• Office vacancy now stands at 22.8 percent. This is a 0.7-point decrease from one quarter ago and a 1.2-point decrease from one year ago.
• The office average asking rent now stands at $1.88 per square foot on a full service gross basis. This is a $0.02 decrease from one quarter ago and a $0.07 decrease from one year ago.
• Office net absorption was 265,336 square feet this quarter. This is a 155,619-square-foot increase from one quarter ago and a 369,044-square-foot increase from one year ago.
• There were zero square feet of office space completed this quarter. This is a 67,692-square-foot decrease from one quarter ago and a 45,579-square-foot decrease from one year ago.
• While three quarters of decreasing office vacancy could be the beginning of a trend, employment growth in the office sector continues to be unimpressive, with financial services and professional and business services, the sectors most important to the professional office market, continuing to underwhelm.
• Moving forward, newer, more efficient office space in the Southwest will attract a considerable share of future demand, while older submarkets will continue to decline.
• Class A office projects will have to continue to fight for new tenants in 2013 and will need to focus on retention of existing tenants as well.
• The impact of higher capital gains taxes on property sales is the big question for 2013. In general, it should depress outright sales of property, but make exchanges significantly more attractive.

"Last quarter, we said that Southern Nevada's office market was neutral. This quarter, it may have finally gotten into gear," Stater said. "By and large, the local economy should see continued slow growth in 2013, and we believe the office market will follow suit. If the economy does turn sour, though, expect continued difficulties for the office market as well."

Retail

• Retail vacancy now stands at 10.0 percent. This is a 0.2-point decrease from one quarter ago and a 1.4-point decrease from one year ago.
• The retail average asking rent now stands at $1.36 per square foot on a triple-net basis. This is a $0.01 decrease from one quarter ago and a $0.02 decrease from one year ago.
• Retail net absorption was 117,731 square feet this quarter. This is a 263,706-square-foot decrease from one quarter ago and a 1,556-square-foot increase from one year ago.
• There were no retail completions this quarter. This is as it was one quarter ago and a 30,500-square-foot decrease from one year ago.
• The fourth quarter of 2012 saw another quarter of positive performance for Southern Nevada's retail market, the sixth quarter in a row and a sure sign that Las Vegas has some life left in it.
• Retail vacancy in Southern Nevada has been on the decline for six quarters, indicating a definite trend and a welcome departure from the previous three years.
• Taxables sales still have not rebounded to pre-recession levels, but the steady improvement in taxable sales is likely a factor in the recent improvements in retail net absorption, as more retail businesses are finding a way to survive.
• Retail sales volume, for both owner/user space and investments, has been on a soft decline over the past year, and price per square foot of sales has also been dropping. Much of the available distressed product is distressed because it was poorly designed and/or poorly located, and this product is not only dragging down values, but is also gradually losing its audience.
• Southern Nevada currently has 1.16 million square feet of big-box space available in the marketplace. Filling big-box space could be a slow process, especially given the current trend in big-box retailing to downsize their stores in the face of "showrooming" by customers who browse in brick-and-mortal retail stores, but finalize their purchase online.

"As retail continues to bifurcate into high-end and low-end, high-density submarkets should reap the benefit. Affluent submarkets will attract high-end retail, of course, but high-end retail will not likely occupy as much retail space, in terms of raw-square-footage, as low-end retail," said Stater.

Hotel

• Hotel occupancy in Clark County averaged 88.8 percent in 2012, a 1.9-point increase over 2011, and a 5.3-point increase over 2010; just one of several measures of the hospitality industry that improved in 2012 over past years and a clear sign that Southern Nevada's tourism industry is in recovery mode.
• Clark County's ADR was $108.99 in 2012, a 3.7 percent increase over 2011, when ADR was $104.97, and a 12.9 percent increase over 2010, when ADR was $94.94.
• Visitor volume almost hit a new record in 2011, and with a strong November and December, 2012 might beat that record. Clark County visitor volume totaled 33,584,000 visitors through the first ten months of 2012, approximately 62,000 fewer visitors than arrived in the first ten months of 2011.
• Gaming revenue is also trending up for Clark County and the Las Vegas Strip. RevPAR in 2012 is up by 4.6 percent over 2011, and up 17.1 percent compared to 2010.
• While leisure and hospitality jobs were on the rise through the first half of 2012, they have fallen off since. Between November 2011 and November 2012, the leisure and hospitality sector only added 800 jobs.
• Year-to-date in 2012, sales volume has been weak, with only 2,309 units selling at approximately $49,000 per unit, for a total sales volume of $114MM, compared to $2,986MM of sales volume in the first three quarters of 2011 and $853MM of sales volume in 2010.
• Most sales have been in full service properties without casinos on the Strip and full service properties with casinos off the Strip.

"We do believe that the local hospitality market will continue to improve in 2013, and that this improvement and the impact of `fiscal cliff' tax increases on capital gains has the potential to drive more investment dollars into Southern Nevada's hotels," said Stater.

