Born to Shop
Las Vegas Retail Centers Becoming More Diverse

By Tony Illia

A multitude of new retail and mixed-use projects are planned in the Las Vegas Valley, from the massive Great Mall of Las Vegas to the Summerlin Centre.

 

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As Las Vegas Valley land prices soar past $600,000 an acre, developers are incorporating a wider variety of mixed-use features into traditional retail centers. It's not uncommon anymore for a mall to now have a movie theater, office space, residential units and a grocery store.

Triple Five Nevada, for instance, plans to build two 18-story condominium towers, totaling 800,000 sq. ft., on the last undeveloped 25-acre parcel of its Boca Park shopping center at the southeast corner of Rampart Boulevard and Alta Drive in Las Vegas.

The 300-unit project, dubbed Fashion Village at Boca Park, also calls for 250,000 sq. ft. of high-end inline retail and 250,000 sq. ft. of office space. Henderson-based Perlman Architects Inc. is the architect.

Although Triple Five has yet to disclose a construction budget or general contractor, the project is scheduled to open in early 2007.

The firm additionally is planning a two-level, 2-million-sq.-ft. destination mall near U.S. Highway 95 and Grand Montecito Parkway in the northwest valley. The 65-acre Great Mall of Las Vegas will be a "unique combination of national clothing stores, restaurants, movie theaters, family entertainment centers, furniture accessories and a day spa under one roof," said Jean Marc Joveidi, Triple Five's senior executive vice president.

The project is expected to break ground in early 2006, reaching completion by 2008.

The northwest remains a hotbed of activity with new projects such as the $40 million Centennial Gateway at U.S. 95 and Ann Road. Territory Inc., the Schwartz Family and Olympia Group are jointly developing the 35-acre, 430,000-sq.-ft. retail site.

The new center features a diversity of tenants ranging from Ashley Furniture and La-Z-Boy to In-N-Out Burger and Krispy Kreme Doughnuts. It also includes a four-story Holiday Inn Express. Burke & Associates of Las Vegas is the general contractor for the first phase scheduled to finish in late 2006.

"Developers are looking to create more flexible projects capable of handling a wider variety of tenants," said Matt Boyd, Burke & Associates' vice president of operations.
"The northwest is a hot area right now with a lot of retail expansions and new shopping centers. There is no sign of a slowdown."

Record home sales continue to fuel the valley's robust retail market, which recorded a low 3.5 percent valleywide vacancy rate during the third quarter of 2005, according to Restrepo Consulting Group, a Las Vegas real estate research firm. The retail market grew to 35.1 million-sq.-ft. in 224 buildings during the third quarter as absorption outpaced completions by a 5-to-1 ratio.

"The overall anchored speculative retail market reached its lowest vacancy rate in 10 quarters," said John Restrepo, company principal. "The valley is still seeing strong economic and population growth resulting in a strong anchored retail activity."

The Montecito Cos. of Las Vegas, Nev. has accelerated construction of its 330-acre Town Center master-planned development in the northwest, which has been growing at a rate of 10 percent annually with communities such as the 1,905-acre, 7,500-home Aliante development by American Nevada Co. and Del Webb, and Focus Property Group's 1,200-acre, 8,000-home Providence at Hualapai Way and Centennial Parkway.

The 10-million-sq.-ft., mixed-use Town Center project, bound by U.S. 95, Interstate 215, Elkhorn Road and Durango Drive, is now expected to reach build-out by 2007, or two years sooner than anticipated.

"Nearly 200,000 people currently live within a 5-mi. radius of Town Center, earning an average annual household income of $84,127," said Nick Hannon, Montecito's director of development. "It's the fastest growing ZIP code in Nevada and the country."

The company is building the new $50 million, 225,000-sq.-ft. Montecito Marketplace on 20 acres at the southeast corner of Elkhorn Road and Durango Drive. The 22-building complex, anchored by a 65,000-sq.-ft. Smith's Food & Drug, is expected to finish by June.

The $60 million, 250,000-sq.-ft. Grand Canyon Marketplace at Horse and Grand Canyon drives is scheduled to break ground in late 2006. The 24.3-acre, 17-building development will consist of big-box and inline retail space. It's scheduled for occupancy in early 2007.

The southwest valley, meanwhile, is seeing its share of new retail development activity with General Growth Properties' planned 1-million-sq.-ft., enclosed mall called Summerlin Centre at I-215 and Sahara Avenue. The project will be inside the popular 22,500-acre Summerlin master-planned residential community.

Olympia Group is similarly planning to build an 800,000- to 1-million-sq.-ft. regional mall in the southwest at Las Vegas Boulevard South at St. Rose Parkway within the 2,400-acre, 8,500-home Southern Highlands community.

The mall is being designed by Reno architect Peter Wilday as part of the $750 million Southern Highlands Resort Casino. Construction is expected to start in late 2006.

"I'm not sure how retail can afford the price of land at this time," said Garry Goett, Olympia's chief executive officer. "Retail malls are going to have to be done in relationship to a mixed-use project in order to be developed."

The Curve is another southwest mixed-use development, located between Durango and Sunset roads along the I-215 Beltway. The project's first $300 million phase calls for two 18-story condominium towers, with a combined 389 units, and 114,025 sq. ft. of retail space. The 47.5-acre project is expected break ground in early 2006, with completion of phase one by 2007.

Klai Juba Architects is the architect, and M.J. Dean Construction, both of Las Vegas, Nev., is the contractor.

"The Curve combines the best of the Strip within a comprehensive master-planned setting that is 10 minutes from everything," said Michael Chernine, the development's managing member. "The southwest is one of the valley's fastest growing areas, and yet its residents are underserved."

Key Players
Developers: Triple Five Nevada; Territory Inc.; Schwartz Family; Olympia Group; Montecito Cos.; General Growth Properties
General Contractors: Burke & Associates; M.J. Dean Construction
Architects: Peter B Wilday Architects; Klai Juba Architects

 
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