Las Vegas industrial real estate market report
Q3 2024
A total of nearly 3 million square feet of industrial space was delivered across Las Vegas in Q3 2024, with the largest portion in North Las Vegas.
8.0%
Rising Vacancy Rates Due to Record Supply
Over the past 24 months, starting from Q3 2022, the Las Vegas industrial market has seen a significant rise in vacancy rates driven by an influx of new supply. Between Q2 and Q3 of 2024 alone, vacancy increased by 120 basis points, with a total growth of 140 basis points since the start of the year—indicating that much of the rise occurred in the most recent quarter. Nearly 10 million square feet of new inventory has been added year-to-date, further contributing to the swelling vacancy rate.
$1.11
Decelerating Asking Rent Growth Amid High Historicals
After consistent quarter-over-quarter increases, asking rents have plateaued at $1.11 per square foot per month, with rent growth slowing significantly in Q3 2024 due to oversupply and increased negotiability among landlords. Rent growth dropped to 3.5% in Q3, down from 6.5% in Q2 and 9.1% in Q1. Two years ago, rent growth peaked at 15.2% in Q3 2022, but it has steadily decelerated as landlords face rising vacancy and heightened competition.
267,652 sf
Shift in Leasing Preferences to Smaller Spaces
There has been a notable shift in leasing preferences over the past year. Previously, positive absorption prior to 2020 was driven by spaces in industrial buildings larger than 400,000 square feet. However, in the last four quarters, tenants have increasingly favored smaller spaces, specifically those ranging from 100,000 to 400,000 square feet. In Q3 2024, net absorption reached a positive 267,000 square feet.
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