Charles Van Geel, vice president of leasing and sales at American Nevada Company, is a well-known problem solver in a complex industry. His experience negotiating lease and sales transactions, contributing ideas and insights for development, and analyzing the real estate landscape made him a strong candidate for president of the Southern Nevada chapter of NAIOP, a commercial real estate development association. He was voted into the position by his peers and is serving this year.
What is the most challenging part of your job?
The awareness that every tenant, lawyer, lender, architect, general contractor, etc., conducts business differently and every transaction is negotiated by different personalities with different goals and objectives. Understandably, the most challenging part of my job is to maintain honest, effective communication while preserving my strategy to achieve my client’s goals.
What’s the status of commercial real estate in the valley these days?
Our industrial developers are touting that industrial real estate in Southern Nevada is well into the recovery mode, and that trend will continue as the U.S. economy continues to improve and as retailers and manufacturers make shortening the supply chain their top priority for the foreseeable future.
In terms of new development, warehousing is a clear favorite with approximately 1.5 million square feet under construction and another 6 million square feet in the planning and entitlement stage.
In talking with our retail brokers, Southern Nevada’s retail industry feels healthy, with vacancy rates at less than 10 percent. That being said, certain pockets around large power centers and master-planned communities are faring well, while some inline retail developments left without strong anchors still are struggling. Big-box retail is a casualty of the recession and an ever-changing landscape, which is why we are excited to see creative adaptive reuses of these spaces.
The office market is a tale of two locations. If you own an office building along the 215 Beltway, you’re experiencing strong occupancy and rent growth. If you own a building east of I-15, north of Patrick, south of East Charleston or in the Northwest parts of the valley, you’re seeing very little absorption with little to no rent growth. And it will be a tough go for another year or two.
What changes have you made since becoming president of NAIOP?
I’m not looking to implement any dramatic change, only to better demonstrate to our members that there is a real return on their investment in their commitment to this organization, now and in the future.
How did you get interested in real estate?
I was attending UNR, following my older sister’s lead to be a teacher. I was paired with a teacher at an at-risk school for a semester, essentially playing the role of a teacher’s aide while completing required, university-driven assignments. I watched my parents sell a couple homes throughout their lifetime, and in each case, they made a nice profit that allowed them to retire and buy beautiful homes in Reno and Arizona. My experience with my parents’ home sales showed me there was money to be made in real estate. I changed my major to finance and targeted a career in real estate.
What do you predict for the valley’s real estate market?
I see strong growth in the industrial sector, both in terms of construction of new buildings, as well as larger footprints and higher ceilings.
I see steady growth in the retail sector in that although the current vacancy rate should remain static, rents should increase. I’m also seeing a trend that grocery-anchored centers are getting smaller, retailers are needing less square footage per site, and unless you are Wal-Mart or Home Depot, there’s a gradual footprint decline in many of our big-box retailers.
As for office space, the efficiency trend continues with all office users trying to do more with less, packing more bodies into less space since the recession.
What are you reading right now?
“Unbroken.” It tells the story of Louis Zamperini, a World War II prisoner of war who spent 47 days on a raft in the shark-infested waters of the Pacific Ocean. He was captured by the Japanese navy, was sent to three POW camps and was a frequent target of brutal attacks in camp.
What do you do after work?
It’s all about my family. So, a typical night is helping my two boys (ages 8 and 10) complete their homework. If time permits, you’ll find us in the backyard playing basketball, swimming or throwing a football, baseball or Frisbee around the yard.
Describe your management style.
Hire someone who has a great attitude, great morals and ethics, who wants to be part of a positive team experience, who wants to be versatile. Train for performance and provide employees with the tools and resources necessary to achieve success. And don’t micromanage.
What is your dream job, outside of your current field?
Playing shortstop for the Los Angeles Dodgers.
Whom do you admire and why?
Presidents Barack Obama and George W. Bush. Yes, they are politicians, but they also are negotiators, educators and patriots. And they are husbands and fathers. On top of that, they are the faces of the American people with the weight of much of the world on their shoulders.
What is your biggest pet peeve?
People talking during a movie.
What is something people might not know about you?
I was born and raised in Northern Nevada. I grew up in rural Nevada — Fallon — eating pretty much what we grew or raised in our gardens. We canned and raised cows, pigs and chickens. And I’ve never ridden a horse.
Anything else you want to tell us?
Commercial real estate development is the most boom-or-bust industry in our economy. Therefore, where we are in the cycle must drive our strategies. Although we are excited to see the industrial development enter an expansion phase, we must be careful not to overbuild. Overbuilding will always hurt the industry, it’s just a question of when.