Cushman & Wakefield’s newly released office and industrial market update for Las Vegas indicates all employment sectors are expected to grow at a combined rate of 3.1% in 2018, and 3.2% in 2019.
Jolanta Campion, Cushman & Wakefield’s Research Director in Nevada confirms “The Las Vegas employment market continued to see record job growth, adding 32,300 jobs (+3.3%) year-over-year through August 2018. During the same time period, the unemployment rate decreased 40 basis points (bps), dropping to 4.9%. Also worth noting, the current rate is 160 bps below the 28-year average of 6.5 %. Las Vegas’s economy of $112.3 billion, as measured by gross regional product, is forecasted to grow an additional 5.6% in 2018, and 5.4% in 2019, above its 10-year average of 2.2%.”
Las Vegas office vacancy shed another 80 bps compared to a year ago, bringing year-to-date occupancy gains to 347,700 square feet. The average asking rent for all classes grew 2.5% during the same time. The Las Vegas office market recorded $744 million in sales in 2017, the best performance since 2007. Campion notes that momentum continued over the first nine months of 2018, reaching $675 million in total sales, compared to $522 million during the same time in 2017.
Industrial vacancy was 4.5%, a 140 bps decrease compared to a year ago, bringing year-to-date net absorption to 4 measured square footage (msf). “This was the 18th consecutive quarter of positive occupancy gains,” according to Campion. “Industrial market recorded $726 million in sales since the beginning of 2018. With an exception of 2017, this was the strongest year-to-date sales activity since 2007.”