Medical Office

• Medical office vacancy now stands at 21.1 percent. This is a 1.1-point increase from one quarter ago and a 1.2-point increase from one year ago.
• The office average asking rent now stands at $2.11 per square foot on a full service gross basis. This is a $0.07 decrease from one quarter ago and a $0.19 decrease from one year ago.
• Medical office net absorption was 59,066 square feet this quarter. This is a 128,151-square-foot decrease from one quarter ago and a 54,018-square-foot decrease from one year ago.
• There were no new medical office completions this quarter. This is even with one quarter ago and is a 20,000-square-foot decrease from one year ago.
• Over the past two quarters, job growth has wavered, and Southern Nevada now has 18,500 health care workers outside of ambulatory services and hospitals.
• Strong employment growth over the past year should have sent vacancy rates lower, but as mentioned, changes in the way healthcare is delivered are disrupting the normal link between jobs and occupied real estate where medical office space is concerned.
• Medical office sales were weak in 2012, with a total of 179,000 square feet selling at an average price of $139.78 per square foot.
• Doctors, insurers and patients are all going through a slow discovery process of just what the Affordable Care Act means to them, and doctors and insurers are especially trying to come to grips with what these government-mandated changes will mean to their business models.

"From Wal-Mart's foray into small pharmacies on medical campuses to health care in Targets, more and more medical office dollars are going to flow into non-medical real estate, putting the crunch on landlords already dealing with consolidations and downsizing among physicians," said Stater.

Multifamily

• According to statistics provided by REIS, multi-family vacancy in Southern Nevada decreased in the third quarter of 2012, the most recent quarter of available data, continuing a ten-quarter trend in declining vacancy.
• Southern Nevada's multi-family sector is continuing to display a path of steady recovery as demand for multi-family continues to outstrip supply, keeping landlords happy and stimulating demand for multi-family assets in the valley.
• Population growth continues to be a key driver of Southern Nevada's economy. While that growth ceased for the first time in forty years during the Great Recession, it appears to once again be on track.
• Recent moves by key investors in the market are likely to keep single-family rents suppressed in the near term, and this might impact multi-family rents in 2013.

"As rents rise, folks who are lurking on the margins of the multi-family market may decide that 2013 is their last chance to find a deal," said Stater. "Tax increases brought on by the imminent plunge over the `fiscal cliff' could be a winner for multi-family investment, encouraging tax-deferred exchanges."

About Colliers International
Colliers International is the third-largest commercial real estate services company in the world, with over 12,300 professionals operating out of more than 520 offices in 62 countries. A subsidiary of FirstService Corporation (NASDAQ: FSRV; TSX: FSV and FSV.PR.U), it focuses on accelerating success for its clients by seamlessly providing a full range of services to real estate users, owners and investors worldwide, including global corporate solutions, brokerage, property and asset management, hotel investment sales and consulting, valuation, consulting and appraisal services, mortgage banking and research. Commercial Property Executive and Multi-Housing News magazines ranked Colliers International the top U.S. real estate company. The latest annual survey by the Lipsey Company ranked Colliers International as the second-most recognized commercial real estate firm in the world.

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Compiled by John Stater, research director for Colliers International - Las Vegas, the report cites continued positive performance, a decline in vacancy and a continued improvement in taxable sales figures as positive indicators for the retail market. Southern Nevada's retail vacancy dropped to 10 percent in the fourth quarter, representing a year-over-year decrease of 1.4 percentage points.

"The retail recovery we have been waiting for is finally here, and while it might not be stellar, it is real and appears to have legs," said Stater.

Despite these economic increases, experts from Colliers International anticipate slow growth in Southern Nevada in 2013, citing vacancy increases in the industrial and medical office sectors. Medical office absorption decreased 54,018 square feet from last year, and industrial vacancy decreased by 364,552 square feet from last year.

"We think we will continue to see the medical office market bounce along the bottom in 2013 while medical office users survey the new medical landscape and prepare for the future," said Stater. "We think 2013 holds the possibility of slow growth for the industrial market, but it is more likely that 2013 will be another difficult year for the industrial market, with as many negatives as positives."

Year-over-year, Southern Nevada's hotel industry has continued its path toward recovery, with 2012 being no exception. Occupancy increased almost 2 percentage points, while the average daily rate (ADR) increased 3.7 percent from 2011. Visitor volume in Clark County totaled more than 33.5 million visitors through the first 10 months of 2012. This figure is less than the same time period in 2011, but does not include what was expected to be a strong November and December.

Sales activity involving hotels remained weak in the fourth quarter, with the majority of sales involving full service properties without casinos on the Strip and full service properties with casinos off the Strip. Gaming revenue increased in 2012, with the revenue per available room (RevPAR) increasing 4.6 percentage points from 2011.

"The local hospitality industry is recovering. That's the good news. The bad news is that Southern Nevada does not entirely control its own destiny, relying as it does on strong national and international economies producing enough people with disposable income to make the pilgrimage to Sin City and deposit their cash in our coffers," said Stater.

