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July 28, 2015

Las Vegas Commercial Real Estate 2015, Q2.

COMMERCIAL REAL ESTATE REPORT

(Information and graphics courtesy of National Title Company. NTCNV.com)

In the second quarter of 2015, the industrial market continued to outperform its retail and office counterparts. The sector’s vacancy rate closed the quarter at 6.8 percent, which is the lowest it has been since 2007. Inventory increased by approximately 1.1 million square feet as five projects completed construction, including Switch’s SUPERNAP 9 (471,200 SF), Prologis’ Las Vegas Corporate Center #19 (464,200 SF), Catamaran’s specialty pharmacy, BriovaRx (100,000 SF), The Chef’s Warehouse (74,100 SF) and VSR Lock’s expansion (28,000 SF). Recent completions as well as continued leasing activity resulted in 1.8 million square feet of positive net absorption for the industrial market, which is the highest level since 2005. Although the demand experienced by the retail and office markets during the period was not as substantial, the sectors still experienced improvements. The retail market reported 121,100 square feet of net move-ins, resulting in a drop in vacancy rate from 9.3 percent to 9.1 percent. Meanwhile, the office sector reported 138,700 square feet of positive net absorption, primarily driven by the sale of the 143,000-square-foot former Nevada Cancer Institute building to Roseman University of Health Sciences for use as a future medical school.

Current PeriodQ2 2015 vs. Previous PeriodQ1 2015 vs. Last YearQ2 2014
INDUSTRIAL
Total Square Feet (Millions) 109.7 1.0% 108.6 1.5% 108.1
Vacant Square Feet (Millions) 7.4 -8.7% 8.1 -28.3% 10.4
Vacancy Rate 6.8% -0.7% 7.5% -2.8% 9.6%
New Construction 1,137,562 125.2% 505,228 N/M 222,391
Trailing 12-Month Totals 1,678,310 119.9% 763,139 66.8% 1,006,019
Net Absorption 1,847,701 49.6% 1,235,404 20.9% 1,527,855
Trailing 12-Month Totals 4,608,756 7.5% 4,288,910 -7.3% 4,969,745
Avg. Asking Rate $0.59 3.5% $0.57 9.3% $0.54
Under Construction 2,789,070 25.1% 2,228,838 137.5% 1,174,263
Planned Space 2,795,035 -25.3% 3,739,887 29.4% 2,160,387
OFFICE
Total Square Feet (Millions) 53.0 0.1% 52.9 1.1% 52.4
Vacant Square Feet (Millions) 12.2 -0.8% 12.3 -2.5% 12.5
Vacancy Rate 23.1% -0.2% 23.3% -0.9% 23.9%
New Construction 43,338 -37.2% 69,021 N/M 0
Trailing 12-Month Totals 596,041 7.8% 552,703 N/M 130,660
Net Absorption 138,718 46.5% 94,663 -47.7% 265,200
Trailing 12-Month Totals 904,706 -12.3% 1,031,188 27.6% 708,960
Avg. Asking Rate $1.86 0.0% $1.86 1.1% $1.84
Under Construction 204,894 -14.7% 240,338 -72.7% 749,703
Planned Space 2,373,039 33.9% 1,772,574 12.4% 2,110,352
RETAIL
Total Square Feet (Millions) 52.5 0.0% 52.5 3.8% 50.6
Vacant Square Feet (Millions) 4.8 -2.4% 4.9 1.5% 4.7
Vacancy Rate 9.1% -0.2% 9.3% -0.2% 9.3%
New Construction 4,244 -96.1% 107,769 -83.0% 25,000
Trailing 12-Month Totals 1,902,865 -1.1% 1,923,621 N/M 71,249
Net Absorption 121,090 -42.4% 210,111 N/M -29,591
Trailing 12-Month Totals 1,833,228 9.0% 1,682,547 N/M 421,681
Avg. Asking Rate $1.55 -2.0% $1.58 3.9% $1.49
Under Construction 819,000 19.0% 688,244 -62.3% 2,172,702
Planned Space 3,140,576 13.2% 2,774,467 21.7% 2,581,380
N/M: Not Meaningful

Las Vegas Commercial Market Data Office, Retail, Industrial

 

Information and graphics courtesy of National Title Company. NTCNV.com

 

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