CIP Signs Cox to 84,000 SF in Consolidation

Kevin Higgins, a senior vice president at Voit Real Estate Services who represented the building ownership, says that the deal closed quickly considering the difficult market and that it is one of the largest industrial leases signed in the market since 2008 in terms of square footage and dollar value. The building is located within Hughes Cheyenne Center, a master-planned business park, situated in the North Las Vegas business district with immediate access to the 15 freeway.

Eric Smyth, founding principal of CIP Real Estate, points out that the lease fills the largest vacancy within CIP Real Estate's Las Vegas portfolio. The space will enable Cox to consolidate its operations, reduce expenses and increase efficiencies as it continues to expand its business.

Cox, which was represented in the lease by first vice president Jeremy Green of CB Richard Ellis, has operated in the region for more than 40 years and is the dominant cable provider in the area. The total consideration for the long-term lease is approximately $5.5 million.

The Las Vegas industrial market totals nearly 104 million square feet, according to a year-end 2009 market report by Voit, which pegs the vacancy there at 13.7%. The Las Vegas market shares some attributes with industrial markets nationally but also differs in some respects, according to the Voit report. It notes that although the consensus among economists is that the national economy began to expand nearly six months ago, "Southern Nevada has yet to reach the same conclusion."

Like the rest of the US, Las Vegas will rely on the job market as"the number one indicator to watch" as its recovery will likely spark new confidence and business investment that will provide a lift for the industrial sector. The industrial sector in Las Vegas, according to the Voit report, "remains well-positioned to take advantage of economic improvements given the relatively low-cost environment for distributors and manufacturers seeking alternative locations."