Other key findings of the report, broken down by market segment, include:

Industrial

• Industrial vacancy now stands at 15 percent. This is 0.2 points higher than one quarter ago and 0.3 points higher than one year ago.
• The industrial average asking rent now stands at $0.48 per square foot on a triple-net basis. This is the same as one quarter ago and a $0.03 decrease from one year ago.
• Industrial net absorption was 169,641 square feet this quarter. This is a 340,030-square-foot decrease from one quarter ago, and a 364,552-square-foot decrease from one year ago.
• There were zero square feet of industrial completions this quarter. This is as it was one quarter ago and a 131,154-square-foot decrease from one year ago.
• Weakness in the construction industry overshadowed job growth in other industrial sectors this year.
• There are many companies that want to do business in Southern Nevada, but find themselves in the position of either needing to construct their own buildings due to a lack of suitable supply, or find the low construction costs and land costs too enticing to pass up.
• Much of the activity in the market is clearly lateral in nature, consisting of tenants looking for less space, better-located space, or cheaper space, or some combination of the three.
• Texas-based buyers were more conspicuous in the fourth quarter than in previous quarters, contributing $24.1 million of the total investment sales volume this quarter.
• The recent collapse in demand for warehouse/distribution space is impossible to ignore, and when coupled with the significant number of warehouse/distribution build-to-suit properties floating about, points to a fundamental mismatch in available inventory and current demand.

"The industrial market is engaged in a very slow and uneven recovery - a recovery marked by a difficult transition from an infrastructure designed to service the construction sector to one that must serve the transportation and warehousing sector," Stater said.

Office

• Office vacancy now stands at 22.8 percent. This is a 0.7-point decrease from one quarter ago and a 1.2-point decrease from one year ago.
• The office average asking rent now stands at $1.88 per square foot on a full service gross basis. This is a $0.02 decrease from one quarter ago and a $0.07 decrease from one year ago.
• Office net absorption was 265,336 square feet this quarter. This is a 155,619-square-foot increase from one quarter ago and a 369,044-square-foot increase from one year ago.
• There were zero square feet of office space completed this quarter. This is a 67,692-square-foot decrease from one quarter ago and a 45,579-square-foot decrease from one year ago.
• While three quarters of decreasing office vacancy could be the beginning of a trend, employment growth in the office sector continues to be unimpressive, with financial services and professional and business services, the sectors most important to the professional office market, continuing to underwhelm.
• Moving forward, newer, more efficient office space in the Southwest will attract a considerable share of future demand, while older submarkets will continue to decline.
• Class A office projects will have to continue to fight for new tenants in 2013 and will need to focus on retention of existing tenants as well.
• The impact of higher capital gains taxes on property sales is the big question for 2013. In general, it should depress outright sales of property, but make exchanges significantly more attractive.

"Last quarter, we said that Southern Nevada's office market was neutral. This quarter, it may have finally gotten into gear," Stater said. "By and large, the local economy should see continued slow growth in 2013, and we believe the office market will follow suit. If the economy does turn sour, though, expect continued difficulties for the office market as well."

Retail

• Retail vacancy now stands at 10.0 percent. This is a 0.2-point decrease from one quarter ago and a 1.4-point decrease from one year ago.
• The retail average asking rent now stands at $1.36 per square foot on a triple-net basis. This is a $0.01 decrease from one quarter ago and a $0.02 decrease from one year ago.
• Retail net absorption was 117,731 square feet this quarter. This is a 263,706-square-foot decrease from one quarter ago and a 1,556-square-foot increase from one year ago.
• There were no retail completions this quarter. This is as it was one quarter ago and a 30,500-square-foot decrease from one year ago.
• The fourth quarter of 2012 saw another quarter of positive performance for Southern Nevada's retail market, the sixth quarter in a row and a sure sign that Las Vegas has some life left in it.
• Retail vacancy in Southern Nevada has been on the decline for six quarters, indicating a definite trend and a welcome departure from the previous three years.
• Taxables sales still have not rebounded to pre-recession levels, but the steady improvement in taxable sales is likely a factor in the recent improvements in retail net absorption, as more retail businesses are finding a way to survive.
• Retail sales volume, for both owner/user space and investments, has been on a soft decline over the past year, and price per square foot of sales has also been dropping. Much of the available distressed product is distressed because it was poorly designed and/or poorly located, and this product is not only dragging down values, but is also gradually losing its audience.
• Southern Nevada currently has 1.16 million square feet of big-box space available in the marketplace. Filling big-box space could be a slow process, especially given the current trend in big-box retailing to downsize their stores in the face of "showrooming" by customers who browse in brick-and-mortal retail stores, but finalize their purchase online.

"As retail continues to bifurcate into high-end and low-end, high-density submarkets should reap the benefit. Affluent submarkets will attract high-end retail, of course, but high-end retail will not likely occupy as much retail space, in terms of raw-square-footage, as low-end retail," said Stater.

