Las Vegas may challenge San Fran
By Clint Engel -- Furniture Today, November 12, 2001
| Gennet |
Las Vegas — Developers of the proposed World Market Center here repeatedly have said they pose no threat to High Point's furniture market, but for the first time last week suggested that Las Vegas would, indeed, challenge San Francisco.
"We believe the Western region deserves a superior market, and Las Vegas is that superior market," said Shawn Samson, co-managing partner in the development.
"We're being told by exhibitors and buyers alike that they want to be in Las Vegas, and as such we are convinced the Las Vegas market will become the dominant West Coast market," he said. "This may … mean there is room only for one of us, and we are fully ready to accept that position."
San Francisco Mart President Michael Gennet didn't appear overly concerned, noting that a Western market is "more than just brick and mortar."
"The team in San Francisco has years of experience and strong relationships with the furniture industry," he said. "We view the San Francisco Mart as a partner with the industry, seeking to support the success and profitability of our customers, the manufacturers."
Gennet said the SFM has 86 years under its belt and the cachet of being the "home of the Western furniture industry." It has always been the central venue for retailers and suppliers to network and view new product, he said, and "we don't see a reason for that to change."
"The San Francisco Mart has never tried to compete with High Point, which we believe is the ultimate goal of Las Vegas developers," he added.
Based on SFM's cost estimates, Gennet believes the World Market Center will have to charge lease rates 50% higher than prevailing rates in San Francisco or High Point.
Samson said leasing has gone so well the WMC has had to expand the first-phase building by more than 25%. "Virtually every prospective tenant wants to be a part of the Las Vegas market because they appreciate the tremendous additional amenities this project offers," he said.
While it's true the WMC's rates will reflect those amenities, "we expect the level of business conducted by our tenants will be greater than anything previously available on the West Coast," Samson said. "We are confident we will be the No. 1 market on the West Coast."
