• Skip to content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer

Nevada Business Magazine

The Decision Maker's Magazine

Subscribe Now!

  • Subscriptions
    • Print
    • Mobile App
    • Email
  • Features
    • New This Month
    • View Issues
    • Cover Stories
    • Feature Stories
    • Industry Focus
    • Building Nevada
    • Special Reports
    • ReD Report
    • Press Release Wire
    • Nevada Industries
  • Departments
    • A Matter of Opinion
    • Around the State
    • Business Indicators
    • Commentary
    • Commercial RE Report
    • Crossfire
    • Expert Advice
    • Face to Face
    • Free Market Watch
    • Inside Politics
    • Power of Attorney
    • Profit & Loss
    • Speaking for Nevada
    • Tech.knowledge.me
    • The Last Word
    • Vital Signs
  • Planning Calendar
  • Advertising
    • Advertising Info
    • Advertising Staff
    • Submission Requirements
    • Online Advertising
  • Events
    • NBM Events
  • Contact
    • Contact the Staff
    • Contact Form
  • Connect
    • Business Directory
    • Press Release Wire
    • Business Calendar
    • Submit Listing
    • Post Press Release
    • Add Your Event
    • Sign Up
    • Log In
You are here: Home / Press Release Wire / Industrial Surges, Office and Retail Coast During Third Quarter in Las Vegas

Industrial Surges, Office and Retail Coast During Third Quarter in Las Vegas

October 23, 2015 By Press Release Wire Leave a Comment

Las Vegas – Southern Nevada’s warehouse/distribution properties continued to post impressive results in the third quarter of 2015, but other industrial segments showed strong demand as well. Vacancy in the warehouse/distribution sector is now a very low 3.1 percent, which continued to stimulate new industrial development; more than 8 million square feet of new industrial projects are now in the development pipeline in Southern Nevada. Vacancy is also very low in the multifamily market, also stimulating new developments. Over the next 12 months, more than 1,600 multifamily units should be completed in Southern Nevada, all of them near the 215 Beltway, spreading from Henderson to Summerlin.

“While the Valley’s hospitality industry recovered over the past three years, the construction industry, another major pillar of the local economy, remained stuck in neutral. That situation has changed, and the construction sector is now posting impressive job gains,” said John Stater, research manager of Colliers International – Las Vegas.

Southern Nevada’s industrial market saw more diversified demand this quarter in its 1.77 million square feet of net absorption. While 54 percent of this net absorption was in warehouse/distribution properties, a notable amount of net absorption occurred in light distribution and light industrial properties. Almost 1 million square feet of industrial product was completed this quarter, all of it warehouse/distribution. Total industrial vacancy is now at 5.8 percent, which we consider normalized vacancy for Southern Nevada. Asking rental rates increased to $0.61 per square foot (psf) on a triple net (NNN) basis.

On the hospitality side, visitor volume at this point in 2015 is slightly ahead of where it was in 2014, putting Southern Nevada on track to have hosted more than 40 million people by the end of the year. Room occupancy continued to be strong in the third quarter, but gaming revenue was down slightly from this point last year, an unwelcome sign given that gaming revenue is still well below peak levels.

Mike Mixer, executive managing director of Colliers International – Las Vegas, said, “Southern Nevada’s hospitality market continues to reinvent and renew itself, adding non-gaming attractions and venues to its already stellar lineup of resort hotels.”

Southern Nevada’s multifamily market is now out of the recovery phase and into the expansion phase. Development has been close to nil for the past several years and demand has finally driven vacancy down to the point that new developments are inevitable. Over the next 24 months, as many as 5,500 new multifamily units may be added to the inventory, all of it on or near the I-215 Beltway, stretching from Henderson to Summerlin. With the passing of the Great Recession, it is likely that we have seen a shift in the balance of demand from single-family to multifamily residential units. Younger folks are now leaving college with more debt than past generations, and appear to be delaying marriage and childbearing, two key life events that move people from multi- to single-family residential. With people staying in multifamily longer, the need for a higher level of multifamily development will likely persist for the next decade.

