Las Vegas Industrial Investment Forecast
Outside Buyers Wager on Las Vegas Assets as the Metro Ranks Among the Nation's Tightest Industrial Markets
Record supply wave met with solid demand for modern space. Las Vegas notched the largest reduction in vacancy among major U.S. industrial markets last year as population growth and user demand for affordable space near Southern California supported the absorption of 6.6 million square feet. This standout demand slashed area availability to nearly 2 percent and bolstered development activity in North Las Vegas and Speedway—submarkets that are registering the most robust leasing. In both locales more than 2.2 million square feet is slated for delivery this year. Of this space 75 percent is accounted for with the recent abundance of 100000- to 200000-square-foot-plus lease commitments suggesting the remaining speculative space will be absorbed in the near term. Steadfast demand for modern facilities will allow Las Vegas to end this year as the tightest market outside of Southern California supporting the nation's strongest rent growth.