Las Vegas, NV – Avison Young recently released its Fourth Quarter 2022 Las Vegas Industrial Market Report. Las Vegas’s quality industrial product remains in high demand, with rents increasing for the tenth consecutive year – ending Q4 with a record-setting annual rental rate of $12.17 per square foot (psf).
Development activity nearly reached its pre-Covid heights in 2022 – increasing 45.1% from the year prior with 6.4 million square feet (msf) of industrial space delivered during the year. Las Vegas’s Northern, Speedway, and Southeastern/Henderson submarkets showed the most growth accounting for 5.1 msf of the 6.4 msf of total space delivered. Development activity is projected to double in 2023 with another 12.9 msf currently under construction.
Total vacancies have decreased over the past three years – with 2022 ending with 2.1 msf of vacant space and a vacancy rate of 1.9%, both of which are the lowest values the Las Vegas industrial market has seen to date.
“The Las Vegas industrial market is in high demand with vacancies shrinking. While development continues to increase, there is still a lack of product. Most industrial property on the market is big-box space, creating a need for flex space and mid-bay space,” said Chris Lexis, an Avison Young Principal specializing in the Las Vegas industrial sector.
Lexis, along with Avison Young Principal Joe Leavitt, were recently tapped to market Nancy J Industrial Park for sale or lease. The 327,904-square-foot (sf) eight-building industrial project recently broke ground in Henderson, NV.
The Las Vegas industrial market continues to post strong transaction numbers – with transaction volume by dollar amount reaching more than $1.2 billion across 40 transactions in 2022. Though transaction volume was down slightly year-over-year (-8.8%) the Las Vegas industrial market’s strength is evidenced by the record-setting average sale price per sf of $203.26 last year.
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