COVER IFC ICSC - Las Vegas Sunmedia.lasvegassun.com/media/projects/inbiz/specialpubs/icsc.pdf4A | IN BUSINESS LAS VEGAS ICSC MAY 20, 2005 ... CSM/CMD test review course ... 10-11:15

S International Council of Shopping Centers

Retail in Southern Nevada

MAY 20, 2005

A supplement to In Business Las Vegas

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IN BUSINESS LAS VEGAS | 1AMAY 20, 2005 ICSCSPublisher Bruce Spotleson, 990-2442, [email protected]

ADVERTISING & CREATIVE

GREENSPUN MEDIA GROUP

CIRCULATION

Creative Director Scott Lien, 990-2430, [email protected] Advertising Creative Director Thomas Jackman, 990-2458, [email protected] Bradley Samuels, 990-2521, [email protected] Executives Debbie Donaldson, 990-2457, [email protected] Hilary Scott, 990-2502, [email protected] Michael Skenandore, 990-2508, [email protected] Carol Skerlich, 990-2503, [email protected] General Advertising Information Janine Wells, 990-2486, [email protected]

Chairman Daniel A. GreenspunPresident Michael T. Carr

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Special Publications Editor Rob Langrell, 990-2490, [email protected] Special Publications Administrator Terry Martin, 990-8170, [email protected] Writers Danielle Birkin, Damon Hodge, Lisa McQuerrey, Deborah Roush

Dear In Business Las Vegas readers:

Marcus & Millichap is proud to be a part of the Las Vegas community, sharing in its dramatic growth and suc-cess. Las Vegas continues to attract high investor demand for commercial and residential real estate. Job growth and in-migration will continue in 2005. Employment growth is forecast to reach 4.5 percent this year, while popula-tion will expand by 4.1 percent. These positive economic

and demographic trends are attracting capital from local, regional and national investors from both the private and institutional arenas. We expect vacancies to improve in all of the commercial real estate sectors, including retail, office and multi-family.

Marcus & Millichap Real Estate Investment Brokerage Company is the pre-mier provider of investment real estate brokerage services, closing more deals annually than any other firm. One of the key advantages we deliver to clients is our ability to access the largest pool of qualified private and institutional inves-tors. By combining superior local market expertise, an extensive network of re-lationships with buyers and sellers, and the industry’s most powerful marketing platform, our Las Vegas investment professionals can help investors to access investment properties and capital sources locally, regionally and nationally.

Our exclusive inventory of investment properties is recognized for its size, diversity, quality, deliverability and underwriting standards. In addition, Marcus & Millichap has a long and successful track record of helping clients navigate the requirements and timing issues associated with tax-deferred exchanges. Inves-tors have come to rely on Marcus & Millichap for access to investment opportu-nities that meet their specific requirements, including demands driven by 1031 exchanges.

In today’s dynamic marketplace, an improving economy, strengthening property fundamentals and the prospect of rising interest rates are prompting property owners and investors to take action and position themselves for the next cycle. For assistance with formulating and executing your investment strat-egies, please contact a Marcus & Millichap investment specialist to receive the latest market research reports or more specific property-level feedback.

Christopher E. LoBello, Regional ManagerMarcus & Millichap Real Estate Investment Brokerage Company

Dear readers,

Welcome to the annual get together of the International Council of Shopping Centers and the special section we publish each year in conjunction with the convention. Approximately 36,000 people gathered here for last year’s event and even more are expected for the 2005 affair that begins this weekend. I want to thank the Carina Corporation and Marcus &

Millichap for returning to again sponsor this special publication to In Business Las Vegas. They both have a variety of big things in the works for this year. In this section, we offer a little something for everyone. There’s appeal for businesspeople in town solely for the convention, locals who will be fortunate enough to be part of the festivities at the five-day event and subscribers to In Business who just want to keep up with the action. We examine some of the hot new projects in the Valley, which include East Village and the Village at Centennial Springs. And it wouldn’t be booming Las Vegas without expansion. That’s just what the Forum Shops, Fashion Show Mall and The District have had on their plates over the last 12 months. Additionally, you will find Question & Answer sessions with a few of the city’s top commercial real estate executives. For the convention goers, we have provided a schedule of the week’s events, along with information on the spouse’s program. There is also a section on ICSC memberships.

The theme of this year’s spring convention is “Back To Business.” And with that, the focus of the week’s sessions has been placed on education, networking and deal making.

What better place to do that than in Las Vegas.

Rob LangrellEditor of Special Publications

From the editor

Dear In Business Las Vegas readers:

Being a real estate developer in Las Vegas is akin to being a fashion designer in Paris, an aerospace engineer for NASA or an automobile manufacturer in Detroit It’s exciting, it’s competitive, it’s fast-paced and it’s dynamic. As one of the country’s fastest-growing metropolitan areas, Las Vegas offers developers – and their customers – a myr-iad of opportunities to think and act outside the box.

Just over one year ago, we announced plans for our first urban village – The Village of Centennial Springs. Today, this 41-acre suburban mixed-use project is already underway, and by the end of 2005, Centennial Springs will be home to its first residents and retail tenants desiring to live in a place that feels like the neighborhood in which they grew up.

At Carina Corporation, we believe today’s homebuyers are longing to re-con-nect with neighbors and neighborhoods while still enjoying access to modern-day conveniences and the latest and greatest technology. The Village of Centennial Springs is being built to deliver that unique combination of small town charm and intimacy within a high-tech and sophisticated framework A place where the corner coffee shop, the community bookstore and the friendly neighborhood dry cleaner are as central to the fabric of the community as the homes, the parks and the schools. It’s an acknowledgement that during a time of “bigger is better,” the “Mom and Pop” feel of the locally-owned restaurant or boutique is making a comeback.

As Carina has embarked on the development of The Village of Centennial Springs, in which retail will play a central role, we are proud to sponsor the In-Business International Council of Shopping Centers special section. We salute the developers of retail centers – large and small – throughout our bustling valley. And we look forward to continued prosperity for our community’s thriving and growing retail industry.

Mark DoppePresident, Carina Corp.

Marcus & Millichap

From the sponsors

Carina Corporation

EDITORIAL

4A | IN BUSINESS LAS VEGAS MAY 20, 2005ICSC

FRIDAY, MAY 208 a.m.-4 p.m.: Exhibitor registration

SUNDAY, MAY 22 8 a.m.-10 p.m.: Badge validation at satellite locations 9 a.m.-7 p.m.: Registration and badge vali-dation at L.V.C.C.9 a.m.-7 p.m.: Welcome center and design trends open 9 a.m.-4 p.m.: Spouse hospitality lounge 9 a.m.-Noon: CLS test review course 9 a.m.-12:30 p.m.: CLS examination 9 a.m.-1 p.m.: CSM/CMD test review course 10:30-11:30 a.m.: welcome to Las Vegas: First-timers orientation Noon-1 p.m.: ICSC networking brunch1-2p.m.: Convention opening session with guest speakers2-6p.m.: Trade exposition and public sector showcase open 4:30-6 p.m.: Open house and public sector reception in the trade exposition 6-7:30p.m: Welcome reception at the Las Vegas Hilton pool 10 p.m.-Midnight: Next Generation recep-tion (Skin nightclub at The Palms)

MONDAY, MAY 236 a.m.-2 p.m.: Badge validation at satellite locations 6 a.m.-6 p.m.: Registration and badge vali-dation at L.V.C.C.6 a.m.-6 p.m.: Welcome center and design trends open7 a.m.-6 p.m.: Spouse hospitality lounge 7:30-8:30 a.m.: Women in real estate net-working breakfast8-9 a.m.: continental breakfast served in trade exposition8 a.m.-6 p.m.: Leasing mall, trade exposi-tion and public sector showcase opens10-11:15 a.m.: Blockbuster general session — Progress for partnerships 11:30 a.m.-12:15 p.m.: Red tape or green light for development — Public sector networking12:30-1 p.m.: Luncheon served1-2 p.m.: Luncheon presentations and guest speaker2:30-4 p.m.: Concurrent sessions A. Joint venture development — Putting the pieces together B. Grocery wars: shaking the foundations of our industry C. Is retail still the darling of the real estate industry?

