Newmark PCG

January 21, 2021

The City of Henderson, Nevada is one of the fastest growing communities in the United States and the Green Valley South neighborhood is its office complex hub with 87 office buildings and 42 smaller medical office buildings centered along Interstate 215. The Newmark Private Capital Group has seen a significant increase in demand in Henderson by the general population and among investors through our recent successful sale of 2779 W Horizon Ridge Parkway, a 39,761 square-foot medical office building in West Henderson.

Master-planned in the 1970s, developers have remodeled the current inventory rather than constructing new office space. Like many other places in the country, Green Valley South has experienced significant unemployment and negative net absorption in the office market. However, the stable office inventory, the popular retail outlets, and the hotel-casino reinforce investment upside in the Green Valley South neighborhood in 2021.

Green Valley South Supply

Medical OfficeOfficeRetailMultifamily
Buildings42878810
Avg. Building Size11,76526,14619,456231,761
Inventory (SF)494,1102,274,7441,712,1052,317,609
Vacancy (SF)53,156411,81195,742169 Units
Vacancy (%)10.8%18.1%5.6%7.4%
Availability (SF)69,133425,21495,250N/A
Sources: Newmark Private Capital Group, U.S. Bureau of Labor Statistics, and CoStar Research

Development and Population Boom in Henderson

Since the city’s founding, major development projects and corporations have drawn residents to Henderson. Founded in 1929 as a site to house dam workers of the Hoover Dam, the city has recently experienced two large population spikes. From 1990-1998, Henderson was recognized as the fastest growing large city in the United States. To manage the economic boom, the community has worked with city planners and real estate developers to efficiently adjust to the population increase and to provide incentives around the city to influence development. As of 2020, Henderson is the 12th fastest growing city in the country.

Major employers and significant developments have helped spur the migration to Henderson. The Raiders’ are building a new facility, Amazon is occupying a major fulfillment center, Google is developing a $600 million data center, several mixed-use projects are under construction, and a new hospital was approved.

The Green Valley South neighborhood is defined as the general area along bounded by Windmill Parkway to the North, Arroyo Grande Boulevard and Cornerstone Park to the East, Paseo Verde Parkway and Interstate 215 to the South, and Eastern Avenue to the West. See the charts below for demographics.

City of Henderson Demographics

PopulationPercent Population GrowthMedian IncomePercent Median Income Growth
2010174,251
2020314,23280%$74,146
2025343,2669%$79,7368%
Source: U.S. Census Bureau

Green Valley South Demographics

PopulationPercent Population GrowthMedian IncomePercent Median Income Growth
201026,012
202028,0577.9%$77,473
202529,8776.5%$82,3416.3%
Source: U.S. Census Bureau

“West Henderson is uniquely positioned to benefit from the increase in development and tenant activity that is occurring in the south and southwest submarkets.”

Mark Schuessler, Managing Director at Newmark Private Capital Group

Green Valley South Office Demand

The Green Valley South neighborhood is a wealthy area of Henderson, with a median income of $82,341, partially due to the high-quality office jobs. The office buildings in the neighborhood benefit from the area’s most popular retail outlets and a hotel-casino. These impressive amenities have kept office demand relatively constant over the past five years.

Although Covid-19 has significantly impacted the current vacancy rate and office unemployment has dramatically increased, there have been no office deliveries in the past five years, and there are currently no proposed development sites. Office inventory has remained relatively constant while the population increased, and construction began on the major developments in the two adjacent communities down the road. Demand for office in Green Valley South is optimistic once the economy fully reopens and employees start going back to work in offices.

For more information about the major developments in the adjacent communities, look to the Private Capital Group’s reports on West Henderson and the St. Rose Corridor.

Tenant overview of the Green Valley South neighborhood

The full report includes, among other information, a map of the major ownership groups, the current development pipeline, and recent sales and leasing activity in the Green Valley South neighborhood.

Disclaimer: The information contained in this article is provided for general informational purposes only, and should not be considered or treated as legal or tax advice and represents only general information that may or may not be applicable to the reader’s particular situation. The reader should consult its own attorney and/or tax advisor if specific guidance, information, or advise is required.

About the Author(s)

Mark Schuessler is a Managing Director with the Newmark Private Capital Group and has closed more than 80 sales transactions with a total volume in excess of $1.5 billion.