Southern Nevada
The rule of thumb is that “retail follows rooftops”, so it should come as no surprise that Southern Nevada’s housing boom has given rise to a corresponding increase in the number of shopping centers being planned and constructed. As homes and apartments move outwards into what was once empty land, developers are rushing to make sure their occupants have easy access to grocery stores, big-box discount outlets, restaurants and even high-end retail establishments. Activity is especially heavy along the I-215 Beltway, from its northwest corner near Ann Road, to the southwest bend near Durango and on to its eastern end in Green Valley.
Terri Sturm, president of Territory, Inc., has played an important role in developing retail centers on the outskirts of town – areas that are fast being engulfed by a rising tide of homes. In the suburban northwest, her company is continuing to add to Centennial Center, situated on a 90-acre parcel at I-215 and U.S. 95. The center already contains a Home Depot, a Wal-Mart Supercenter, a Sam’s Club, and other major tenants, including Circuit City, Ross Dress for Less, OfficeMax, PetCo and Michael’s. At buildout next year, it will contain nearly 1 million square feet of retail and restaurants. Territory has also purchased a nearby 40-acre site at Ann Road and U.S. 95 with plans to develop it into a mixed-use retail and commercial center, starting in 2004.
Also in the fast-growing Centennial Hills area, Scottsdale, Ariz.-based Vertical Holdings is developing Montecito Crossing on 34 acres at the northeast corner of I-215 and Durango. The 270,000-square-foot center will be anchored by Kohls department store, opening this month. Other major tenants, which will be opening in the second quarter of 2004, include Sports Authority, Pier 1 Imports, Home Goods, Office Depot, Mimi’s Café and Bank of America. General contractor for the project is Martin-Harris and the architect is Perkowitz & Ruth. Leasing agent is ROI Commercial.
Montecito Companies is breaking ground this month for the first phase of Tenaya Village Center, which will include nine acres of retail stores, restaurants and office space. The project is located adjacent to Centennial Hills Town Center, near the intersection of U.S. 95 and the I-215 Beltway. The $9.25 million first phase in slated for completion in May 2004. Kalb Construction is the general contractor for the 60,000-square-foot project. At buildout, Tenaya Village Center will have 16 acres of retail, 20 acres of office and 17 acres for four separate auto dealerships. Gateway Realty is leasing agent for the center.
At the southwest curve of the Beltway, Triple Five Nevada Corporation is planning a huge (2.5 million square feet) retail center, to be built in three phases. Phase I of Grand Canyon Parkway, to be completed in mid-November, will contain Mervyn’s and Target, as well as 250,000 square feet of inline “fashion stores” between the two anchors. Phase II, scheduled for mid-2004, will be anchored by a Sears Grand store, a new concept for Sears, and will feature an additional 300,000 square feet of stores, including several national tenants. Phase III, still in the planning stages, will be anchored by a Regal Cinemas theater. According to Jean Marc Joveidi, senior executive vice president for Triple Five Nevada, “Grand Canyon Parkway will be the most powerful super-regional upscale lifestyle center in Las Vegas.”
Lest one think Joveidi is merely boasting, consider the fact that his company developed the highly successful Boca Park center at West Charleston and Rampart. Phase II of the Boca Park project, called Fashion Village, will open next month in time for holiday buying. After another 700,000 to 800,000 square feet are added in Phase III at a site north of the current center, Boca Park will contain 2 million square feet of upscale retail establishments and restaurants.
Several miles south of its Centennial Hills projects, Territory Inc. is developing Southern Highlands Marketplace near Decatur and Cactus, south of the I-215 Beltway. A neighborhood shopping center, it will be anchored by a Smith’s grocery store and a Walgreen’s. The 125,000-square-foot first phase of the project is scheduled to open next month, and it will eventually contain close to 200,000 square feet of retail to serve the burgeoning population of the Southern Hills area.