D. Playing nice in the sand box: Good part-nerships make deals happen4:15-4:30 p.m.: Annual meeting of members

TUESDAY, MAY 247 a.m.-6 p.m.: Welcome center and design trends open 7 a.m.-6 p.m.: Registration and badge vali-dation at L.V.C.C.7 a.m.-6 p.m.: Spouse hospitality lounge 7:30-8 a.m.: Breakfast served 8-8:45 a.m.: Breakfast presentations and guest speaker 9 a.m.-6 p.m.: Leasing mall, trade exposi-tion and public sector showcase open 9:15-10:30 a.m.: Concurrent sessions A. Open-air Centers 2005: The game show B. Retailing and the new consumer power C. Emerging international retail markets: Who is recognizing this opportunity?11 a.m.-12:15 p.m.: Blockbuster general session – 3rd annual Hot Retailers awards 12:30-1:15 p.m.: Luncheon served 1:15-2:15 p.m.: Luncheon presentations and guest speaker 2:30-4 p.m.: Concurrent sessions A. The art of international retailing — Cur-rent and future trends B. Big risks, big rewards: Opportunities in mixed-used development and lessons learned C. Industry icons and their next generation D. Eliminating big problems with Big Box Development 5:30-8 p.m.: Diversity reception (Fountain Terrace, Four Seasons Hotel)

WEDNESDAY, MAY 258:30 a.m.-5 p.m.: Welcome center and design trends open 8:30 a.m.-5 p.m.: Registration and badge validation at L.V.C.C.9 a.m.-5 p.m.: Leasing mall open 9 a.m.-Noon: Spouse hospitality lounge 9:30-11 a.m.: Workshops — Small interac-tive group discussions led by facilitators who are industry specialists. A variety of topics will be offered and will include: • Financing • Leasing • Marketing • Management • Public/Private Partnerships • Retailing • Development • “How to Approach a Retailer”

icscConvention CalenderPROGRAM-AT-A-GLANCE

IN BUSINESS LAS VEGAS | 5AMAY 20, 2005 ICSC

Convention Calender


Fashion Show Mall situated at city’s intersection of successBy Damon HodgeStaff writer

While the Flamingo Road-Las Ve-gas Boulevard intersection is the origi-nal “four corners” and the Tropicana Avenue-Strip nexus has been dubbed the “new four corners,” future genera-tions might refer to the boulevard’s junction at Spring Mountain as the “best four corners.”

Consider: There’s the hip T.I. (for-merly Treasure Island) on the south-west edge; the $1.7 billion Palazzo will soon join the swanky Venetian to the southeast; the world’s most expensive hotel-casino, the $2.7 billion Wynn Las Vegas, commandeers the northeast sec-tor and the northwest corner is home to the Fashion Show Mall. Plus, Donald Trump has planned a $300 million con-

dominium tower just to the north.The Fashion Show Mall, anointed

by Steve Wynn as “the most unique shopping center in the world,” is argu-ably the biggest beneficiary of the geo-graphical changes. Its restaurants teem with customers — revenues are up 30 percent in some eateries — and stores jam-packed with patrons. Mall execu-tives attribute much of the increased business to the recently opened 2,716-room Wynn Las Vegas.

Since the resort opened April 28, the average foot traffic at the mall has grown 20 percent.

“Wynn’s opening has really ex-tended the heart of the Strip, which was always south of us,” Fashion Show General Manager Jared Chupaila said. “Spring Mountain was always a bound-ary for us but Wynn has broken that

boundary. (As a result) other areas of the mall have seen increases as well.”

Chupaila also credits a $1 billion renovation and expansion completed in 2003 with enabling the mall to meet heightened demand. The first phase added to the property’s west side nearly 900,000 square feet of retail space and the 800-foot-long Great Hall for entertainment events); an eastern renovation added 117,000 square feet of retail space, a third-floor food court with Strip views and a Strip-front promenade featuring “The Cloud,” a 400-foot-long multi-media canopy sus-pended above a 72,000-square-foot plaza.

At 1.8 million square feet, with eight anchor tenants, 230 stores (in-cluding names such as Abercrombie & Fitch, Ann Taylor Loft, Apple Comput-

er, Claire’s Boutique, Cinnamon Girl, Guess, Island Pearl, Lucky Brand and Stefanel) and six restaurants (nine if you count Neiman Marcus’ two eater-ies and Nordstrom’s café), Chupaila says, Fashion Show the largest retail destination in Nevada and one of the largest in the western United States. In 2004, the mall generated $700 of sales per square foot, twice the nation-al average.

“We’ve surpassed our expectations on returns from expansion and rede-velopment. I’m not surprised at Fash-ion Show’s success because of our mix of offerings. We service our own piece of the Strip, so we get the tourists, but with we also attract locals, whereas our competitors are more tourist ori-

See FASHION, Page 7A


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ented,” Chupaila said.Among the mall’s biggest coup was

landing Seattle-based Nordstrom’s first Nevada location and the first Bloom-ingdale’s Home, a 100,000-square-foot concept store offering housewares, fur-niture, and other interior design prod-ucts and services. (Bloomingdale’s is a division of Cincinnati-based Federated Department Stores).

Julie Reynolds, director of public relations for Bloomingdale’s Home, says the chance to have a Strip ad-dress was enticing.

“The Fashion Show is such a great mall, it’s in a fabulous location and is consistent with our brand-right image, so we felt it was the right mall for us”

Reynolds said. “We’re thrilled with all the continued efforts to upgrade the mall and all the foot traffic — these people are becoming our customers.”

One such innovation is The Cloud. Says Chupaila: “It catches your eye and draws your attention ... it’s really an iconic piece of architecture and

FASHIONFrom Page 6A

serves to expand the use of the prop-erty out to Las Vegas Boulevard. But it also acts a shade canopy, enabling the customer to enjoy the outdoors in spite of intense elements. And we’re still growing under the plaza, adding further retail components.”

Equipped with high definition video displays, sound system and a catwalk, the Great Hall can host ev-erything from product demonstrations to fashion shows, all of which can be shown on The Cloud’s LED screens. Think of it as the mall’s version of the Bellagio Fountains, Mirage volcano or T.I.’s pirate battle. “It helps pull traf-fic off Las Vegas Boulevard,” Chupai-la said. “It really brings our retail to life.”

Should all that shopping makes you hungry, Fashion Show has a hand-

ful of quality restaurants, including, Cafe Ba Ba Reeba!, The Capital Grille, Maggiano’s Little Italy and RA Sushi Bar Restaurant. Chupaila says the new restaurants complete “the shopping experience.”

The decision to expand to Las Ve-gas looks better every day, according to John Gerarde, general manager of Maggiano’s Little Italy, a Chicago-based chain serving traditional southern Ital-ian cuisine (eggplant parmesan, roast chicken, gnocchi). Since the restau-rant opened in October, business is up 30 percent, largely due to Wynn Las Vegas. If it’s not Wynn guests coming to dine, it’s locals, headed to Wynn for a look-see — many coming for a pre- or post-tour meal. Initially, the restaurant

See FASHION, Page 8A

“We’re thrilled with all

the continued efforts to

upgrade the mall and all

the foot traffic — these

people are becoming

our customers.”

8A | IN BUSINESS LAS VEGAS MAY 20, 2005ICSCFASHIONFrom Page 7A

goers were 70 percent to 30 percent locals to tourists, but the mix is now 55 to 45, Chupaila says.

“We’d been looking at Las Vegas for quite some time and felt that a Strip location would be best, plus we knew what was coming on down the road (with Wynn Las Vegas, Palazzo and Trump tower),” Gerarde said. “Since all our food is from scratch, we’ll never ever be on every street cor-ner. We open three properties a year in major cities (the Vegas restaurant was the chain’s 32nd). Our first seven months in operation justified the deci-sion to come to Las Vegas.”

This time next year, Fashion Show could be in the midst of another ex-pansion. Shortly after Chicago-based General Growth Properties bought the mall (and the master-planned Sum-merlin community) from Columbia, Md.-based The Rouse Co., for $12.6 billion in November, a company offi-cial announced plans to seriously look at future growth and opportunities. They include possibly building residen-tial towers, a hotel or a casino.

Chupaila said he is excited, what-ever the future holds.

“Going forward, we’re going to con-tinue to re-merchandise the center ... success provides opportunities for more success,” he said. “We’re exploring the opportunity to expand vertically, but more immediately we’ll work on com-pleting the extension of Las Vegas pe-destrian bridge from Wynn Las Vegas.”


&By Lisa McQuerreyContributing writer

Zack Hussain, an associate with CB Richard Ellis, focuses on retail tenant and landlord representation. Hussain, who joined CBRE in 2003, serves clients by understanding their crucial business needs and determining how their strate-gic business goals can be accomplished through their real estate objectives.

