Commercial Building One Summerlin Waiting on Tenants

Commercial Building One Summerlin Waiting on Tenants


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Commercial real estate is still slumping from the recession and there are many signs that it is not coming back to the norm as quickly as developers would like. One Summerlin is one of those office buildings that is not seeing as much success as was touted to occur. It has about a 54% vacancy rate, which is much higher than the rest of the office sector at 20%. The management of the building say that all is not lost, however, as they offer a unique product that will draw tenants to the building.

One Summerlin still struggles to find tenants.

One Summerlin still struggles to find tenants.

Why Such a Disparity?

One Summerlin is one of the more expensive office buildings in the valley and it has one thing that is definitely not going for it and that is its location. Other properties in the same price range are centrally located to the airport and the Strip, and this is one reason why companies have not been clamoring to move to One Summerlin.

Management of One Summerlin aims to have the building fully leased by summer 2016. Listing broker, Randy Broadhead said, “As you know, this is not a good market overall. Most landlords are struggling.” Another reason why One Summerlin is not seeing the huge tenant explosion is that they have a smaller pool of potential tenants than other properties – simply due to price. The monthly costs range between $3.10 and $3.20 per square foot, which is much higher than the average of $2.62 for other space like it.

The lack of adjacent parking can be pointed to as well. There is a great deal of parking in Downtown Summerlin as a whole, but not having adjacent parking can be a turn off for some prospective tenants. It does have major amenities, however, as there are many shops and restaurants nearby, which is not the case for some other buildings of the same caliber.

The mixed-use, pedestrian friendly community is something that the management believes will draw more tenants into One Summerlin. Even though the numbers are not climbing as fast as they would like, they know that these amenities are going to draw companies to the building. It is just a matter of time.

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