Las Vegas industrial real estate market report
The Las Vegas industrial market had yet another strong quarter as vacancies continued to decline along with rising rents. Investment sales exceeded $500M in the quarter for just the second time since the start of 2018, along with a new average pricing high of $209 psf. Looking forward to the second half of the year, these trends should continue to prevail as industrial demand continues to outweigh the current supply.
Total industrial and flex industrial inventory totaled 102,073,308sf at the end of Q2. Total inventory should rise substantially over the next couple years, as there is currently 9,161,189 sf of industrial space under construction.
Net absorption was positive for the 8th consecutive quarter recording a gain of 954,496 sf in the quarter. Despite the nearly 1 msf in positive net absorption, this was the lowest net gain since Q1 2021.
Direct asking rent
Direct asking rates reached a new all-time high at $0.89 psf, up from $0.85 psf during Q1 2022. Rental rates should continue to rise as the market’s vacancy rate continues to trend lower.
Total available space declined by 313,893 sf in the quarter, with direct availabilities totaling 4,614,923 sf and sublet availabilities totaling 526,840 sf.
Total vacancy rates declined to 1.6% in the quarter, another record-low for the Las Vegas industrial market. The direct vacancy rate saw a significant decline from 1.6% to 1.1% through the course of Q2.
Investment sales volume rebounded from a relatively soft Q1, recording $562,083,192 in total sales. The largest transaction was the $226,423,760 sale of the Industrial building at 5802 E Tropical Pky, accounting for more than 40.2% of the total sales volume in the quarter.
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