Kit Graski Senior Vice President Voit Commercial Brokerage

The biggest trend in retail development in Las Vegas involves not what but where — the location of the product rather than the product type — says Kit Graski, senior vice president at Voit Commercial Brokerage.

“The majority of new retail development is occurring along the outer [Las Vegas] beltway, following the growth of the residential population in those outlying areas,” he says.

The impetus for this residential and retail push is the construction and improvement of the Interstate 215 beltway, which connects Interstate 15 and Highway 95 north of the gaming capital. The 53-mile highway, which will cost $1.6 billion once entirely upgraded to interstate highway standards, provides greater access to the undeveloped areas of Las Vegas, stretching from the city of North Las Vegas to the southwestern suburbs.

“Developers are continuing to build neighborhood shopping centers and power centers to support the growing population in these newly developed residential neighborhoods,” says Graski. “In addition to following rooftops, new retail development is also following services like hospitals. Three new hospitals — one that has recently been completed (Spring Valley Hospital), another set to open this month (Southern Hills Hospital) and one scheduled to break ground this year (St. Rose Dominican) — are serving as anchors for office/retail centers.”

Kohl’s department store made its debut in the Las Vegas market as anchor of three new power centers. Montecito Crossing, a Vertical Holdings Company development located at Durango Drive and the northern beltway, is a 270,000-square-foot shopping center that will also feature The Sports Authority. At Charleston Boulevard and Durango, Three B’s Corporation built Peccole Plaza, a 156,000-square-foot retail offering, which includes Walgreens; Target; Bed Bath & Beyond; and Sports Chalet. Lastly, American Nevada Corporation, developer of The Shops at Green Valley Ranch, a mixed-use project in Henderson, constructed Valle Verde Plaza, a power center located at the I-215 southern beltway and Valle Verde. “These centers have introduced [Kohl’s,] a new, widely sought-after retailer to the Las Vegas market,” says Graski.

Laurich Properties and EJM Development are in the proposal stage with The Arroyo, an 820,000-square-foot power center to be located in the southwest area of Las Vegas near I-215 and Rainbow Boulevard. This development would be well positioned to take advantage of a submarket exhibiting both the surge in residential and healthcare development.

Grand Canyon Parkway, the Triple Five Nevada Development Corporation project located at the corner of Flamingo and Grand Canyon Road, is a 1.5 million-square-foot, 100-acre project. The power center, phase one of which is complete, will serve the far west, southwest and Summerlin submarkets and will feature Mervyn’s and Sears — both new to the area — as well as Target.

At Tropicana Beltway Center, developer Weingarten Realty Investors has introduced two new retailers — Lowe’s Improvement Warehouse and Wal-Mart Supercenter — to the west, southwest and Summerlin submarkets. The approximately 600,000-square-foot power center, which is located at Tropicana and I-215, also features anchor tenants PetsMart, Ross Dress For Less, The Sports Authority and Office Depot.

Chelsea Properties has developed Las Vegas Premium Outlets at the intersection of I-15 and U.S. 95 in downtown Las Vegas. This discount destination provides tourists and residents with a shopping alternative to the outlets located on the outskirts of the city, says Graski.

The overall retail vacancy rate for the Las Vegas market is approximately 4 percent. Graski says the most active retail developers in the Las Vegas area are Laurich Properties, Triple Five Nevada Development Corporation, Weingarten Realty Investors and The Rouse Company. Besides Kohl’s, Wal-Mart Neighborhood Market and Whole Foods are also new to the Las Vegas retail market.

©2004 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.