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 or 702-380-4512. Follow @J_Robison1 on Twitter.

Opendoor isn't the typical house flipping company
Unlike most house flippers, the company aims to make money from transaction costs rather than from selling homes for more than their purchase price.
The Venetian gondoliers sing Italian songs
Gondolier Marciano sings a the classic Italian song "Volare" as he leads guests through the canals of The Venetian in Las Vegas. (K.M. Cannon/Las Vegas Review-Journal)
Building In Logandale
Texas homebuilder D.R. Horton bought 43 lots in rural Logandale. (Eli Segall/Las Vegas Review-Journal)
Indoor farming in Southern Nevada
Experts discuss Nevada's indoor farming industry. (Bailey Schulz/Las Vegas Review-Journal)
Former Fontainebleau could have become a Waldorf Astoria
Months after developer Steve Witkoff bought the Fontainebleau last summer, he unveiled plans to turn the mothballed hotel into a Marriott-managed resort called The Drew. But if Richard “Boz” Bosworth’s plans didn’t fall through, the north Las Vegas Strip tower could have become a Waldorf Astoria with several floors of timeshare units. (Eli Segall/Las Vegas Review-Journal)
LVCVA CEO Rossi Ralenkotter announces plans to retire
Rossi Ralenkotter, CEO of the LVCVA, on Tuesday confirmed a Las Vegas Review-Journal report that he is preparing to retire. Richard N. Velotta/ Las Vegas Review-Journal
Cousins Maine Lobster to open inside 2 Las Vegas Smith’s stores
Cousins Maine Lobster food truck company will open inside Las Vegas’ two newest Smith’s at Skye Canyon Park Drive and U.S. Highway 95, and at Warm Springs Road and Durango Drive. Cousins currently sells outside some Las Vegas Smith’s stores and at Fremont Street and Las Vegas Boulevard. (K.M. Cannon/Las Vegas Review-Journal)
Las Vegas home prices to continue to rise, expert says
Lawrence Yun, chief economist at the National Association of Realtors, gives homebuyers a pulse on the Las Vegas housing market. (Eli Segall/Las Vegas Review-Journal)
NV Energy announces clean energy investment
The company is planning to add six solar projects in Nevada, along with the state's first major battery energy storage capacity. Bailey Schulz/Las Vegas Review-Journal
3 Mario Batali restaurants on Las Vegas Strip to close
Days after new sexual misconduct allegations were made against celebrity chef Mario Batali, his company announced Friday that it will close its three Las Vegas restaurants July 27. Employees of Carnevino Italian Steakhouse, B&B Ristorante and Otto Enoteca e Pizzeria, all located in The Venetian and Palazzo resorts, were informed of the decision Friday morning. Bastianich is scheduled to visit the restaurants Friday to speak to employees about the next two months of operation as well as how the company plans to help them transition to new positions.
Nevada has its first cybersecurity apprenticeship program
The Learning Center education company in Las Vegas has launched the first apprenticeship program for cybersecurity in Nevada. It was approved by the State Apprenticeship Council on May 15. (K.M. Cannon/Las Vegas Review-Journal)
Las Vegas union members voting to authorize the right to strike
Thousands of Las Vegas union members voting Tuesday morning to authorize the right to strike. A “yes” vote would give the union negotiating committee the power to call a strike anytime after June 1 at the resorts that fail to reach an agreement. (Todd Prince/Las Vegas Review-Journal)
Small businesses struggle to find qualified candidates
A 2018 survey found that over two-thirds of small businesses in Nevada find it somewhat to very difficult to recruit qualified candidates. Bailey Schulz/Las Vegas Review-Journal
Nevada secretary of state website offers little protection against fraudulent business filings
Property developer Andy Pham tells how control of his business was easily seized by another person using the secretary of state website.
Caesars may be going solo in its marijuana policy
Several Southern Nevada casino companies aren’t following Caesars Entertainment’s lead on marijuana testing.
How much is the Lucky Dragon worth?
Less than a year-and-a-half after it opened, the Lucky Dragon was in bankruptcy.
Gyms and discount stores take over empty retail spaces
Grocery stores used to draw people to shopping centers. But many large retail spaces have been vacant since 2008. Discount stores like goodwill and gyms like EOS Fitness are filling those empty spaces, and helping to draw shoppers back in. K.M. Cannon/Las Vegas Review-Journal
Funding source of Las Vegas stadium for the Raiders is sound, expert says
The stadium is funded in part by $750 million of room taxes, the biggest such tax subsidy ever for a professional sports stadium. Robert Lang, executive director of Brookings Mountain West and The Lincy Institute at UNLV, says that is a good use of public funds. (Richard Velotta/Las Vegas Review-Journal)
Las Vegas needs light rail, expert says
Robert Lang, executive director of Brookings Mountain West and the Lincy Institute said he is afraid of a "congestion mobility crisis." Las Vegas needs a light rail system, he said, to accommodate the city's growing number of attractions. (Richard Velotta/Las Vegas Review-Journal)
Three takeaways from Wynn Resorts' Earnings Call
Matt Maddox came out swinging in his first earnings conference call as Wynn Resorts chief executive officer, boasting of record Las Vegas quarterly revenues and applicants lining up for work.
Star Wars VR Comes to Las Vegas
Sneak peak at the new "Star Wars: Secrets of the Empire" VR experience at the Grand Canal Shoppes.
Elaine Wynn continues her fight to change Wynn Resorts board
Elaine Wynn, the largest shareholder of Wynn Resorts Ltd., is seeking to kick a friend of her ex-husband Steve Wynn off the company’s board of directors. (Todd Prince/Las Vegas Review-Journal)
Zillow is getting into house flipping in Las Vegas
Las Vegas Review-Journal real estate reporter Eli Segall says flipping houses has waned in popularity after the housing bubble burst.
Ellis Island Buys Mt. Charleston Lodge
Ellis Island, which operates a casino, brewery and hotel just off the Strip, purchased the Mt. Charleston Lodge in early April.
Casinos to be penalized for allowing drug-impaired customers to gamble
Nevada Gaming Commission Chairman Tony Alamo talks about an amendment making casinos subject to the same disciplinary standards of preventing people to gamble if impaired by drugs as they are for letting them play while intoxicated by alcohol.
Terrible Herbst to open large travel center in Southern Nevada
The 50,000-square-foot commercial travel center will include 96 fuel pumps and the third White Castle restaurant in Southern Nevada. Wade Tyler Millward reports.
Art Bell’s Top 10 Shows
A selection of radio host Art Bell’s most popular shows.
Hooters owner talks about room upgrades at his hotel-casino
George Ruff, founder and senior principal of Trinity Hotel Investors L.L.C., owner of Hooters Hotel and Casino in Las Vegas, talks about recent room upgrades at the hotel. K.M. Cannon/Las Vegas Review-Journal
Passengers Discuss Allegiant Air
Allegiant Air passengers voice their views on the airline at McCarran International Airport on April 16, 2018. (Bailey Schulz/Las Vegas Review-Journal)
Longtime Las Vegas attorney John Momot dies at age 74
Criminal defense attorney John Momot, who represented mob figures and even played himself in the movie “Casino,” has died.
News Headlines
Home Front Page Footer Listing
You May Like

You May Like