Dear NAIOP Members and Guests,
Welcome to the 2010 NAIOP Summit! This year’s fall event is a spin-off of the chapter’s annual Bus Tour and is intended to offer extensive exhibits as well as a showcase of properties throughout the Las Vegas Valley.
This year’s event theme is: Getting Back to the Top with economic development and diversification as the main focus. In addition to showcasing the many exciting properties and projects that are happening throughout Southern Nevada, we’ve also added an education component to this year’s agenda. County Commissioner and Gubernatorial candidate Rory Reid as well as other business leaders will discuss their plans to help revitalize Nevada in the coming months and years.
We’ve also invited the economic development teams from our region’s municipalities and business organizations to provide you with information about their plans and outreach programs to bring business to Southern Nevada.
As an organization and as business leaders we must continue to work together to rebuild our state. Economic development is at the forefront of ensuring our businesses and our communities continue to grow and achieve success. Partnering with like-mined organizations is crucial if we expect to make an impact and drive economic development.
To promote this year’s event, the Committee worked with multiple business, economic development and commercial real estate organizations to promote and support the event. Therefore attendance and participation was not restricted to NAIOP members so expect to see a lot of new faces.
Although we’ve made many changes, we are still offering Property Showcase tours that will be structured and guided by expert brokers in their fields. This will give our principal members the opportunity to reintroduce their existing properties and explain current leasing and sales incentives to the real estate community. Attendees will also get to hear first hand from the local expects, what is really happening in the market.
This year’s Committee deserves a great deal of recognition for its innovative and creative ideas and its ability to present this event in a new format. I want to thank all of the Committee members for their countless hours of hard work, dedication and positive spirit for with it, , this event would not be possible.
Also, I would like to personally thank all of the sponsors and advertisers who provided the financial support that made the 2010 NAIOP Summit possible. They are the lifeblood of this organization, and I hope that you will look to them first when searching for products and services. A special thanks to EJM Development, a principal member, for allowing us to use your building within the Arroyo Business Park.
On behalf of the Board of Directors and the Committee, we are extremely excited to present the latest office and industrial buildings and projects in Southern Nevada. Again, welcome and thank you so much for attending our 2010 NAIOP Summit. We hope it exceeds your expectations, and we wish you much continued success throughout the year.
Regards,
Brad Schnepf
2010 President, NAIOP Southern Nevada
NORTH
North Las Vegas Office Submarket Overview
by Mike Tabeek, CCIM Grubb & Ellis
The North Las Vegas submarket is the area bounded by U.S. 95 on the West, Cheyenne Avenue on the South and Nellis Air Force Base on the East.
Currently the submarket offers approximately 785,500 square feet of existing office space. This represents a slight increase in square footage from 2009. As for the rest of Southern Nevada, construction has slowed in North Las Vegas. This is allowing the market to absorb existing space and the vacancy has shown a reduction from this time last year by 9%, for a total 19.7%. The North is one of the few submarkets with positive net absorption this quarter and five of the last seven quarters has had positive absorption. Rental rates are at an average of $2.27 per-square-foot full service gross. The positive side is that the amount of planned office space has not increased significantly and rental rates and sales prices have decreased. This combination will allow for absorption rates to catch up and give the market a chance to correct itself.
Notable projects in the area include the new VA Hospital on the 215 and Pecos, a retail center Deer Springs Town Center by Regency Centers; a 700,000 square foot power center with tenants including Target, Home Depot, Petsmart and others, The Park at Palisades; a 77,904-square-foot, ten building project for lease or sale located near Rancho Drive and Craig Road, American Nevada Company’s two 27,821-square-foot buildings near Aliante Parkway and I-215 with a third planned, Montecito Point by Lauth Property Group which includes the recently completed six-story 187,410-square-foot building at Grand Montecito Parkway and I-215.
Aliante Corporate Center A & B
Aliante Pkwy. & I-215
Developer: American Nevada Company
Leasing Agent: ANC / 702.458.8855
Architect: JMA Architects
General Contractor: The Korte Company
Date Built: 2006
Status: Completed
Project Square Footage: 54,562 SF
Development Acreage: 4.4
Asking Rates: $2.05 MG
Major Tenants: Coldwell Banker
Comments:
2550 Nature Park Drive is located at the gateway to Aliante, with Interstate 215 and residential/commercial space to the north. It is a 20-acre shopping center anchored by a Smith’s grocery store designed to provide maximum views of the northern mountains and the expansive Nature Discovery Park to the South.
Cheyenne Commerce Center
Cheyenne Ave. & Revere St.
Type: Industrial
Developer: Harsch Investment Properties / John Ramous / 702.362.1400
Leasing Agent: Commerce Real Estate Solutions / Tom Elkington & Dean Willmore 702.524.4964
Architect: VLMK Consulting Engineers
General Contractor: TWC Construction
Date Built: 2004 & 2006
Status: Greater than 20 percent vacancy
Project Square Footage: 203,425 SF
Development Acreage: 14.98
Asking Rates: $0.39 to $0.45 NNN
Major Tenants: Lockhead Martin, United Blood Services, City of North Las Vegas, SW Truck Drivers Training
Comments:
High Visibility w/Cheyenne frontage, T5 Warehouse Lighting, 18’ to 24’ clear height, Evap & HVAC, Concrete Tilt Up Construction, Warehouse skylights
Winner Industrial Building
Trade Dr. & Cheyenne Ave.
Type: Industrial
Developer: Antonio Accornero / 213.280.4215
Leasing Agent: CBRE / Donna Alderson, Greg Tassi, JJ Peck / 702.369.4800
Architect: Ethos Three Architecture
General Contractor: Keroles Construction
Date Built: 2009
Status: Greater than 20,000 SF vacancy
Project Square Footage: 49,356 SF
Development Acreage: 2.88
Asking Rates: $0.37 NNN
Major Tenants: N/A
Comments:
1055 Trade Drive is a brand new freestanding building located in the North Las Vegas submarket just south of Cheyenne Avenue. The building size totals ±49,356 square feet and is situated on ±2.88 acres. The building features include ±980 square feet.