Southern Nevada’s office market is still fighting headwinds caused by a conservative attitude towards expansion, a holdover from the recession years, and technological innovation that is cutting the amount of space required per office employee. Despite that, the office market does appear to have nearly returned to “normal,” if you define normal as the period before the Great Recession and the boom that immediately preceded it. Over the past three quarters, Southern Nevada has absorbed more than 1 million square feet of office space. Net absorption was negative in the fourth quarter of 2014, ending a five-quarter expansion. Hopefully, the market has at least two more quarters of positive net absorption in it, although weak demand in the fourth quarter of the year is not abnormal. Currently, Southern Nevada has 35.5 million square feet of occupied office space, approximately 700,000 more square feet than was occupied at the last peak in the fourth quarter of 2007. By this standard, 2015 marks the first solid year of recovery for the office market. We think the fourth quarter of 2015 will have weaker demand than the third quarter, but that we will end the year with vacancy lower than in 2014, with asking rates higher and rising.

While health care employment is on the rise, it does not always translate into more demand for medical office space. The majority of health care workers do not work in medical office buildings. Considering this, the positive net absorption in medical office space in 2015 is actually pretty good. It seems likely that medical employment, which is almost always growing and which only suffered a minor setback in the run-up to the implementation of the Affordable Care Act, will continue to grow over the next 12 months. This growth will probably be steady, so growth in medical office occupancy will likely be steady, as well.

“Medical office is a work horse, not a race horse,” Stater said.

The retail market is expanding once again, at the same rate as in 2012, though with more new construction. Net absorption has been positive for the last three quarters, and should remain positive for one or two more quarters. Taxable sales remain very strong in Southern Nevada, but those strong sales are not translating into employment gains, and demand for retail real estate is more closely tied to employment than taxable sales. Colliers International – Las Vegas believes the market will end 2015 with net absorption in the range of 500,000 square feet, with vacancy at approximately 9.4 percent.

Development continues to increase in Southern Nevada, especially the development of industrial and multifamily projects, as well as commercial projects in the southwest submarket. For the time being, this development appears to be “reality-based,” as opposed to the manic construction levels in the 2000s that preceded the Great Recession and Southern Nevada’s fall from grace. Industrial development is strong, but so is demand for industrial space. Likewise, multifamily development is following low vacancy rates that have been falling for several years. Commercial development is in limbo at the moment. While retail and office demand have been rising over the past three years, the rise has been slow and often uneven. Most new commercial development is slated for the southwest submarket, where much of the Valley’s multifamily construction is occurring. Again, this makes sense, and suggests that new development in Southern Nevada is more sustainable and better planned now than it was a decade ago. Land sales remain restrained, suggesting that developers have already pre-positioned themselves for development in the short term. As new projects are completed over the next 24 months, their appetite for land should increase.

About Colliers International Group Inc.

Colliers International Group Inc. (NASDAQ: CIGI; TSX: CIG) is a global leader in commercial real estate
services with more than 16,300 professionals operating from 502 offices in 67 countries. With an
enterprising culture and significant insider ownership, Colliers professionals provide a full range of
services to real estate occupiers, owners and investors worldwide. Services include brokerage, global
corporate solutions, investment sales and capital markets, project management and workplace solutions,
property and asset management, consulting, valuation and appraisal services, and customized research
and thought leadership. Colliers International has been ranked among the top 100 outsourcing firms by
the International Association of Outsourcing Professionals’ Global Outsourcing for 10 consecutive years,
more than any other real estate services firm.

For the latest news from Colliers International, visit Colliers.com, or follow us on Twitter: @ColliersIntl
and LinkedIn. To see the latest news on Colliers International in Southern Nevada, follow @Colliers_LV
and visit Facebook.

