Las Vegas—May 26, 2015—The Las Vegas office of Cushman & Wakefield | Commerce released its Marketbeat Snapshot reports for Q1 of 2015. The reports detail office, industrial and retail sectors of Las Vegas commercial real estate.
“A positive job market and an increase in investor confidence translated into gains in commercial real estate in Southern Nevada,” said Michael Dunn, Market Leader of the Cushman & Wakefield | Commerce Las Vegas office. “Las Vegas continued its recovery at a faster pace than the overall U.S. economy with momentum continuing to slowly build across all product types. Jobs were added at 2.7 percent over last year. Demand for retail space is on the rise, the office sector saw the highest net absorption in years and the industrial market is in a solid growth mode.”
Las Vegas Office Snapshot
The year started off strong with just over 130,000 sf of positive absorption. Office vacancy rate for Q1 2015 was 25.7 percent. Strong absorption in Q1 will continue to push vacancy rates down, however asking rental rates are not expected to increase significantly until the vacancy rate falls below the 15 percent mark. There were 33 office sales during Q1 2015 for a total volume of $121.7 million. Further, as the Baby Boomers transition into retirement and more Millennials begin to enter the workforce, tenants are changing the way they use office space. The square footage for office space per employee continues to shrink, but the emphasis on creative amenities such as gyms, collaborative space and social interactive environments are the newest trends in this sector.
Las Vegas Industrial Snapshot
Nevada’s industrial market completed another quarter of positive absorption (its thirteenth quarter in a row). The industrial vacancy rate for Q1 2015 was 7.3 percent. The overall vacancy rate continued to plummet, putting upward pressure on leases rates, which increased by 5.7 percent on a year-over-year basis. This strong growth in the industrial market also pushed rental rates to levels that now support new construction. Presently over 1.5 million sf of large box industrial is under development. The emphasis has been on large users, but the 20-80K sf user is presently being neglected. With no new buildings will be developed until rental rates increase enough to justify new construction.
Las Vegas Retail Snapshot
The retail market slowed modestly from prior quarters, but still continued to improve with 87,204 square feet of positive absorption. The retail vacancy rate for Q1 2015 was 9.4 percent. Retail investment sales for Q1 2015 consisted of 18 transactions, with the average price per square foot for multi-tenant sales now nearing $200 per square foot. As job growth continues to build and new residents move to Las Vegas combined with an increase in the number of visitors, conventions, taxable sales, residential development and entertainment we will see conservative demand driven growth in retail development.
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 advises and represents clients on all aspects of property occupancy and investment. Founded in 1917, it has 259 offices in 60 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.