Civic Center Corporate Park
Alexander Rd. & Civic Center Dr.
Type: Industrial
Developer: Panattoni Development / Doug Roberts / 702.269.1360
Leasing Agent: CBRE / Donna Alderson, Greg Tassi, JJ Peck / 702.369.4800
Architect: Tectonics Design Group
General Contractor: Panattoni Construction
Date Built: 2008
Status: Completed
Project Square Footage: 185,348 SF
Development Acerage: 10.79
Asking Rates: $0.39 NNN
Major Tenants: Certain Teed Products, Pape Material Handling, Las Vegas Container, Clinton Nevada
Comments: Civic Center Corporate Park is a ±185,348 square foot industrial park located on Civic Center Drive just south of Alexander. The property has great access to I-15 via Craig Road or Cheyenne Avenue. The available space ranges in size from ±4,008 square feet.
ProLogis Park North
Alexander Rd. & Pecos Rd.
Type: Industrial
Developer: ProLogis / Jim Rodrigues / 702.891.9292
Leasing Agent: CBRE / Donna Alderson, Greg Tassi, JJ Peck 702.369.4800
Architect: N/A
General Contractor: N/A
Date Built: 1995-2007
Status: Greater than 20,000 SF vacancy
Project Square Footage: 1.5 million SF
Development Acreage: 17
Asking Rates: $0.31 – $0.33 NNN
Major Tenants: BFS Diversified Products, Brothers Trading, Ace Worldwide
Comments:
ProLogis Park North is a master planned industrial park located in the North Las Vegas submarket on the northwest corner of Alexander Road and Pecos Road.
The total project size is approximately 1.5 million square feet, situated on 75 acres.
Prologis Sunrise Industrial Park
Cheyenne Ave. & Lamb Blvd.
Type: Industrial
Developer: ProLogis / Jim Rodrigues / 702.891.9292
Leasing Agent: Colliers International / Dan Doherty & Suzette La Grange
702.735.5700
Architect: United Construction
General Contractor: United Construction
Date Built: 1997
Status: Greater than 20 percent vacancy
Project Square Footage: 271,616 SF
Development Acreage: 12.85
Asking Rates: $0.33/SF/Net
Major Tenants: The Vons Companies, Iron Mountain
Comments:
3051 N. Marion Dr. has 181,788 SF of distribution space available for lease and is divisible to 89,628 or 92,160 SF. The suite features a 30’ clear height, dock/grade loading, and 48’ x 48’ columns.
ProLogis Nellis Industrial Pk. #5
Craig Rd. & I-15
Type: Industrial
Developer: ProLogis / Jim Rodrigues / 702.891.9292
Leasing Agent: Colliers International / Dan Doherty & Suzette La Grange
702.735.5700
Architect: N/A
General Contractor: N/A
Date Built: 1989
Status: Greater than 20 percent vacancy
Project Square Footage: 195,100 SF
Development Acreage: 7.85
Asking Rates: Negotiable
Major Tenants: Formerly occupied by Solo Cup (plastics manufacturing)
Comments:
4425 Mitchell offers I-15 freeway frontage, direct rail served access, a 30’ clear height, 50’ x 50’ typ. column spacing, 9,000 amps power & 12,713 SF of office area. Available for immediate occupancy.
Craig Distribution Center II
Lamb Blvd. & Craig Rd.
Type: Industrial
Developer: Panattoni Dev. Company / Doug Roberts / 775.829.6112
Leasing Agent: Colliers International / Patti Dillon / 702.836.3790
Architect: Tectonics Design Group
General Contractor: Panattoni Construction
Date Built: 2005
Status: Greater than 20,000 sf vacancy
Project Square Footage: 190,320 SF
Development Acreage: 11.88
Asking Rates: $0.30 NNN – $0.34 NNN
Major Tenants: Sears, Agile Trade Show, Christie Lites
Comments:
Light Distribution Project with available suites from 13,520 sf to 31,200 sf. 30’ minimum ceiling clearances, ESFR Fire Suppression System, dock high and grade level locking, and excellent curb appeal.
CENTRAL
Central Office Submarket Overview
by Michael K. Hsu, Grubb & Ellis
The Central Office Submarket consists of three areas, Downtown, Central East and Central West. The downtown submarket is located in the area between I-15 to the west, Charleston Boulevard to the south, Maryland Parkway to the east and U.S. 95 to the north. The total square footage in the downtown submarket is +/- 1.7 million square feet with a vacancy rate of +/- 12/7% as compared to the vacancy rate of 23.7% for the overall Las Vegas market. The average full srvice rental rates currently are $2.92 psf per month for Class A properties and $2.74 psf per month for Class B properties.
With over 1.3 million square feet of courtroom space in the downtown area, the submarket’s businesses mainly consists of law firms and governmental agencies. As a result, the downtown submarket generally experiences less vacancy as compared to other sub-markets due to the demand and a limited supply of office space.
The Central East submarket is located in the area between Charleston Boulevard to the north, I-15/Las Vegas Boulevard to the west and Tropicana Boulevard to the south. The total square footage in the Central East submarket is +/- 5.9 million square feet with a vacancy rate of +/- 23.8%. The average full service rental rates currently ar $2.85 psf per month for Class A properties and $1.48 psf per month for Class B properties. The major office park in this submarket is the Hughes Center, which is considered as the CBD in Las Vegas.
The Central West submarket is located in the area west of I-15, Charleston Boulevard to the north and Spring Mountain Road to the south. The total square footage in the Central West submarket is +/- 4.9 million square feet with a vacancy rate of +/- 24.1%. The average full service rental rates currently are $2.35 psf per month for Class A properties and $1.70 psf per month for Class B properties.
Hughes Center
Paradise Rd. & Flamingo Rd.