Also in the southwest part of town,Weingarten Realty is developing Tropicana Beltway Center at the corner of Tropicana and the Beltway. Tenants at the new center, containing approximately 650,000 square feet of retail, include Wal-Mart, Lowe’s, Ross Dress for Less, PetSmart, Pier 1 Imports, Sports Authority and Office Depot.
American Nevada Corporation is building The Shops at Green Valley Ranch at the southeastern end of the Beltway adjacent to the Green Valley Ranch Station Casino/Resort. Scheduled to open in April, 2004, the unique $80 million project has been designed to apply the “urban village” concept to a suburban location. It will consist of upscale lifestyle retail shops, as well as apartments and office space. Some ground-level retail shops will feature luxury apartments on the second floor, and others will have second-floor office space. A total of 156,000 square feet has been allocated for retail. McCarthy Building Co., Inc. is the general contractor for The Shops at Green Valley Ranch, which was designed byPerlman Architects.
Not all large projects are following the path laid out by the I-215 Beltway. Marnell Properties is developing McCarran Marketplace on 75 acres east of McCarran International Airport, on what was originally residential land. Plans for the 75-acre community retail center include big-box retail, neighborhood retail, family-style restaurants, fast food outlets, convenience and drug stores. McCarran Marketplace fronts Eastern Avenue and extends from Russell Road to Patrick Lane. Grading is scheduled to begin in the first quarter of 2004, with some retail outlets open for business in the first quarter of 2005.
Another unique project, which opened this summer, is Las Vegas Premium Outlets, located at I-15 and Alta near downtown Las Vegas. Developed by Chelsea Property Group and owned jointly by Chelsea and Simon Property Group, the 435,000-square-foot outlet center seems to be enjoying success in attracting people to its unconventional location. In fact, the owners recently stated they may have to up their original estimate of 10 million visitors a year after reviewing the volume of traffic so far.
A redevelopment project on the Las Vegas Strip is hoping to attract tourists, as well as the estimated 35,000 ex-Hawaiians living in Southern Nevada, with what developers are calling an “interactive retail experience”. Ground was broken in May for the Hawaiian Marketplace on the site of the former Polo Plaza shopping center on the Strip just south of Harmon Avenue. The $140 million, 80,000-square-foot retail center will feature such tropical touches as a man-made banyan tree in the center of the complex, a fountain that comes to life as a volcano, and entertainment by Polynesian dancers.
Northern Nevada
The population of the Reno-Sparks area, while growing, is not skyrocketing like Southern Nevada’s. Retail growth has also been slower. However, several developments are underway. The Village at Double Diamond is a 14.65-acre retail center at Double R and South Meadows Parkway in Reno. Developers of the site are Smith’s/Kroger Foods and Great American Capital, represented by Trammell Crow. The anchor tenant, a 56,100-square-foot Smith’s supermarket, is set to open in May 2004. Phase I calls for 22,450 square feet of in-line retail space and six building pads in addition to the Smith’s. An additional 25,000 square feet of in-line retail is planned for Phase II.
South Virginia Commons, a 137,000-square-foot power center, is being developed on So. Virginia St. near Del Monte. Leases have been signed with Linens-n-Things, DSW Shoes and David’s Bridal. Completion is scheduled for the third quarter of 2004.
Phase II of Firecreek Crossing is underway, with a 78,000-square-foot expansion of an existing Wal-Mart. The 260,000-square-foot power center off Kietzke Ln. and So. Virginia St. contains Office Depot, Sam’s Club, Old Navy, Gart Sports, Michael’s Crafts, Babies “R” Us, and a number of other stores and restaurants. A Super Wal-Mart is under construction at McCarran and MaeAnne, and Scolari’s recently broke ground for an anchored retail center at I-80 and Robb.
What’s Next?
As long as people keep moving to the Silver State, the tale of these two cities will continue to see retail following rooftops. Whether it’s Hawaiian dancers, infill developments, a Walgreen’s on every corner or huge lifestyle centers, retail is evolving in its continual search to attract these residents’ dollars.