Hotel

• Hotel occupancy in Clark County averaged 88.8 percent in 2012, a 1.9-point increase over 2011, and a 5.3-point increase over 2010; just one of several measures of the hospitality industry that improved in 2012 over past years and a clear sign that Southern Nevada's tourism industry is in recovery mode.
• Clark County's ADR was $108.99 in 2012, a 3.7 percent increase over 2011, when ADR was $104.97, and a 12.9 percent increase over 2010, when ADR was $94.94.
• Visitor volume almost hit a new record in 2011, and with a strong November and December, 2012 might beat that record. Clark County visitor volume totaled 33,584,000 visitors through the first ten months of 2012, approximately 62,000 fewer visitors than arrived in the first ten months of 2011.
• Gaming revenue is also trending up for Clark County and the Las Vegas Strip. RevPAR in 2012 is up by 4.6 percent over 2011, and up 17.1 percent compared to 2010.
• While leisure and hospitality jobs were on the rise through the first half of 2012, they have fallen off since. Between November 2011 and November 2012, the leisure and hospitality sector only added 800 jobs.
• Year-to-date in 2012, sales volume has been weak, with only 2,309 units selling at approximately $49,000 per unit, for a total sales volume of $114MM, compared to $2,986MM of sales volume in the first three quarters of 2011 and $853MM of sales volume in 2010.
• Most sales have been in full service properties without casinos on the Strip and full service properties with casinos off the Strip.

"We do believe that the local hospitality market will continue to improve in 2013, and that this improvement and the impact of `fiscal cliff' tax increases on capital gains has the potential to drive more investment dollars into Southern Nevada's hotels," said Stater.

Medical Office

• Medical office vacancy now stands at 21.1 percent. This is a 1.1-point increase from one quarter ago and a 1.2-point increase from one year ago.
• The office average asking rent now stands at $2.11 per square foot on a full service gross basis. This is a $0.07 decrease from one quarter ago and a $0.19 decrease from one year ago.
• Medical office net absorption was 59,066 square feet this quarter. This is a 128,151-square-foot decrease from one quarter ago and a 54,018-square-foot decrease from one year ago.
• There were no new medical office completions this quarter. This is even with one quarter ago and is a 20,000-square-foot decrease from one year ago.
• Over the past two quarters, job growth has wavered, and Southern Nevada now has 18,500 health care workers outside of ambulatory services and hospitals.
• Strong employment growth over the past year should have sent vacancy rates lower, but as mentioned, changes in the way healthcare is delivered are disrupting the normal link between jobs and occupied real estate where medical office space is concerned.
• Medical office sales were weak in 2012, with a total of 179,000 square feet selling at an average price of $139.78 per square foot.
• Doctors, insurers and patients are all going through a slow discovery process of just what the Affordable Care Act means to them, and doctors and insurers are especially trying to come to grips with what these government-mandated changes will mean to their business models.

"From Wal-Mart's foray into small pharmacies on medical campuses to health care in Targets, more and more medical office dollars are going to flow into non-medical real estate, putting the crunch on landlords already dealing with consolidations and downsizing among physicians," said Stater.

Multifamily

• According to statistics provided by REIS, multi-family vacancy in Southern Nevada decreased in the third quarter of 2012, the most recent quarter of available data, continuing a ten-quarter trend in declining vacancy.
• Southern Nevada's multi-family sector is continuing to display a path of steady recovery as demand for multi-family continues to outstrip supply, keeping landlords happy and stimulating demand for multi-family assets in the valley.
• Population growth continues to be a key driver of Southern Nevada's economy. While that growth ceased for the first time in forty years during the Great Recession, it appears to once again be on track.
• Recent moves by key investors in the market are likely to keep single-family rents suppressed in the near term, and this might impact multi-family rents in 2013.

"As rents rise, folks who are lurking on the margins of the multi-family market may decide that 2013 is their last chance to find a deal," said Stater. "Tax increases brought on by the imminent plunge over the `fiscal cliff' could be a winner for multi-family investment, encouraging tax-deferred exchanges."

About Colliers International
Colliers International is the third-largest commercial real estate services company in the world, with over 12,300 professionals operating out of more than 520 offices in 62 countries. A subsidiary of FirstService Corporation (NASDAQ: FSRV; TSX: FSV and FSV.PR.U), it focuses on accelerating success for its clients by seamlessly providing a full range of services to real estate users, owners and investors worldwide, including global corporate solutions, brokerage, property and asset management, hotel investment sales and consulting, valuation, consulting and appraisal services, mortgage banking and research. Commercial Property Executive and Multi-Housing News magazines ranked Colliers International the top U.S. real estate company. The latest annual survey by the Lipsey Company ranked Colliers International as the second-most recognized commercial real estate firm in the world.

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According to the Colliers International Gaming Group, The Strip is enjoying more than $750 million in construction investments as a result of The Linq (including the former Imperial Palace/Quad renovation) and Skyvue projects. Another $500 million is slated for renovations to the SLS Las Vegas and Bill’s Gambling Hall. The Oct. 31 sale of the Las Vegas Hotel & Casino (LVH) coupled with rumored trades involving other iconic casinos will bring the total to over $1.5 billion.