Type: Office
Developer: Crescent Real Estate Equities / Bob Boykin / 702.697.6800
Leasing Agent: Colliers International / Lizz Stilley, Tom Stilley, Michael Koontz, Megan Hatala
Architect: Various
General Contractor: Various
Date Built: 1986-2007
Status: Greater than 20,000 sf vacancy
Project Square Footage: 1.35 Million SF
Development Acreage: 68
Asking Rates: $2.65-$3.45 Full Service Gross
Major Tenants: Wells Fargo Bank, Ameristar Casinos, Greenberg Traurig, Lewis & Roca
Comments:
Hughes Center contains ten Class A buildings totaling over 1.35 million SF. The Center is the city’s premier 68-acre, master-planned office complex located in the central business district of Las Vegas, NV.
SOUTHEAST
Southeast Office Submarket Overview
by Jayne M. Cayton, Vice President, CBRE
Located in the southeast portion of the Las Vegas Valley, the Southeast office submarket is bounded by Sunset Road to the north, U.S. 95 to the east, and I-15 to the west.
As of the second quarter of 2010, the submarket reflects the following:
- Total Net Rentable Area: 5,512,774 SF (representing 16.5% of the total market)
- Vacancy Rate: 25.1%
- YTD Net Absorption: (36,194)SF
- Average Asking Lease Rate (All Classes): $1.80 FSG
The Southeast submarket is experiencing the same decrease in leasing velocit, increase in tenant demands, and lengthened negoitiating process as the rest of the office market. Rent abatement and increased tenant improvement dollars are common and expected. Negotiations are now stretching into six or seven months as tenants evaluate and re-evaluate each aspect of the transaction, which can subject landlords to “re-trades” on previously negotiated terms.
Landlords continue to put fprth aggressive thenant retention efforst in order to remain competitive with current market conditions. American Nevada Company, the predominant office developer in the submarket, has approximately 1.8 million SF of office space at the intersection of I-215 and Green Valley Parkway. American Nevada Company’s retention percentag eis in the high 90s with nearly 180,000 SF currently renewed this year.
Recent completed lease transactions include: Zappos.com expansion (37,925 SF), CH2Mhill (11,200 SF) at Green Valley Corporate Center and Con Am Management (5,600 SF) at Green Valley Professional Center; Kaseya (5,600 SF) at Green Valley Corporate Center South.
Southeast Industrial Submarket Overview
by Garrett Toft, Voit Real Estate Services
The Southeast Industrial submarket, also known as the Henderson Industrial submarket, make up approximately 13% of the total industrial market with 13,500,000 sq. ft. of industrial product. Consistent with the remainder of the valley vacancy rates remain elevated at 15.5% and they will likely continue to remain high for the foreseeable future.
As with the remainder of Las Vegas, demand for new space cannot keep pace with the negative absorption. As a result, lease rates have declined approximately 30 – 40% from their peak. It is definitely a tenant’s market as Landlord’s will compete vigorously for the relatively few new tenants that are in the market. Notable lease transactions in Henderson for 2010 have been a 130,000 sq. ft. expansion for Levi Strauss and Angelica Textiles which just recently leased 40,000 sq. ft. in the submarket.
The Henderson submarket, just as any other, has its fair share of bank owned projects and properties. Most of the projects were speculative freestanding buildings or industrial condo projects. As a result there is a tremendous opportunity if you are a buyer in the market, especially if your space requirement is under 10,000 sq. ft.
The activity level in 2010 feels very similar to 2009. At some point, the national and regional economy will pick up, demand will increase, and we will begin to see lease rates and sales prices firm up. We are just not there yet.
Whitney Mesa Business Park II
Whitney Mesa Dr. & Mountain Vista St.
Type: Flex
Developer: GE Capital
Leasing Agent: Voit Real Estate Services / Kevin Higgins, Garrett Toft, Erik Larkin
702.734.4500
Architect: LeeSak
General Contractor: Brooks Construction
Date Built: 2008
Status: Completed 2008
Project Square Footage: 100,000 SF
Development Acreage: 5.6
Asking Rates: $75 – $85 PSF
Major Tenants: Green Valley Pharmacetuical
Comments:
This project features buildings from 2,300 to 9,000 sq. ft. with approximately 40 to 60% office build out in an open office condition. The clear height is 21’, the buildings have 3- Phase power, grade level loading doors and fire sprinklers.
Green Valley Business Center
Sunset Rd. & Sunset Rd.
Type: Industrial
Developer: Harsch Investment Properties / John Ramous / 702.362.1400
Leasing Agent: Commerce Real Estate Solutions / Dean Willmore, Amy Ogden, Laura Hart / 702.363.7600
Architect: VLMK Consulting Engineers
General Contractor: TWC Construction
Date Built: 2011
Status: Under Construction
Project Square Footage: 92,129 SF
Development Acreage: 5.48
Asking Rates: $0.39 – $0.49 NNN
Major Tenants: Helix Electric
Comments:
Office/Warehouse with dock & grade level loading, 17’ to 20’ clear height,
200 AMPS; 3 Phase, Sprinklers, T5 lighting with motion sensors
Stephanie Street Power Center
Stephanie St. & Warm Springs Rd.
Type: Retail
Developer: Harsch Investment Properties / John Ramous / 702.362.1400
Leasing Agent: New Market / Bob Touma / 702.371.3467
Architect: N/A
General Contractor: N/A
Date Built: 1997
Status: Greater than 20 percent vacancy
Project Square Footage: 379,683 SF
Development Acreage: 31.43
Asking Rates: $1.25 – $2.25 NNN
Major Tenants: Old Navy, Petsmart, Barnes & Noble, Pier One
Comments:
Anchor & Jr Anchor Space Available, Fully improved restaurant pad available,
Pylon Signage, Strong Day Population, High Traffic Count
Henderson Commerce Center IV
Warm Springs Rd. & Eastgate Rd.
