Las Vegas
According to the Nevada Department of Employment, Training and Rehabilitation, 101,500 retail jobs were recorded in March 2008 in Clark County, an increase of 3.5 percent, from March 2007. During this 12-month period, the largest contribution came from the General Merchandise & Clothing sector, with 3,000 new jobs added; followed by the Food & Beverage Stores sector, with 600 new jobs added and the Health & Personal Care Stores sector, with 200 new jobs.
In first quarter 2008, the Las Vegas Valley’s anchored retail vacancy rate remained relatively unchanged with only a 0.2 percentage point increase to 3.3 percent. The retail market was active in the first quarter as both direct absorption and completions maintained high levels.
Completions were particularly strong as 1.4 million square feet of new space entered the marketplace. This increased the Valley’s inventory by 3.5 percent to 41.5 million square feet. Planned space increased to 1.9 million square feet.
Sublease space represents a small but growing portion of the Valley’s anchored retail center market, rising from 48,000 in first quarter 2007 to 107,000 in first quarter 2008. Additionally, when the vacant sublease space is added to the direct vacant space, the Valley’s overall retail vacancy moved only marginally higher to 3.6 percent.
Reno-Sparks
The first quarter of 2008 didn’t have as much excitement as past quarters. There were no large openings of new big box tenants, vacancy did not see a major change, and absorption was lack luster compared to absorption levels in 2006 and 2007.
Interestingly, there is a rise in vacancy in the unanchored and specialty centers as the smaller tenants are closing due to the tightening economy. There has also been an influx of requests for rent reductions in the smaller spaces in-lieu of closing up shop. Anchored centers seem to be weathering the economic storm with absorption a positive 90,000 and vacancy decreasing from 3.95 percent to 3.47 percent.
Construction slowed in the first quarter with one major project, The Legends at Sparks Marina, is underway with Scheel’s and Target to open fall-2008 bringing to Sparks a center to be filled with entertainment, restaurants and shopping. Additionally, three smaller centers were under construction in Spanish Springs including Eagle Landing, Pioneer Meadows and Los Altos Crossing. Park Lane Mall stirred up excitement as crews completed the demolition of the old mall to make room for a re-development yet to be announced.
Southern Nevada analysis and statistics compiled by Colliers International and Restrepo Consulting Group
Northern Nevada analysis and statistics compiled by Colliers International Reno