Hussain’s “single point of contact” service allows organizations the ease of conducting all of their real estate trans-actions globally form the central location of Las Vegas. He took a few minutes recently to discuss the market here.

What do you see as the prevailing influencers of today’s local commercial/retail market?

The major issues are scarcity of land and cost of land. Today developers have to reevaluate what is the best use for our limited resources, because gone are the days when you can just buy land and put in a strip center. With today’s conditions we have to look at putting the right product on a property.

What are the challenges associated with the prevalence of

mixed-use development?

Mixed-use is new to Las Vegas, but it’s not new to the rest of the country. It’s a complicated process. Retail has its own challenge, and now you’re mixing in office and residential and it becomes a totally different game. The District was the first local mixed-use project and now we’ve got a slew of incredible new projects coming online. We’re seeing much more complexity of design and use. The market has matured and that’s put confidence in national retailers.

In what way will the development of high-rise condos

impact the retail market?

Most, if not all of the high-rise con-do projects will have a retail component on the ground level to serve immedi-

ate retail needs. Retail with condo is a whole different type of retail because there’s a different demographic. Who lives in those condos will shape what type of retail goes in there.

Are rising land costs deterring retail development in any way?

I don’t think so. There are so many other factors here that encourage development. Retail is strong and retail is extremely underserved. Vegas is a dif-ferent animal. We’ll see another record breaking year for tourism, and that has a considerable impact. Las Vegas is mak-ing its mark as a shopping destination and that elevates the standards of retail.

Are we seeing much retail and commercial redevelopment in older

areas of the city?

Big box anchors are moving out of what used to be thriving commercial centers and developers are seeing the value in that land. They’ll bring in more mixed use projects. Vegas is always reinventing itself. Just a few years ago people were scared to put up com-mercial centers and now we’re seeing billions of dollars being invested. That confidence will continue growing.

What are the factors that continue attracting retail development to

Southern Nevada, in spite of rising land costs and a dwindling

availability of land?

The economy, our population explo-sion, job growth and tourism are a few. Las Vegas is changing from a town into a city and it’s truly becoming a wonderful city. Retailers are willing to pay higher rents because of the lack of competition.

What does the future of local re-tail and commercial development

look like?

Mixed use will define the future of Las Vegas’ retail market. We’ve got Town Square, East Village, St. Rose and Seven

Hills, the northwest and Tropicana and Paradise, the Harmon Corridor. The southwest Beltway will see an explosion of commercial development. Also Blue Diamond and Industrial, the north and northwest. North Las Vegas is the hot-test area with the lowest vacancy rate right now. High rise condos will change the way tourists and locals interact and we’ll see more open-air community services. Our market will continue to mature and we’ll see more complex, quality projects. Developers are looking to create a legacy. We’re going back to square one — old school. What do we do with our remaining resources? We’re not just making stucco boxes.

QAwith Zack Hussain


By Deborah RoushContributing writer

Cary Andrews, 38, of Little Rock, Ark., is “tagging along” with her husband later this month when he is here for a

business convention. A first-time visitor, tops on her list of places to see is the Fo-rum Shops at Caesars.

“I’m looking forward to the fun and excitement of Las Vegas and a friend told me about Forum Shops so I looked them

up on the Internet,” Andrews said. “I’m going to shop for brand names we don’t have in Little Rock — like Kate Spade. I heard they recently added one of her stores.”

Andrews will be one of more than

18 million people this year to visit Si-mon Property Group’s Forum Shops, the most successful shopping center in the United States offering luxury retail

Expansion keeps Forum Shops atop the list of ‘Most Successful Malls’

See FORUM, Page 11A


and restaurants. According to Stacey Szluki, a spokes-

person for the International Council of Shopping Centers, the national average of sales per square foot for enclosed shopping malls was $366 in 2004.

At the 685,000-square-foot Forum Shops it was about four times that, said Maureen Crampton, the mall’s market-

ing director.“We reported just over $1,400 per

square foot in the year ending 2004 and the latest report for March shows that the annualized figure per square foot this year is up to $1,453,” she said.

Crampton credits the 175,000-sqa-re-foot, three-level expansion the mall completed late last year with part of that success. “You would have thought that by adding the square footage we would

FORUMFrom Page 10A

See FORUM, Page 12A


have diluted our numbers, bringing them down. But we brought in some great per-formers with the expansion and it has strengthened (our performance),” she said.

The third expansion since it opened in 1992, this latest construction included

the addition of 60 upscale specialty retail tenants and several new restaurants. The classic Roman architecture that Caesars is recognized for is continued in the ex-pansion, which now also boasts a pedes-trian plaza and signature entrance on Las Vegas Boulevard.

When the most recent expansion plans were announced in early 2003, Crampton said there was a waiting list of retailers looking for space. “We were in an enviable position based on the strength of our successes that so many retailers came to us, including many international (companies),” she said.

“Our leasing experts did pursue some retailers ... but it was in catego-ries where we would try to fill a void,” she added.

Many of the shops that moved in are new to Las Vegas or to the United States. Playboy, for example, that pre-viously only had stores in Hawaii and Europe, now promotes a new ready-to-

wear line of clothing at its new store at The Forum Shops.

Juicy Couture, which formerly sold product solely within department stores, branched out with its first free-standing, independent shop at The Forum Shops. “I just talked to a representative from Juicy and their product is so hot, and with the influx of the tourists and their name recognition around the world,

they can’t keep inventory in the store,” Crampton said.

Other stores, like Victoria Secret, Louis Vuitton and high-end watch re-tailer Tourneau, expanded the presence they already had at the luxury mall.

“Victoria Secret now has a wonder-fully large space with different boutiques within the store. One boutique focuses on bridal lingerie. It’s interesting to see how retailers reinvent or remarket them-selves to fill the need here, like Las Ve-gas and the wedding thing,” she added.

Louis Vuitton has tripled in size, opening its new Global Store with a full range of product lines and Tourneau in-creased in size from 1,036 square feet to 13,410 square feet.

Who’s shopping at these new and bigger stores? The same customers who loved the old ones.

Eighty percent of shoppers are tour-ists, according to Crampton. “Our cus-tomer base is so influenced by the in-

ternational customer; the top three are the Pacific Rim or Far East customer, the Latin American customer and then the UK customer. All of them have such large disposable incomes and they come to Las Vegas to spend it,” she said.

Of the 20 percent of locals who shop at The Forum Shops, most are re-peat customers. “And our average per-son spends about 120 minutes here. Our entertainment features, like the Festival Fountain and Atlantis show, are so im-portant. People will stop to see them then grab something to eat afterward. Or shop while they wait for a show,” she said.

And so many celebrities shop at the Forum Shops the marketing department distributes a list of who has been spotted at the mall on the back page of its in-house newsletter. Recent sightings include Robert Du-val, Bill Clinton and fighter “Sugar” Shane Mosley.

“Our stores are very savvy to the needs of a celebrity; they’ll be brought in or taken out through a back door and we’ll bring additional security in,” she said.

To attract more shoppers, The Fo-rum Shops targets its audience primari-ly in tourist publications, in hotel rooms, at the airport and through airline maga-zines. “We have travel and tourism rela-tionships abroad,” Crampton said.

And she doesn’t worry too much about the competition.

“I think with the existing shopping venues that are represented in Las Ve-

gas and particularly on Las Vegas Bou-levard there is a strong camaraderie between us,” she said.

“For example, when the Bellagio shops opened it increased our sales and traffic. The pedestrian bridge walkways are wonderful. And then Venetian’s Grand Canal Shoppes — they’re so close and they have things that we don’t’ have and (vice versa.) But it strengthens the retail perspec-tive here that is so key,” she said.

“Now one of the top three things reasons people visit Las Vegas for is shopping,” she added.

Crampton also credits the Las Ve-gas Convention and Visitors Authority of doing “a phenomenal job” promot-ing Las Vegas as a destination.

“You can come here and have a great three-day weekend and get away from it all — let your worries go by the wayside. You can dine at a res-taurant owned by a world-renowned chef and go to the Strip to make a purchase of something you might not have in your hometown. That’s what they market,” she said.

Crampton said there are no plans for another expansion at The Forum Shops, although there is land avail-able that would allow it. So where do they go from here?

“We can’t rest on our laurels from a marketing perspective,” she said. “This is such an active market. We have to be fresh and have a presence with our audience, which changes on average of every three days.”

