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Avison Young releases its fourth quarter 2022 retail market report for Las Vegas
February 3, 2023
Las Vegas, NV – Avison Young recently released its Fourth Quarter 2022 Las Vegas Retail Market Report. Investors and tenants capitalized on investment opportunities in 2022 - with investment sales volume and sales price per-square-foot (psf) numbers both reaching near-record highs. Total sales volume increased from $746 million in 2021 to $1.2 billion in 2022 – a 58.1% increase year-over-year. The average price on retail asset sales increased by $93 psf (45.5%) to $296 psf over the same period.
“If the trend toward pre-pandemic retail leasing and sales continues throughout 2023, Las Vegas property owners should be pleased with increased demand, higher asking lease rates, and property sales generating over $295 psf,” said Hillary Steinberg, an Avison Young Vice President specializing in the Las Vegas retail sector.
Total availabilities were down 596,600 sf (8.92%) year-over-year – ending Q4 2022 with 6,091,024 sf of total available space. This marks the least amount of available retail space in Las Vegas since 2007. New construction deliveries checked in at 503,694 sf for 2022, giving a total of 2.61 msf delivered to the market over the past five years.
“In addition to the projects noted in Avison Young’s market report, Las Vegas is poised to open additional casinos, such as Durango Station and Fountainbleu; entertainment venues like the MSG Sphere; and sports-related venues, like Formula 1 Racing,” noted Steinberg. “All of these projects bode well for the retail sector.”
Vacancy for Las Vegas retail continued its downward trend across all Las Vegas markets in 2022, coming in at 6.0% to end Q4. The decline in vacancies has been largely fueled by rising tenant demand post-pandemic – with grocery stores, fitness clubs, and big box retailers making a resurgence by leasing larger vacant spaces in shopping centers and new mixed-use developments.
Net absorption is down 41.45% when compared to 2021’s total of 1,417,390 sf of positive absorption. There was 829,861 sf of positive absorption in 2022 – representing 0.9% of the total inventory. Though net absorption was down year-over-year, 2022 was the second largest year of positive net absorption for Las Vegas retail over the past six years.
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Media Contact: Darcie Giacchetto, Media Relations Specialist – Southwest: +1.949.278.6224