“Our team has mapped out the Las Vegas landscape, and though new development of casinos may be years away, the acquisition of non-core casino properties along with large-scale renovations will dominate the next 24 months,” said Mixer. “We are even seeing renewed interest in Strip land plays.”

“While many of these transactions will appear to be overnight deals, in actuality, they will have been carefully planned dispositions of non-core assets,” added gaming group co-founder Gabe Telles. “Benefiting from the wave of global expansion in gaming, Las Vegas is poised to see the next generation of investors who were diligent enough to successfully weather the recent economic storm in hopes of buying a seat at the Las Vegas gaming table.”

The Colliers International Gaming Group is led by a trio of nationally renowned gaming, hospitality and investment experts, including Mixer, former CBRE broker Telles and former CBRE investment valuation consultant Josh Smith.

Colliers International formed the gaming group to meet an overwhelming demand for a next-generation full-service gaming real estate advisory group with demonstrated expertise in gaming asset valuation, strategic acquisition/disposition and tax appeal. The new Colliers division has an advantage over many other groups as a result of its global footprint of resources, clients and investors.

The team will work in close conjunction with Colliers International specialists across the globe, including professionals who are already on the ground in the emerging markets of Russia, Singapore, Macau, Canada, Europe and domestic markets such as Pennsylvania, Massachusetts, Maryland and numerous tribal regions.

“The Colliers International Gaming Group will be dedicated to the disciplined analytical pursuit of real estate solutions for its clients within the global gaming arena,” said Smith.

Collectively, Mixer, Telles and Smith bring more than 50 years of hospitality, gaming and investment experience to the team. Members of the Colliers International Gaming Group have the ability to leverage their deep industry relationships across the United States and the globe, with a past transaction list that reads from a who’s who of gaming, including Caesars Entertainment, MGM Resorts International, Wynn Resorts, Boyd Gaming, Theraldson Hotels Group and Tropicana Entertainment.

Mixer is the managing partner and co-founder of Colliers International – Las Vegas. He is also the co-chairman of Colliers’ Hotels Group and has consistently been ranked one of the top brokers at Colliers International, with billions of dollars in real estate transactions over the span of his 25-year career.

Prior to joining the gaming group in July, Telles worked in the brokerage division of CBRE, where he held positions within the Private Capital and Land Services groups. Telles, a Las Vegas native, also served as vice president of acquisitions for RMI Investment Services, LLC, where he was charged with the placing of private equity into commercial real estate across the Western United States. He brings more than 15 years of investment and brokerage experience to the team.

Smith joined the Colliers International Gaming Group in July from CBRE, where he spearheaded the integration of the valuation and advisory gaming practice with CBRE’s global gaming group. Smith also brings more than 15 years of experience to Colliers, including previously held positions with Western Capital Partners and Hospitality Real Estate Counselors in Denver, Hospitality Advisors Consulting and Valuation Group in Ann Arbor, Mich. and PKF Investments in San Francisco. Over the duration of his valuation and advisory career, Smith has completed more than 100 fee appraisals and consulting assignments for hospitality and gaming properties. From 2009 to 2012, he completed 30-plus casino assignments and more than $15 billion in associated valuations.

About Colliers International
Colliers International is the third-largest commercial real estate services company in the world, with over 12,300 professionals operating out of more than 520 offices in 62 countries. A subsidiary of FirstService Corporation (NASDAQ: FSRV; TSX: FSV and FSV.PR.U), it focuses on accelerating success for its clients by seamlessly providing a full range of services to real estate users, owners and investors worldwide, including global corporate solutions, brokerage, property and asset management, hotel investment sales and consulting, valuation, consulting and appraisal services, mortgage banking and research. Commercial Property Executive and Multi-Housing News magazines ranked Colliers International the top U.S. real estate company. The latest annual survey by the Lipsey Company ranked Colliers International as the second-most recognized commercial real estate firm in the world.

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Compiled by John Stater, research director for Colliers International – Las Vegas, the report cites recent job growth in the retail sector and rising taxable sales figures as positive indicators for the retail market. Southern Nevada’s retail vacancy rate fell to 10.3 percent in the third quarter, representing a year-over-year decline of 1.3 percentage points.

“Southern Nevada’s retail market continued to surprise and delight, turning in a stronger third quarter than second quarter and showing signs of embarking on a course of sustained recovery,” Stater said. “Given the recent gains in both retail employment and taxable sales, one has to think that the recovery being experienced in Southern Nevada’s retail market is real and that it might be gaining steam.”

Despite bright spots in retail and other areas of the local commercial real estate market, experts from Colliers International anticipate a slow fourth quarter as lingering economic uncertainty and other factors continue to stifle growth.

“Too many entrepreneurs and investors are playing the waiting game, plagued by concerns about global recession and by the uncertainty of the upcoming presidential contest,” Stater said.