FORUMFrom Page 11A


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Shopping Center DefinitionsThe term “shopping center” has

INTERNATIONAL COUNCIL OF SHOPPING CENTERS

The term “shopping center” has been evolving since the early 1950s. Industry nomenclature originally of-fered four basic terms: neighborhood, community, regional, and superregion-al centers. However, as the industry has matured, these four classifications are no longer adequate. To remove some of the ambiguity and accom-modate new shopping center formats, The International Council of Shopping Centers has defined eight principal shopping center types.

The definitions, and in particular the table, are meant to be guidelines for understanding major differences between the basic types of shopping centers. Several categories shown in the table, such as size, number of anchors, and trade area, should be in-terpreted as “typical” for each center type. They are not meant to encompass the operating characteristics of every center. As a general rule, the main de-terminants in classifying a center are its merchandise orientation (types of goods/services sold) and its size.

It is not always possible to precise-ly classify every center. Some centers are hybrids, combining elements from two or more basic classifications. Al-ternatively, a center’s concept may be sufficiently unusual as to preclude it from fitting into one of the eight gener-alized definitions presented here, and may ultimately lead to a new category as the industry continues to evolve.

Some types of centers are not sepa-rately defined here but nonetheless are a part of the industry. These can be considered subsegments of one of the larger, defined groups, perhaps created to satisfy a particular niche market.

BASIC DESIGN CONFIGURATIONS

Mall: The most common design mode for regional and superregional centers is often referred to as a “shop-ping mall.” The walkway or “mall” is typically enclosed, climate-controlled and lighted, flanked on one or both sides by storefronts and entrances. On-site parking, usually provided around the perimeter of the center, may be surface or structured.

Open-Air Center: An attached row of stores or service outlets man-aged as a unit, with on-site parking usu-ally located in front of the stores with common areas that are not enclosed, is often referred to as an “open-air center.” Open canopies may connect the storefronts, but an open-air cen-ter does not have enclosed walkways linking the stores. The most common

variations of this configuration are lin-

ear, L-shaped, U-shaped, Z-shaped, or cluster. The linear form is often used in neighborhood and community cen-ters. The cluster form and its variations have lent themselves to the emergence of new classes of centers such as the lifestyle center, in which the physical layout and open feel are differentiat-ing features. Historically, the open-air configuration has been referred to as a “strip center,” though the strip cen-ter got its name from the linear form, where stores sit side-by-side in a long and narrow row of stores.

Hybrid Center: A center that

combines elements from two or more

of the main shopping center types. Common hybrids include value-orient-ed mega-malls (combining mall, power center, and outlet elements), power-lifestyle centers (combining power center and lifestyle center elements), and entertainment-retail centers (com-bining retail uses with megaplex movie theaters, theme restaurants, and other entertainment uses).

SHOPPING CENTER TYPES MALLS

Regional Center: This center

type provides general merchandise (a large percentage of which is apparel) and services in full depth and variety. Its main attraction is the combination of anchors, which may be traditional, mass merchant, discount, or fashion department stores, with numerous fashion-oriented specialty stores. A typical regional center is usually en-closed with an inward orientation of the stores connected by a common walkway. Parking surrounds the out-side perimeter.

Superregional Center: Similar to a regional center, but because of its larg-er size, a superregional center has more anchors, a deeper selection of merchan-dise, and draws from a larger population base. As with regional centers, the typi-

INTERNATIONAL COUNCIL OF SHOPPING CENTERS

See DEFINITIONS Page 14A


cal configuration is an enclosed mall, frequently with multilevels. Parking may also be structured to accommodate the sheer size of the center.

OPEN-AIR CENTERS

Neighborhood Center: This cen-ter is designed to provide convenience shopping for the day-to-day needs of consumers in the immediate neigh-borhood. According to ICSC’s SCORE publication, roughly a supermarket anchors half of these centers, while about a third have a drugstore an-chor. Stores offering drugs, sundries, snacks and personal services support these anchors. A neighborhood cen-ter is usually configured as a straight-line strip with no enclosed walkway or mall area and parking in the front. Centers may have a canopy or other façade treatment to provide shade and protection from inclement weather, or to tie the center together.

Community Center: A com-munity center typically offers a wider range of apparel and other soft goods than the neighborhood center. Among the more common anchors are super-markets, super drugstores, and dis-count department stores. Community

center tenants sometimes contain val-ue oriented big-box category-dominant retailers selling such items as apparel, home improvement/ furnishings, toys, electronics or sporting goods.

The center is usually configured in a straight line as a strip, or may be laid out in an L or U shape, depending on the site and design. Of the eight center types, community centers encompass the widest range of formats. For exam-ple, certain centers that are anchored by a large discount department store often have a discount focus. Others with a high percentage of square foot-age allocated to off-price retailers can be termed off-price centers.

Power Center: A center dominat-ed by several large anchors, including discount department stores, off-price stores, warehouse clubs, or “category killers,” i.e., stores that offer a vast se-lection in related merchandise catego-ries at very competitive retail prices. The center typically consists of sev-eral anchors, some of which may be freestanding (unconnected) and only a minimum amount of small specialty tenants.

Theme/Festival Center: These centers typically employ a unifying theme that is carried out by the in-dividual shops in their architectural design and, to an extent, in their mer-chandise. Entertainment is often a common element of such centers, al-

though it may come in the shopping experience as much as in the tenants themselves. These centers are often targeted to tourists, but may also at-tract local customers who might be drawn by the center’s unique nature. Restaurants and entertainment facili-ties may anchor theme/festival cen-ters. Generally located in urban areas, they are often adapted from older, sometimes historic, buildings, and can be part of mixed-use projects.

Outlet Center: This center type consists of manufacturers’ and retail-ers’ outlet stores selling brand-name goods at a discount. These centers are typically not anchored, although certain brand-name stores may serve as “magnet” tenants. The majority of outlet centers are open-air, configured either in a strip or as a village cluster, although some are enclosed.

Lifestyle Center: Most often located near affluent residential neighborhoods, this center type ca-ters to the retail needs and “lifestyle” pursuits of consumers in its trading area. It has an open-air configuration and typically includes at least 50,000 square feet of retail space occupied by upscale national chain specialty stores. Other elements differentiate the lifestyle center in its role as a multi-purpose leisure-time destination, including restaurants, entertainment, and design ambience and amenities such as fountains and street furniture that are conducive to casual browsing. These centers may be anchored by one or more conventional or fashion specialty department stores.

Shopping Center Definitons

DEFINITIONSFrom Page 13A

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IN BUSINESS LAS VEGAS | 19AMAY 20, 2005 ICSCS&QABy Lisa McQuerreyContributing writer

Kit Graski has his fingers firmly on the pulse of the Southern Nevada com-mercial and retail markets. Graski, se-nior vice president of Voit Commercial, has more than 20 years of experience in the local commercial real estate bro-kerage industry, having quarterbacked numerous significant transactions. One of Voit’s top local producers, Graski currently leads a team that specializes in client representation, development services, investment resources, and land and pad sales.

He has been responsible for the sale and leasing of properties throughout Southern Nevada, in-cluding Hualapai Commons, Rain-bow Promenade and Red Rock Com-mercial Center, among others. He recently offered his insight as to the

state of the local commercial and re-tail markets.

What are the current development trends in the local market?

The first thing is that land values are increasing and we’re seeing land values increase because the residential developers are buying up a lot of the commercial land. Basically, what’s hap-pened in the last six months to a year is because of the increase in housing prices residential developers have been able to pay more for land, and that has allowed them to look at commer-cial pieces of property that were out of their range previously and be able to purchase those properties. So that has taken a lot of commercial properties off the market as commercial. As for the remaining commercial properties, the sellers are asking more for them.

How is this trend affecting the local market?

It’s good for landowners who are holding the remaining commercial pieces. I think it’s bad for retailers and retail developers because they have to pay so much more for land and there are fewer pieces available. It’s also bad for the retail tenant who has to work within a certain perimeter based on sales—they can only pay so much for land based on the amount of sales they can do and they may not be able to find as many locations as they would like.

What will this effect retail development?

I would think we’re going to see fewer retail developments based on higher land values and the availability

See GRASKI, Page 20A

with Kit Graski

20A | IN BUSINESS LAS VEGAS MAY 20, 2005ICSCSGRASKIFrom Page 19A

of land.

Are other trends apparent in the local market?

Obviously, we’re seeing a rush of retailers trying to get to the outer Belt-way. We’ve already seen quite a lot of that. We’re also seeing projects locate outside the Beltway.

What precipitated this trend?

Since the outer Beltway has opened it has allowed people to select their residences because now they can ac-cess them so we’ve had a lot of housing growth. And the retailers are following those residences. Retail always follows rooftops.

