Las Vegas retail climbs to top 3 nationally for annual rent growth

Las Vegas retail currently stands at #3 in the nation for annual rent growth – posting an increase of 8.5% YOY. Las Vegas falls just shy of Phoenix (#1) and Cincinnati (#2), where both markets saw increases of 8.6% - only 10bps above Las Vegas. Las Vegas established itself as a national leader in annual job growth (3.7%) and return-to-work rates (101.8%) following the pandemic. This quick return to normal boded well for the Las Vegas economy, and when the economy is healthy – demand for retail products and services follows suit. The increased demand in the Las Vegas retail market has led tenants to pay a premium to secure high-quality space, driving average market rents from $29.27/sf in Q3 of 2022 to $31.76/sf in Q3 of 2023 – an increase of $2.49/sf (8.5%) year-over-year.