Las Vegas, Nevada
| TRANSACTION TYPE & DETAILSDate: July 2021 Transaction Type: Lease Property Type: Industrial Size: 788,841 sq. ft. Sale Price: $63,183,000 USD |
Rob Lujan, SIOR, and his team at JLL represented Tapestry Inc. (Coach, Kate Spade, Stewart Weitzman) in their search for a new location to house a West Coast distribution center. It started as a multi-market search as they looked in Las Vegas, Reno, and the Inland Empire. With the Vegas market’s competitive advantages on rent, labor, transportation, and tax structure, coupled with a strong economic incentive package that the state of Nevada provided, Las Vegas beat out the competing markets. Kevin Higgins, SIOR, and Garrett Toft, SIOR, of CBRE represented Clarion Partners who controlled a properly sized site and had the ability to deliver a 40’ clear building that was large enough for the requirement, successfully finalizing a deal for Tapestry’s new distribution center.
Client Objective
- Tight market with limited supply;
- Quickly increasing rents;
- Supply chain issues with construction materials which created delays on occupancy.
Transaction Profile
- Long-term lease with turnkey tenant improvements (TI).
- The landlord was able to push on timing and took a risk on the rate.
Solution
- The relationship with Higgins and Toft allowed Lujan to communicate the actual requirement. They provided a site option in which the landlord had not planned on delivering a large single building as part of their spec plan.
