Vacant space in Vegas being filled by national retailers

By Buck Wargo

Fri, Jul 16, 2010 (3 a.m.)

National retailers are stepping into Las Vegas and filling vacant space.

Analysts say that says a lot about Southern Nevada’s economy and how much it is lagging behind the nationwide recovery.

Of the retail leases signed so far in 2010, 51 percent were with national retailers and 37 percent were with local retailers. Regional retailers made up the rest, according to John Stater, research director at Colliers International Las Vegas.

That is almost reversed from 2009, when local retailers were taking more space than national, Stater said.

The largest announced national expansions in 2010 are by McDonald’s, Go Green and Dollar General, he said. 7-Eleven announced it would open 15 to 20 stores in Southern Nevada over the next three years with at least half occupying existing space, he said.

Forever 21, which operates stores in three malls, is preparing to open a 120,000-square-foot store at Fashion Show mall.

Raising Cane’s, Carl’s Jr., B.J.’s restaurants, Clear Wireless and Cox are expanding their presence in Southern Nevada, he said.

Penny Mendlovic, senior associate at CB Richard Ellis, said that no matter how aggressive landlords have been, tenants are asking for considerable concessions.

“Some people are trying to trade up into better real estate,” said Mendlovic, who added pricing has helped lure people from outside the market.

Mendlovic said dd’s Discounts, a clothing and housewares chain, recently opened two stores. Savers is expanding, and others are entering the market, such as national craft retailer Hobby Lobby. It has acquired the Vons building at Sunset Road and Stephanie Street and should open this summer, she said.

Mendlovic said retailers such as Hobby Lobby are finding an opportunity to come to Las Vegas because the price of real estate has dropped so much. The mom-and-pop stores, however, have problems getting financing to expand and open stores, she said.

“I think we are close to the bottom,” Mendlovic said. “I don’t think we have hit bottom yet. Hopefully, it is coming at the end of the year.”

What has yet to affect the Las Vegas market are decisions by national retailers Waldenbooks, B. Dalton, Jo-Ann, Pier 1, Kirklands, Target and Kmart about potentially closing stores this year, Stater said. No announcement has been made yet on how Southern Nevada may be affected, he said.

In other news

• The midyear housing forecast for Las Vegas will be July 29 at the Tropicana.

The Crystal Ball seminar hosted by SalesTraq President Larry Murphy and Steve Bottfeld, executive vice president of Marketing Solutions, starts at 7:30 a.m., with the program starting about 8 a.m. Speakers are Murphy, Bottfeld and Nikkole Liesse, director of marketing for Summerlin. Mark Boud, founder of Real Estate Economics, will talk about the similarities between Las Vegas and other Western cities. To register, go to www.crystalballseminars.com.

• Nevada’s Real Estate Division is offering brokers the opportunity to renew licenses online. Those who renew in July and August can click on the online renewal button on the division’s website at www.red.state.nv.us. The division plans to offer the renewal services to other licensees in the coming months.

• Yes! Air Conditioning and Plumbing purchased a new industrial building and undeveloped land at Buffalo Drive and the Las Vegas Beltway for $1.8 million. The company, a division of American Residential Services, will develop the parcel as a parking facility for 100 service vehicles. It will convert 7,500 square feet of the building into office space. It acquired one acre and a 19,786-square-foot building from Panattoni Development Co., which acquired it from a lender.

• Inhabit Design, which specializes in residential and commercial, and custom-furniture design and lighting, has opened a downtown Las Vegas facility at 1039 S. Main St. The company opened in 2007.

• The Greater Las Vegas Association of Realtors and Nevada Association of Realtors have distributed $49,600 to the Southern Nevada Regional Housing Authority for a program to help people with security deposits for homes. The associations received $80,000 from the National Association of Realtors.

• An industrial property that sold for $3 million in 2007 has recently been sold for $950,000 by Zions Bank. The 13,362-square-foot property at 4705 and 4717 W. Post Road was acquired by Rexallen Series LLC for $3 million in 2007, said Brian Riffle of Colliers International Las Vegas. He said when he heard that buyer was in danger of losing the property, he secured the listing and sold it on the bank’s behalf.