X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

HENDERSON, NV–Levi Strauss & Co. has inked a 39-month, $2.2-million lease for a 130,000-square-foot industrial warehouse situated on a 10-acre parcel, according to local Colliers International brokers Greg Pancirov and Michael De Lew, who listed the property for lease and for sale while Xavier Wasiak of Grubb & Ellis in Las Vegas represented Levi. The lease is reportedly part of the clothier’s plan to cut costs by taking back some of its logistics operations from third-party providers.

“They’ve shut down some third-party operations out of California and are taking their inventory back into this warehouse so they can take control of their operations,” Pancirov tells GlobeSt.com. “There’s a little bit more favorable tax structure by having it in-house and by having it in Las Vegas versus California.”

The property located at 7600 Eastgate Road is owned by Milgard Windows. Milgard constructed the facility as a trophy manufacturing/distribution facility but is now downsizing to a 10,000 square foot warehouse locally and consolidating its regional manufacturing in Phoenix, according to Pancirov.

The property was primarily listed for sale but given that the bulk of the market activity was on the leasing end, Pancirov says Milgard felt compelled to take the “bird in the hand”. The property is likely to be available for sale again next year as a leased-investment, he says.

The building worked for Levi Strauss in part because of the enclosed yard area for storing trucks. “They paid a little bit more for this property versus some of the competition – they could have saves $0.05 per square foot — but they really liked the amenities,” Pancirov says. “They only wanted a three-year lease as they get their arms around this part of their distribution but they do have a five-year extension option.”

Pancirov and De Lew also recently brokered a 300,000-square-foot Warehouse lease renewal with Ocean Spray in Henderson. The warehouse is located at 7600 Commercial Way, a stone’s throw from its manufacturing plant at 1301 American Pacific Dr.

The Ocean Spray building is owned by a private investor who bought the building as a leased investment after Ocean Spray originally leased it nearly 10-years ago. The effective rate on the five-year lease averages $0.39 per square foot per month and the lease includes some typical market concessions.

“They evaluated all of the market options and decided to keep the warehouse here since they do their manufacturing here as well,” Pancirov says.

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
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

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 © 2021 ALM Media Properties, LLC. All Rights Reserved.