Home About Services Resources Portfolio Property Search News Contact Us Resources CoStar Group, Inc. Summary for 21Q3 Industrial: The vacancy rate fell to about 4%, nearing the all-time low, after compressing by 200 basis points from 21Q1 to 21Q2. Net absorption reached a record high in 21Q2 as more than 4 million SF was occupied during the quarter, which was 1 million SF more than the previous high set in 17Q4. Although supply waves will continue for the foreseeable future, robust demand is projected to continue mitigating upward pressure on the vacancy rate. As in most markets, logistics-oriented warehouse and distribution properties comprise the bulk of the upcoming pipeline. Rent growth noticeably decelerated in the throes of the pandemic, but that trend has reversed in 2021. Annual gains are on the upswing and currently register at 9.0%, with the forecast calling for strong gains to continue in the near term. Investment activity was disrupted due to the coronavirus and the acute impact on Las Vegas' economy. From 20Q2-21Q2, sales volume has grown in four consecutive quarters and climbed to a record high of nearly $700 in quarterly volume in 21Q2… Office: Office-using employment is rebounding along with the broader Las Vegas economy, spurring demand for office space. Leasing volume in 21Q2 reached one of its highest marks in the past decade as it eclipsed 1 million SF, roughly double the leasing volume in the same quarter of 2020. In 21Q2, Las Vegas also posted its best quarter of net absorption since the onset of the pandemic as more than 500,000 SF was occupied. This could represent a turning point for the local office market after back-to-back quarters of negative absorption totaling about 1 million SF from 20Q4-21Q1. Currently, the vacancy rate is 11.7%and remains near the historical average. As many U.S. office markets continue to see downward pressure on rents, Las Vegas is posting gains of 4.5% versus the national average of -0.3%. Investment volume and pricing have also seen an uptick recently as investors and lenders grow more comfortable with the longer-term outlook of the local economy… Retail: The Las Vegas economy is tied to the national economy, as it relies heavily on the population's disposable income. When the economy is in a downswing, this is mirrored in Las Vegas, though its decline tends to be more drastic and recovery slower. That is certainly the case in terms of the labor market, as the job recovery trails the national average. However, unprecedented monetary and fiscal stimulus has softened the blow from the pandemic, and many retail tenants are in expansion mode in 2021. Construction remains below the market's historical average, so the addition of new supply should only put modest upward pressure on vacancies. Recent demand trends are favorable given the strong population growth and in-migration in Las Vegas. As economic activity returns to pre-pandemic levels, vacancies are likely to stabilize with supply being a minimal factor. Investment activity slowed in 2020 due to the acute impact to the local economy, but more deals are getting done in 2021. In fact, sales volume at the end of August already exceeds total volume from 2021, although pricing has remained somewhat stagnant. Cap rates have also flattened out in the mid-6% range, on average. .. To receive information on the market, please provide your contact details below and a member of our team will be in touch. Name: * Company Name: * Title: * Phone Number: * Email: * Department * Investment Landscape Leasing Property Management With an extensive Las Vegas history, Gatski Commercial delivers in-depth market knowledge and perspective. Gatski offers it all under one roof. Latest news Happy Thanksgiving from Gatski Commercial! Just FYI! Franksgiving 2021! Gatski Commercial 4755 Dean Martin Drive Las Vegas, NV 89103 Phone: (702) 221-8226 Email: Info@GatskiCommercial.com Employment Company Culture Benefits Join Our Team Application Community Copyright © 2021 Design by FINE THE AGENCY/ All Rights Reserved