The property is located in the Airport submarket of Las Vegas. This submarket tends to be favored by a combination of distribution and service tenants. Distribution tenants such as UPS, FedEx, CEVA, and Masco enjoy the area’s central location and proximity to the Airport and I-15 freeway. Service tenants enjoy the proximity to the Las Vegas strip, the 117 acres Town Square retail development, and deep/affordable labor pool.
The area is dominated by eight competitive properties totaling 3.6 million sq ft. These properties are currently 79% occupied and have been gaining absorption as the market recovers. Five of these properties have a basis too high to effectively spend leasing capital. Two properties (Huges Airport Cener I and Airport Commerce Center) have traded within the last two years at $87 psf and $77 psf.