Pacific Business Center is located on American Pacific Drive,near both the Gibson Road and Stephanie Street interchanges fromInterstate 215. The final phase consists of two mid-bay buildingsand one distribution building. Not including the land, the finalphase cost approximately $13 million to develop.

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Kevin Higgins, senior vice president of Voit CommercialBrokerage's Las Vegas office, tells GlobeSt.com that approximately20% of the final phase has been leased. Tenants include BeyondExhibit Logistics and American Furniture Rental.

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Pacific Business Center suites range from 5,467- to 112,000 sfand are delivered in turn key condition. The asking lease rate is$0.57 to $0.75 per sf per month, NNN, which includes build-to-suitoffices or turnkey suites.

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Higgins, Steve Paravia and Garrett Toft of Voit CommercialBrokerage's Las Vegas office are marketing the business center forlease. Higgins says he expects the final phase to be stabilized oneyear from now.

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Tim Regan of Voit Development was the project manager. Regansays Voit is working on procuring additional fee developmentproject opportunities "that will add to the firm's resume ofdeveloping quality buildings for large corporations orinvestors."

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Voit Development is part of the Voit Cos., which offerscommercial brokerage, construction, acquisition, development, andproject management services to individuals, corporations andinstitutions throughout the Southwestern United States.

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Vacancy in the Vegas industrial market has been on the rise. Asof the end of the first quarter, it stood in the mid-single digits.Applied Analysis principal Jeremy Aguero said in April that whilevacancies remain elevated compared with the prior year and the lowswitnessed in late 2005, a more stabilized environment has prevailedin recent quarters, with the level of investor purchases andspeculative leasing slowing materially. With over 6.5 millionsquare feet of availability, he says users that require space inreasonably accessible locations now have greater access andbargaining power—a condition not present 12 and 24 months ago.

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"The market reported a much more modest level of space underconstruction, suggesting runaway vacancy rates are unlikely in thenear term," Aguero says. "We expect vacancy rates to remain in themid to high single-digit range over the course of the next severalquarters. Pricing remains the X-factor for many users ascompetition within the southwestern United States remains fierceand development costs in southern Nevada remain elevated. Projectsentering the market may find it difficult to meet financial targetsshould lease rate growth remain soft."

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Applied Analysis is reporting that the industrial marketexpanded by 1.5 million sf during the quarter while demand totaledapproximately half of that total. Speculative space additionscontributed to a rising vacancy rate, which hit 6.7%, up from 6.0%at the start of year and 4.5% this time last year.

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Vacancy by submarket ranged from 5.7% (Unincorporated ClarkCounty) to 9% (Henderson), and by type ranged from 8.5% (flexspace) to 5.6% (manufacturing). By submarket, average monthlyasking rental rates ranged from $0.63 per sf (City of North LasVegas) to $0.93 per sf (City of Las Vegas) and by type from $0.66per sf (distribution) to $0.91 (manufacturing) to $1.08 (flex).

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