68°F
weather icon Partly Cloudy

REAL ESTATE: Industrial space acquisitions largest in the southwest in second quarter

Southern Nevada’s real estate market may be hot right now, but some areas are hotter than others.

Consider the southwest corner of the Las Vegas Valley, which centers on the Southern Nevada Beltway. It’s only one three-month period, but in the second quarter, the southwest was responsible for 500,000 square feet of the entire market’s 741,000-square-foot industrial absorption, according to numbers from research firm Applied Analysis.

Industrial projects aren’t the only booming developments. Panattoni Development Co. announced in early August that it had closed out sales at its Buffalo/215 Business Park. Among the final buyers: Desert Kitchens LLC, which bought a 6,150-square-foot building at 7693 W. Post Road for $319,800; mortgage company Kickjab, which bought 6,150 square feet of space at 7711 W. Post Road, also for $319,800; and Buffalo Post LLC, which bought an acre of land for $168,980.

“These transactions serve to demonstrate the renewed interest we’re seeing in the southwest Las Vegas submarket,” said Doug Roberts, a partner in Panattoni’s Nevada division.

That interest isn’t at Buffalo/215 alone. Panattoni is also building a 130,000-square-foot headquarters at Jones Boulevard and the beltway for gaming-equipment provider SHFL Entertainment. Electronics recycler and distributor U.S. Micro announced its opening in early 2012 of a 130,000-square-foot headquarters near Sunset Road and Buffalo. And the once-halted Red Rock Business Center near Russell Road and the beltway has a new owner in WGH Acquisitions, which has upgraded the property and is actively leasing space after a four-year hibernation.

So what makes the southwest submarket so popular? Part of it is simple location. With the beltway running through its core, the market is within a few minutes of Interstate 15 and McCarran International Airport. That makes it the ideal spot for big companies that need to distribute products, said Brian Gordon, a principal with Applied Analysis. Plus, the sector’s vast tracts of empty land mean plenty of options for big users who need expansive acreage, Gordon said.

Development in the area is also getting an assist from the opening of McCarran’s common management area, a 5,000-acre tract that was off-limits to much new construction until earlier this year, when airport officials decided quieter modern-day planes would make offices and homes in the flight path more feasible.

A pickup in residential activity should help, too, Gordon said. The stalled Manhattan West condo project, now rebranded The Gramercy, is back underway, with occupancy set for May. Sales are also picking up in other residential communities such as Mountain’s Edge, thanks to a reset on high pre-recession prices, Gordon said. And where rooftops mushroom, office and retail spaces follow.

Still, it’s always important to put today’s recent gains in a bigger context. So consider that commercial vacancy rates are still well above running averages. More than 16 percent of industrial buildings marketwide and in the southwest are empty, compared with a 10 percent average vacancy rate over the last 10 years, Gordon said.

But don’t count out the southwest in the long term.

“We’re likely to see a greater share of development activity going forward, simply as a function of supply and demand,” Gordon said. “Where other submarkets tend to be fairly well built out, the southwest has availability of property.”

■ Marcus & Millichap Real Estate Investment Services brokered the $2.24 million sale of a 30,934-square-foot retail property at 3121 N. Rancho Drive. Investment specialist Ray Germain listed the property on behalf of the seller, which Clark County property records showed as JG Rancho LLC. The property, which Gold Star Venture LLC of Cerritos, Calif., bought, is leased to thrift chain Savers, which has six stores across Southern Nevada. Germain said the site’s visible location at Rancho and Cheyenne Avenue, its tenant history, ongoing cash flow and below-market rental rate brought in multiple offers above list price.

■ Brokers with Colliers International closed on several deals in recent weeks.

Spencer Pinter, Dan Doherty, SIOR, and Chris Lane represented landlord KTR LV IV LLC in its lease of 11,457 square feet of industrial space to the federal government. The 120-month lease, valued at $2.8 million, is inside the Arrowhead Commerce Center at 3595 E. Patrick Lane.

