X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

HENDERSON, NV-Voit Development Co. recently completed the 216,317-sf final phase of Pacific Business Center. The Newport Beach, CA-based company was retained by Northwestern Mutual Life Insurance Co. to complete the 13-building, 898,389-sf light industrial park.

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

Kevin Higgins, senior vice president of Voit Commercial Brokerage’s Las Vegas office, tells GlobeSt.com that approximately 20% of the final phase has been leased. Tenants include Beyond Exhibit Logistics and American Furniture Rental.

Pacific Business Center suites range from 5,467- to 112,000 sf and 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-suit offices or turnkey suites.

Higgins, Steve Paravia and Garrett Toft of Voit Commercial Brokerage’s Las Vegas office are marketing the business center for lease. Higgins says he expects the final phase to be stabilized one year from now.

Tim Regan of Voit Development was the project manager. Regan says Voit is working on procuring additional fee development project opportunities “that will add to the firm’s resume of developing quality buildings for large corporations or investors.”

Voit Development is part of the Voit Cos., which offers commercial brokerage, construction, acquisition, development, and project management services to individuals, corporations and institutions throughout the Southwestern United States.

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

“The market reported a much more modest level of space under construction, suggesting runaway vacancy rates are unlikely in the near term,” Aguero says. “We expect vacancy rates to remain in the mid to high single-digit range over the course of the next several quarters. Pricing remains the X-factor for many users as competition within the southwestern United States remains fierce and development costs in southern Nevada remain elevated. Projects entering the market may find it difficult to meet financial targets should lease rate growth remain soft.”

Applied Analysis is reporting that the industrial market expanded by 1.5 million sf during the quarter while demand totaled approximately half of that total. Speculative space additions contributed 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.

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

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. APARTMENTS SPRING 2021Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.