Montecito Point is rising on the northwest corner of Hwy 95 and the 215 Loop in northwest Las Vegas. The project sits within Montecito Town Center, a 200-acre mixed-used development that includes retail, single and multi-family housing, a full service hospital, and recreational attractions.
"There's very little existing class A product around our project and we are very well located," Lauth's VP of development Mike Orr tells GlobeSt.com. "And we are right in the middle of a master-planned park, putting us within two miles of a power center and a grocery-anchored neighborhood center."
Randy Broadhead, Brad Peterson and Darren Lemmon of CB Richard Ellis have the leasing assignment. The asking rent for space in the building is $2.70 per sf (modified gross), which assumes a $40 per sf tenant improvement allowance and at least a five-year lease.The lease rate is competitive with other new product in the market, Orr says, with the added benefit of being "green," thanks to things like a high-efficiency heating and cooling system, increased use of day lighting, low-flow water fixtures and high solar reflective roofing. The goal is to achieve a LEED Silver rating from the US Green Building Council.
"We have ample time to lease the building," Orr says when asked about the length of the construction loan and the pro forma for stabilization. "Our listing brokers tell us they are as busy as they have been so there's still a lot of deal activity; I haven't seen the second quarter numbers but the first quarter numbers were positive."
Multiple second quarter reports should be coming out this week. The early returns are that while the overall office market experience negative absorption, class A buildings achieved positive net absorption.
In the first quarter, leasing was strong for all other classes but negative for class A, according to CB Richard Ellis. It was the first time since early 2005 that class A office experienced negative net absorption, according to the report.
By submarket, the vacancy rate ranged from 11.3% (Airport submarket) to 22.64% (North Las Vegas). Average monthly asking lease rates declined slightly during the quarter to $1.97 per sf on an overall basis. Downtown lease rates increased $0.11 to $2.58 per sf, keeping its title as the most expensive in the Valley. Lease rates in North Las Vegas, the least expensive submarket, averaged $1.54 per sf. The 300,000 sf delivered in the first quarter was the smallest quarterly addition since 2006, according to the report.
Montecito Point will be the third facility in Las Vegas completed by Lauth. In 2006, the company completed the 421,000 SF Northpoint Business Center, home to International Truck and Engine's Las Vegas Distribution hub. Lauth also built a 78-door freight terminal for Yellow Transportation in 2004 and a 624,000-sf distribution center for Henderson-based Zappos.com in Shepherdsville, Kentucky.
Elsewhere in the US, Lauth is building NASCAR® Plaza, a 20-story world class office tower in downtown Charlotte and two new distribution centers in South Carolina. It also recently unveiled a conceptual sketch for a mixed-use retail project being developed in conjunction with the Bradley Center, celebrated the grand opening to Bryan Towne Center , a 400,000 SF retail development in College Station, TX.
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