Type: Industrial
Developer: Harsch Investment Properties / John Ramous / 702.362.1400
Leasing Agent: Commerce Real Estate Solutions / Dean Willmore, Amy Ogden, Laura Hart / 702.363.7600
Architect: VLMK Consulting Engineers
General Contractor: TWC Construction
Date Built: December 2006 & December 2008
Status: Greater than 20 percent vacancy
Project Square Footage: 601,051 SF
Development Acreage: 34.88
Asking Rates: $0.45 – $0.62 NNN
Major Tenants: Good Humor, Forbes Pharmaceutical, Sierra Ice, Margaritaville
Comments:
7 bldgs of flex office & distribution space, T5 Lighting w/Motion Sensors,
277/480V; 3 PH Power, Evap & HVAC, 20’ to 30’ Clear, ESFR Sprinklers,
Stamped Concrete Sidewalks w/upgrade landscaping
Pacific Business Center Phase I – IV
Gibson Rd. & American Pacific Dr.
Type: Industrial
Developer: The Northwestern Mutual Life Insurance Company / Michelle Marzban
949.718.4443
Leasing Agent: Kevin Higgins, Garrett Toft, Eric Larkin / Voit Real Estate Services
702.734.4500
Architect: Howard F. Thompson Associates
General Contractor: Varies
Date Built: 1996 – 2008
Status: Greater than 20 percent vacancy
Project Square Footage: 900,000 SF
Development Acreage: 48
Asking Rates: $0.25 – $55 NNN
Major Tenants: Berry Plastics, Review Journal, Fastenal
Comments:
Units available from 4,900 – 160,000 sq. ft. with dock and grade loading, 3 – Phase Power, 21’ – 26’ clear height, ESFR available, On-site management, Aggressive rates
Corporate Center 6
Green Valley Pkwy. & I-215
Type: Office
Developer: American Nevada Company
Leasing Agent: ANC / 702.458.8855
Architect: TKC Design PC (The Korte Company)
General Contractor: The Korte Company
Date Built: 2008
Status: Greater than 20,000 SF vacancy
Project Square Footage: 134,166 SF
Development Acreage: 3.08
Asking Rates: $2.10 Triple Net
Major Tenants: Greenspun Media Group
Comments:
LEED Gold Certified Building
Corporate Center South
Paseo Verde Pkwy. & St. Rose Pkwy.
Type: Office
Developer: American Nevada Company
Leasing Agent: ANC / 702.458.8855
Architect: JMA Architects
General Contractor: Martin Harris Construction
Date Built: 2002
Status: Greater than 20,000 SF vacancy
Project Square Footage: 36,844 SF
Development Acreage: 9.58
Asking Rates: $1.45 Triple Net
Major Tenants: IDC Ltd
Ford Building
St. Rose Pkwy. & I-215
Type: Office
Developer: American Nevada Company
Leasing Agent: ANC / 702.458.8855
Architect: JMA Architects
General Contractor: Martin Harris Construction
Date Built: 2000
Status: Completed 2007 – 2010
Project Square Footage: 111,630 RSF
Development Acreage: 10.97
Asking Rates: $1.45 Triple Net
Major Tenants: Ford Motor Credit
Sansone Richmar Plaza
Pecos Rd. & Pebble Rd
Type: Mixed-Use
Developer: Sansone Development / Roland Sansone / 702.768.1940
Leasing Agent: Sansone Development
Architect: Greg Moore
General Contractor: Bentar Development
Date Built: 2007
Status: Completed 2007 – 2010
Project Square Footage: 38,000 SF
Development Acreage: 4.8
Asking Rates: Retail $1.98-$2.25 NNN $1.49-$1.69 NNN Office
Major Tenants: Cafe Rio, Grimaldis, Freed’s Bakery, Carl’s Jr.
Comments:
Located off the 215 & Eastern, 90,000 cars/day. Project is adjacent to the Wal-Mart Power Center, Target, and St. Rose Hospital. Also has intense landscape, a beautiful entrance and an architectural tower.
Sansone Park Place
Eastern Ave. & Richmar Ave.
Type: Mixed-Use
Developer: Sansone Development / Roland Sansone / 702.768.1940
Leasing Agent: Sansone Development / Roland & Yvonne Sansone
702.914.9500
Architect: Greg Moore
General Contractor: Bentar Development
Date Built: 2007
Status: Completed 2007 – 2010
Project Square Footage: 105,000 SF
Development Acreage: 8.32
Asking Rates: $1.98-$2.25 Retail $1.49-$1.69 Office
Major Tenants: Einstein’s Bagels, BJ’s, Big 5, Party Superstores
Comments:
Located off the 215 & Eastern, 90,000 cars/day. Project is adjacent to the Wal-Mart Power Center, Target, and St. Rose Hospital. Also has intense landscape beautiful entrance and an architectural tower
Tuscano Medical Park
Jeffrey’s St. & St. Rose Pkwy.
Type: Office
Developer: Steelhead Development, Inc., Argo Corporation / Steve Schmidt 702.739.9999
Leasing Agent: Lee & Associates / Chuck Witters, David Flynn, Kris Watier
702.739.6222
Architect: Gerald Garapich
General Contractor: Steelhead Development
Date Built: Phase I – August 2006 / Phase II – December 2009
Status: Completed 2007 – 2010
Project Square Footage: 95,407 SF
Development Acreage: 7.8
Asking Rates: $2.20 SF NNN
Major Tenants: Orthopedic Institute of Henderson, Horizon Surgery Center,
Comprehensive Pain Management, Foot & Ankle Surgical Group
Comments:
Park-like grounds; Tuscany Mediterranean architecture; three two-story buildings. Extensive use of Italian tile in building common areas. “”Turn-key”” building standard tenant improvements.
