Report: Vegas retail growth to continue

Jennifer Shubinski

Tuesday, Dec. 17, 2002 | 11:16 a.m.

Marcus & Millichap Real Estate Investment Brokerage Co. is optimistic about the local retail industry as the Las Vegas Valley economy continues to expand.

Marcus & Millichap last week issued its Retail Research Report for Las Vegas. Perhaps not surprisingly, it found that growing residential suburban markets -- like those in the Green Valley and Summerlin areas -- will continue to support long-term retail development.

"The Las Vegas retail market will remain in a strong position for years to come," Christopher LoBello, regional manager of the firm's Las Vegas office, said. "Affordability is drawing residents, businesses and investors, particularly from California.

"The sector will benefit from residents moving to new suburban areas as well as from the jobs that will be created by the already planned expansion of various casinos."

According to the report:

--Local employment grew an estimated 1.7 percent on a year-over-year basis through the third quarter of this year.

--Developers delivered 3 million square feet of retail space to the market from third quarter 2001 to third quarter 2002, with a decline in completions over the next 12 months.

--Rents in Las Vegas registered growth of 1 percent over the past 12 months, pushing the average to $18.52 a square foot.

--In 2001 just over 22 percent of new Las Vegas residents were from the Southern California areas of Los Angeles, Riverside, San Diego and Orange County.

One example of local retail growth was reported by NewMark Merrill Co., which said it broke ground on its $40 million Horizon Town Square shopping center in Henderson.

The 325,000-square-foot complex, at the corner of Boulder Highway and Horizon Drive, is expected to be completed in November 2003.

Among the companies the center is expected to house are Lowe's Home Improvement Warehouse and 24 Hour Fitness. A grocery component is planned and restaurant pads, sub-anchor positions and strip space are still available.