Which areas of the valley are experi-encing the most activity?

In terms of quadrants, we’re see-ing retail in the southwest and north-west because of the explosive housing growth. There’s big waves in the south-west where power centers are being developed so what’s happening is that those power centers go under construc-tion and suck up all the tenants. If Cir-cuit City and Best Buy come in you won’t see any more big centers in that area for three to five years, although you’ll still see grocery stores and those kinds of things going in. Then you have

to wait for more housing growth. So the answer is that you’ll see a power center shift.

Are there new demands in develop-ment such as the trend toward mixed-use projects?

The District (at Green Valley Ranch) has been developed where you’ve got some condos over top of re-tail. Other mixed-use projects are being proposed but I don’t think anybody has broken ground. Because of high land values people are looking at different ways to mix retail with different types of uses in order to afford the land. I think retailers now have different ven-ues they can look at and so instead of looking at standard retail centers that sit on the corner and it’s just retail they could be looking at retail under condos and retail under offices.

What are the advantages to the retail-er for mixed-use development?

They may have a built-in customer if it’s in the same development with of-fice. If it’s a coffee shop, for example, they may have built-in customers in the morning. If it’s a sandwich shop and they have condos in the development the person going home to their condo may pick up a sandwich for dinner. The disadvantage is that you may see small-er retailer developments and smaller portions in mixed-use, and you may see pods of retailers spread across dif-

ferent sections. You may have mixed-use condos with 20,000 square feet of shops and up the street mixed-use office with 20,000 square feet. What might be normal is whole the 40,000 square feet sitting on one corner. Is that good for retailers? I don’t know. I think in big cities it’s good because we have denser populations. People like to walk places in highly congested areas versus sitting in car for 20 minutes to go one mile.

Who are the major retail developers in the valley?

You have Laurich Properties, Tri-ple Five Development, Territory Inc., General Growth, which purchased the Howard Hughes Corp., Weingarten and American Nevada Corp., to name a few. Most of these guys are develop-ing everything from power centers to neighborhood grocery-anchored cen-ters. All of them have a local presence, which gives them the ability to act quicker and by being here they’re able to better understand the market. The unique thing about our local market is it moves incredible quick and so you have to have the ability to be able to react quickly—having a local presence gives you that ability.

Who are the major retail tenants in the valley?

The tenant that is the most active is Wal-Mart in developing not only their

superstores but also their neighbor-hood grocery stores. There are a dozen such stores proposed, under construc-tion or open in the valley. With other grocery stores like Albertson’s and Smith’s there’s nothing phenomenal. They haven’t slowed their pace and are keeping up with growth. As for other big box guys kicking it out of the park, Home Goods has recently opened two stores and is working on securing more locations. We’re just seeing a lot of ex-pansion by everybody who is trying to locate in the next wave of power cen-ters. The larger box guys like to huddle together and create synergy between themselves.

Any predictions for the future?

I think we’re going to see more retail development within a mixed-use environment.

What projects are you currently representing?

Among the larger projects I’m working on is the Arroyo Market Square at the I-215 Beltway and Rain-bow Boulevard. It’s being co-developed by Laurich Properties and EJM De-velopment. It is 900,000-square-foot upscale power center that will include discount retailers, home improvement, electronics, linens, clothing and sport-ing goods, just to name a few. We hope to break ground late in 2005 with com-pletion late 2006 or early 2007.

IN BUSINESS LAS VEGAS | 21AMAY 20, 2005 ICSCSBy Danielle BirkinContributing writer

Mark Advent, creator of New York-New York hotel-casino, is helping to bring a bit more of the Big Apple to Las Vegas.

Advent, chairman of ACV Interna-tional, is the visionary behind East Vil-lage, a 1.7 million-square-foot mixed-use project bring planned for 44.35 acres of largely undeveloped land on the north-west corner of Tropicana Boulevard and Paradise Road across from McCarran International Airport.

The multi-story urban lifestyle cen-ter, which was inspired by New York City’s eclectic and energetic East Vil-lage, will feature:• 700,000 square feet of retail and

entertainment space, including an array of restaurants, coffee shops and bakeries, and retailers specializ-ing in home furnishing, electronics, clothing and other goods;

• 250,000 square feet of loft-style of-fices with a day spa and fitness cen-ter;

• 73,000 square feet of banquet and meeting space;

• movie theaters and a performing arts venue;

• a nightclub district; and• 4,500 parking spaces, all situated in a

pedestrian-friendly environment with exterior promenades, cobblestone streets and a festive marketplace.

The project, which carries a

$225 million price tag, will also in-clude a 16,000-square-foot McCar-ran off-site airport check-in facility and potentially a world-renowned culinary institute. It may ultimately connect with the Las Vegas Mono-rail system.

Advent’s company, ACV Interna-tional, has partnered with Phoenix-based Axon Capital and RJM Devel-opment of Las Vegas to acquire the leasehold interest in the property from Phoenix-based ILX Resorts Inc. The local office of CB Richard Ellis has been engaged as the leas-ing agent and the project architect is Seattle-based Callison Architec-ture. Financing for the leasehold purchase and working capital for the

predevelopment of the project were provided by Canyon Capital Realty Advisors of Beverly Hills, Calif.

Currently in the preconstruction phase, Advent anticipates ground break-ing on the project in March 2006 with an opening date in mid-2007.

“We had been eyeing potential sites to do a retail entertainment village for a number of years and came across the 44 acres and thought it was a AAA loca-tion situated to the gateway to Las Ve-gas,” Advent said, majority shareholder in East Village Partners. “So what we wanted to do was create the character — the look, the feel — of neighborhood and flavored it with the indicative style

Big Plans for East Village

See BIG PLANS, Page 22A


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and spirit of what you would find in the east Village of New York City.”

A native of Cleveland who has a resi-dence in New York City, Advent believes Las Vegas is lacking a traditional neigh-borhood atmosphere, a void he hopes East Village will help to fill.

“Because Las Vegas is such a fast-growing city with hundreds of thousands of people who have been transplanted here from all over the country, I sensed there was a lack of a real neighborhood environment where the pedestrian expe-rience is as important as the retail expe-rience,” he said. “Having spent a lot of time on the East Coast and in Europe one of the things I missed most was not having the opportunity to stroll around in the evening and go from great res-taurant to walk over to a pastry store to have pastry and a cup of coffee and then maybe walk over to a theater or a pub for some jazz music. East Village is re-ally different from anything else in the market today or anything coming in the foreseeable future. Finally, Las Vegaswill have a real neighborhood.”

Jonathan Roth, principal of Canyon Capital Realty Advisors, expressed a sim-ilar sentiment.

“There has been a remarkably short supply of neighborhood-serving retail created amidst Las Vegas’ explosive growth in homebuilding and the continu-ing expansion of resorts on the Strip,” Roth stated. “East Village presents a tre-mendous opportunity to cater to Las Ve-gas residents and tourists, and Canyon is pleased to help finance this project.”

Indeed, according to Advent, “East Village is ideally situated to attract all types of people, from resort and casino employees who live near their jobs, to UNLV students and convention-goers landing in or leaving Las Vegas,” he said, adding that the proposed state-of-the art airport check-in facility baggage drop-off center and the Monorail connection may represent a significant boon to the project. “East Village could become your first and last stop to and from McCarran International.”

Although the project is intended to be pedestrian-friendly, visitors to East Village can nonetheless drive up to their favorite restaurant and park. Mounted police will serve as security for the East Village, which will also offer amenities rarely found in Southern Nevada, such as horse and carriage rides.

Zack Hussain, the lead leasing agent with CB Richard Ellis, said few projects of such magnitude are being constructed in Las Vegas, a city whose retail centers tend to revolve around Wal-Mart Super-centers and Target stores.

“With more economic growth and population growth and with The District (at Green Valley Ranch) the retail market has matured and retailers are more con-

fident with Las Vegas so we are seeing developers looking at putting more high-end on the market,” Hussain said, adding that the valley is becoming increasingly conducive to mixed-use projects. “We’re running out of land and prices have sky-rocketed, so mixed-use development just makes sense now.”

Another benefit?“The best thing about the Village

is that it’s not just going to be another typical mixed-use project,” he said. “East Village is going to be a unique com-munity destination for both locals and visitors alike because what we lack are open-air establishments (that can be ac-cessed) without having to travel through a smoke-filled casino, yet it’s still in the resort corridor. Uniquely themed, it’s go-ing to have an East Coast feel to it — re-laxed and high energy. New York and Las Vegas never sleep.”