AIRPORT
Airport Office Submarket Overview
by Chuck Witters, SIOR, Lee & Associates
The Airport Office submarket contains approximately 10,535,000 sq. ft of office space. As of the end of June, the submarket had a vacancy factor of approximately 27.9%. It had approximately 21,000 sq. ft. of office space “Under Construction”. The weighted average lease rate for the vacant space was $2.26 sq. ft. /month on a Full Service Gross basis although with concessions actual deals are not being made at that rate.
The submarket had 23 Class “A” office buildings totaling approximately 1,965,000 sq. ft. with a vacancy factor of 38.0%; 453 Class “B” office buildings totaling approximately 8,430,000 sq. ft. with a vacancy factor of 25.7% and 17 Class “C” office buildings totaling approximately 140,000 with a Vacancy Factor of 16.3%. The submarket has had a positive net absorption of approximately 62,250 sq. ft.
Some of the major lease transactions in the submarket in the past year were Allstate Insurance Company @21,436 sq. ft.; Circue Du Soleil @31,049 sq. ft.; Peeq Media/Blue Ocean @ 24,665 sq. ft..; Selling Source, LLC @ 36,600 sq. ft.; Century Link @ 50,000 sq. ft. and Clear Wireless @ 27,754 sq. ft.
Numerous REO buildings have come on the market and many are being sold far below replacement values which have an adverse affect on the lease rates in the submarket.
The Airport Office Submarket should hold its own in the coming years as it is a very desirable location for many local and out-of-state firms. Lease rates will continue to be adversely affected by the local and national economies and the fact that tenants are looking for “deals”. The submarket won’t really come back until our approximate 14.5% unemployment rate comes down to pre-2008 levels.
Airport Industrial Submarket Overview
by Xavier Wasiak, SIOR, Grubb and Ellis
Of the Las Vegas submarkets, the Airport industrial submarket is the third largest at approximately 13.4 million square feet, with a 17.8 percent vacancy rate in the second quarter. That’s an increase of 0.9 percent from the same time last year.
Since the second quarter of 2009, the Airport submarket has experienced negative absorption of approximately 243,000 square feet, which is considerably low compared to the southwest and North Las Vegas submarkets. One of the most notable vacancies affecting the Airport submarket was the 7000 Placid Street facility, in which Freeman Exhibit Services relocated to their newly constructed facility in the Southwest submarket. In May of this year, however, Foliot Furniture Corporation leased that same approximate 309,000 square foot distribution center from ProLogis for five years in what will likely be the single largest industrial lease of 2010.
Other than the Marnell Air Cargo Center, which will introduce over 200,000 square feet of roughly 80 percent pre-leased industrial product to the Airport submarket, no new development is slated or expected in this submarket for at least two years.
Values in the Airport industrial submarket have traditionally mirrored and sometimes surpassed those in the Southwest submarket. Currently, they seem to be positioned between the Southwest and Henderson submarkets, although with the current state of the economy, it is entirely possible an incredible deal can be attained in any submarket for similar pricing.
Tuscano Professional Park
Sandhill Rd. & Russell Rd.
Type: Office
Developer: Steelhead Development, Inc / Steve Schmidt / 702.732.9999
Leasing Agent: Lee & Associates / Chuck Witters, David Flynn, Kris Watier
702.739.6222
Architect: JMA Architects
General Contractor: Steelhead Development
Date Built: 2006
Status: Greater than 20 percent vacancy
Project Square Footage: 49,850 SF
Development Acreage: 4
Asking Rates: $0.95 SF NNN
Major Tenants: Rapport Leadership, Pizza Hut of America, Nevada By Design
Comments:
Park-like grounds; Tuscany Mediterranean architecture; 5 single-story buildings with 7,750-12,000 SF. Extensive use of Italian tile in building common areas. Suites are ready for immediate occupancy.
Arrowhead Commerce Center Building 9, 15, 16 & 17
Pecos Road & Sunset Road
Type: Industrial
Developer: EJM Development Co. / Susan Wincn / 702.597.1852
Leasing Agent: Colliers International / Spencer Pinter / 702.836.3776
Architect: RGA
General Contractor: LM Construction
Date Built: 1999 – 2005
Status: Greater than 20 percent vacancy
Project Square Footage: 59,354 – 158,124 SF
Development Acreage: 110
Asking Rates: $0.55 – $0.60 NNN
Major Tenants: Marquez Bros., Forward Air, Rentex, Walgreens Home Care, GE
Comments:
Arrowhead Commerce Center is part of the master-planned 110 acre project, Arrowhead Commerce Center, located just minutes from McCarran International Airport, Henderson & Las Vegas. Industrial suites are available from 4,800 – 43,220 sq. ft.
Spencer Helm Business Center
Sunset Rd. & Spencer St.
Type: Industrial
Developer: EJM Development Co. / Susan Wincn / 702.597.1852
Leasing Agent: Colliers International / Spencer Pinter / 702.836.3776
Architect: RGA
General Contractor: LM Construction
Date Built: 2001
Status: Greater than 20 percent vacancy
Project Square Footage: 205,830 SF
Development Acreage: 13.59
Asking Rates: $0.60 NNN
Major Tenants: UHS, SAIC, Craters & Freighters
Comments:
Spencer Helm is comprised of three multi-tenant industrial buildings located within the Airport sub-market. The buildings offer ESFR sprinklers, 200-amps of 3-phase power & dock/grade level loading.
Paradise Airport Center
Palms Airport Dr. & Paradise Rd.
Type: Industrial
Developer: Harsch Investment Properties / John Ramous / 702.362.1400
Leasing Agent: CBRE / Jeremy Green, Gabe Telles, Tyler Ecklund / 702.369.4800
Architect: VLMK Consulting Engineers
General Contractor: TWC Construction
Date Built: 2011
Status: Under Construction
Project Square Footage: 100,754 SF
Development Acreage: 8
Asking Rates: $0.44-$0.55 WH / $0.60 to $0.70 NNN
Major Tenants: Vacant (Currently Under Construction)
Comments:
Two story office components w/elevator, HVAC and evap, 3 Phase Power,
T5 lighting with motion sensors
Hughes Airport Center
Sunset Rd. & Paradise Rd.
