Resources
CoStar Group, Inc. Summary for 1Q23
Industrial:
Proximity to Southern California and other Mountain West metros, in addition to a growing local population, bolsters the long term outlook for the Las Vegas industrial market. Spillover demand from Southern California is driven by companies seeking modern logistics space at a lower cost. However, a slowdown in container trade at the Los Angeles or Long Beach ports has tempered demand for industrial space based on historical trends.
The vacancy rate compressed to all-time lows during the pandemic but has ticked up in recent quarters to 3.1%…
Multifamily:
After five consecutive quarters of negative absorption, demand finally rebounded in the Las Vegas apartment market in 23Q1. However, upward pressure on vacancies will be the norm in the near term with weaker demand and upcoming supply waves. Las Vegas vacancies have expanded at one of the fastest rates in the country—after bottoming at about 4% in 2021 they have spiked to 9.7% and above the market's historical average of 7.8%. The forecast calls for vacancies to hit double digits by the second half of 2023…
Office:
Unlike many markets, office vacancies have remained relatively stable in Las Vegas. Strong absorption from non-tech tenants, limited new construction, and recent demolitions have contributed to vacancies of 10.3%. This remains below the Las Vegas historical average of 13.7% and the national average of 13.0%. However, negative absorption in 23Q1 has put some upward pressure on the vacancy rate more recently…
Retail:
Few retail markets in the country depend on tourism as much as Las Vegas, and the recent travel boom has benefited the entertainment capital. Convention attendance increased by more than 30% annually and 20% versus 2019 levels per the latest data release from the Las Vegas Convention and Visitor's Authority. Gaming revenue in the state of Nevada exceeded $1 billion for a record 23 consecutive months in January, and taxable sales in Clark County are up more than 10% annually based on the latest quarterly data…