Advent likes his vision.“The idea is to create a world-class

retail, entertainment, dining and of-fice experience that evokes a sense of place and a warm and familiar neigh-borhood setting,” he said. “From my point of view, that’s one of the things Las Vegas is lacking.”

Mark Advent

BIG PLANSFrom Page 21A


By Lisa McQuerreyContributing writer

&Q with Scot Marker

Scot Marker, vice president of the retail division at Colliers Interna-tional, has negotiated transactions as a tenant representative and marketed a variety of retail developments in the Las Vegas Market.

He is a member of the International Council of Shopping Centers (ICSC) and is on the Colliers International Steering Committee and Western Regional Retail Council. Marker has a bachelor’s degree in business administration from UNLV. He recently offered his view of the cur-rent market.

What do you think are the major factors impacting the local com-

mercial real estate market today?

Land values are having an impact. Development and construction costs are getting up there, and they’re substantial. The cost gets passed on to tenants in the form of higher rent, and that precipitates back to the consumer.

How does Las Vegas retail/commercial rent compare to other western cities of

similar size?

We’re on par with a city like Phoe-nix, though some of our newer areas may be a little higher. We’re comparable to some other cities in Southern Califor-nia, but we’re higher than Utah.

Are those higher rates impacting devel-opers’ willingness to build or expand in

this market?

Yes, it has impacted a few people. I was working with a restaurateur who was doing seven restaurants in Phoenix and they decided to pass on Las Vegas because it was too expensive. They were able to find other deals, such as more af-fordable land in more densely populated areas, which gives them a better return on their development.”

Since residential development drives commercial and retail development, do rising housing costs impact commercial

development in any way?

We’re still a deal compared to places like the Bay area. It (residential

housing) may be getting expensive, but it’s still a deal. Homebuilders I’ve spoken with are still going at a pretty good clip. Everyone talks about this ‘bubble.’ I think it’s a pretty resilient bubble, and I don’t think it will pop. In fact, as our market matures, it becomes less volatile.

With so many residential communi-ties being created valley-wide, how do

retailers make a decision about when to enter a particular area of the market?

Commercial growth is driven by our residential growth, and as residen-tial units get constructed, the need for services is created. With our rapid growth, residents sometimes go without services for some time – an example of that is Southern Highlands. You can’t build a 65,000 square-foot store and just hope people will come by. Their margins are very slim, they have to be able to do well from the day they open. It’s the same for restaurants and even fast food places. No one wants to be the first building in an area.

With more residential development projects going vertical, will we start

seeing an increase in mixed-use development at the bases?

I think we’ll see more amenities and sundries — coffee shops, dry cleaners, small grocers. Those projects work well in that type of environment.

Are you seeing any unusual trends in the commercial/retail sector right now?

I see homebuilders buying up indus-trial and retail land. I think that trend will continue.

What do developers find most enticing about the

Las Vegas market?

Our growth and our disposable income is what they love. What deters them is the perception of gaming. Some retailers see that as a strike against us, but those are people who haven’t done their homework. Gaming plays a big role in local job creation, but people are spending their money in local shopping centers. You may work in a casino, but you usually don’t

live, eat and shop in a casino.

Are developers concerned about our drought conditions?

The drought issue isn’t hurting us. The water authority is doing a great job of making everyone water conscious right now. Projects are planned in such a way that we’re seeing developers being conscious of our resources and not be-ing wasteful.

Is there a particular type of develop-ment that’s more prevalent right now?

Mostly service-relate industries, though we are seeing a trend of incom-ing furniture retailers. We’ll always be a hot spot for restaurants.

A


By Patty L. WalshContributing writer

As Las Vegas rapidly alters its structure from once scattered develop-ments to innovative and modern tech-niques such as high-rise luxury con-dominiums, Carina Homes is taking a different route that defies the “stuck in stucco” pattern of the past.

Following in the new-urbanism style precedent set by distinguished architect Peter Calthorpe, Carina is in the process of building the Village at Centennial Springs, set on 41 acres near U.S. 95 and Durango Drive on Farm Road and Tule Springs.

Approximately 24 acres (59 per-cent) are designated to residential ar-eas, with 17 acres (41 percent) set aside for commercial space. Of those 17 acres, approxi-mately 56,000 square feet is reserved for of-fice space, while an es-timated 50,000 square feet are being planned for retail space.

The idea of the Village at Centennial Springs is to incorpo-rate a unique blend of both residential neigh-

borhoods and reserve a section of the land for lofts and flats that reflect a

small town, “main street” setting, where residents and others can set-up small businesses and re-tail shop on the street level, with office space, flats or lofts on the top floor.

The land will be di-vided into three different parts, or districts, which will consist of Main Street, Town and Park District.

Main Street District

is primarily geared towards department and specialty stores. This is where most of the shopping activities will occur. To add to the eclectic environment, three different building facades will be used interchangeably: the Victorian (San Francisco style), Chicago brownstone and a Spanish style reminiscent of downtown Santa Barbara.

Adjacent to Main Street is Town District, which will include three differ-ent models of two- to three-story build-ings. Garages will be located behind the façade, so as to not disrupt the Chi-cago-type brownstone buildings. Town-

Village at Centennial Springs offers chance to work, shop near home

See VILLAGE, Page 25A

“People want

to be a part of

something, but

they still want to

express their

individuality.”


houses will range from 1,200 to 1,400 square feet.

Separating both districts is a ga-zebo that leads into the Park District. This area is primarily for residential living and features flexibility with several distinct plans adopted from Carina Homes’ successful Lamplight Homes series located in Green Valley, Coronado, Silverado Ranch, Summer-lin and the northwest part of the val-ley. The residential areas offer nine di-verse models of houses, ranging from 1,300 to 2,500 square feet.

Park District is not just any ordi-nary residential area, said Ken Beck-er, vice president of Carina Homes Corp.

For instance, the gazebo will be an entrance into a massive park that in-cludes a resort spa and fitness center, a recreational facility, a community pool, children’s playground, meeting rooms for neighborhood gatherings and other functions. It also has an amphitheater for concerts and per-formances that has a seating capacity pf 400 with sloped grounds for better viewing.

Additionally, streets will be lined with large trees. The plans call for 66-inch wide box trees, a step up from the traditional 24- or 36-inch boxes.

There will also be a special dedi-cation to the man that assisted in the creation of Las Vegas.

“The statue is actually dedicated to C.P. ‘Pop’ Squires, one of the people that was influential (in Las Vegas), who founded the first bank of Las Vegas,” Becker said. Squires not only assisted in drafting the charter for the city in 1910, but also established a hotel, real estate firm and lumberyard in 1905.

Becker said that The Village would appeal to a countless people.

“What we’re (Carina Homes) think-ing, is that you live here (in Park Dis-trict), walk to work over there (Main Street District), stopping first to get a latte or something, then you walk up to one of the sidewalk cafes or you can bring your bagged lunch over to the park, and then you can pick up your cleaning downtown and walk home, never putting your key in the ignition,” Becker said.

He also said that everything is prac-tically within two blocks of walking, but that people can drive and park along Main Street.

Park District has about 250 homes. There are nine separate architectural styles from which to choose, includ-ing American Traditional, Craftsman, French Country, Spanish Colonial, Key West and Western Contemporary.There is a wide range in homes prices. They include:• Lamplight Gardens priced in the

mid $200s;• Lamplight Cottages from the high

$200s;

•

Lamplight Square beginning in the low $400s; and

• Lamplight Glen, which starts from the mid $600,000 range.

Homeowners have the option of five color schemes for the property, and each house has a front porch. Lamplight Glen houses has the option of a guesthouse that would be on top of a detached garage.

Becker insists that there is no real target audience at Centennial Springs because of the wide variety of individ-uals who have shown interest.

“Demographics don’t drive our buyer,” Becker said. “What does is that we are attentive to the way they feel about things. It’s a much more ‘can’t get your arms around it’ kind of deal than just a number.”

Furthermore, Becker maintains that the Village offers something that other developments seem to lack.

“Our demographics are all over the map, but almost to a person when they walk into one of our communities they go, ‘wow, this feels like home,’ ” he said. “Because, no matter where you came from, there’s an architectural style that you probably had in your hometown.

“People want to be a part of some-thing, but they still want to express their individuality.”

Becker said that more than 1,000 people have shown interest in the resi-dential aspect of the Village, and that Carina Homes has received 15 letters of intent for lofts, flats and retail/busi-ness space.

