River Cities Business Journal: Real Estate

River Cities Business Journal

BULLHEAD CITY - Although sales of new homes may have dropped off in Mohave County, the market for commercial space hasn't missed a beat.

“Even though the residential market did fall off about a year and a half ago, the commercial market never did,” Kaplan Commercial broker John Keith said. “Leasing is very active. National companies are continuing to look at the area. I don't see that there ever was much of a slowdown in the commercial market.

“We're seeing a demand for a lot of large national retailers. The problem comes in construction costs and lease rates that have to be charged to the tenants.”

Numerous national companies and chains are eyeing Mohave County as a growth area, but are reluctant to invest heavily at this time because the area lacks the population levels they desire.

“Our population is not where a lot of these large retailers like it to be at,” Keith said. “A lot of them like to go for second generation space.”

The problem with the desire for second generation space is that the county has grown so rapidly there is very little second generation space available.

That forces them to chose between building before their demands are met or putting off a foray in the county.

But, locally that hasn't deterred longtime Mohave County businesses from investing in the future. In Kingman, Martin Swanty Chrysler, Dodge, Jeep is building a new $3 million showroom and in Bullhead City Colorado River Ford just moved into a new $7 million facility.

“Colorado River Ford is going to be one of the nicest buildings around,” Tony Dias of McCormick Realty said.

Dias also thinks that the housing market will rebound because of what the commercial market is currently doing.

“I really believe that when certain shopping and commercial areas start to build the residential areas will take off again,” Dias said. “Target and things like that are going to generate people.”

Keith also believes the influx of newcomers will attract businesses that have been sitting on the fence.

“A lot of people who are moving in are baby boomers from California. With it they bring their education and their money,” Keith said. “If we have the high income and disposable income they might look at it a little differently.”