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LAS VEGAS-With its existing portfolio here all but full, ProLogis of Denver is planning to break ground later this year on a 788,000-sf distribution center. The two-building complex will rise at the northeast corner of Cheyenne Avenue and Marion Drive, on a 42-acre site that once held the Sunrise Pointe Mobile Home Park. ProLogis last month paid Icon Investment Group $17.8 million for the property.

Todd Burnight, ProLogis’ market officer for Las Vegas until recently, tells GlobeSt.com land acquisition and imminent expansion is a result of its existing 3 million-sf portfolio here having been more or less full for the better part of two years. “We have enjoyed very high occupancies and quite positive rent growth,” he says. “We believe in this market.”Icon Investment Group emptied out the park and rezoned the property for industrial use prior to putting it on the market. While in escrow to acquire the property, ProLogis obtained site plan approval for its project, which is expected to be shell complete by mid-2008. One building will be 278,000 sf and the other will be 510,000 sf.

All around the site is more industrial development. Directly across the street, Panattoni Development recently completed a 500,000-sf, four-building development, and Dermody Properties has its 2 million-sf LogistiCenter in the immediate vicinity. Trammell Crow has a project just down the street. The going rate for new high-cube warehouse space in the immediate area is approximately $0.40 per sf per month.

CB Richard Ellis’ Donna Alderson and Greg Tassi have the leasing assignment for the new ProLogis project. Blakely Johnson & Ghusn of Reno is the architect/engineer. A contractor has not yet been selected.

The first quarter vacancy rate for industrial space in the Las Vegas valley was 4.4%, with the vacancy rate for distribution product caming in slightly below that, according to Applied Analysis, a locally based research and advisory firm.

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