Industrial Market
After releasing its second quarter 2017 industrial market report today, local business advisory firm Applied Analysis noted the Las Vegas industrial market added over 2.4 million square feet of newly constructed space and registered net absorption of nearly the same number. These developments edged the vacancy rate down to 6.9 percent for the second quarter of 2017. Compared to the prior quarter (Q1 2017), the vacancy rate declined 10 basis points (-0.1 percentage points), and compared to a year ago (Q2 2016), the rate decreased by 30 basis points (-0.3 percentage points).
During the second quarter, the industrial market experienced the largest amount of new inventory in a single quarter with 2.4 million square feet of completions. Chief among these was the completion of Amazon’s new 785,500-square-foot fulfillment center located at Northgate Distribution Center at 4550 Nexus Way. Switch completed another building as part of their ongoing data center expansion at 7356 Lindell Road, which added over 343,400 square feet of occupied space to the market. Moreover, Prologis Sunrise Industrial Park completed a 342,300-square-foot building at 4800 E Cheyenne Avenue – a build-tosuit for Walmart. Other notable completions included two buildings at Prologis Las Vegas Corporate Center in the north submarket, adding 260,000 square feet of inventory to the market, with one building fully leased to Dr. Pepper and Snapple and the other reportedly has space leased by Nexgistics and Muscle & Strength.
Office Market
After releasing its second quarter 2017 office market report today, local business advisory firm Applied Analysis noted that the Las Vegas office market continued to experience positive demand during the period. The vacancy rate fell to 19.3 percent during the quarter, which represents a decline of 40 basis points (-0.4 percentage points) from the prior quarter (Q1 2017). Compared to a year ago (Q2 2016), the office market vacancy rate has declined 130 basis points (-1.3 percentage points); the vacancy rate is down significantly from 25.3 percent in early 2013.
Office market inventory increased by 257,300 square feet in the second quarter as four notable projects completed construction, bringing total inventory to over 54.7 million square feet. The new UFC headquarters building, totaling 180,000 square feet, completed construction and is fully occupied by the mixed martial arts promotion company. In addition, three speculative projects wrapped up construction: Cimarron Courtyard Office Condominiums Phase 2 (44,000 square feet), Dignity Health St. Rose Dominican North Campus (18,000 square feet) and 1581 Mount Mariah Drive (15,300 square feet).
The office market experienced 413,550 square feet of positive net absorption (or net move-ins) during the second quarter of 2017. Mobile website developer CML Media Corp (dba Mopro) reportedly leased 16,950 square feet at 101 Convention Center Drive and innovative cash access services company Global Payments Gaming Services, Inc. reportedly leased 15,250 square feet at City Center West at 7201 West Lake Mead Boulevard. Other selected transactions included Building Blocks for Business LLC’s lease for 15,000 square feet at 6170 North Durango Road, Progistics-TAG’s lease for 10,000 square feet at 2270 Corporate Circle and Asembia LLC’s lease for 9,000 square feet at 3844 Meadows Lane.
Retail Market
After releasing its second quarter 2017 retail market report today, local business advisory firm Applied Analysis noted the Las Vegas retail market’s direct vacancy rate fell to 8.1 percent by the end of the period. Compared to the prior quarter (Q1 2017), the vacancy rate declined 30 basis points (-0.3 percentage points), and compared to a year ago (Q2 2016), the rate decreased by 70 basis points (-0.7 percentage points). Vacant sublease space in anchored retail centers added 848,000 square feet of availability, resulting in a total vacancy rate of 9.7 percent (direct vacancy plus vacant sublease space). The total vacancy rate was also down 30 basis points (-0.3 percentage points) from the preceding quarter and 80 basis points (-0.8 percentage points) from the prior year.
Anchored retail inventory increased slightly to 53.7 million square feet during the second quarter with the completion of the first phase of Mountain’s Edge Marketplace located at 7975 Blue Diamond Road in the southwest submarket. The center added 75,600 square feet to the market, which included the 59,300-square-foot Albertsons grocery store. The company now has 31 stores in the Las Vegas Valley.
The retail market experienced 199,600 square feet of positive net absorption during the second quarter of 2017. Burlington Coat Factory leased 48,900 square feet at Sahara Center located on the northeast corner of Sahara Avenue and Hualapai Way. In addition, Seafood City Supermarket leased 42,600 square feet in the former Sport Chalet’s space at The Arroyo Market Square located at 7230 Arroyo Crossing Parkway on the southwest corner of Rainbow Boulevard and Interstate 215. Other notable transactions include Marshalls taking 21,000 square feet of space at Best in the West located at 2050 North Rainbow Boulevard and Planet Fitness expanding their brand to The A Mall, leasing a 17,800-square-foot space at 1205 East Sahara Avenue.
For the complete report, please visit Applied Analysis at www.appliedanalysis.com
