Page 6 - Las Vegas LVQR Market Research Report Q1 2024

Colliers 2
Industrial
Las Vegas 24Q1

Note Employment Growth by Sector

Beginning this quarter, the definition for warehouse/distribution February 2024 | YOY
space has been changed to “Buildings with dock-high loading
doors that have bay sizes of at least 50,000 sf”. Buildings not
meeting this definition have been reclassified as light distribution. Logistics 6.6
Employment

According to the Nevada Department of Employment, Training Manufacturing 2.1
and Rehabilitation, Southern Nevada added 10,700 industrial jobs
between February 2022 and February 2023.
All industrial sectors added jobs on a year-over-year basis except Construction 1.0
natural resources. The largest increase was in the logistics sector,
which added 6,600 jobs.
Wholesale 1.0
Unemployment in the Las Vegas-Paradise MSA was 5.2% in
February 2024. Over the past 12 months, total employment in
Southern Nevada increased by 31,200 jobs, a 2.8% increase.
Natural Resources 0.0
Construction

New industrial completions totaled 5.74 million sf this quarter. 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0
This was record new quarterly inventory expansion for Southern
Nevada, beating the previous record by 1.8 million sf. Projects Job Change (000s)
delivered this quarter were 56.5% pre-leased at completion. Source: Colliers International
The Valley had 17.8 million sf of industrial space in active
development, with 10.3 million sf of that having gone vertical. A Absorption
total of 16.1 million sf is scheduled for completion over the next
four quarters, with 15.2% of that space pre-leased. Net absorption in the first quarter of 2024 was 1.95 million sf. This
was down from last quarter, but comparable to one year ago.
Vacancy vs. Rents Warehouse/distribution space dominated this quarter, with 1.7
million sf of net absorption, followed distantly by light industrial
Vacancy Rate Asking Rent (NNN) with 209,215 sf and light distribution with 82,096 sf. Net
absorption was -48,528 sf in incubator projects this quarter.
$1.40 7.0%
Among submarkets this quarter, net absorption was highest in
$1.20 6.0% Apex at 1.04 million sf, followed by Henderson with 438,021 sf
and North Las Vegas with 334,877 sf. Net absorption was negative
$1.00 5.0% in the West Henderson submarket.
Asking Rent (FSG) $0.60 3.0% Vacancy Rate Businesses most active in leasing space over the past four quarters
$0.80
4.0%
were in the retail (21.2%), wholesale (15.7%), professional and
business services (13.1%), manufacturing (12.1%) and
$0.40
2.0%
transportation and warehousing (7.8%) sectors.
$0.20
1.0%
Local companies took 25.5% of the leased square footage we
$0.00 0.0% tracked over the past four quarters. Companies headquartered in
23q1 23q2 23q3 23q4 24q1 the Southeast took 16.6% of the space occupied, followed by
Midwest companies at 16.0% and Mountain West at 10.6%.
Source: Colliers International

Colliers | Las Vegas | 24Q1 | Industrial Report