While a completion date hasn’t been set, the Village’s grand opening plans are underway to expedite the process. Becker expects to obtain a trailer sales permit for the by July 1, with building to commence in Novem-ber. As for the finished product, Becker said he is optimistic that the Village will open its gates in late January 2006.

VILLAGEFrom Page 24A “Our

demographics

are all over the map,

but almost to a person

when they walk into

one of our communities

they go, ‘wow, this feels

like home. Because, no

matter where you came

from, there’s an

architectural style that

you probably had in

your hometown.”


By Patty L. WalshContributing writer

Shortly after celebrating its first anniversary, representatives of The Dis-trict at Green Valley Ranch announced development plans for a second phase.

The District, located near the southwest corner of I-215 and Green Valley Parkway in Henderson, currently contains 400,000 square feet of mixed-use shopping center space, a metropol-itan-like atmosphere with 88 loft and flat units and office space over retail establishments. Fifty refined shops and restaurants line the “main street.” Street performers and entertainment are pres-ent on select days.

The lofts range from 900 to 1,750 square feet, with prices running from $350,000 to $1 million. All but four have been purchased.

American Nevada Company, a Greenspun-owned company, built the District.

Since its grand opening in April 2004, The District has achieved an ex-cellent response from the community and pedestrian traffic has reached suc-cessful proportions, according to John Kilduff, president of ANC.

“Phase one has met with a lot of success, and since we have the prop-erty adjacent to it, we’re just continu-ing that same theme,” Kilduff said. “The intent is that phase two is just a continuation of The District. The archi-tecture and the street palette will be almost identical to what we did in the first phase.”

Construction of phase two is oc-curring on a 20-acre parcel of land on the southeast corner of I-215 and Green Valley Parkway. In the works are six buildings, which will contain about 104,500 square feet of lifestyle-retail product. Similar to phase one, lofts will again be built above businesses. Ad-ditionally, there will be 51,300 square feet of office-above-retail space.

The types of businesses and retail establishments are still being decided.

“The types of shops being lifestyle-retail tenants are similar to those in the first phase,” Kilduff said. “We would expect that everyone considers the both phases to be known as one proj-ect — The District — and that people would be back and forth between the two phases without really distinguish-ing one from the other.”

Two tenants have already signed on for the expansion: The Cheesecake Factory and Whole Foods Market.

The Cheesecake Factory is a pol-ished yet informal restaurant, while

Whole Foods Market is the leading international retailer of organic and natural foods. The Cheesecake Factory is scheduled to open in August, while Whole Foods Market, along with other

retail tenants is aiming for the first quarter of 2006.

“Under construction now is the re-

Success at

The District leads to expansion plans

See DISTRICT, Page 27A


Success at

The District leads to expansion plans

tail shops on the ground floor, and then two levels of office above-retail on two of the six buildings,” Kildff said. “And that counts for 20 acres of that site. The other 20 acres we are studying whether or not we should go in and get the zoning changed, to allow us to build residential products.”

“Within the next couple of

months, we ought to be in a position to have reached an agreement with the city, and also have started the architecture, but we are not to that point yet,” Kilduff said.

In similar fashion to phase one, the project will be set on a “street setting.” A tram will be provided during business hours for custom-ers and will be used to shuttle shop-pers back and forth between the two phases.

Phase two will include a public

plaza, which will act as a venue for outdoor events, concerts and a spot for socializing, Kilduff said.

“Unique and relaxing, this plaza will create the distinctive feel of an east coast urban park, with mature trees, lush plantings, ample seating and lawn-covered spaces,” he said.

In phase one, businesses continue to flourish — including at the popular Elephant Bar restaurant.

“Sales volumes just continue to escalate month by month, and we’ve

done quite well since opening just over a year ago,” said Ken Johnson, an op-erations partner with Elephant Bar.

Lucille’s Barbeque, another suc-cessful restaurant there, has profited from the first phase of The District as well.

“We don’t do any kind of adver-tising, so the foot traffic and warm weather has been helping us out as well,” said David Hayes, the restau-rant’s general manager. “More people smell our smoke and come down.”

DISTRICTFrom Page 26A

28A | IN BUSINESS LAS VEGAS MAY 20, 2005ICSCSAccrued depreciation: The actual depreciation of a property at a given date; the difference between the cost of replacement as of the date of appraisal and the present appraised market value.

Actual cash value: The price property will bring in a fair market, after fair and reasonable efforts have been made to find the purchaser who will give the highest price. Also called fair cash value.

Amortization: The process of recovering, over a stated period of time, a capital investment; the provision for the gradual liquidation of an obligation, usually by equal payments at regular intervals over aspecific period of time.

Arbitrage: Buying in one market while selling simultaneously in another to make a profit (minus transaction costs).

Capitalization: The process of converting into a present value (obtaining present worth of) a series of anticipated future annual installments of income.

Capitalization rate: The rate used to convert income into value.

Compound interest: The interest on interest; interest

earned during a given period is added to the principal and included in the next period’s interest calculation.

Consumer price index: Various statistical indexes gathered and published by the U.S. federal government as economic indicators.

Cost approach: A method in which the value of a property is derived by estimating the replacement cost of the improvements, deducting the estimated depreciation, and adding the value of the land, as estimated by use of the market data approach.

Creative financing: Any financing arrangement other than a traditional mortgage from a third-party lending institution.

Debt service: The payments consisting of amortization and interest on a loan.

Depreciation: A loss from the upper limit of value caused by deterioration and/or obsolescence.

Discount rate: An interest rate commensurate with perceived risk; used to convert future payments or receipts to present value.

DOWNREIT: Similar to an UPREIT, with the difference lying in asset holdings. Most of a DOWNREIT’s holdings are in property, whereas with UPREITs assets lie in Operating Partnership Units.

Equity: The net value of a property, obtained by subtracting from its total value all liens and other charges against it. The term is frequently applied to the value of the owner’s (as opposed to the lender’s) interest in property in excess of all claims and liens.

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Common Real Estate Finance TermsINTERNATIONAL COUNCIL OF SHOPPING CENTERS

See TERMS, Page 29A


SFunds from operations: Net income, excluding gains (or losses) from debt restructuring and sales of property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect funds from operations on the same basis.

Income approach: An appraisal technique in which the anticipated net income is processed to indicate the capital amount of the investment that produces it.

Leverage: The use of borrowed funds to complete an investment transaction. The higher the proportion of borrowed funds used to make the investment, the higher the leverage and the lower the proportion of equity funds.

Market sales approach: An appraisal technique in which the market value estimate is predicated upon prices paid in actual market transactions and current listings.

Market value: The price to expect if a reasonable

time is allowed to find a purchaser and if both seller and prospective buyer are fully informed. Market value connotes what a property is actually worth and for what market price it might sell.

Mortgage constant: The total annual payment of principal and interest (annual debt service) on a level-payment amortized mortgage, expressed as a percentage of the initial principal amount of the loan. Multiple percentage rates: A lease agreement in which the percentage rent rate changes at various increments of sales.

Net operating income: The income after deducting from gross income the operating expenses, including property taxes; insurance; utilities; management fees; heating and cooling expenses; repairs and maintenance; and replacement of equipment.

Operating expenses: Generally speaking, all expenses, occurring periodically, that are

necessary to produce

net income before depreciation. Under some

conditions these expenses are placed in two categories: operating expenses and fixed charges.

Recapture rate: The annual rate at which capital investment is returned to an investor over a specified period of time; the annual amount, apart from interest or return on interest (compound interest), that can be recaptured from an investment. Also called capital recovery rate. Real estate investment trust (REIT): A company dedicated to owning and, in most cases, operating income-producing real estate, such as apartments, shopping

centers, offices and warehouses. Some REITs are also engaged in financing real estate. To be a REIT,

a company is legally required to pay virtually all of its taxable income (95%) to its shareholders every year.

Time value of money: The concept underlying compound interest: that a dollar received today is worth more than a dollar in the future,

due to opportunity, cost, inflation and certainty of payment.

UPREIT: In the typical umbrella partnership real estate investment trust (UPREIT), the partners of an existing partnership and a newly formed REIT become partners in a new partnership termed the operating partnership. For their respective interests in the operating partnership (units), the partners contribute the properties from the existing partnership and the REIT contributes the cash proceeds from its public offering. The REIT typically is the general partner and majority owner of the operating partnership units.

Sources: ICSC, NAREIT, “Barron’s Dictionary of Real Estate Terms.”S TERMS

From Page 26A

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ICSC’s goal is to help members develop their businesses through ed-ucation, research, information, deal making and action on legislation and regulation. As a member-driven asso-ciation, ICSC offers a chance for you to lead the way through committee participation in virtually any area or program activity.

