Newmark PCG

December 16, 2020

The City of Henderson, Nevada is one of the fastest growing communities in the United States and the West Henderson neighborhood is its medical hub with 22 medical office buildings centered along St Rose Parkway. 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.

West Henderson Supply

Medical OfficeOfficeRetailMultifamily
Buildings34458716
Avg. Building Size28,70325,90517,549363,103
Inventory (SF)975,9061,165,7071,526,7575,809,643
Vacancy (SF)109,959111,90688,533210 Units
Vacancy (%)11.3%9.6%5.8%4.0%
Availability (SF)199,572201,519113,783N/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.

We define West Henderson as the general area along St. Rose Parkway between South Eastern Avenue and Maryland Parkway. 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

West Henderson Demographics

PopulationPercent Population GrowthMedian IncomePercent Median Income Growth
201017,009
202022,65633%$66,023
202525,83014%$71,5628%
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

West Henderson Medical Office Demand

The significant migration to Henderson has increased the demand for medical services and the West Henderson has a significant supply of medical space in Henderson. Wealthier families are moving into Henderson and the West Henderson, as the median household income has grown 8% since 2010 in both. The population spike has not greatly affected the average asking rent for apartments in West Henderson, but vacancy has dropped four percentage points between 2019 and 2020.

Henderson has focused on managing the steady increase in population through favorable development incentives downtown and in unimproved land. Zoning regulation changes have created undeveloped residential areas, and the City has recently granted zoning adjustments. This guidance has generated several multifamily development projects in West Henderson.

There has been a downward trend in total vacancy since 2016 and 2020 experienced a 33% increase in the average asking rent per square foot primarily due to the development of a new major hospital just down the road. As more people with greater disposable income and health insurance continue to move into the community, the demand for the concentration of medical office space will further increase.

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

West Henderson tenant map

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 West Henderson.

About the Author(s)

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