Filed Under: Press Release Wire Tagged With: Colliers International, Colliers International - Las Vegas, Great Recession, John Stater, Las Vegas business, Las Vegas commercial real estate, Las Vegas real estate, Nevada business, Nevada commercial real estate, Nevada real estate

Sponsored Features

Sponsored Features

Nevada Medical Marijuana CardGet Benefits Now NuggMD

SNWA Water-Smart ProgramsHelp Businesses Reduce Operating Costs, Prepare for Shortage

MEET Las VegasA Meeting and Event Venue Unlike Any Other.

First Independent BankYour Prescriptions for Success

Advertise With Us

Advertise With Us. more details ►

Primary Sidebar

How About Now?Exit Planning

Industry FocusBuilders & Developers

The Return of Office 2019Nevada’s CRE Office Industry

Ready to WorkNevada Industry Excellence and an Opportunity-Driven Workforce

Nevada News & PR Wire

  • REMSA Reminds Nevadans to Save the Hearts they Love this February

  • De Castroverde Law Group launches service to help clients seal criminal records

  • Southern Nevada’s Business Community Invited to the 2019 Business + Education (BE) Engaged Summit

  • Nevada’s Safety Consultation and Training Section to dedicate April as Nevada Hispanic Safety Month

  • Nevada Housing Coalition to Host Inaugural Townhall Event in Reno on Wednesday, February 20

  • Nevada Rural Housing Authority Recognized as High Performer for 16 Consecutive Years by U.S. Department of Housing and Urban Development

  • Nevada Rural Housing Authority Hires Lena Frias as its New Director of Rental Services

  • Aviant Hospice Named a Hospice Honors Recipient – One of three hospices in Nevada receiving the prestigious award

  • Craig W. Drummond awarded ‘Top Lawyer in Las Vegas’ by MyVegas Magazine

  • Leaders and Entrepreneurs Unite to Inspire and Invigorate

  • Linking Systems of Care for Children and Youth Project Premieres New Website

  • CALV presents Commercial Education Day on March 13

  • Mountain’s Edge Community Garage Sale to Be Held March 2

  • Cure 4 The Kids Foundation Promotes Joseph L. Lasky III, M.D. to Director of Bleeding and Clotting Disorders

  • De Castroverde Law Group sponsors the Boyd School of Law Immigration Clinic student’s participation in the 2019 Immigration Law Competition at NYU

  • Jewish Nevada Promotes Sarah Small to Director of Young Leadership Development

  • Jewish Nevada Promotes Megan Weintraub to Director of Annual Giving and Women’s Philanthropy

  • Community leaders selected to serve on NCET board

  • SR Construction Names Robert Schenck as Senior Estimator and Debuts New Reno Office

  • Reflection Bay Golf Club at Lake Las Vegas Hosts Valentine’s Day Weekend Events

  • Nevada REALTORS® President Keith Lynam speaks to international real estate group on Presidents’ Day

  • Nevada State College Hosts 2019 Provost Lecture Series for Social Analysis and Critical Thought

  • Henderson Chamber to present business networking mixer

  • PR Plus Partners with Three New Food & Beverage Industry Clients

  • MountainView Hospital Opens Level III NICU

  • Nevada State Bank names Nidhi “Nikki” Dadlani vice president and professional banking relationship manager

  • Licensing, certification for business owners the topic of workshop

  • RE/MAX Realty Affiliates Welcomes the Joshua Fink Group

  • Foundation Assisting Seniors Holds Annual Appreciation Dinner

  • Aberlewest to host $35 headshot event March 16

  • Divine Café at Springs Preserve Hosts Mediterranean Cooking Night

  • TuffSkin adds Rick Worman to Las Vegas sales and marketing team

  • Protective Surface, TuffSkin celebrates Mardi Gras at Infinite Trend

  • Max Pawn Offers 5 Tips for Purchasing Secondhand Items

  • Valentine’s Day shopping can be daunting, expensive: Tips to find gifts

  • At Max Pawn’s Valentine’s Day Doggie Date February 13, you can say, “I woof you, too.”

