Cushman & Wakefield | Commerce Las Vegas Marketbeat Reports Show Strong Industrial, Improving Retail and Office Markets
“The industrial market in Las Vegas dominated all other segments in the area,” said Mike Dunn, Branch Broker of the Las Vegas C&W | Commerce office. “Q1 14 was the ninth consecutive quarter of positive absorption in the industrial market, and with tightening supply, lease rates are expected to rise. The office market was off to a slow start in Q1, but with rebounding job growth, the office segment is expected to strengthen throughout the year. With dropping vacancy numbers, the retail market had a strong quarter, which denotes a positive outlook for the months ahead.”
The following are report highlights from the Cushman & Wakefield | Commerce reports, which can be accessed (along with historical reports) at http://www.comre.com/research.
The industrial market again outperformed all other product types as the overall vacancy rate dropped by 2.9 pps on a year-over-year basis to 12.0 percent. As expected, due to tightening in this market, lease rates increased by 6.0 percent and will continue to tick upward throughout the year, particularly in the spaces with more than 100,000 sf. Shortage of big-box distribution/manufacturing buildings are in short supply, which will lead to new spec development getting underway later in 2014.
The retail market continued to strengthen as the overall vacancy rate dropped by 1.1 pps on a year-over-year basis to 9.0 percent. This represents a five-year low in vacancy rates. Although vacancy continued to decline, overall average asking lease rates have remained flat over the past two years; however, looking forward, rates will begin to trend upward over 2014 as newer, better product is added or renovated as vacancy rates continue to decline.
Lease rates and leasing activity were both up slightly during the first quarter and several office lease deals are currently underway that will likely close during the second quarter. Even though most leasing activity was in the suburbs, the Central Business District (CBD) continued to outperform the suburban markets with a vacancy rate of 18.7 percent while the suburban submarkets reported a vacancy rate of 29.2 percent. Also, distressed real estate has burdened the Las Vegas market over the last several years, but with an improving market and new owners in place, all unfinished office building properties have moved forward on completing construction and leasing.
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About Cushman & Wakefield | Commerce
Cushman & Wakefield | Commerce, an independently owned and operated member of the Cushman & Wakefield Alliance, has been the leading provider of real estate brokerage services for more than 30 years. Headquartered in Salt Lake City, the firm has offices throughout Utah, Nevada, Idaho and Washington. It offers consulting, brokerage, tenant and landlord representation, property and facilities management, and valuation services to corporations, institutions and investors throughout the Intermountain West and Pacific Northwest. For more information, and for property listings, broker information, market category reports and more visit www.comre.com.
About Cushman & Wakefield
Cushman & Wakefield is the world’s largest privately‐held commercial real estate services firm. The company advises and represents clients on all aspects of property occupancy and investment, and has established a preeminent position in the world’s major markets, as evidenced by its frequent involvement in many of the most significant property leases, sales and assignments. Founded in 1917, it has 253 offices in 60 countries, employing more than 15,000 professionals. It offers a complete range of services for all property types, including leasing, sales and acquisitions, equity, debt and structured finance, corporate finance and investment banking, corporate services, property management, facilities management, project management, consulting and appraisal. The firm has more than $3.7 billion in assets under management globally. A recognized leader in local and global real estate research, the firm publishes its market information and studies online at www.cushmanwakefield.com/knowledge.