Northern Exposure

By Brian Sodoma

Friday, July 24, 2009 | 6 a.m.

It’s getting harder and harder to find a successful commercial development these days. But Territory Inc. is finding a way to muscle through the tough times with a few north valley projects.

Just south of its mammoth 1-million-square-foot Centennial Center, Territory is finalizing leases and adding tenants to Centennial Gateway, a 350,000-square-foot retail center near Ann Road and U.S. 95. Included in the center is a 24 Hour Fitness, Fresh & Easy Neighborhood Market, Cafe Rio, LaptopXchange and others. During phase one, about half the total square footage was completed in early 2008, and the second phase is finishing up this summer. About 70 percent of the site is preleased, said Nick Hannon, senior vice president with Territory Inc.

“Leasing activity is pretty good for that area, because we’re right off the off-ramp,” Hannon said.

The executive also contends that leasing has been solid overall in the Centennial area, partly because of the Centennial Hills master plan, which condenses all commercial development into four quadrants that span 900 acres and branch out from the Clark County 215 and U.S. 95 interchange.

“When you look in that area, you don’t see the retail sprawl that you see in other areas of town,” Hannon added. “It’s all compressed into that commercial loop of Centennial Boulevard that feeds all the commercial in the area. … It keeps the residential areas up there more preserved.”

Centennial Gateway is Territory’s last foray in the area, according to Hannon, as much of the retail space is completed. Up Centennial Boulevard to the north is Territory’s Centennial Center, which opened about seven years ago and is home to large retailers such as Home Depot, Wal-Mart, Ross Dress for Less and Petco. Outside of a few vacancies, the largest coming from the empty Circuit City location, the site is predominantly full.

Territory also had a fourth-quarter 2008 opening for the 335,000-square-foot Cannery Corner, located on the northeast corner of Craig and Losee roads in North Las Vegas. The site, catty-corner from the Cannery Casino & Hotel, includes the anchors Lowe’s and Sam’s Club, in addition to smaller tenants such as Mexican restaurateur, Chipotle, Jamba Juice, Winchell’s Pub & Grill, Frazee Paint and others.

“The unique thing about that location is that the daytime population is really strong,” Hannon added. “There are very few places in town, with the exception of the Strip and downtown, that have very good daytime numbers.”

Hannon said Territory’s 16-plus years of focusing on anchor-driven retail is paying off during these tough times. With a portfolio of more than 2 million square feet of retail, the firm is still able to run at 90-plus-percent occupancy rates.

“I think the advantage we have is we’re a unique portfolio builder. We have long-term partnerships with lenders and tenants. We tend to be a little less aggressive. Our partners stay with us deal after deal,” he added.

While Territory Inc. serves as developer and manager of its projects, the company’s principals are the actual landowners for the retail centers, Hannon clarified. He added that company principals are currently eyeing the market for land-buying opportunities.

“We’ve never been the leading payer. Our land base is in much better alignment with what the retailer can pay, and ultimately, the consumer can pay,” he added. “We’re very much an opportunity buyer. We’ll get in, if there’s something incredibly well-priced. So far, pricing hasn’t come down to where we’d be interested in it.”