Page 10 - Las Vegas LVQR Market Research Report Q1 2024

Colliers 6
Industrial
Las Vegas 24Q1

Investment Sales Volume vs. PPSF Glossary

Sales Volume ($MM) Price Per SF Industrial Subtypes
Flex (FL): Buildings without dock-high loading doors with parking
$350 $400 ratios in excess of 3.5/1,000 sf.

$300 $350 Incubator (INC): General industrial buildings without dock-high
loading doors that have a parking ratio lower than 3.5/1,000
$300
$250 $250 square feet and bay sizes smaller than 3,500 sf.
Price Per SF $200 $200 Sales Volume ($MM) Light Distribution (LD): General industrial buildings that include
dock-high loading doors and have bay sizes of 50,000 square feet
or smaller.
$150
$150
Light Industrial (LI): General industrial buildings without dock-high
$100
$100 loading doors that have a parking ratio lower than 3.5/1,000 sf
$50 $50 and, in the case of multi-tenant buildings, bay sizes of at least
3,500 square feet.
$0 $0 Warehouse/Distribution (WD): Buildings with dock-high loading
23q1 23q2 23q3 23q4 24q1 doors that have bay sizes of at least 50,000 sf.

Source: Colliers International Construction Definitions
Sales Under Construction (UC): Project has gone vertical; i.e. foundation
poured, walls framed or tilted, etc.
Industrial investment sales volume this quarter was $109.3 million
in 15 transactions totaling 518,468 sf at an average sales price of Active Development (AD): Project is undergoing site work.
$210.82 psf. This was comparable to sales volume one quarter and
Planned Construction (PC): Project is scheduled to begin
one year ago, but about one third the volume seen in the second
construction within the next twelve months.
and third quarters of 2023. The average cap rate for industrial
sales this quarter was 5.7%. General Definitions
User sales volume year-to-date was $34.7 million in 13 sales Direct Lease: Space in a building offered for lease directly by the
totaling 164,276 sf at an average price of $211.39 psf. owner of the building.
Forecast Sublease: Space in a building that is offered for sublease by the
primary tenant.
The forecast for the industrial market is uncertain. 2024 should
see the largest industrial expansion in the Valley’s history Net Absorption: The difference in occupied square footage from
continue with as much as 13 to 17 million sf in completions. With one period to another.
pre-leasing trending downward over the past year, this should
Direct Availability Rate: The percentage of total inventory
also mean higher vacancy rates and potentially downward
available for direct lease, regardless of whether it is vacant.
pressure on asking rental rates.
Sublease Availability Rate: The percentage of total inventory
While one could characterize this increase in vacant industrial
available for sublease, regardless of whether it is vacant.
space as a problem, it is also an opportunity, providing large
contiguous speculative spaces for companies with an immediate Availability Rate: The percentage of total inventory available for
need for such space. Of greater worry is the rapid increase in direct lease or sublease, regardless of whether that space is vacant
vacant sub-lease space experienced over the past two quarters. or occupied.
This kind of expansion of vacant sublease space could forsage
Vacancy Rate: The percentage of total inventory that is available
softer demand for industrial space in the future.
for direct lease or sublease that is vacant.

Colliers | Las Vegas | 24Q1 | Industrial Report