  • TMC Financing facilitates expansion of Hwang Law Group utilizing SBA 504 Loan

  • Bok Bok Chicken expands to the southwest with the opening of third location

  • RSAR Releases January 2019 Existing Home Sales Report

  • Ferrari Public Affairs Hires Key Personnel to Meet Client Demand

  • Henderson Mayor Debra March Receives Secretary of State Opinion on Re-Election Bid

  • Nevada State Bank hires Susan Stanton as human resources manager

  • Tielemans Design Creates 100th Anniversary Logo for Zion National Park

  • OptumCare Community Center – East offers new and ongoing events for March

  • OptumCare Community Center – West offers new and ongoing events for March

  • Northcap Commercial Multifamily Arranges Sale of Valley Vista Apartments for $3,308,000

  • RE/MAX Realty Affiliates Welcomes James Bull to The Lessinger Team

  • Las Vegas Based TRU Development Announces Pre-Leasing for KAKTUSlife

  • Big Whiskey’s American Restaurant & Bar to make western debut at Town Square Las Vegas

  • Southern Nevada home prices bounce back to $300,000

  • Pets of the Homeless now accepting cryptocurrency donations

  • Governor honors NCEDSV executive director, Sue Meuschke, for 30 years’ service to victims of domestic, sexual violence

  • Vision Sign and Sensory Interactive Create Dramatic LED Feature at Caesars Bluewaters Dubai

  • The Juice Standard Expands Their Menu Beyond Pressed Juices: Las Vegas’ First Cold Pressed Juice Bar Brings an Array of Smoothie Bowls and Signature Juice Fasts to Las Vegas and Henderson

  • Roseman University of Health Sciences Appoints Nevada State Bank’s Rita Vaswani, as Chairman of the University’s Campaign for the College of Medicine

  • Clark County Medical Society Alliance Hosts 18th Annual Spring Fashion Show, March 19

  • Ruth Furman invites business owners to interactive workshop on self-promotion

  • YurView premieres eight-week auto centric series with car club cruise along the Las Vegas Strip

  • Pisanelli Bice Welcomes Jordan Smith as Of Counsel

  • Northern Nevada Medical Center Breaks Ground on Freestanding Emergency Department in Northwest Reno to Serve Community

  • NAIOP Southern Nevada presents “The Future in Billions” at February breakfast

  • Chelsey Brice Joins Estipona Group as Account Executive

  • Great Basin Orthopaedics Offers New Personalized Options for Hip Replacement Patients

  • KPS3 announces Jenna Hubert promoted to creative director

  • Goodwill Southern Nevada Announces Staff Promotions

  • Las Vegas Based TRU Development Shares 2018 Contributions

  • Foundation Assisting Seniors Announces Inaugural Gala

  • 28 Libraries in Southern Nevada Now Safe Place Sites for Homeless Youth — Youth Mobile Crisis Intervention Program operated by Nevada Partnership for Homeless Youth —

  • Sierra Integrated Systems Offers Remote Systems Monitoring Service for Computer Networks and Key Devices in the Reno-Tahoe Region

  • Reno startup, Financially Fit Employees™ (FFE)™ revolutionizes employee financial wellness

  • Western Elite Promotes Trenton Busby to Chief Operating Officer

  • Protective Surface, Tuffskin, to Showcase During Winter Las Vegas Market Jan. 27-31

  • NCJFCJ Announces a Record $12.9 Million in Awards in 2018 to Improve Outcomes for Children and Families

  • Nevada State College Announces Selection for General Counsel

  • MassMedia Announces Partnership with New Financial Services Client

  • New Southwest Las Vegas $28 Million Industrial Project Underway and Close to Raiders Stadium and Las Vegas Strip

