Macy’s signs on as anchor tenant for Summerlin mall

Macy's department store has signed on as the first anchor tenant at the Shops at Summerlin, with construction expected to start in fall 2013, The Howard Hughes Corp. announced Wednesday.

Macy's will build a two-level, 180,000-square-foot store in the Shops at Summerlin, scheduled to open in fall 2014. It will be the first Macy's store to open in the Las Vegas market since 1996.

The agreement with Macy's confirms that the highly anticipated retail development in the master-planned Summerlin community will resume construction after being stalled in 2008.

The Shops at Summerlin will be one of the premier regional mixed-use development sites in the United States, executives at Howard Hughes said, and will be part of an urban center that includes retail, entertainment, office, hotel and multifamily residential units.

Macy's will be an exceptional cornerstone in the high-end retail experience, which will serve the entire Las Vegas Valley, said Kevin Orrock, president of Summerlin.

"This is great news," he said. "We've been waiting for the market to recover. That project has been sitting there, and it's good that we were able to start this up again and retailers have shown interest. The market is ready for more retail space in the right location."

The 106-acre, 1.5 million-square-foot mall near Charleston Boulevard and the Beltway will have 125 stores and restaurants in an open-air shopping environment with pedestrian thoroughfares and a contemporary "Main Street" concept. A nine-story office building also is planned for the mall.

In a Sept. 13 presentation by The Howard Hughes Corp. to analysts at the JMP Securities Financial Services & Real Estate Conference in New York, officials noted there was "$150 million of infrastructure investment by our predecessor" at the Shops at Summerlin.

"I assume these large retailers are starting to see stability and improvement as reflected in vacancy rates, the job market and also healthy improvement in retail sales," said John Restrepo, economic analyst for Restrepo Consulting Group.

George Okinaka, retail broker for Voit Commercial in Las Vegas, said he has several retail clients looking at the possibility of opening a store at the shopping center.

"The Summerlin area, other than Boca Park, obviously they've been kind of lacking on retail, especially with the income in that area," he said. "You have Canyon Pointe with Costco and Best Buy, but they're really lacking in terms of big-box retail, so there's been a lot of interest."

Okinaka said the mall is a work in progress and a lot if it is just "lines on paper," but the signing of Macy's is definitely a positive indicator that things are coming back in Las Vegas.

The retail sector in Las Vegas has been "treading water" for the past couple of years with a vacancy rate of 10.5 percent, Okinaka said. It's higher than the norm of 4 percent to 5 percent vacancy, but still better than other commercial sectors, he said.

Macy's has more than 800 department stores offering fashions for women, men, children and the home. The 150-year-old retailer also is known for its Macy's Thanksgiving Day Parade in New York.

Macy's Summerlin will focus on the residential population in that market, said Peter Sachse, Macy's chief stores officer.

"We will be tailoring our merchandise assortments of well-known brands to local customer needs, with an emphasis on the distinctive fashion, value and magical shopping experience for which Macy's is known," he said.

Orrock said the milestone announcement confirms that the Las Vegas economy is recovering, with Summerlin leading the way. The project is expected to provide about 1,700 jobs during construction and 2,000 full-time jobs when it opens in 2014.

"This is a game-changer on the west side of Las Vegas. Outside of the gaming area, this is a huge project and sends a signal to the community that things are better," Orrock said. "This is one of the things still missing in Summerlin. I can tell you that residents of Summerlin have been waiting for this for a long time. Even though it came in later than people expected, the advantage is it's going to be an exceptional project."

David Weinreb, chief executive officer of Dallas-based Howard Hughes Corp., said the developer plans to create a dynamic downtown for Summerlin with the best lineup in retail and entertainment experiences.

"Summerlin is an important asset which will deliver meaningful, long-term value to our shareholders," he said in a company statement.

General Growth Properties acquired The Howard Hughes Corp., developer of the 22,500-acre Summerlin community, with the Rouse Co. in 2004. GGP filed for bankruptcy in 2009 and spun off The Howard Hughes Corp. as a separate division in 2010.

Hughes stock closed up 32 cents, or 0.44 percent, at $73.18 on Wednesday on the New York Stock Exchange.

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