Las Vegas industrial real estate market report
The Las Vegas industrial market remains highly competitive as tenants compete for a limited amount of available space. A lack of available land for future developments adds another layer of complexity to an industrial market that is undersupplied at current demand levels. Rental rates should rise in the coming quarters as long as the total amount of vacant space continues to decline.
Total industrial and flex industrial inventory totaled 102,277,615 sf at the end of Q1. Traditional industrial properties account for 90.1% of the total inventory, leaving 9.9% of existing inventory space coming from flex industrial properties.
There was 2,111,024 sf of positive net absorption in Q1, marking the seventh consecutive quarter with positive net absorption. Average quarterly net absorption since 2018 is approximately 1.41 msf.
Direct asking rent
Direct asking rates increased by 11.8% quarter-over-quarter, rising from $0.76 to $0.85 psf. Since Q1 2018, the average NNN asking rate has risen 32.1%.
Total available space rose for the first time since Q4 2020, increasing by 964,066 sf relative to Q4 2021. Direct available space accounted for 5,069,313 sf of the total available space.
Total vacancy rates declined to 1.8% in the quarter, a record-low for the Las Vegas industrial market. The direct vacancy rate was 1.6%, with a 0.2% sublease vacancy rate.
Investment volume in the first quarter amounted to $222,235,213. The average transaction was priced at $179 psf. This was a relatively muted quarter for industrial transactions following a very active 2021 that recorded nearly $1.5 billion in total investment volume.
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