Once a bedroom community largely overshadowed by its Las Vegas neighbor, the City of Henderson is thriving. With a population of more than 300,000, Henderson recently surpassed Reno to become the second-largest city in Nevada. Henderson’s employment rates have been steadily rising, according to the city’s latest economic update. The city’s employment was at 144,000 last year and has risen to 153,800 in 2019. Henderson accounted for about 11 percent of all jobs in the Las Vegas Valley in 2018, according to labor market analytics company Emsi.
Company leaders are also seeing the competitive advantage of growing a presence in Henderson. This has spurred relocations and start-ups in the area. Vinotemp, a leading wine storage solutions and appliance provider, recently relocated its Southern California headquarters to Henderson. The company’s new headquarters is more than 118,000 square feet, making Vinotemp the largest wine cabinet and cooling solutions provider in the nation.
A major element in the high cost of doing business in California is the cost of operating in an office space. There is a stark contrast in the price per square foot for office spaces when comparing Southern California and Henderson. For example, the average per square foot for office space in Henderson is $2.12. This is compared to San Diego at $3.09 and Los Angeles at $3.44. Those costs jump even higher in Northern California, with the San Francisco area averaging around $7 per square foot.
Henderson’s leadership created an environment that has led to remarkable growth by focusing on attracting and developing businesses across the city. That meant prioritizing excellent schools, stimulating a strong and diversified economy, supporting a city staff that is known for making business matters easier, and providing access to affordable housing and award-winning parks and trails. All of this has led to the burgeoning community that is now recognized as one of America’s safest cities.
Henderson also boasts a low cost of doing business — almost 30 percent less than its neighbors to the west. This includes no state corporate or personal income tax. These benefits have resulted in companies like Vinotemp, Retro Manufacturing and Box Manufaktur making the decision to relocate from California.
This influx of companies, employees and residents has had a massive impact on the city’s office supply. According to a report conducted by Applied Analysis, a leading data analysis solutions service in Nevada, the office vacancy rate in Henderson has dropped roughly 8 percent since 2014. This drop in vacant inventory shows office space is in demand as developers work to bring on additional inventory needed in the region.
Developers are taking notice of the boom in the commercial real estate market and they are seeking out locations that make financial sense to acquire land, develop new properties and lease out those investments over time. There were 20 commercial projects that were either completed, under construction or planned in Henderson in 2019. This list includes the Raiders team headquarters, Google data center, Amazon fulfillment center and a mixed-use project on St. Rose Parkway.
Office space in Henderson is in high demand, and development for commercial and residential properties is booming. Henderson’s city staff has created a business-friendly environment and will continue to attract company leaders who want to pursue business in the region.
— By Derek Armstrong, director of economic development & tourism, City of Henderson. This article first appeared in the December 2019 issue of Western Real Estate Business magazine.