The first phases of UnCommons in southwest Las Vegas are nearly complete with office, retail and residential space open but plans for its last few buildings remain in flux as the real estate market changes.
Construction at UnCommons, a 40-acre mixed-use project, started in August 2020 and most of its office, retail and residential space are expected to be complete by the middle of 2024. But the final phase of the development is still being finalized, said Jim Stuart, partner at Matter Real Estate Group, the firm developing UnCommons.
“We are reviewing a few different options, which might include hospitality,” Stuart said. “We certainly have an entertainment building to put up which is financed. But the phase three building, which is the last kind of office building, is under review on what’s the best fit, given this market.”
Some of UnCommons’ retail, restaurant and office space is already open and operational and the first residents have moved into the Vestra apartments. The apartment complex should be complete by mid-2024.
UnCommons will welcome a few more restaurants in the near term. Todo Bien, a Mexican-inspired bar and restaurant and sports bar General Admission are expected to open before the end of the year. Kaiyo, a Peruvian restaurant, is expected to open next summer.
The next project for UnCommons is adding an entertainment-focused building that will be anchored by a movie theater, Stuart said. He said construction should begin next year.
More entertainment offerings
Besides the entertainment building, it’s unclear what UnCommons will add next. Originally the plan was to add another office building but that is looking less likely, Stuart said. UnCommons is leaning away from another office building because institutions aren’t wanting to offer financing for office projects.
“We’re ready to advance based upon our current momentum and interest across the property,” he said. “If it didn’t sit in the backdrop of a very, very challenging capital market, financing is not only difficult, in some cases near impossible.”
Financing is especially challenging for new office construction due to current work from home trends and the performance of office real estate across the nation, Stuart said, although Las Vegas’ office market is stronger than others.
“The idea of new class A office space coming up and down the (215 Beltway) is going to be a stretch for anyone to pull that off, for perhaps the next four or five years before you ever see another building come out of the ground,” Stuart said. “The capital markets are firmly planted … they have little to no interest in financing office of any type for the years ahead.”
The pivot away from office at UnCommons could result in a hotel project getting off the ground, since there is more interest in getting that financed, Stuart said. He added a potential hotel would focus mostly on business travelers or people wanting to stay at a quieter non-gaming property.
“We’ve long believed that UnCommons would hold great promise to some of the larger operators in the world to bring a hotel experience to UnCommons,” Stuart said. “Suffice it to say we have a lot of interest.”
The plans for the next phase of development are still being considered and a hotel isn’t a sure thing yet, but Stuart said an announcement on firm plans over UnCommons’ next phase could come in the next few months.
Among the long list of eateries already open at UnCommons include Amari, B.S. Taqueria, Bar Oysterette, Easy Slider, Diane’s Bloody Mary Bar, Kowbird, Mercadito, Smitten Ice Cream and Salt & Straw.
DraftKings, Deloitte, Morgan Stanley and Newmark are among the tenants of UnCommons’ office space.
The 5,000 square foot conference center at UnCommons called The Assembly opened in September.