Cushman & Wakefield | Commerce Reports an Upward Trend for Q4, 2014 Commercial Real Estate Market in Las Vegas
LAS VEGAS—Mar. 5, 2015—Commercial real estate in the Las Vegas area ended 2014 better than it started, according to new data by the Las Vegas office of Cushman & Wakefield | Commerce. The firm released its most recent Marketbeat Snapshot reports detailing the state of commercial real estate in Southern Nevada.
“Commercial real estate in the Las Vegas-Paradise metropolitan area made steady progress on the road to economic recovery in 2014,” said Michael Dunn, Market Leader for the Las Vegas office of Cushman & Wakefield | Commerce. “This is the second straight year of strong gains in the industrial sector. With positive indicators in new construction, rising sales prices, and decreasing unemployment rates, there is reason to be optimistic that the Las Vegas economy will continue to improving during 2015.”
Las Vegas Office Snapshot
The vacancy rate declined by 2.9 percentage points on a year-over-year basis, ending the year at 25.7 percent. Leasing activity remained strong, resulting in 665,104 square feet of positive absorption for the year. Lease rates stayed fairly flat, as the market still has a large supply of vacant office space. In 2015, the office market should report more positive absorption and the vacancy will decline at a rate similar to what was experienced in 2014.
Las Vegas Industrial Snapshot
The industrial sector saw 659,285 square feet of positive absorption in Q4, 2014. This represents the 14th consecutive quarter of positive absorption in the market. The vacancy rate decreased to 7.9 percent which is the lowest rate since 2007 helping push lease rates up by 1.9 percent. On the heels of the successful Prologis’s lease of a major speculative building to Global Industrial Distribution, developers are becoming more confident in the market’s ability to place tenants in speculative buildings. It is anticipated that developers will look at speculative development with greater acceptance and some new projects will likely be announced in 2015.
Las Vegas Retail Snapshot
The Las Vegas retail market made great strides in improvement for the year and had the best post-recession rebound in terms of overall Las Vegas commercial real estate. Net absorption for 2014 was 1,421,608 square feet and the vacancy rate inched up 30 basis points to end the year at 9.4 percent. With new construction and tourism activity on the rise, the retail sector should see its vacancy rate stay below 10 percent with positive absorption in 2015.
The full reports for each of these markets, as well as historical reports are available for download at: http://www.comre.com/research and interested individuals can subscribe on the page to receive the reports automatically as soon as they are made available.
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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 248 offices in 58 countries globally.www.cushmanwakefield.com.
About Cushman & Wakefield
Cushman & Wakefield advises and represents clients on all aspects of property occupancy and investment. Founded in 1917, it has 248 offices in 58 countries, employing more than 16,000 professionals. It offers a complete range of services to its occupier and investor clients for all property types, including leasing, sales and acquisitions, equity, debt and structured finance, corporate finance and investment banking, appraisal, consulting, corporate services, and property, facilities, project and risk management. To learn more, click HERE.