Type: Office
Developer: CIP Real Estate / Scott Flemer / 949.474.7030
Leasing Agent: Voit Real Estate Services / Kevin Higgins, Garrett Toft, Erik Larkin
702.734.4500
Architect: Multiple
General Contractor: Multiple
Date Built: 1986 – 2005
Status: Greater than 20 percent vacancy
Project Square Footage: 3,300,000 SF
Development Acreage: 420
Asking Rates: $2.35 FSG with incentives
Major Tenants: MGM, Cirque du Soleil
Comments:
Attractive two and three story concrete tilt up office buildings, well located in an attractive business park. Suites available from 1,500 to 80,000 sq. ft. The location, quality of product, manicured grounds and proximity to amenities will satisfy the needs of any company.
Hughes Airport Center
Sunset Rd. & Paradise Rd.
Type: Industrial
Developer: CIP Real Estate / Scott Flemer / 949.474.7030
Leasing Agent: Voit Real Estate Services / Kevin Higgins, Garrett Toft, Erik Larkin
702.734.4500
Architect: Multiple
General Contractor: Multiple
Date Built: 1986 – 2005
Status: Greater than 20 percent vacancy
Project Square Footage: 3,300,000 SF
Development Acreage: 420
Asking Rates: $0.60 – $0.65 NNN with incentives
Major Tenants: Iron Mountain, USPS, Aruze Gaming, Bally Gaming
Comments:
Attractive concrete tilt up midbay industrial buildings in close proximity to “The Strip,” airport and all major freeways. Typical divisibilities from 6,000 to 25,000 sq.
ft. The location, quality of product, manicured grounds and proximity to amenities will satisfy the needs of any company.
Hughes Airport Center
Sunset Rd. & Paradise Rd.
Type: Flex
Developer: CIP Real Estate / Scott Flemer / 949.474.7030
Leasing Agent: Voit Real Estate Services / Kevin Higgins, Garrett Toft, Erik Larkin
702.734.4500
Architect: Multiple
General Contractor: Multiple
Date Built: 1986 – 2005
Status: Greater than 20 percent vacancy
Project Square Footage: 3,300,000 SF
Development Acreage: 420
Asking Rates: $1.25 – $1.45 NNN with incentives
Major Tenants: Terracon Consulting, GES, State of NV Gaming
Comments:
Attractive single story concrete tilt up flex office buildings, well located in an attractive business park. All building offer the potential for grade door access with warehouse components. divisibilities from 4,000 to 35,000 sq. ft. The location, quality of product, manicured grounds and proximity to amenities will satisfy the needs of any company.
SOUTHWEST
Southwest Office Submarket Overview
by Amy Lance, CBRE
The Southwest office submarket encompasses the area between Tropicana Avenue to the north, the I-15 to the east, the California State line to the south and the Spring Mountain range to the west. This Submarket is located along the southwest leg of the I-215 Beltway, allowing easy access to Summerlin, North Las Vegas, McCarran International Airport, the Las Vegas Strip, Green Valley and Henderson.
The Submarket has a 32.03% vacancy rate spread over 147 projects totaling almost four million square feet. Net absorption for the 2nd Quarter of 2010 for this Submarket was 49,481 sq. ft. Net absorption for the first half of 2010 totaled 103,128 square feet. There is currently only one building under construction in the Southwest, totaling 135,000 sq. ft., which is significantly less than the 518,053 square feet under construction one year ago. Full service gross lease rates in the Southwest area currently average $2.04 per sq. ft. with Class A carrying the most weight at $2.65 per square foot and Class B posting a rate of $1.77 per sq. ft. The Southwest submarket currently represents 12% of the total Las Vegas Office Market.
The Southwest submarket experienced positive gross and net absorption levels over the course of the first half of 2010. Business services, financial institutions and real estate make up more than 50% of the tenant types who entered into or renewed lease agreements in existing multi tenant buildings within the area. Some owners of second generation lease space with low tenant improvement allowances have been marketing availability at deeply discounted face rates for the first year, and also offering one month of free rent for each year of the lease term; while other landlords have been attempting to maintain face rent value and have abated rent by offering generous tenant improvement dollars and free rent incentives.
Southwest Industrial Submarket Overview
by Jeremy Green, CBRE
The Southwest submarket remains Las Vegas Valley’s most attractive locale for industrial users. The area is convenient to the Strip, numerous convention facilities and Las Vegas’ McCarran International Airport. Generally located south of Charleston Boulevard and west of the I-15, this submarket saw over one million square feet of industrial space completed in 2009, the most of any Las Vegas submarket.
As of the second quarter of 2010, the Southwest industrial submarket includes over 35 million square feet of industrial space, representing approximately 36% percent of Las Vegas’ overall industrial base. The Southwest submarket’s average vacancy rate stands at just under 10.4%, which is less than the overall Las Vegas vacancy rate of over 11%.
Thus far in 2010, almost half a million square feet of industrial transactions have occurred in the Southwest submarket. Recent significant activity in the submarket includes the Cosmopolitan’s lease at Procyon Distribution Center and Freeman’s relocation from North Las Vegas and the Airport submarket to their newly-constructed distribution facility in the Southwest.
Southwest lease rates average $0.64 per square foot per month, compared to a market average of $0.55. At this point, there is virtually no new industrial space under construction or planned in the Southwest submarket, or anywhere else in the Valley. This lull in construction will give demand a chance to catch up to supply.
Despite the recent economic downturn, Las Vegas’ Southwest industrial submarket will continue to be a desirable place for new and existing tenants to situate themselves. The submarket offers tenants a strategic location, along with a wide variety of industrial property types with reasonable lease rates.
Cameron Business Center
Cameron St. & Tropicana Ave.