  • Dwayne Eshenbaugh, AIA Installed as 2019 President, AIA Las Vegas

  • A Happy 2018 for Commercial Real Estate

  • Nevada’s Safety Consultation and Training Section Awards Ocean Spray with Prestigious Safety Honor

  • $100 Off Right Lawyers Consult Fee

  • The Regional Air Service Corporation Announces New Managing Director Carl Ribaudo

  • Portnoy Gallery Unveils 2019 “Portnoyed” Wall of Honor Inductees

  • Mercato Della Pescheria Inside the Venetian Las Vegas Installs a One-Of-A-Kind Josper Oven To Maximize Flavor

  • The Clark County Bar Association Names Sarah Thornton Volunteer of the Year for 2018

  • Naqvi Injury Law Welcomes New Attorney

  • RE/MAX Realty Affiliates Agent Sam Olson to Speak at RE/MAX R4 Convention

  • TheOfficeSquad named one of the “Best Entrepreneurial Companies in America” by Entrepreneur Magazine’s 2018 Entrepreneuer360 List

  • World’s Highest Performing Organ Procurement Organization Celebrates Sixth Record-Breaking Year

  • Nevada REALTORS® announce Leadership Academy Class of 2019

  • Ruth Furman discusses how to keep content from becoming chaos Jan. 23

  • NAIOP Southern Nevada announces newly elected 2019 officers and directors

  • Amy Keith Lessinger, RE/MAX Realty Affiliates Owner, Appointed to Serve on EDAWN Executive Board

  • National Council of Juvenile and Family Court Judges Releases Enhanced Juvenile Justice Guidelines

  • Colliers International – Las Vegas Welcomes Jennifer Lehr as Senior Associate

  • REMSA Trains and Graduates 16 Paramedics

  • RSAR Releases 2018 Fourth Quarter/December Existing Home Sales Report

  • Project 150 hosting discounted dress sale to support students

  • Dr. Timothy Dooley Joins Great Basin Orthopaedics

  • Drummond Law Firm in Las Vegas Awards $1,000 Scholarship

  • National Council of Juvenile and Family Court Judges Named Honorable Mention Recipient in Prestigious PR Daily Nonprofit Awards for Annual Report



 
Submit Your News & PR
Submit Your News & PR

Business Connection

Business Connection Portal

Log In Sign Up

Business Connection Portal

Log In Sign Up

Nevada Business Calendar

  • BREATHE! Health and Wealth Summit & Expo
    February 19, 2019 12:00 am

    Location: 4505 S Maryland Pkwy, Las Vegas, NV 89119, USA

    More details...
  • HBRC Seminar Room (in the Wells Fargo Building)
    February 21, 2019 7:30 am

    Location: 112 S Water St, Henderson, NV 89015, USA

    More details...
  • Henderson Chamber to present business networking mixer
    February 28, 2019 5:00 pm

    Location: Strathmill Ave, Henderson, NV 89044, USA

    More details...
View Full Calendar ►

Nevada Business Directory

Featured Businesses
Find a Nevada-Based Business Submit Your Business

Nevada Industries

Architects & Engineers
Arts & Culture
Banking
Commercial Real Estate
Construction
Credit Unions
Economic Development
Education
Financial Management
Healthcare
Human Resources
Insurance
Law
Manufacturing
Marketing
Media
Mining
Philanthropy
Residential Real Estate
Rural Nevada
Sports
Tax Planning and Accounting
Technology
Telecom
Tourism
Transportation

Footer

Subscriptions

  • Print Subscription
  • Mobile App
  • E-mail Subscription

Editorial

  • Features
  • Departments
  • Events

Advertising

  • Advertise
  • Submission Requirements

Connect

  • Contact
  • LinkedIn
  • Facebook
  • Twitter

Copyright © 2019, Business Link LLC dba Nevada Business Magazine and Nevada Business Journal. Privacy Policy | Terms & Conditions
Nevada Web Design services by Nevada Central Media using Genesis Framework by StudioPress