Las Vegas Retail Market Report

Necessity shops extend streak of positive absorption. Las Vegas recorded the strongest rate of household formation among major U.S. markets over the yearlong stretch ended in June. The nearly 27,000 households created lifted consumer demand for necessities, dining and home goods, prompting retailers in these segments to expand or establish local footprints. The resulting leasing velocity compressed metro vacancy below 6.0 percent, to its lowest point since late 2007. Retailer demand for available space has been widespread, with nearly all submarkets notching declines in availability over the past year. Expectations for strong rates of household formation moving forward, and an active pipeline that equates to just 0.5 percent of existing inventory, suggest additional vacancy compression is likely over the near term.