Retail outlook rosy

A strong foundation exists in Southern Nevada for national retailers, who continue to relocate or expand within the region, according to Kit Graski, senior vice president with CB Richard Ellis in Las Vegas.

"Las Vegas is a solid market. State tax incentives, a robust local economy, and other benefits and incentives remain important motivating factors for individuals and retailers alike to move to and reside in Las Vegas," Graski said.

"Subject only to a modest continuation of residential development and job growth, retail center growth and retail development opportunities will remain strong.

"There is not a section of the region that doesn't have some retail construction under way at this time," he said. "(Interstate 215) is helping to sprout new retail business wherever it goes. Parcels of land are now available that can create strategic positioning for a lot of retailers."

In Summerlin, Costco has opened a store in the new Canyon Pointe center at Charleston Boulevard and Interstate 215, and Bed Bath & Beyond plans to open its second area store at the same location. Best Buy and Borders Books also have stores within the 600,000-square-foot center, where restaurants and small shops are planned.

Also in Summerlin is Boca Park, which is east of the interstate at Charleston and Rampart boulevards. Tenants include Target, Starbucks and Office Max, as well as grocery and drug stores. Sears' latest entry, The Great Indoors, is also located in Boca Park.

"This intersection, with Boca Park on the northeast corner and Rampart Commons across the street, is becoming a shopping and dining mecca for local residents," Graski said.

Tenants at SunMark Plaza, a 450,000-square-foot retail center in Henderson, include Costco, Bed Bath & Beyond, Ashley Furniture, Petco and Best Buy, among others. DSW Shoe Warehouse, another national retailer, is opening its first store in Southern Nevada at SunMark.

Centennial Center, a 900,000-square-foot shopping center opened about a year ago near Ann Road and U.S. Highway 95 in northwest Las Vegas. It has drawn such national retailers as Circuit City, Wal-Mart, Sam's Club, Home Depot and Ross Dress for Less.

According to a recent report by CB Richard Ellis, Las Vegas saw an increase of nearly 3.1 million square feet of retail space in 2001, bringing the total square footage of such space to 36 million. The vacancy rate was 5 percent, while net absorption totaled 2.8 million square feet. The average monthly lease rate, according to the report, was $1.59 per square foot.

At year-end 2001, about 1.5 million square feet of retail space was under construction and 4.4 million square feet proposed, up from 3 million square feet the previous year.

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