Type: Industrial
Developer: EJM Development Co. / Susan Wincn / 702.597.1852
Leasing Agent: Cushman & Wakefield / Gina Moore & Jennifer Levine
702.796.7900
Architect: N/A
General Contractor: N/A
Date Built: 1988
Status: Greater than 20 percent vacancy
Project Square Footage: 100,392 SF
Development Acreage: 5
Asking Rates: $0.47-$0.49 NNN
Major Tenants: Intermountain Lock & Security
Comments:
Cameron Business Center is a 100,000+ sf. warehouse/distribution building, located minutes from the LV Strip,I-15 & I-215. The warehouse boasts 24’ clear height, and offers dock & grade level loading.
Arville Distribution Center
Arville St. & Russell Rd.
Type: Industrial
Developer: EastGroup Properties / Michael Sacco / 602.840.8600
Leasing Agent: CBRE / Donna Alderson, Greg Tassi, JJ Peck
702.369.4800
Architect: NA
General Contractor: NA
Date Built: 1998
Status: Greater than 20,000 SF vacancy
Project Square Footage: 142,430 SF
Development Acreage: 9.39
Asking Rates: $.47 – $.51 NNN
Major Tenants: Border Construction Specialties, Longust Distributing, Noble Tile and Supply, Abatix Corporation
Comments:
Arville Distribution Center is a Class A industrial project located on Arville Street just north of Russell Road. The project is comprised of two buildings with a total size of ±142,430 square feet. Currently there is available space ranging in size from 10,000 to 21,000 sq. ft.
Arroyo North I Business Center
I-215 between Buffalo Rd. & Rainbow Blvd.
Type: Industrial
Developer: EJM Development Co. / Susan Wincn / 702.597.1852
Leasing Agent: Colliers International / Spencer Pinter / 702.836.3776
Architect: RGA
General Contractor: LM Construction
Date Built: 2005
Status: Greater than 20,000 sf vacancy
Project Square Footage: 308,556 SF
Development Acreage: 21.74
Asking Rates: $0.65
Major Tenants: Shaw, Red Bull, ECON, Vision Signs
Comments:
Arroyo North Business Center is part of the 450-acre master planned mixed use development The Arroyo, which is centrally located on I-215 between Rainbow and Buffalo.
Arroyo North II Business Center
I-215 & Buffalo Rd.
Type: Industrial
Developer: EJM Development Co. / Susan Wincn / 702.597.1852
Leasing Agent: Colliers International / Spencer Pinter / 702.836.3776
Architect: RGA
General Contractor: LM Construction
Date Built: 2007
Status: Completed 2007-2010
Project Square Footage: 309,408 SF
Development Acreage: 21
Asking Rates: $0.55-$0.60 NNN
Major Tenants: CORT Furniture, DISH Network, Toshiba Business
Comments:
Arroyo North II Business Center is part of the 450-acre master planned mixed-use development, The Arroyo, and is strategically located on I-215 between Rainbow and Buffalo.
Loftworks
Tenaya Way & Sunset Rd.
Type: Mixed-Use
Developer: Tenaya Loftworks, LLC / Joel Laub / 702.221.1444
Leasing Agent: New Growth Commercial Real Estate Company
Bridget Richards, Jason Lesley, Jared Bergquist
Architect: John David Burke
General Contractor: Nevada Building
Date Built: 2009
Status: Greater than 20 percent vacancy
Project Square Footage: 140,000 SF
Development Acreage: 38
Asking Rates: $.55 NNN
Major Tenants: N/A
Comments:
Loftworkds is located in the desirable Southwest area of Las Vegas minutes from the airport and Las Vegas Strip. It is just over the hill from a large Walmart Shopping Center with many stores and restaurants nearby.
Buffalo/215 Business Park
Buffalo Drive & Post Road
Type: Mixed-Use
Developer: Panattoni Dev. Company / Doug Roberts / 775.829.6112
Leasing Agent: Colliers International / Pat Marsh / 702.735.5700
Architect: LeeSak
General Contractor: Mission Completed, Inc.
Date Built: 2008
Status: Greater than 20 percent vacancy
Project Square Footage: 101,552 SF
Development Acreage: 19
Asking Rates: $100-$110 / SF
Major Tenants: DiTronics Financial Services, Undisclosed Buyer, Brent Golden
Comments:
Eight industrial buildings, four office buildings. Buildings are available for sale, lease, or lease with an option to buy. In addition, 11 acres of fully improved vacant land can be sold outright or for build-to-suit.
Arroyo Corporate Center Building 1 & 2
I-215 & Rainbow Blvd.
Type: Office
Developer: EJM Development Co. / Kirk Boylston / 702.597.1852
Leasing Agent: CBRE / Brad Peterson / 702.369.4800
Architect: JMA Architects
General Contractor: Martin Harris Construction
Date Built: 2008
Status: Completed 2007 – 2010
Project Square Footage: 120,534 SF
Development Acreage: 12
Asking Rates: $2.35 MG
Major Tenants: Clearwire, Travelers, Stantec Consulting
Comments:
Arroyo Corporate Center is strategically located in the heart of The Arroyo. Retail amenities are within walking distance of Corporate Center, & access to I-215 is minutes away with the frontage road.
Arroyo Tenaya Office Park
Warm Springs Rd. & Rainbow Blvd.
Type: Office
Developer: EJM Development Co. / Kirk Boylston / 702.597.1852
Leasing Agent: Colliers International / Stilley Team / 702.735.5700
Architect: LeeSak
General Contractor: LM Construction
Date Built: 2009
Status: Completed 2007 – 2010
Project Square Footage: 138,690 SF
Development Acreage: 15
Asking Rates: $1.60 NNN
Major Tenants: N/A
Comments:
Arroyo Tenaya Office Park consists of three single story buildings. Located on Warm Springs, the project has easy access to Arroyo Market Square, and quick access to I-215 via the freeway frontage road.
