Scott Gragson, executive vice president of the Las Vegas land division at Colliers International, has been with the firm for 20 years, and recently, his team facilitated the purchase of 189 acres at North Las Vegas’ Apex Industrial Park, adjacent to Hyperloop One, as well as 140 acres south of the M Resort from a Bureau of Land Management auction.
Homebuilders are typically some of the biggest land buyers in Las Vegas. Are they buying more or less land compared with three or four years ago?
They are buying much more land than they were four years ago, and probably about the same as they were three years ago because in late 2013, the market started to rebound and builders could pencil building new homes at the lower land values as there was pent-up demand for new product and lenders were lending again.
With land prices going up, we are seeing the builders being more cautious, as they have to build a more expensive home, and there are fewer buyers as prices go up. The market for high-end homes seems to be more active, as buyers in that demographic are seeking newer, contemporary products, and some builders are capitalizing on the lack of inventory in the $600,000-$1 million price range.
Where are homebuilders buying land in the valley, and what prices are they typically paying in each area of town?
Builders are looking at all areas of the valley, as land prices vary from approximately $550,000 on down to $125,000 per acre depending on location, density and infrastructure costs. The most active areas are the southwest and west Henderson.
Are industrial and apartment developers still buying as much as they were three or four years ago? Also, what prices are they paying now, and what did they pay in 2012 and 2013?
In 2012 and 2013, we saw these developers pay around $100,000-$200,000 per acre in Henderson and North Las Vegas. Now, in the more popular areas like the southwest, the prices probably range from $4-$12 per square foot, depending on size, location and infrastructure.
Apex is becoming a sought-after option now that infrastructure and utilities are being developed, as well as companies like Faraday and Hyperloop One are under construction with their facilities.
It seems most construction these days is in the southwest valley. Do you expect that to continue?
I do expect the southwest to continue to blossom, as this area is the best based on location and proximity to other parts of the valley. As more of the land in the southwest has become private due to trades and BLM auctions, developers and users are able to bring in the extensive amount of infrastructure needed for future projects.
Are any developers starting to avoid the southwest valley because of rising land prices there?
Yes, unfortunately with growth, demand for better uses and the lack of land availability; some projects don’t pencil in the southwest. These projects will have to go further out or to other parts of the valley that are lower priced.
Talk about why you think it is important to be involved in the community.
I was born and raised in Las Vegas and this town, as well as the people, have been very good to my family and me. I am grateful to be in a position to give back in areas that I think I can make a difference long-term in our valley.
What is the best business advice you’ve received?
My father, Ken Gragson, told me to think long term and build lasting relationships to have a successful career, and “You will never get rich selling real estate; you will get rich purchasing real estate, as it is forced savings.”
If you could change one thing about Southern Nevada, what would it be?
I would like to see a higher emphasis on new forms of education. There should be more career and technical education schools with curriculums that cater to future careers, and the teaching should be more experiential and interactive, as the world is changing at a much faster pace.
What’s the biggest issue facing Southern Nevada?
Creating or attracting a higher caliber of workforce so we can attract companies that create jobs that pay higher wages. If you look at cities like Phoenix and Salt Lake City, they are attracting companies with higher-paying jobs due to their more productive and skilled labor markets.
What are some of your hobbies?
Right now, traveling with my son as he pursues a dream of being a NASCAR driver and visiting my daughter as she is a first-year student at SMU in Dallas.
Describe your management style.
Controlled chaos. I have great partners in Robert Torres, John Kilpatrick, Laurie Stevens, Pat Watts and Scott Larsen, and I like to surround myself with good people who are tough-skinned. I can be a little brash at times, as there are many highs and lows in our business. I refined my management approach by not micro-managing my partners. We try to respect each other’s work style and remember that this business should be fun.
Where do you see yourself and your company in 10 years?
I have high hopes that the next 10 years will be the most successful years in my career as Las Vegas evolves into a world-class city with major league sports to complement our great convention, hospitality and entertainment offerings.
Colliers will continue to be a great company by hiring talent that remains interested in building a long-term career and being an expert in a certain discipline.
What is your dream job, outside of your current field? Why?
Sports agent. Show me the money, Jerry!
If you could change one thing about yourself, what would it be?
Where do I start? Height to weight ratio, tolerance of other people, filtering my thoughts before I speak, empathy.
What is something that people might not know about you?
One of my first jobs in high school was sweeping the streets of downtown and using Freon to freeze the gum so I could chisel it off the sidewalks. The orange plastic vest made for great times in the 115-degree weather.