While expectations are low for the remainder of 2012, Southern Nevada’s hotel industry appears poised to continue its path toward recovery, posting improved occupancy and room rates during the third quarter. Visitor volume in Clark County is also on the rise, totaling more than 23.3 million through the first seven months of 2012, an increase of approximately 127,000 visitors in comparison to last year’s figures.

Sales activity involving hotels remained weak in the third quarter, but recent gains in the hospitality sector have created a renewed sense of optimism within the industry.

“Hospitality owners in Las Vegas are in a much stronger financial position now than in the dark days of the recession and are finding less reason to sell,” Stater said. “In total, we remain bullish on Southern Nevada’s hospitality sector in 2013 and 2014 and believe it will continue to grow, even if only slowly.”

Other key findings of the report, broken down by market segment, include:

Industrial

Industrial vacancy now stands at 15.1 percent. This is the same as one quarter ago and 0.3 points higher than one year ago.

The industrial average asking rent now stands at $0.48 per square foot on a triple-net basis. This is a $0.01 decrease from one quarter ago and a $0.04 decrease from one year ago.

Industrial net absorption was 57,969 square feet this quarter. This is a 108,299-squarefoot increase from one quarter ago and a 170,430-square-foot decrease from one year ago.

There were zero square feet of industrial completions this quarter. This is as it was one quarter ago and a 75,000-square-foot decrease from one year ago.

Despite a very rough quarter for warehouse and distribution space, Southern Nevada’s industrial market posted positive net absorption this quarter and saw an end to rising vacancy.

Forward supply of industrial space in the valley increased again this quarter to 728,320 square feet, from 509,320 square feet last quarter. Aside from one speculative project that has been wrestling with ownership and financing problems, all of this space is in the form of build-to-suits for companies that range from the world’s most advanced data center/collocation service provider to freight companies and food companies.

After two quarters of negative net absorption, Southern Nevada’s industrial market posted almost 58,000 square feet of positive net absorption in the third quarter. This is still exceptionally weak, but is, at least, fairly broad-based.

Much of the activity in the market is clearly lateral. Tenants are looking for less space, better-located space or cheaper space (or perhaps some combination of the three).

Part of the problem in Southern Nevada appears to be a mismatch between the space that is currently available on the market and the requirements of potential tenants.

“After a very productive 2011 and a very disappointing start to 2012, Southern Nevada’s industrial market appears to be settling in for a long, slow slog,” Stater said.

Office

Office vacancy now stands at 23.5 percent. This is a 0.2-point decrease from one quarter ago and a 0.2-point decrease from one year ago.

The office average asking rent now stands at $1.90 per square foot on a full-service-gross basis. This is the same as one quarter ago and a $0.08 decrease from one year ago.

Office net absorption was 99,681 square feet this quarter. This is an 88,621-square-foot decrease from one quarter ago and a 383,285-square-foot decrease from one year ago.

There were 67,692 square feet of office space completed this quarter. This is a 63,192-square-foot increase from one quarter ago and a 244,752-square-foot decrease from one year ago.

The amount of office space under construction has not rebounded to the levels seen during the boom, of course, but it has grown over the past few quarters. The office pipeline currently includes 866,000 square feet of product, a surprising amount of it in the form of speculative projects.

The trajectory of office vacancy suggests a market that is bouncing along the bottom. A lack of office job growth is probably to blame for the market’s inability to gain any real traction and begin a sustained recovery.

As overall demand for office space has remained consistent, the difference is now in the number of units that are being vacated quarter after quarter. Retention of tenants remains the key for landlords.

If regional and national companies again take notice of Southern Nevada, both for its once-again growing population and once-again competitive rental rates and housing costs, the office recovery may quicken its pace.

“Southern Nevada’s office market is, by most indications, bouncing along the bottom. Office employment is still down, and will have to improve before the market begins to recover in earnest,” Stater said. “Net absorption will continue to bounce around a bit, and while several projects are now under construction or in the planning stages, and should positively impact net absorption for the next 12 months, there is no indication that this trend will not be short lived. In essence, the office market is in neutral.”



Retail

Retail vacancy now stands at 10.3 percent. This is a 0.8-point decrease from one quarter ago and a 1.3 point decrease from one year ago.

The retail average asking rent now stands at $1.37 per square foot on a triple-net basis. This is a $0.03 decrease from one quarter ago and a $0.04 decrease from one year ago.

Retail net absorption was 345,831 square feet this quarter. This is a 194,580-square-foot increase from one quarter ago and a 309,096-square-foot increase from one year ago.

There were no retail completions this quarter. This is as it was one quarter ago and one year ago.

Retail employment in the Las Vegas Metropolitain Statistical Area increased between July 2011 and July 2012, from 93,700 retail employees to 95,200 retail employees.

Clark County’s taxable sales have averaged $2.6 million per month so far in 2012. This is $0.2 million higher than the same period in 2011, and also higher than in 2010.

Sales activity of retail space continued to be weak when compared to 2011, with 1,069,000 square feet of retail space changing hands so far in 2012. This is roughly half the amount of space that sold in 2011, though it is considerably more than was sold in 2008, 2009 and 2010.

