M Square Commercial (MSC) recently facilitated a significant retail lease extension for Starbucks Corporation at Pueblo Place, a prime retail strip center in Summerlin, Las Vegas. This case study examines the details of the retail lease renewal and planned store remodeling, highlighting the strategic importance of long-term tenant relationships and the value of well-positioned commercial retail property investment in Summerlin.
Project Overview: Pueblo Place Retail Center Summerlin
- Location: 2120 N Rampart Blvd, Las Vegas, NV (Summerlin area)
- Property: Pueblo Place shopping center
- Tenant: Starbucks Corporation
- Leased Area: 1,899 SF
- Transaction: Retail space lease extension (10 years)
- Execution Date: March 2024
- Landlord: Rampart PHD, LLC (Nevada limited liability company)
Understanding the Starbucks Tenant Retail Lease Extension
Starbucks, an original tenant since 2005, demonstrated its commitment to this Summerlin commercial space by executing a 10-year retail lease extension two years ahead of schedule. This strategic move was driven by Starbucks’ plans for a significant investment in remodeling the store’s floor plan. The early extension, set to begin in March 2026, ensures Starbucks’ long-term presence at Pueblo Place while allowing for immediate improvements to enhance customer experience in this prime Summerlin location.
The current term for the Starbucks lease was set to expire in March 2026. With this early renewal, Starbucks has extended its commitment to the location until March 2036, securing a prime spot in the Summerlin retail landscape for an additional decade. This long-term commitment not only ensures continued foot traffic for Pueblo Place but also significantly enhances the overall value of the property.
Key Property Insights: Pueblo Place Retail Center in Summerlin, Las Vegas
- Developer: Developed in 2005 by Rampart PHD LLC
- Location: Howard Hughes Master Plan community of Summerlin
- Zoning: PC (Planned Community District)
- Total Area: 2.44 acres
- Gross Leasable Area: 16,991 SF of retail space
- Occupancy: 100%
Summerlin Retail Property Investment Analysis
As of Q2 2024, the Summerlin submarket has emerged as one of the most competitive and desirable locations for retail strip centers in Las Vegas, Clark County, Nevada. Key factors contributing to its premium status include:
• High demand for retail space in planned community retail developments
• Average net retail rent of approximately $27.63 per square foot, reflecting its premium status in the Las Vegas valley
• Desirable demographics and strong consumer spending power
• Strong occupancy levels across retail properties
• Attractive opportunity for retail property investment
This combination of high rental rates, strong demand, and favorable demographics makes Summerlin an exceptionally attractive market for commercial retail real estate investment and development.
MSC’s Expertise in Retail Leasing Las Vegas
M Square Commercial played a crucial role in facilitating this significant lease extension and supporting Starbucks’ renovation plans:
- Market Analysis: Provided in-depth insights into Summerlin commercial property trends and valuations.
- Negotiation: Balanced the interests of both landlord and tenant to secure favorable terms for the extension.
- Long-term Strategy: Advised on the benefits of early retail tenant lease renewal to accommodate Starbucks’ renovation plans.
- Value Maximization: Ensured the lease terms aligned with current retail market trends in Las Vegas while securing a long-term, high-quality tenant.
Benefits of the Retail Lease Extension
For the Landlord (Rampart PHD, LLC):
- Retained a high-profile, long-term tenant for their Summerlin shopping center property
- Maintained 100% occupancy at Pueblo Place retail center
- Potential for increased commercial property value in Las Vegas area due to Starbucks’ renovation investment
Tenant (Starbucks) Benefits:
- Secured a prime location in a high-demand Summerlin retail center for an extended period
- Obtained approval for planned store renovations
- Demonstrated long-term commitment to the Summerlin community
Impact on Investors and the Broader Market:
- Increased Property Value: Securing a long-term, high-profile tenant like Starbucks enhances the overall value of Pueblo Place.
- Market Confidence: This retail leasing transaction reinforces the strength and desirability of the Summerlin retail market.
- Future Growth Potential: As Summerlin continues to develop, properties like Pueblo Place are well-positioned to benefit from increasing consumer demand and rising property values.
How MSC Secured the Summerlin Retail Lease Renewal
- Initial Consultation: MSC met with both parties to understand their needs and objectives for the lease extension.
- Lease Review: Analyzed the existing lease terms and conditions to identify areas for potential improvement.
- Market Analysis: Conducted a focused review of current lease rates and terms for similar properties in the Summerlin area.
- Negotiation Strategy: Developed a plan to address both parties’ interests, focusing on the lease extension and Starbucks’ renovation plans.
- Lease Structure: Crafted terms that allowed early extension and incorporated provisions for the planned renovations.
- Due Diligence: Ensured all legal and financial aspects of the retail lease extension were thoroughly reviewed.
- Execution: Facilitated the signing of the lease extension in March 2024.
Results and Client Satisfaction
The successful negotiation of this retail space lease extension exemplifies MSC’s ability to create win-win scenarios in commercial retail real estate transactions. By securing a long-term commitment from Starbucks, MSC has helped maintain the value and appeal of Pueblo Place retail center while ensuring Starbucks can continue to serve the Summerlin community from a prime location.
Looking forward, we expect this lease renewal to have a positive impact on both Pueblo Place and the broader Summerlin retail market. It signals continued confidence in the area’s retail sector and may influence other national brands to seek long-term commitments in similar prime locations. For Pueblo Place specifically, Starbucks’ planned renovations are likely to attract more foot traffic and potentially increase the appeal of the center to other high-quality tenants in the future.
Leverage Our Expertise for Your Retail Real Estate Needs
Are you a property owner looking to secure long-term, high-quality tenants for your retail space? Or perhaps you’re a retailer seeking a retail lease extension in a prime location? M Square Commercial has the expertise and market knowledge to help you achieve your commercial real estate goals in Las Vegas and beyond.
Our team specializes in:
- Strategic lease negotiations
- Market trend analysis
- Long-term retail property strategies
- Tenant representation
- Landlord services
Don’t navigate the complex world of retail real estate alone. Learn more about how M Square Commercial can help you maximize the value of your shopping center property investment. Contact M Square Commercial today to discuss your next retail lease renewal or property investment.