Las Vegas office assets are seeing healthy appreciation. MCA Realty has sold a nearly 30,000-square-foot office asset in Henderson, a submarket of Las Vegas, for double the original sales price. MCA purchased the asset in 2016 and executed a renovation project to market the property to global call centers. The price appreciation in only two years shows the growth in the Las Vegas market.

“The pricing appreciation has largely been a product of the reduction in the supply-demand imbalance in the office sector,” Tyler Mattox, principal at MCA Realty, tells GlobeSt.com. “Vacancy at quarters end was about 15%, and while this is still relatively high, it is about 50%  below vacancies from only a few years ago.  Further, Las Vegas has significant vacancy concentrated in some buildings and submarkets like the East and Central East that have significant functional obsolescence, so this dynamic skews the statistics a bit as well.”

On this asset, MCA recognized the value of the property's substantial parking, and decided to market the property to call center tenants that are looking for ample parking. “Our plan was to renovate the exterior of the building with a new paint scheme and improved landscaping as well as some select aesthetic upgrades,” adds Mattox. “We also demolished the improvements that were left over from the former defunct ITT operation to create a clean slate in the interior  Our goal was to appeal to call centers and similar back office users who needed the +- 8:1 parking ratio that this building provided. In hindsight we underestimated the amount of additional tenant improvements that were needed after our initial renovation, but overall the project was a successful one for us.”