Also inside Arrowhead, Pinter, Doherty and Lane arranged a 60-month lease with a value of $1.86 million to OSA West. The 56,725-square-foot industrial property is at 6275 S. Sandhill Road.

Eric Molfetta and Dean Willmore, SIOR, brokered the sale of a 22,689-square-foot industrial property at 1535 Pama Lane. Oro Pama LLC sold the space to HLM Montague Property LLC for $2 million. Spencer Pinter represented the buyer.

Contact reporter Jennifer Robison at jrobison@reviewjournal.com or 702-380-4512. Follow @J_Robison1 on Twitter.

Don't miss the big stories. Like us on Facebook.
Business Videos
How much do Las Vegas casino CEOs make?
Las Vegas gaming CEOs made anywhere between $1 million and $24 million last year, according to company filings with the U.S. Securities and Exchange Commission. ((Las Vegas Review-Journal)
30-year-old Rio needs a little TLC
Nearly 30 years after the Rio opened, the red and blue jewel that helped catapult Las Vegas to a new level with its buffet and nightclub has lost its status along with its shine.
The latest on the Drew Las Vegas - VIDEO
Eli Segall recounts his tour of the Drew Las Vegas, formerly the Fontainebleau, on the Las Vegas Strip. (Michael Quine/Las Vegas Review-Journal)
Pinball Hall of Fame to move near south Strip
Operators of the Pinball Hall of Fame have been approved to build a new, larger arcade near the south edge of the Strip on Las Vegas Boulevard near Russel Road. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
National Hardware Show underway Las Vegas
The National Hardware Show kicked off Tuesday at the Las Vegas Convention Center (Mat Luschek / Review-Journal)
Caesars for sale?
Caesars Entertainment Corp. has been swept up in takeover speculation since the company’s share price tumbled last year amid disappointing earnings and concerns over a recession. Amid the decline, hedge funds scooped up shares. Billionaire activist investor Carl Icahn began buying shares of Caesars as early as January. Icahn acquired nearly 18 percent by mid-March. In February Icahn called on the Caesars board to study a sale as a way to boost shareholder value.
Las Vegas home prices
Las Vegas home prices grew fastest among major markets in February for the ninth straight month. But amid affordability concerns, the growth rate has slowed down. Southern Nevada prices in February were up 9.7% from a year earlier, according to the latest S&P CoreLogic Case-Shiller index. The last time Las Vegas' price growth fell below 10% was in September 2017, S&P Dow Jones Indices reported.
Free Parking Coming To Wynn
Free parking will come to the Wynn and Encore resorts on May 1, 2019. (Mat Luschek / Review-Journal)
Founding Venetian employees talk about 20 years at the Strip resort
The Venetian, which opened May 3, 1999, is celebrating 20 years on the Las Vegas Strip. Seven original employees talk about opening the luxury resort and working there for two decades. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Circa aiming for December 2020 opening
The 1.25-million-square-foot property will have 44-stories and 777-rooms. It will also have a separate nine-story, 1,201-space parking garage.
Boxabl official explains the building concept
Boxabl business development manager Galiano Tiramani shows off a room built by his company. (Blake Apgar/Las Vegas Review-Journal)
TI/Mirage Tram reopens
The tram that shuttles guests between TI and Mirage reopened this week after being closed for much of 2018.
Las Vegas Convention Center expansion taking shape
Renderings and actual footage show how the Las Vegas Convention Center is evolving.
Former Starbucks CEO Howard Schultz at Las Vegas convention
Former Starbucks CEO and potential presidential candidate Howard Schultz spoke at the Epicor Insights user conference at Mandalay Bay Convention Center Wednesday, April 17, 2019. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Drew Las Vegas to open in the second quarter of 2022
The 67-story Drew Las Vegas is slated to open in the second quarter of 2022 at the north end of the Las Vegas Strip. (Michael Quine/Las Vegas Review-Journal)
NAB Day 1 (Time Lapse)
NAB kicked off at the Las Vegas Convention Center on Monday, April 8, 2019. (Mat Luschek / Review-Journal)
National Association of Broadcasters Show shows 1mm thick 8K TV with 22.2 channel digital sound