REGULAR MEMBERSHIP $800 annually

If your company is already a mem-

ber, please go to instruc-tions for Affiliate Mem-bership. You are eligible

for Regular Membership if your com-pany is engaged in the development, ownership or management of shop-ping centers, is engaged in business as a merchant located in a shopping center or is engaged in business as a lending institution that provides equi-ty, interim or permanent financing of shopping centers from its own funds. Each Regular Member company desig-nates one person to act as its Official Member. An ICSC Member Sponsor

is required on all Regular Member applications. Only Regular Members have voting privileges or may hold of-fice in ICSC.

ASSOCIATE MEMBERSHIP $800 annually If your company is already a

member, please go to instructions for Affiliate Membership. You are eligible for Associate Membership if your com-pany is engaged in a trade, profession or industry allied to the shopping cen-ter field (i.e., leasing agents, lawyers, mortgage brokers, architects, contrac-tors, suppliers, promotion, advertising and public relations agencies, and merchants associations located in shopping centers). Each Associate Member company designates the per-son to act as its Official Member. An ICSC Member Sponsor is required on all Associate Member applications.

AFFILIATE MEMBERSHIP$100 annuallyYou are eligible for Affiliate

Membership if you are employed by a Regular or Associate Member, or are an officer of a merchant associa-tion located in a shopping center of a Regular Member. You must be direct-ly associated with a member firm and your company title must be consis-tent with that of your Regular or As-

sociate Member. You cannot become eligible through a subsidiary or com-monly owned company. Applicants for Affiliate Membership are required to include the signature of the company’s Official Member on their applications.

PUBLIC/ACADEMIC MEMBERSHIP $100 annuallyThis category of membership is

open to any government entity and any appointed or elected public offi-cial at the city, state or national level. Also eligible are educators with a rec-ognized college, university or educa-tional institution and any such institu-tion. Each Public/Academic Member entity designates one person to act as its Official Member.

PUBLIC/ACADEMIC AFFILIATE MEMBERSHIP $50 annuallyYou are eligible for Public/Aca-

demic Affiliate Membership if you are employed by a Public/Academic Member. You must be directly asso-ciated with a member firm and your title must be consistent with that of your Public/ Academic Member. Ap-plicants for Public/Academic Affiliate Membership are required to include the signature of the company’s Offi-

cial Member.

icscMembership Information

SMembership Information


SThe Spouse Program is intended for spouses and companions of ICSC Convention attendees. Registered spous-es and companions are welcome to at-tend sessions, meal functions and the Leasing Mall, as well as all Spouse Pro-gram events.

This year’s program offers a variety of activities including contemporary ex-ercise, crafts, fashion and art. Transpor-tation to all Spouse Program events will depart from and return to the Las Vegas Convention Center. Badges can be vali-dated in Las Vegas at any of the Satellite Badge Validation Centers or at the Las Vegas Convention Center.

The Spouse Program hospitality lounge will be located at the Las Vegas Convention Center in Room N263 on the second level and will be open during the following hours:

Saturday, May 21 10: a.m.-4 p.m.Sunday, May 22 9 a.m.-4 p.m.Monday, May 23 7 a.m.-6 p.m.Tuesday, May 24 7 a.m.-6 p.m. Wednesday, May 25 9 a.m.-Noon

SATURDAY, MAY 2110 a.m.-4 p.m.: Registration and hospitality lounge

SUNDAY, MAY 229 a.m.-4 p.m.: Registration and hospi-

tality lounge MONDAY, MAY 237 a.m.-6 p.m.: Registration and hospitality lounge9-10: a.m.: Pilates at Canyon Ranch Spa (Venetian). Pilates focuses on building a healthy, injury-free body by encouraging controlled and concentrated movement. It centers the body with breathing aware-ness while maintaining dynamic spiral stabilization. Pilates is a full body-condi-tioning program compromised of a series of designed movements performed on a mat and specific apparatus. Pilates im-proves strength, flexibility, balance, con-trol and muscular symmetry. Noon-4 p.m.: Lunch at Zefferino Ris-torante and tour of Guggenheim Hermit-age Museum, Venetian. The afternoon begins with lunch at Zefferino Ristorante where you’ll enjoy award-winning Italian cuisine prepared by Chef Gian Paulo, who imports many of his ingredients directly from Italy and offers an array of tradi-tional Italian foods. Everything, from its views of gondolas passing by in the Grand Canal to its handcrafted Italian bar to its wine cases to its furniture makes dining at Zefferino an elegant and authentic Ve-netian experience. After lunch, tour the Guggenheim Hermitage Museum’s cur-rent exhibition, The Pursuit of Pleasure. Drawn from the rich holdings of three of the world’s great museums, The Pursuit

of Pleasure explores images of leisure in Western art from the 16th century to the early 20th century. The exhibition is orga-nized into four thematic sections: music and dance, celebration and café society, flirtation and romance, and gaming and sport, as represented in 37 works by art-ists as diverse as Max Beckmann, Edgar Degas, Jean-Honoré Fragonard, Pablo Pi-casso, Auguste Rodin, Peter Paul Rubens, Jan Steen, Titian, and Diego Velázquez.

TUESDAY, MAY 247 a.m.-6 p.m.: Registration and hospitality lounge10 a.m.-Noon: Fashion show and brunch, The Four Seasons Hotel. Get an up close look at the newest styles and the hottest trends at the annual ICSC Spouse Program Fashion Show and Brunch. From wardrobe basics to the latest fash-ion accessories, you’ll see it all in an all-new show in a brand new location! The fabulous Four Seasons Hotel provides the backdrop for this year’s preview of summer fashions.12:30-2 p.m.: The Art of Flower Ar-rangement, The Four Seasons Hotel. A beautiful flower arrangement can add the perfect touch of grace and elegance to any setting. By following a few basic principals of floral design, you can turn an odd bunch of flowers into an elegant floral arrangement, create a natural flo-

ral masterpiece or design a gift basket blooming with exquisite colors. Get tips from our pro on how you can create stun-ning flower arrangements perfect for for-mal or casual occasions.2:30-4 p.m.: Team Time, The Four Sea-sons Hotel. Tea is taken around the world and its influence spans cultural as well as economic boundaries. Tea has played a vital role in world politics, wars, literature, romance, and cuisine. Indulge in a cup and learn the fascinating history and tradition of this most civilized of beverages.

WEDNESDAY, MAY 259 a.m.-Noon: Registration and hospital-ity lounge

TRANSPORTATION

Shuttle bus service will be available throughout the Convention between all participating Convention hotels and the Grand Lobby Entrance of the Las Vegas Convention Center. Bus schedules will be included in your Convention kit. We are happy to once again offer makeovers in the hospitality lounge.

Makeovers will be available during the following hours:

Saturday, May 21: 10 a.m.-4 p.m.Sunday, May 22: 10 a.m.-4 p.m. Monday, May 23: 10 a.m.-6 p.m.Tuesday, May 24: 10 a.m.-6 p.m.Wednesday, May 25: 10 a.m.-Noon

icscSpouse Program Information

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Since 1971, Marcus & Millichap has dedicated its entire focus and resources to creating the industry’s most powerful property marketing platform and providing superior value-added services. The Las Vegas investment professionals in the firm’s

National Retail Group (NRG) provide clients with unrivaled transaction expertise and access to the broadest pool of qualified private and institutional investors. By combining in-depth market research, thorough underwriting and strategic marketing, we maximize value for our clients.

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RETAIL TRENDS 2005

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Tuesday, May 24, 2005 • Las Vegas Hilton

5:00 p.m. Registration and Networking Reception • 5:30 p.m. Program followed by our Annual Party

Register at: www.NationalRetailGroup.com or call: (678) 942-4645 • Visit us at 75-H Street in the ICSC Leasing Mall

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PUBLICATION: IN BUSINESS LAS VEGAS RUN DATE: MAY 2005 SIZE: 10.25” X 14”

To find out how we can help you meet your investment objectives, contact:

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Las Vegas� Neighborhood Center

65,367 sf$14,400,000


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Sparks� Walgreens

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B E L O W A R E J U S T A F E W O F O U R R E C E N T N E V A D A R E T A I L C L O S I N G S :

Documents

COVER IFC ICSC - Las Vegas Sunmedia.lasvegassun.com/media/projects/inbiz/specialpubs/icsc.pdf4A | IN BUSINESS LAS VEGAS ICSC MAY 20, 2005 ... CSM/CMD test review course ... 10-11:15