7-Eleven seeks sites for LV expansion

Starbucks closes a dozen locations in Las Vegas, and 7-Eleven comes in looking to expand with 15 to 20 more stores over the next three years.

That's how the economy has changed. Turns out a $4 cup of coffee doesn't taste that much better than the $1.29 cup.

Dallas-based 7-Eleven Inc. already operates more than 160 convenience stores in Clark County and recently hired a commercial real estate firm to identify site locations and help with acquisitions, dispositions and other real estate services.

"We're looking at possible site locations all over," said Grant Distel, 7-Eleven's real estate manager for Las Vegas. "We're focused mainly on the center of town where everything is more established."

The company isn't doing a lot of "ground-up" construction, looking instead at business conversions, taking existing retail stores and converting them to 7-Eleven franchises, he said.

About half of the new stores are expected to be conversions, 7-Eleven spokeswoman Margaret Chabris said. The company will co-invest about $250,000 in remodeling stores, installing equipment, fixtures, counters, Slurpee machines, roller grills, food cases, ATM machines, cash registers, backroom computers, and electrical and plumbing upgrades.

"We're bullish on Las Vegas," Distel said. "It's been very good for us. We have a strong presence there. You have the additional tourist base and so add that into customer demand. There's opportunity for more (stores)."

Distel said he typically looks for freestanding pads and "end caps," or stores on the end of strip centers, ranging from 2,500 to 3,000 square feet. They pull from strong daytime population areas with high traffic.

7-Eleven's most recent store opening was in December at Warm Springs Road and Amigo Street, near McCarran International Airport. Another store opened in November at Centennial Parkway and Durango Drive in northwest Las Vegas. The company has closed three stores in the last three years.

Flexibility is a key component in 7-Eleven's real estate strategy, said Jeff Mitchell, an agent with Vitrus Commercial in Las Vegas. The convenience store chain is pursuing nontraditional locations such as casinos, airports and sports venues, he said.

"7-Eleven is in a unique position among retailers in the current market conditions because they are actively expanding," Mitchell said. "Bottom line is that if there is an opportunity, 7-Eleven will look at it. If it is a great opportunity, 7-Eleven opens a store."

Distel said the rate 7-Eleven will pay for a leased site varies throughout Las Vegas Valley from about $1 a square foot on the east side to $2 and $2.50 a square foot in the southwest.

"We're a national A-credit tenant," he said. "We'll work with landlords on what their needs are."

About 80 percent of 7-Eleven's 6,450 stores in the United States are franchise operators.

Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.