The first quarter Marketbeat report by Cushman & Wakefield Commerce for Las Vegas is now available, and it shows that the Las Vegas market continued its post-recession recovery in the first three months of 2017. The reports detail the industrial, office and retail markets, as well as the general state of the economy and commercial real estate in Southern Nevada.
“The first quarter continued the positive upswing that Las Vegas and Southern Nevada has been experiencing recently, with strong indications that the overall commercial real estate market will continue to strengthen in 2017,” said Michael Dunn, market leader for the Las Vegas office of Cushman & Wakefield Commerce. “The industrial market is the strongest sector at the moment, and the momentum of the industrial market is expected to continue for the balance of the year. The industrial market is tight right now, particularly for smaller to medium sized companies. Construction is brisk; however, most of the buildings coming online are for companies seeking large spaces such as those in the e-commerce and distribution market.”
New construction continued to improve, especially in the industrial sector with more than 4.7 million square feet of buildings are expected to be delivered in the upcoming quarters. North Las Vegas and Henderson submarkets led the way with more than 4 million square feet of new industrial construction.
The office market’s occupancy improvement continued in the first quarter with a decreased vacancy rate. The retail market, however, will continue to remain landlord friendly in regards to neighborhood and power centers in the foreseeable future. E-commerce continues to disrupt major retailers as store closures and bankruptcies continue to make headlines both nationally and locally.
Las Vegas Industrial Snapshot
The overall industrial vacancy rate continues to remain relatively low at 5.7 percent. If demand in the large e-commerce and distribution demand wanes, then there may be greater availability later this year with supply outweighing demand. The question is if demand will keep pace with supply in the big box sector.
Las Vegas Office Snapshot
The Las Vegas office vacancy rate was 15.1 percent at the close the end of March 2017, which is down 2 percent from the first quarter of 2016. New office construction during the first quarter totaled more than 100,000 square feet and is expected to continue to rise in the upcoming quarters.
Las Vegas Retail Snapshot
The retail real estate market slowed down in the first quarter, but continues to see a positive absorption rate, which is expected to remain positive through 2017. It is also expected that lease rental rates will continue to rise and vacancy rates will continue to decrease in neighborhood and power centers, until more construction begins in the Las Vegas retail market. One recent event that could make a huge impact on the Las Vegas retail real estate market in the next few years is arrival professional football. The relocation of the Oakland Raiders to Las Vegas and the new 65,000-seat stadium is expected to result in 6,000 new jobs for the market.
To access the full Marketbeat reports, please visit: http://www.comre.com/research
