Page 20 - Las Vegas LVQR Market Research Report Q1 2024

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Retail
Las Vegas 24Q1

Vacancy This was very close to single-tenant sales volume one year ago,
and a tremendous improvement over last quarter.
Retail vacancy decreased to 4.2% this quarter, 0.1-points lower
than one year ago, and near the lowest retail vacancy rate Shopping center investment sales this quarter had a sales volume
recorded in Southern Nevada since before the Great Recession. of $31.8 million in 3 sales totaling 164,534 sf at an average sales
Neighborhood centers had the highest vacancy rate at 5.4%, and price of $193.38 psf. The average cap rate for shopping center
freestanding retail the lowest at 2.0%. retail properties was 6.3%.
Among submarkets, North Las Vegas, Northwest, Southwest and Shopping center investment sales were down on a year-over-year
West Central had vacancy rates below the Valley average, while basis and quarter-over-quarter.
Downtown, Henderson, Northeast and University East had above Forecast
average vacancy. The Valley’s lowest vacancy rate was in the
Southwest at 2.6% and highest in Downtown at 8.4%. Southern Nevada’s retail market took a beating in 2023, with a
Rents strong first quarter followed by successively lower demand over
the remaining three quarters of the year. The first quarter of 2024
The average asking rental rate for retail space was $1.66 psf NNN saw the market turn around in a big way, with 146,168 sf of net
this quarter. This was $0.01 psf higher than one quarter ago and absorption and a boost in asking rental rates.
$0.04 psf higher than one year ago. The Southwest submarket,
Retail expansion should be fairly robust in 2024, with 157,940 sf
with 2.6% vacancy, had the Valley’s highest asking rates at $2.26
currently under construction and 465,024 sf scheduled for
psf NNN. It was followed by the 3.1% vacant Northwest
completion over the next four quarters. With 68.2% of this
submarket’s $1.79 psf NNN asking rate.
scheduled space pre-leased, we should see fairly strong net
Sales absorption in 2024 barring a downturn in the economy.
Single-tenant retail investment sales volume in the first quarter of Taxable spending in the retail sector, which had shown strong
2024 was $63.1 million in 13 sales totaling 136,554 sf at an growth during the recovery from the lockdowns of 2020, has
average sales price of $461.79 psf. The average cap rate for single- recently leveled off and even seen some negative annual growth
tenant retail properties was 5.8%. on a month-by-month basis. This was somewhat concerning given
price inflation since lower retail taxable sales with alongside
higher suggests less product being moved, and less product being
Single-Tenant '22 '23 '24 moved could mean potential downsizing by retailers.
Investments
No. Sales 80 41 13
Square Footage 504,657 271,954 136,554
Sales Volume $365.2 MM $147.8 MM $63.1 MM
Average Price/SF $723.75 $543.63 $461.79
Average Sale Size 6,300 6,600 10,500
Cap Rate 5.4% 5.4% 5.8%

Shopping Center '22 '23 '24
Investments

No. Sales 70 17 3
Square Footage 2,829,382 493,937 164,534
Sales Volume $1013.5 MM $112.0 MM $31.8 MM
Average Price/SF $358.20 $226.73 $193.38
Average Sale Size 40,400 29,100 54,800
Cap Rate 5.9% n/a 6.3%

Colliers | Las Vegas | 24Q1 | Retail Report