Cushman & Wakefield | Commerce Q2 2014 Commercial Real Estate Report shows Increased Confidence for Las Vegas Market
Las Vegas—Aug. 25, 2014—The Las Vegas office of Cushman & Wakefield | Commerce released its Marketbeat Snapshot reports for Q2 of 2014. The reports detail office, retail and industrial market activity for Las Vegas commercial real estate.
“Las Vegas, one of the hardest hit cities during the economic downturn, is experiencing an improving economy and an increase in confidence among investors, tenants and developers,” said Michael Dunn, Executive Director of the Cushman & Wakefield | Commerce Las Vegas office. “The unemployment rate dropped by 2.2 percentage points to 7.9 percent, which is the first time it has dropped below 8.0 percent since September of 2008. As confidence increases and new businesses put down roots in the area, commercial real estate tenants large and small will grow to expand and continue to push vacancy rates even lower. It is also important to note, that while the office vacancy appears to be relatively high overall, is much lower among higher-quality space and locations.”
Las Vegas Office Snapshot
The office market continued to build on momentum from the previous quarters as the overall vacancy rated dropped by 1.8 percentage points to 27.8 percent. In response, average asking rental rates increased by 10.5 percent on a year-over-year basis. Healthy leasing activity through Q1 and Q2 started pushing absorption up as just over 200,000 sf of space was absorbed during Q2 14. The majority of this space occurred in class A product in the suburban markets.
Las Vegas Retail Snapshot
The retail market remained stable through Q2 14. The vacancy rate increased slightly to 9.1 percent, while the total inventory for the market increased by 25,000 square feet. Several projects under construction continue to move forward and as they do, vacancy rates will continue to trend downward until some of the new projects come online. It is anticipated that lease rates will increase in response to decreasing vacancy rates as newer, higher quality product hits the market.
Las Vegas Industrial Snapshot
The industrial market continued to be the star of the region as leasing activity and absorption strengthened across the Las Vegas Valley. Lease rates will continue to tick upward with a dwindling supply, particularly in the 100,000+ sf spaces where activity is the strongest. As lease rates and vacancy rates strengthen, developers are expected to take on the additional risk and new speculative construction will gain traction.
The full reports for each of these markets, as well as historical reports are available for download at: http://www.comre.com/research
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About Cushman & Wakefield | Commerce
Cushman & Wakefield | Commerce, headquartered in Salt Lake City, Utah, is an independently owned and operated member of the Cushman & Wakefield Alliance with offices throughout Utah, Nevada, Washington and Idaho. The firm partners with its sister company Cushman & Wakefield | NorthMarq to provide innovative commercial real estate solutions to occupier and investor clients, offering transaction services, capital markets services, occupier and investor services, and real estate advisory. Together the firms manage more than 52 million sq. ft. of retail, industrial, and office assets, have annual revenues of more than $100 million, and employ more than 750 professionals. Learn more at www.comre.com; www.cushwakenm.com. C&W | Commerce and C&W | NorthMarq are part of the Cushman & Wakefield platform, which is the world’s largest privately-held commercial real estate services firm with 250 offices in 60 countries globally. www.cushmanwakefield.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 250 offices in 60 countries, employing more than 16,000 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. A recognized leader in local and global real estate research, the firm publishes its market information and studies online at www.cushmanwakefield.com/knowledge.