Hotel and Gambling Wins Drive Growth in the Retail Market
Steady job growth and a strong performance from one of the most robust tourism industries in the nation underpinned another solid year for the Las Vegas retail market. The leisure and hospitality and construction sectors dominated employment gains, indicating expansion among gaming and resort businesses. According to the Las Vegas Convention and Visitors Authority, visitor volume surpassed 24.7 million people year to date ending in July, up 2 percent from the same period a year earlier. Heightened tourism activity along with a rate of household formation nearly twice that of the national average, spurred positive growth for retail sales. Developers responded, elevating construction efforts. Ikea, Hobby Lobby and various auto dealerships have projects planned. Perhaps the most prominent development, however, is the $375 million Las Vegas Arena that is slated for delivery in spring 2016. Despite healthy building activity, the metrowide vacancy rate will slide to a post-recession low as expanding retailers absorb more than the new space. Although there was general market tightness, vacancy remains high compared with other prominent metros, stagnating rent growth amid abundant available space.
