Summerlin Office Tower In Las Vegas Expected To Reap Success

The office marketing in Las Vegas is not seeing its best times and is still recovering after the recession. The Summerlin Office Tower does seem to just go down at first glance but that may not be the case according to many analysts.

We see a vacancy rate of 20% in the Las Vegas office sector. This is the highest of all the commercial property types.

The office building, normally referred to as One Summerlin, brings in highly expensive rental rates, the highest in the entire valley. It is not located close to the McCarran International Airport or near the Strip. Office construction in Las Vegas is currently slowing down but this particular office building stands out as a speculative office project that is rare as is currently among the few to be underway or recently opened.

One Summerlin opened in April 2015 and the developers expect to have full lease until the summer of 2016, based on information obtained by HomeTipsor.com. Howard Hughes Corp, the developer, declared that the retail space of Downtown Summerlin is now 82% leased. According to Howard Hughes’ Summerlin master planned community president, the company is really happy with all the results that were currently gained.

According to Randy Broadhead, Las Vegas listing broker, the office building is currently outpacing the entire office market at a great rate. He declared that 2 years ago he would have said that not one office would have been leased because the market is not in a good situation and landlords currently struggle.

What is interesting with One Summerlin is that the list of potential tenants is much lower than with other properties, mainly due to the really high price tag. The monthly rent prices currently stand at around $3.2 per one square foot for Summerlin. It is above the Class A office space average in Las Vegas, which is around $2.60. When comparing with all the space, the market average is under $2 per square foot.

Summerlin has different problems like the lack of close-by parking but the amenities that are offered are bringing in new clients at a much faster rate than expected. There are many restaurants and shops that are present nearby.

Some real estate professionals believe that there is little risk associated with the development plan of One Summerlin. That is partly because the building is owned by Howard Hughes, which is a company with a $4.9 billion market value on the stock market.

The history of the building is one that did not predict the future success. General Growth Properties was the last owner and the formerly known by the name Shops at Summerlin Centre remained as an untouched property because of the 2008 financial crisis. We will have to wait until the summer of next year to see if the project is truly going to be successful.