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FOR IMMEDIATE RELEASE
Sept. 13, 2023
Preleases over 35% of Phase I construction as occupier demand drives growth
LAS VEGAS – With construction on the first speculative buildings at its new Arroyo Beltway Commercenter underway in the southwest submarket, Majestic Realty Co. and its joint-venture partner, EJM Development Co., announced the signing of two prelease agreements that will occupy more than one-third of the initial 764,000-square-foot, four-building development at the park. Arroyo Beltway Commercenter is located just south of I-215 at the northeast corner of Buffalo Drive and Warm Springs Road.
The prelease signings include a 156,708-square-foot, long-term agreement with an existing, unnamed Majestic Realty tenant that will double its footprint and relocate operations to occupy a majority of the 226,382-square-foot Building #2.
The second prelease, for 115,591 square feet, will welcome Steelhead Productions to the Majestic portfolio as they also significantly increase in size from their prior location and occupy nearly half of the 245,702-square-foot Building #4. Both companies operate in the thriving live event industry serving conventions, tradeshows and more.
Construction, leasing and overall management of the Arroyo Beltway Commercenter are under the guidance of Majestic Realty with development and leasing led by senior vice presidents, Rod Martin and Bill Hayden.
Arroyo Beltway Commercenter is a few miles west of the developer’s fully occupied Beltway Business Park. In what the development team calls an “A location,” the new development will match its top-tier location with a wide range of Class-A industrial warehouse/office buildings and strong surrounding amenities, including easy freeway access to the resort corridor, convention centers and Harry Reid International Airport, as well as more than 900,000 square feet of existing retail development at the Arroyo Market Square.
Focused on the timely delivery of new product, all four Phase I buildings are currently “going vertical” and will bring more than three-quarters of a million square feet of new Class-A industrial product online in the first quarter of 2024 to continue meeting strong user demand and opportunities for growth. Each of the buildings will feature 32-foot clear height; ESFR; office space to suit; 135-foot truck courtyards and ample dock doors and parking stalls.
In addition to the space remaining in Buildings #2 and #4 following the announced preleases, Majestic Realty Co.’s Phase I development includes the scheduled completion of the 170,985 square foot Building #1 and the 121,084 square foot Building #3 in March/April 2024.
“The availability of new product will further strengthen our position in the submarket and provide a wide range of additional building options, including build-to-suit, local expansions, relocations and market newcomers as well,” said Majestic Senior Vice President Bill Hayden.
Planning next phases of spec development:
With the swift and overwhelmingly positive response to it park location, product and growth opportunities, the development team is finalizing site plans to fast track the next phases of spec development totaling over 1.7 million square feet, entertaining build-to-suit opportunities as well.
“A big part of our continued bullishness on Las Vegas is the result of our fully leased, 6.5-million-square-feet of Class-A space we have developed, including the full prelease of all buildings in the last three phases of development at our Beltway Business Park,” said Majestic Realty Senior Vice President Rod Martin. “So much of this submarket is the result of the high function and success of the resort corridor which we see hitting on all cylinders.”
Market conditions fueling demand and opportunities for growth:
The full return of travel, tourism, entertainment and an influx of business from California has fueled the local economy and pushed industrial vacancy rates to less than 2%. As a result, Martin notes that dozens of occupiers are seeking expansion and the market is seeing diverse users whose recent agreements and current activity demonstrate just how strong the submarket is with a growing number of companies showing early and very clear demand for a continuation of the product availability in this location.
“We see very solid market fundamentals with a combination of limited new inventory of institutional-grade office/warehouse facilities and strong demand in this submarket,” added Hayden. “As a result, we anticipate a continued positive response to our new spec space that puts us in a good position and timeline to deliver new product to meet occupier needs.”
Preparing for the opportunities down the road, Majestic and EJM have three additional phases which allows them to pursue additional speculative and build-to-suit construction opportunities they believe will be in demand in the near future.
“Yes, there are economic and overall business variables to monitor and be in touch with, however, we continue to believe in our position and strength of Las Vegas, and we’re eager to move forward with multi-phased opportunities in the years ahead,” said Martin. “The challenge is always about the ability to see forward with a clear vision to deliver the right product, at the right time, and in the right place.”
With more than 70 years of industrial portfolio development, the Majestic team has maintained its forward-thinking, forward-looking approach with 20/20 vision.
About Majestic Realty Co.
Majestic Realty Co. is the largest, privately-held developer and owner of master-planned business parks in the United States. With approximately 87-million-square-feet in its portfolio including industrial, office and retail space, as well as sports, entertainment and hospitality projects, Majestic provides real estate solutions for tenants large and small, creating jobs, tax revenue and community benefits across the country. Headquartered in southern California, Majestic has regional offices in Atlanta; Dallas/Ft. Worth and Laredo, Texas; Denver/Aurora, CO; Las Vegas; Phoenix; Portland; and Bethlehem, PA.
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Media Inquiries: Marty Schechter
303-882-4585 marty@schechterpr.com