Las Vegas retail market report

Q3 2023

Three key market themes:


Total vacancy rate

The total vacancy rate for Las Vegas retail stayed consistent quarter-over-quarter – remaining at 5.6%. Direct vacancy increased by 10bps quarter-over-quarter, ending Q3 at 5.4%, while sublet vacancy saw a decrease of 10bps over the same period, ending the quarter at 0.2%.

Vacancy fell significantly in 2022 as tenants re-entered the market following the Covid pandemic and its associated lockdowns, since then, vacancy rates have remained stable at near decade-lows ranging from 5.6%-5.8% throughout 2023.

150,633 sf

Net absorption

Las Vegas retail recorded 150,633 sf of positive net absorption during the 3rd quarter – marking the 4th consecutive quarter of positive absorption. 

Though remaining positive during the 3rd quarter, net absorption has slowed when compared to historical norms, as supply-side pressure has impeded leasing activity. The record-low vacancy rate and decade-low in available space recorded in Q3 indicate that demand is fully intact. However, the lack of available space has created significant competition for retail space in Las Vegas.


Transaction volume (by $)

Investment sales volume increased by $59.3m (79.1%) quarter-over-quarter – jumping from $74.9m in Q2 to $134.1m in Q3. Despite breaking the $100m mark for total transaction volume in a quarter for the first time this year, sales activity still lags historical norms, as the 5-year moving average of quarterly transaction volume is $176.5m.

The slowdown in investment activity can primarily be attributed to a near-doubling of comprehensive borrowing costs during 2023 – leading buyers to push for higher cap rates from sellers to offset the increased borrowing costs. However, sellers have been reluctant to make concessions, as most have opted to retain their assets, as record-low vacancy rates have led to increased cash flow for landlords across Las Vegas.

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Get in-depth retail market reports and insights from commercial real estate experts in the Greater Las Vegas area. Avison Young advisors look at Nevada's commercial real estate activities and the latest Las Vegas statistics to provide you expert market research on the area's retail properties.

Explore different topics like the latest retail market pricing trends and analysis of Las Vegas's current retail real estate market conditions. Gain a better understanding of the city’s retail real estate outlook and stay ahead of current retail space trends. Make smart decisions when it comes to investing in retail properties in Las Vegas's competitive retail real estate market. Avison Young is your trusted source for commercial real estate retail market insights in Las Vegas.

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