Las Vegas industrial real estate market report
Q2 2024
2.4m
Significant construction activity boosts deliveries (sf)
The industrial sector in the Las Vegas market continues to thrive, with significant construction activity concentrated in the North Las Vegas submarket. In Q2 2024 alone, the market saw the completion of 2.4 million square feet of new inventory, and an additional 10.2 million square feet remains in the development pipeline. Despite the increase in the vacancy rate, this growth should not be misinterpreted as a decline in demand. Instead, it reflects the substantial influx of new inventory into the market.
2.0m
High leasing activity creates positive absorption (sf)
In Q2 2024, Las Vegas saw robust demand with 2 million square feet of positive absorption, indicating vigorous market activity. Despite an increase in vacancy rates due to new inventory, which remains below the historical average of 7.2%, the market remains strong. Absorption levels, while peaking in 2021 post-pandemic, continue to exceed many pre-pandemic quarters, showcasing sustained market resilience. Global leaders such as Pepsi and Berry Global establishing roots in the Las Vegas industrial market underscore its appeal and growth potential moving forward.
$1.14
Asking rent growth slows, plateauing high rent levels
In Q2 2024, the Las Vegas industrial market saw direct asking rents average $1.14 per square foot per month, slightly lower than the $1.17 recorded in Q1 2024. This adjustment follows a period of robust growth post-pandemic, spanning from Q4 2020 to Q4 2022, during which rents steadily increased. Despite recent quarters showing signs of stabilization and a deceleration in rent growth, indicating a potential plateau in rental rates, it is noteworthy that rents continue to remain above historical averages.
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