Distressed sales accounted for 10 percent of single-tenant owner/user sales, 32 percent of single-tenant investment sales and 59 percent of shopping center sales so far in 2012.

While shop-space has a higher vacancy rate than big-box, the big-box stores hold about 24 percent of all the vacant retail space in Southern Nevada’s anchored centers.

Hotel

Hotel occupancy in Clark County has averaged 89 percent in 2012, a 2.1-point increase over 2011, and a 5.5-point increase over 2010; a strong sign that Southern Nevada’s tourism industry has largely recovered from the depths of the Great Recession.

Clark County’s ADR (average daily rate) has averaged $108.22 in 2012, a 3 percent increase over 2011, when ADR averaged at $104.97, and a 12.3 percent increase over 2010, when ADR averaged just $94.94.

Clark County visitor volume has totaled 23,368,724 visitors through the first seven months of 2012, approximately 127,000 more visitors than arrived in the first seven months of 2011.

RevPAR (revenue per available room) is up by 3 percent in 2012 over 2011, and up 15.7 percent compared to 2010.

Between July 2011 and July 2012, the leisure and hospitality sector added 7,300 jobs; slower year-over-year growth than in January 2012, but still indicative of a growing industry.

Year-to-date in 2012, sales volume has been quite weak, with only 2,807 units selling at approximately $44,000 per unit, for a total sales volume of $122MM.

Most sales have been in full-service properties without casinos on the Strip and fullservice properties with casinos off the Strip.

Medical Office

Medical office vacancy now stands at 20.9 percent. This is a 1.4-point decrease from one quarter ago and a 0.5-point increase from one year ago.

The office average asking rent now stands at $2.18 per square foot on a full-service-gross basis. This is a $0.08 decrease from one quarter ago and a $0.15 decrease from one year ago.

Medical office net absorption was 69,085 square feet this quarter. This is a 129,157-square-foot increase from one quarter ago and a 40,714-square-foot increase from one year ago.

There were no new medical office completions this quarter. This is even with one quarter ago and one year ago.

On a quarter-by-quarter basis, the health care sector had been adding jobs, slowly but steadily, from the third quarter of 2009 to the second quarter of 2011. Starting in the third quarter of 2011, this trend reversed itself for three quarters, with Southern Nevada losing 2,300 jobs. Over the past two quarters, job growth has renewed, and Southern Nevada now has 19,600 health care workers.

Strong employment growth over the past two quarters suggests that demand for medical office could be stronger in early 2013.

The recovery of the medical office market in Southern Nevada is pushing against two main headwinds: downsizing by medical practitioners – either due to greater efficiencies gained from electronic health records or the trend of single practitioners joining groups to find better compensation – and competition from non-medical office product.

These headwinds should conspire to keep demand for medical office space depressed over the next few months, and thus keep the market in neutral.

“Taken in the context of the last eight quarters, this quarter’s performance seems to be more ‘bouncing along the bottom’ than the beginning of a sustained recovery,” Stater said. “Asking rates should continue to decline, on the whole, as medical landlords work to lure what activity exists in the market into their centers.”

Multifamily

According to statistics provided by REIS, multifamily vacancy in Southern Nevada decreased in the second quarter of 2012, the most recent quarter of available data, continuing a nine-quarter trend of declining vacancy.

Over the past 40 years, through good times and bad, Southern Nevada experienced continual year-after-year increases in population – until the Great Recession of 2007, that is. Population growth has now been stagnant in Southern Nevada for the past five years and still has not hit the peak achieved in 2007.

Rapid population growth was responsible for the wondrous increase in construction and financial activities jobs in Southern Nevada, among other things, and lack of population growth is hampering the region’s recovery.

Recent driver’s license counts from the Nevada Department of Transportation suggest that population is once again growing in Southern Nevada, feeding the hope that recovery will quicken in 2013 and beyond.

Multifamily sales dropped off in the third quarter of 2012, with 1,482 units selling at an average price per unit of $56,440.

“Southern Nevada’s multifamily sector is continuing to display a path of steady recovery as new construction has increased to try to keep up with current demand for Class A apartments,” Stater said.

“Investors are cautious of late, ignoring proforma numbers in favor of actual numbers. In addition, the investment picture in Southern Nevada is taking on an international character, with more Canadian and Chinese investors turning their attention to our little corner of the globe,” Stater said.

About Colliers International
Colliers International is the third-largest commercial real estate services company in the world, with over 12,300 professionals operating out of more than 520 offices in 62 countries. A subsidiary of FirstService Corporation (NASDAQ: FSRV; TSX: FSV and FSV.PR.U), it focuses on accelerating success for its clients by seamlessly providing a full range of services to real estate users, owners and investors worldwide, including global corporate solutions, brokerage, property and asset management, hotel investment sales and consulting, valuation, consulting and appraisal services, mortgage banking and research. Commercial Property Executive and Multi-Housing News magazines ranked Colliers International the top U.S. real estate company. The latest annual survey by the Lipsey Company ranked Colliers International as the second-most recognized commercial real estate firm in the world.

