PACIFIC BUSINESS CENTER
Las Vegas, NV
Pacific Business Center is a 13-building asset totaling 898,389 square feet. At acquisition, the property was 85% leased to 31 tenants ranging in size from 5,000 – 150,000 square feet. With a varying mix of building and unit sizes, the asset is poised to be a strong attraction for industrial tenants seeking distribution, mid-bay, or small bay product within the Henderson submarket. Building sizes range from 32,726 to 150,723 square feet and include 6 distribution buildings on the southern half of the park and 7 mid/small bay buildings on the northern half.
Pacific Business Center is located with immediate access to the I-215 and US-95 (I-515) freeways, two critical transportation corridors for tenants in the Las Vegas and Henderson markets. The property is less than 9 miles to McCarran International Airport and under 13 miles from the Las Vegas Strip. Both I-215 and I-515 are a 2 minute drive from the park. McCarran International Airport and the Las Vegas Strip sit 20 minutes northwest. Access to I-15 off the I-215 is unimpeded by downtown traffic as Henderson places Pacific Business Center south of Las Vegas with access to the Ports of Los Angeles and Long Beach in 4 hours.
LAS VEGAS METRO AREA
Clark County, the most populous of Nevada’s 17 counties, is home to more than 2.2 million residents (over 70% of the state’s population) and employs over 1,070,000 people. Along with the cities of Las Vegas and Paradise, Henderson is part of the Las Vegas metropolitan area. Henderson is the second largest city in Nevada with an estimated population of 302,539, while the largest city is Las Vegas. Together, the metro sits at the heart of Clark County with major attractions—e.g., gaming, dining, shopping, and business conventions—for both American and international visitors.
With tourism as it’s preeminent industry, Las Vegas has approximately 150,000 hotel rooms. Although the record for the number of visitors to Las Vegas was set in 2016 at 42.9 million people visiting, 2018 witnessed 42.1 million visitors; and the metro has averaged over 41.3 million for the past three years. Las Vegas, the “Entertainment Capital of the World”, remains one of the most exciting and diverse real estate markets in America. The city’s central location to Southern and Northern California, Phoenix, Denver, and Salt Lake City places Las Vegas as a geographic hub of the Southwest. Nevada is currently ranked the fastest-growing state in the nation, and Las Vegas is the third fastest growing city in the US with 44% population growth since 2000. This migration trend is expected to continue for many decades which will only augment the city’s business location prominence.
With nearly 18 million sf of industrial space (around 12.5 million of which is devoted to logistics), the Henderson submarket is the third largest in Las Vegas. It constitutes 13% of the overall Las Vegas industrial market. The area is serviced by I-215 and I-515 and the Union Pacific railroad, which runs along the southern portion of the submarket. Similar to other Las Vegas submarkets, most logistics facilities are located along the Las Vegas Expressway (I-515). Henderson’s tenant base is akin to that of southwest Las Vegas—along with a sampling of nationally recognized tenants, most occupants service the local and regional economy.
Due to the growth of the local economy, the low cost of labor and transportation, proximity to key end-markets, and a low cost of living, tenants are choosing to locate or expand into Las Vegas as an alternative to other West Coast/Southwest markets. Occupier demand has never been higher, and because tenant demand is out pacing new supply, overall vacancy decreased to a record low 2.6% at the end of 2018. Yet, even with strong rent growth at 8% a year since 2014, rents are below their historical peak of $0.75 reached in 2007/2008. Current submarket vacancy is a staggering 1.8%.