Arroyo South Business Center
Warm Springs Rd. & Rainbow Blvd.
Type: Industrial
Developer: EJM Development Co. / Susan Wincn / 702.597.1852
Leasing Agent: Colliers International / Spencer Pinter / 702.836.3776
Architect: LeeSak
General Contractor: LM Construction
Date Built: 2009
Status: Completed 2007 – 2010
Project Square Footage: 379,540 SF
Development Acreage: 20
Asking Rates: $0.75 psf NNN
Major Tenants: CAPS, Inc., Everything Medical, Al Dentes
Comments:
Arroyo South Business Center consists of 7 multi-tenant industrial buildings. The project is part of the 450 acre master-planned mixed use development, The Arroyo, located at I-215 at Rainbow.
Nevada Cancer Institute
I-215 & Town Center Dr.
Type: Office
Developer: American Nevada Company
Leasing Agent: 702.458.8855
Architect: TKC Design PC (The Korte Company)
General Contractor: The Korte Company
Date Built: 2009
Status: Completed 2007 – 2010
Project Square Footage: 97,896 SF
Development Acreage: 3.25
Asking Rates: $2.05 Triple Net
Major Tenants: Nevada Cancer Institute
Comments:
This project is Silver LEED Certified for New Construction and an ideal location for office, medical office and medical services.
NORTHWEST
Northwest Office Submarket Overview
by Adam Malan, Vice President, The Equity Group
The Northwest Office submarket is bound by the I-215 Beltway to the west, east along Desert Inn Road to Durango Road, the north to Summerlin Parkway, east to Decatur Road, and finally north where it rejoins the I-215 Beltway. This market consists of approximately 8.6 million square feet of space, which represents approximately 20% of all office space in the Las Vegas Valley. Approximately 27%, or just over 2.2 million square feet is vacant, an increase from the 21% vacancy at the same time last year.
Absorption for the first half of 2010 was negative 111,000 square feet, a decrease from the first two quarters of 2009, when absorption stood at negative 93,000 square feet. As of the 2nd quarter of 2010 there was 90,000 square feet of office space under construction, about half of what was under construction one year ago. All of the office space under construction was Class A.
The only major new project under construction in the Northwest Office submarket is Tivoli Village, a multi-use project that includes 126,000 square feet of Class A office product. Construction is proceeding slowly. Over the past year, a 60,000 square foot medical building at 7061 Grand Montecito Way was completed.
The outlook for 2011 is a lack of commercial development and slow recovery, or at least leveling off, of the office market. Leasing activity is much improved since late 2008 and early 2009, but there remains a great deal of space to fill up and the prospect of a speedy economic recovery is very unlikely. The Northwest, with its newer office product and many amenities, should resume its growth when the pace of economic recovery quickens in 2012.
Market Data provided by: John Stater, Research Manager, Colliers International
The Crossing Business Center
Town Center Dr. & Covington Cross Dr.
Type: Office
Developer: The Howard Hughes Corp. / Stacy Dinkel / 702.791.4304
Leasing Agent: CBRE / Randy Broadhead, Darren Lemmon, Amy Lance
702.369.4800
Architect: Howard F. Thompson Associates
General Contractor: Martin Harris Construction
Date Built: 1994-1998
Status: Greater than 20,000 SF vacancy
Project Square Footage: 247,548 SF
Development Acreage: 25.07
Asking Rates: $1.25-$1.85 NNN
Major Tenants: None
Comments:
Rental concessions offered based on term. Project comprised of three single story concrete tilt-up bldgs. Roll-up doors in some locations and available for others for small vehicle or hand cart access.
Canyons Center
Town Center Dr. & Covington Cross Dr.
Type: Office
Developer: The Howard Hughes Corp. / Stacy Dinkel / 702.791.4304
Leasing Agent: CBRE / Randy Broadhead, Darren Lemmon, Amy Lance
702.369.4800
Architect: McLarand, Vasquez & Partners, Inc.
General Contractor: KBA
Date Built: 1997 & 1998
Status: Greater than 20,000 SF vacancy
Project Square Footage: 208,419 SF
Development Acreage: 13.74
Asking Rates: $2.30 FSG
Major Tenants: Charles Schwab, Toll Brothers, Zurich, First American Title Company
Comments:
Project consists of four steel frame, two and three story, class A buildings. Availability in all buildings with all of 1180 available at 43,465 RSF. Rent concessions based on lease term.
The Plazas
Town Center Dr. & Village Center Circle
Type: Office
Developer: The Howard Hughes Corp. / Stacy Dinkel / 702.791.4304
Leasing Agent: CBRE / Randy Broadhead, Darren Lemmon, Amy Lance
702.369.4800
Architect: McLarand, Vasquez, & Partners, Inc.
General Contractor: KBA
Date Built: 1994 & 1995
Status: Greater than 20,000 SF vacancy
Project Square Footage: 87,950 SF
Development Acreage: 5.36
Asking Rates: $2.30 FSG
Major Tenants: Morgan Stanley, Farmers Insurance, Lawyers Title
Comments:
Two 2-story class A office buildings located across the street from the Tournament Players Club. Nearby amenities include 24 Hour Fitness, Summerlin Library, grocery, Starbucks and several eateries.
Tivoli Village
Rampart & Alta
Type: Mixed-use, Class A Office and Retail Development
Developer: Great Wash Park, LLC
Leasing Agent: CBRE / Brad Peterson, Randy Broadhead / 702.369.4800
Architect:Development Design Group, Inc.
General Contractor: Hardstone
Date Built: 1st phase slated for completion March 2011
Status: Under Construction
Project Square Footage: 250,000 Office / 700,000 Total SF
Development Acreage: 29
Asking Rates: $2.50 MG – Office
Major Tenants: Kolesar & Leatham Law Firm
Comments:
Once completed this 700,000 square foot multi-use destination will feature approximately 700,000 square feet of dynamic retail, restaurant, entertainment
and office space.
