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LAS VEGAS-The 523,000-sf second phase of Speedway Commerce Center in North Las Vegas was cleared for occupancy this month. The developer, Harsch Investment Properties of Portland, OR, tells GlobeSt.com that approximately 25% of the space had been pre-leased and that leases for an additional 10% of the space is out for signature.
Harsch acquired Speedway Commerce Center in 2001 for $44 million. The deal included 1.4 million sf of built space that was 99% leased to 200 tenants and excess land for future phases.
The $52-million second phase consists of eight new light buildings with 24- to 30-foot clear heights. The buildings, which range in size from 45,000 sf to 104,000 sf, have been divided into 80 units that have been finished with a 13% to 25% office build out.
Blended triple net lease rates range from $0.72-$0.78 for smaller spaces (3,000 sf to 7,000 sf) to between $0.60 and $0.65 for larger spaces (10,000 sf to 11,000 sf). Tenants who have signed leases include Wicks Furniture; Nevada Power; Built-by-Design; Riggers and Erectors: Futura Furniture; National Dairy Brands; Progressive Steel; Catalyst Industrial Marketing; E-Fex and Metropolitan Exposition. Ed Aragon, Leo Biederman and Jeremy Green with CB Richard Ellis have the leasing assignment.
The Speedway expansion takes Harsch's Las Vegas Industrial portfolio to 7.5 million sf in a dozen or so properties. After the expansion space is leased up, Harsch will begin looking to further expand the property. John Ramous, Harsch's vice president and regional operations manager tells GlobeSt.com that the company already owns 10 acres across Hollywood Street from the existing Speedway Commerce Center buildings and is in the process of acquiring and additional 30 acres there.
Prior to any additional expansion at Speedway will be the expansion of Henderson Commerce Center IV, a 360,000-sf park in the City of Henderson. The center is located at the southeast corner of Eastgate and Warm Springs roads, adjacent to the Auto Show Drive exit.
Harsch's expansion of that property, set to start this summer, will consist of 241,000 sf in five new buildings with 20-foot to 24-foot clear heights ranging from 34,000 sf to 70,000 sf. Anywhere form 26% to 40% of the space in each building will be built out as office space. The first phase consisted mostly of mid-bay and distribution product. Beyond the current expansion, there is an additional 15 acres on which the company can build.
Harsch also is growing y acquiring existing product. In January, Harsch paid approximately $60 million for Diablo Industrial Center, a 500,000-sf multi-tenant park developed in the latter half of the 1990s at Russell Road and Arville Street, across Interstate 15 from McCarran International Airport. The property was 100% leased to 32 tenants at the time of acquisition.
Harsch's other industrial properties in Las Vegas include Cheyenne Commerce Center and Craig Commerce Center in North Las Vegas, Desert Inn Commerce Center, Eastern Commerce Center and Location Commerce Center in Clark County, and Henderson Commerce Center in Henderson, NV. The Cheyenne [property also includes excess land that the company plans to develop in 2008.
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