Page 40 - Las Vegas LVQR Market Research Report Q1 2024

Colliers 2
Land
Las Vegas 24Q1

Commercial Land Industrial Sales Volume vs. PPSF
Sales Volume ($MM) Price Per SF
Occupancy in commercial buildings remained at 93.0% in the first
quarter of 2024. A total of 72,480 sf of new commercial space was $120.0 $25.00
completed this quarter on 15.5 acres. An additional 1 million sf of
office and retail product on 101.8 acres is scheduled for delivery
over the next four quarters. $100.0 $20.00
Hotel occupancy this quarter averaged 83.0%. No major new $80.0
hospitality projects were completed this quarter, and completion $15.00
of several projects was pushed back to 2025 and 2026. In Sales Volume
addition, the Tropicana Las Vegas is being demolished in the near $60.0
future to make room for a new MLB stadium. The sector had only Price Per SF $10.00
953 new rooms on 7.1 acres scheduled for completion over the $40.0 ($MM)
next four quarters.
In the fourth quarter, a total of 43.7 acres of commercial land was $20.0 $5.00
sold with a sales volume of $52.2 million. The average price of
commercial land was $27.40 psf, a 32.4% decrease from 2023.
$0.0 $0.00
Commercial land sales were strongest in the Southwest (15.3 23q1 23q2 23q3 23q4 24q1
acres), North Las vegas (9.4 acres) and Northwest (9.0 acres)
submarkets this quarter. The West Las Vegas submarket Source: Colliers International
commanded the highest sales price for commercial land, at
$97.08 psf, edging out the Henderson submarket at $46.63 psf.
Industrial Land
Demand for commercial-zoned land continued to improve this
quarter despite a relatively light number of office, retail and Occupancy in industrial buildings decreased to 95.2% in the first
hospitality properties in development. quarter of 2024. A total of 5.74 million square feet of industrial
space was completed on 299.7 acres this quarter. An additional
Commercial Sales Volume vs. PPSF 16.1 million square feet of industrial space on 849.7 acres of land
is scheduled to be delivered over the next four quarters.
Sales Volume ($MM) Price Per SF
A total of 24.3 acres of industrial land was sold this quarter, with a
$160.0 $45.00 sales volume of $6.1 million. The average sales price of industrial
land was $5.79 psf, a 51.7% decrease from the average sales price
$140.0 $40.00 of $11.99 psf one year ago.
$120.0 $35.00 Industrial land sales were strongest in Northeast (12.8 acres) and
$30.00 Henderson (11.5 acres) this quarter. The Henderson submarket
$100.0 $25.00 Sales Volume commanded the highest sales price for industrial land this quarter
Price Per SF $80.0 $20.00 at $8.28 psf, followed by Northeast at $3.55 psf.

Despite the significant increase in industrial inventory of 16.1
$60.0
$40.0 $15.00 ($MM) million square feet scheduled for 2024, developers have another
19.4 million square feet of proposed industrial product that can
$10.00
follow. This means their need for industrial-zoned land is light,
$20.0 $5.00 and thus industrial land sales have followed suit. If industrial
$0.0 $0.00 vacancy rates remain low in 2024 despite the record level of
23q1 23q2 23q3 23q4 24q1 construction, the need to purchase land for 2027 developments
might stimulate demand for industrial land this year.
Source: Colliers International

Colliers | Las Vegas | 24Q1 | Land Report