Japan’s NHK Science & Technology Research Laboratories booth featured a 1mm thick 8K TV system used in conjunction with a 22.2 channel digital sound system at the National Association of Broadcasters Show at the Las Vegas Convention Center. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Nevada shoppers react to Smith’s no longer accepting Visa credit cards
On March 1, Smith’s announced that it would no longer be accepting Visa credit cards at any of its 142 supermarkets, including the 45 in Nevada.
Massachusetts Gaming Commission asks how long Wynn executives knew about misconduct
Business reporter Rick Velotta gives an update on the adjudicatory hearing on the suitability of Wynn Resorts to retain its gaming license in Massachusetts.
Henderson app developer part of Startup in Residence
Henderson based developers of the app On Point Barricade are taking part in Startup in Residence, a North America program dedicated to pairing tech companies with governments. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Sam's Town employees and customers talk of their love for the iconic casino
Longtime Sam's Town employees and customers love each other and love their casino. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Las Vegas apartments rents
Las Vegas’ apartment market has accelerated in recent years. Developers are packing the suburbs with projects, landlords are on a buying spree, and tenants have filled buildings.
William Boyd talks about the birth of Sam's Town
On the eve of the 40th anniversary of Sam's Town, William Boyd, executive chairman of Boyd Gaming and son of hotel namesake Sam Boyd, talks about how the casino became one of the first local properties in Las Vegas. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
High Roller observation wheel turns five
The world’s tallest observation wheel celebrates it’s fifth year on Sunday, March 31, 2019. (Michael Quine/Las Vegas Review-Journal) @Vegas88s
Escape Room Industry Growing In Las Vegas
Escapology employees discuss the growing escape room industry in the U.S. and Las Vegas. (Bailey Schulz/Las Vegas Review-Journal)
Impact of parking fees on visiting the Las Vegas Strip
There are no data showing a relationship between Strip resort and parking fees and the number of out-of-state visitors to Las Vegas. But there are data showing a relationship between Strip parking fees and the number of local visitors to the the Strip. ‘’As a local, I find myself picking hotels I visit for dinner or entertainment, based on whether they charge for parking or not,”’ said David Perisset, the owner of Exotics Racing. ‘’It is not a matter of money, more of principle.’’ A 2018 survey by the Las Vegas Global Economic Alliance found 36.9 percent of Clark County residents reported avoiding parking at Strip casinos that charge for parking. 29.1 percent reported avoiding using any services from a Strip casino that charges for parking.
MGM's sports betting deals
MGM Resorts International signed a sports betting sponsorship agreement with the NBA in July It was the first professional sports league to have official ties with a legal sports betting house. The deal came just two months after the U.S. Supreme Court overturned a law prohibiting sports betting in most states. In October, MGM became the first gaming company to sign a sports betting partnership with the NHL. In November, MGM became the first gaming company to sign a sports betting partnership with the MLB. Financial terms of Tuesday’s deal and earlier partnerships have not been announced.
Faraday puts Las Vegas land on the market
Nearly two years after Faraday Future bailed on its North Las Vegas auto factory, the company has put its land up for sale. (Michael Quine/Las Vegas Review-Journal)
El Cortez owner Kenny Epstein on running the iconic property
Kenny Epstein, owner of the El Cortez Hotel in downtown Las Vegas, talks about Jackie Gaughan mentorship and answers rumors about bodies in the basement at the mob-era casino. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
LVCVA recommends construction of underground people mover
The Las Vegas Convention and Visitors Authority announced the recommendation for an underground people mover for the convention center. The system would have the potential to expand and connect Downtown and the resort corridor all the way to McCarran. (Michael Quine/ Las Vegas Review-Journal)
THE LATEST