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Willmore is an active member of the Society of Industrial and Office Realtors (SIOR), previously serving as president of the Nevada chapter and regional director of the organization’s Western Region. He currently serves on SIOR’s national recruitment and nominating committees, dedicating his time and energy to support the organization’s goal of promoting the highest level of professional and ethical standards within the commercial real estate industry. He is also a member of NAIOP Southern Nevada.

“Dean’s vast experience in the industrial sector will serve as a valuable asset to our clients,” said Mixer. “When you’re responsible for almost $1 billion in transactions, you know you’re doing something right. We are thrilled to have such an accomplished professional as the newest member of our team.”

Prior to joining Colliers International, Willmore served as a senior director with Commerce Real Estate Solutions, where he specialized in industrial brokerage services and completed transactions involving build-to-suit facilities for a number of well-known companies. With more than 25 years of experience, Willmore has earned his reputation as a leading expert in site selection, facilities planning and build-to-suit development. He has brokered more than 2,500 office and industrial transactions valued at a total of nearly $1 billion.

Willmore earned a Bachelor of Science in finance and real estate from the University of Arizona in 1984. He has been a resident of Henderson, Nev. for the past 25 years.

About Colliers International
Colliers International is the third-largest commercial real estate services company in the world, with over 12,300 professionals operating out of more than 520 offices in 62 countries. A subsidiary of FirstService Corporation (NASDAQ: FSRV; TSX: FSV and FSV.PR.U), it focuses on accelerating success for its clients by seamlessly providing a full range of services to real estate users, owners and investors worldwide, including global corporate solutions, brokerage, property and asset management, hotel investment sales and consulting, valuation, consulting and appraisal services, mortgage banking and research. Commercial Property Executive and Multi-Housing News magazines ranked Colliers International the top U.S. real estate company. The latest annual survey by the Lipsey Company ranked Colliers International as the second-most recognized commercial real estate firm in the world.

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The Revere Golf Club Offering includes two 18-hole, par-72 golf courses, The Concord Course and The Lexington Course, a 23,000-square-foot clubhouse, and a 30-station grass driving range.

Located at 2600 Hampton Road, Henderson, NV, the nearly 550 acres that comprise The Revere Golf Club’s two courses and clubhouse are the centerpiece of the age-qualified, 12,500-resident Sun City Anthem Community. The Del Webb development features more than 7,000 homes, and the average household income within a 1-mile radius of the club is $143,000 per year. The Club recently received a 4.5-star rating from Golf Digest and The Lexington Course was named one of the top 10 courses in Nevada by Golf Magazine.

“Anthem Revere Golf Club is located within what could arguably be called the best golf community in Nevada, and views of the Las Vegas skyline and local mountains are stunning. Couple those dynamics with strong financial performance, and the result is a very attractive property,” said listing broker Keith Cubba.

When asked about the recent Southern Nevada Water Authority water rate increases, Cubba noted that a couple of prospective buyers from outside the market had made the same inquiry. His response was that “the rate change is an infrastructure surcharge that, due to a number of factors, including the courses' Henderson location, does not really impact The Revere Golf Club.”

About Colliers International
Colliers International is the third-largest commercial real estate services company in the world, with over 12,300 professionals operating out of more than 520 offices in 62 countries. A subsidiary of FirstService Corporation (NASDAQ: FSRV; TSX: FSV and FSV.PR.U), it focuses on accelerating success for its clients by seamlessly providing a full range of services to real estate users, owners and investors worldwide, including global corporate solutions, brokerage, property and asset management, hotel investment sales and consulting, valuation, consulting and appraisal services, mortgage banking and research. Commercial Property Executive and Multi-Housing News magazines ranked Colliers International the top U.S. real estate company. The latest annual survey by the Lipsey Company ranked Colliers International as the second-most recognized commercial real estate firm in the world.

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Prior to joining Colliers, Telles worked in the Brokerage and Private Capital divisions of CBRE, Inc. and served as vice president of acquisitions for RMI Investment Services, LLC. He was also a member of the Las Vegas acquisitions team at Harsch Investment Properties.

A native of Las Vegas, Telles earned his Bachelor’s degree in business administration and finance from the University of Nevada, Reno, where he was recognized as an Academic All-American in division I baseball.

About Colliers International
Colliers International is the third-largest commercial real estate services company in the world, with over 12,300 professionals operating out of more than 520 offices in 62 countries. A subsidiary of FirstService Corporation (NASDAQ: FSRV; TSX: FSV and FSV.PR.U), it focuses on accelerating success for its clients by seamlessly providing a full range of services to real estate users, owners and investors worldwide, including global corporate solutions, brokerage, property and asset management, hotel investment sales and consulting, valuation, consulting and appraisal services, mortgage banking and research. Commercial Property Executive and Multi-Housing News magazines ranked Colliers International the top U.S. real estate company. The latest annual survey by the Lipsey Company ranked Colliers International as the second-most recognized commercial real estate firm in the world.

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