More than a year after it unveiled plans for a warehouse project in North Las Vegas, a North Carolina developer is pushing ahead with another one in the city.
Charlotte-based SunCap Property Group teamed up to acquire 26 acres with plans for a two-building, 467,000-square-foot industrial complex, according to a news release last week from project partner GID.
The land, at the northeast corner of Cheyenne Avenue and Commerce Street, sold for $20 million, brokerage Cushman & Wakefield announced, saying it represented SunCap in the deal and was hired to lease out the project.
Construction of the project, called SunPoint Commerce Center, is expected to start this summer, GID said.
Michael Wenaas, chief investment officer at GID Industrial, said in a release that with strong leasing “fundamentals” and record-low vacancy, Las Vegas “is a natural fit for our growing industrial portfolio.”
Southern Nevada’s yearslong warehouse-construction boom has only ramped up since the pandemic hit, as the coronavirus outbreak sparked an accelerated shift to online shopping that has fueled demand for distribution buildings.
Developers finished 6.2 million square feet of industrial projects in Southern Nevada last year. Almost all of that consisted of warehouse and distribution space, and most of it was in North Las Vegas, brokerage Colliers International reported.
Southern Nevada’s industrial vacancy rate shrank to just 2.3 percent at the end of last year, the lowest since Colliers began keeping records in 1999, the firm said.
“We’re seeing unprecedented demand,” Cushman & Wakefield broker Donna Alderson said.
Alderson noted that she has worked in industrial real estate since 1986 and has never seen this kind of appetite for such properties.
One of many projects unveiled last year was by SunCap, which announced plans in February 2021 for a six-building, 730,000-square-foot industrial complex in North Las Vegas with partner Diamond Realty Investments.
Efforts to get an update on that project from SunCap were unsuccessful Monday.
Mike Orr, a senior vice president at SunCap, said in a statement that the leasing “velocity” for that complex gives the firm confidence that its new project with GID will be highly sought-after real estate.