(To read more on the industrial market, click here.)
HENDERSON, NV-Henderson Commerce Center IV will be expanded by 250,000 sf in 2007. The developer, Harsch Investment Properties of Portland, OR, will break ground in early 2007 and complete the work by the end of the year. As it currently stands, the development totals 360,000 sf and is about 80% leased.
John Ramous, Harsch's regional vice president in Vegas, tells GlobeSt.com that expansion will consist of five new buildings ranging from 35,000 sf to 60,000 sf with 20-foot to 24-foot clear heights. While the first phase consisted mostly of mid-bay and distribution product, the latest phase will offer smaller, light industrial and office suites. Many of the units will be finished on a speculative basis with office build-outs ranging from 25% to 100% and unit sizes from 750 sf to 10,000 sf.
Henderson Commerce Center IV is located at the southeast corner of Eastgate and Warm Springs roads, adjacent to the Auto Show Drive exit. The architect for the expansion is VLMK Engineers. Harsch's Stacy Mbithi will handle the leasing. While rates have yet to be determined, the immediate area is experiencing triple-net asking rates for office build-out of between $1.35 and $1.50 per sf per month. The warehouse rates range from $0.60 to $0.75 per sf, Ramous says.
Harsch purchased the land for Henderson Commerce Center IV in late 2001 for approximately $4.20 per sf. The higher office build-out for this next phase is in response to market demand and the fact that the area is quickly becoming more of a major corridor, Ramous says. For more recently purchased land, the shift to higher office build-outs is more or less required because of the rising cost of land in Henderson, which has pushed much of the larger, pure industrial distribution development to other submarkets, including North Las Vegas, he says.
As the expansion is completed, Ramous expects to begin the third and final expansion of the center on an adjacent 15 acres of land. The final expansion is expected to be complete by late 2008, bringing the overall size of the development close to 800,000 sf in about a dozen buildings.
Flex-office vacancy at the end of the third quarter was 5.5%, according to locally based Applied Analysis.
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