Las Vegas Industrial Market Report

Metro collects nation's largest vacancy reduction. Spillover demand from Los Angeles and the Inland Empire and importers' embrace of inland distribution points for containerized freight is bolstering Las Vegas' industrial fundamentals. Tenant demand for warehouse and distribution space has elevated substantially of late. Over the past year ended in March, vacancy declined by 410 basis points, dropping availability to 1.9 percent. The sparse volume of available space is supporting a refill of the construction pipeline. Demand for modern facilities is such that just 10 percent of the more than 3.7 million square feet slated for 2022 completion was available as of mid-June. Strong pre-leasing, regionally discounted asking rents and a rapidly growing populace should all preserve strong fundamentals moving forward. This will enable Las Vegas to rank among the top performing industrial markets nationally this year.