• Skip to main 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
    • Nevada News & PR Wire
  • Features
    • New This Month
    • View Issues
    • Cover Stories
    • Feature Stories
    • Industry Focus
    • Building Nevada
    • Special Reports
    • 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
  • About
    • About the Magazine
    • Contact the Staff
  • 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 / Southern Nevada Bolstered in the Third Quarter

Receive daily Nevada Business News & PR directly to your inbox.

Southern Nevada Bolstered in the Third Quarter

October 25, 2016 By Press Release Wire Leave a Comment

Colliers reports Southern Nevada shook off the doldrums that beset it at mid-year 2016, and put in a strong performance in the third quarter of 2016.LAS VEGAS – Southern Nevada shook off the doldrums that beset it at mid-year 2016, and put in a strong performance in the third quarter of 2016. Underlying economic fundamentals seemed to improve as the Valley shifted from summer to fall, and carried commercial real estate along with it. As has been the case over the past few years, the industrial sector showed the most improvement, with over 1 million square feet of net absorption and more than one-half million square feet of new completions. Industrial vacancy decreased to 5.2 percent. The average asking rental rate for industrial space rallied and increased to $0.65 per square foot on a monthly basis, presaging more development in the future.

“Demand for industrial space, which softened during the first half of 2016, roared back to life in the third quarter,” remarked John Stater, the research manager of Colliers International’s Las Vegas office.

Multifamily sales increased in the second quarter of 2016 compared to the second quarter of 2015, with 5,786 units selling at an average sales price per unit of $118,841. The current wave of multifamily development in Southern Nevada began in the fourth quarter of 2015, and to date has totaled 2,437 units. A nearly equal number of units are now under construction and should be completed over the next few quarters, representing a distinct acceleration in new development. So far, these newly completed units have not resulted in an increase in vacancy. In fact, vacancy has decreased by 1.2 points over that period, indicating that these units are not taking tenants away from existing properties. Whether demand will keep up with new supply over the next few quarters is unknown, but we do not think these new properties will negatively impact the market.

Southern Nevada’s hospitality market is pushing its way past recovery and into expansion, at least in terms of visitor volume and gaming revenue. Room inventory remained essentially unchanged in the third quarter of 2016, and no additional closures are planned for 2016. The 201-room Lucky Dragon, under construction in the Resort Corridor, should be completed in the fourth quarter of 2016, and the 124-room Residence Inn that was under construction in South Las Vegas was completed this quarter. As high as occupancy rates have climbed, the market may at some point begin to feel the pinch of the lack of inventory growth. Inventory is set to expand by only 351 rooms by the end of 2016, and a mere 167 rooms by the end of 2017.

Mike Mixer, Executive Managing Director for Colliers International – Las Vegas said, “We think, despite this lack of planned developments, that visitor volume will end 2016 at a new high or near a new high, and we think gaming revenue might do the same.”

Southern Nevada’s office market continues to emulate the local desert tortoise, with slow and steady improvement that actually picked up steam in the third quarter of 2016. Vacancy continued its three quarter downward trend, hitting 17.1 percent in the third quarter, 1.1 points lower than one year ago. With the industrial market on fire, it is easy to forget just how much improvement has occurred in the office market over the past three years, to the tune of almost 2 million square feet of net absorption, a more than 3 point drop in vacancy and a 7.5 percent increase in asking rates. All signs point to continued steady improvement in the office market through 2017.

After four quarters of mounting negative net absorption, Southern Nevada’s medical office market made an abrupt turn into positive territory. Net absorption rebounded in the third quarter of 2016, reaching 54,493 square feet. This brought vacancy down to 17 percent. In medical office’s favor is the continued growth in healthcare employment and maybe the growth in healthcare spending in Southern Nevada. Even if not all of that growth is filtering into medical office buildings, should help improve demand for medical office space in the long run.

After a brief pause last quarter, Southern Nevada’s retail market continued to grow in the third quarter, with 408,766 square feet of net absorption driving vacancy down to 8.6 percent. Strong multifamily development in the I-215 corridor, stretching from Henderson to the Northwest, should stimulate demand for retail space over the next 12 to 24 months in the aforementioned submarkets. While taxable sales continue to be strong, we believe the retail market will continue to improve, and expect positive net absorptin to round out the year.

The third quarter of 2016 saw land sales slow down compared to last quarter and compared to this time last year. This reversed five quarters of increasing land sales. A single down quarter does not point to an overall slowdown in land demand by developers and investors. Developers appear to be ramping up construction of industrial buildings, and as the retail and office markets improve, new commercial developments will begin construction as well. Multifamily development might slow down after next year, and if it does, assuming the market remains healthy, multifamily developers will likely get back into an acquisition frame of mind to prepare for future development. In-migration into Southern Nevada appears to be improving now, and if it is demand for land will increase. We think land sales will continue at the present level into the fourth quarter of 2016, with the possibility for improvement by mid-year 2017.

The full third quarterly report of 2016 can be downloaded at: http://www.colliers.com/en-us/lasvegas/insights/marketnews/lvqreport.

###

About Colliers International Group

Colliers International Group Inc. (NASDAQ: CIGI; TSX: CIG is an industry leading global real estate services company with more than 16,000 skilled professionals operating in 66 countries. With an enterprising culture and significant employee ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include strategic advice and execution for property sales, leasing and finance; global corporate solutions; property, facility and project management; workplace solutions; appraisal, valuation and tax consulting; customized research; and thought leadership consulting.

Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice that help clients accelerate their success. Colliers has been ranked among the top 100 outsourcing firms by the International Association of Outsourcing Professionals’ Global Outsourcing for 11 consecutive years, more than any other real estate services firm.

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

For further information, please contact:

Courtney Goffstein
Marketing Manager
Colliers International | Las Vegas
Phone: 702-836-3710
Email: courtney.goffstein@colliers.com

Filed Under: Press Release Wire Tagged With: Las Vegas business, Las Vegas commercial real estate, Las Vegas real estate, Mike Mixer, Nevada business, Nevada commercial real estate, Nevada real estate

Sponsored Features

Sponsored Features

U.S. Bank’s Good TruckComes to Las Vegas

GC Garcia, Inc. Celebrates 25 YearsAnd Looks Back on Southern Nevada’s Changing Landscape

Las Vegas Valley Water DistrictSupports Local Fire-Fighting Efforts

Behind the ScenesWith a U.S. Bank Goals Coach

Advertise With Us

Advertise With Us. more details ►

Primary Sidebar

Daunting ChallengesMedical Education in Nevada

Industry FocusHealthcare

Time & SpaceArchitectural Design Trends

Cyber SecurityKeeping Your Business Safe

Nevada News & PR Wire

  • TSK Architects Names New Managing Principal and Design Principal

  • Greater Commercial Lending Opens Online Applications for New Round of Paycheck Protection Program, Wednesday at Noon

  • StoryBook Homes Announces Treville Court – Its First-Ever All Rental Community of New Homes

  • Reflection Bay Golf Club Expands Team with Ken Wright

  • Holland & Hart Announces Election of New Partners in 2021

  • OPD5 Extends Temporary Office Closure Due to COVID-19

  • Global Recruiting Firm MRC Names New CEO

  • Urology Specialists of Nevada Adds Three New Health Care Providers

  • 2021 Resolutions with M Spa — January Specials for CoolTone by CoolScuplting

  • Elizabeth Pearson Earns Certificate in Principles of Public Relations

  • INOVA Announces Winners and Exhibit in Community Artists’ Campaign

  • Brass Cap Development Closes on Three New Valley Properties

  • Desert Radiology Completes 25 Days of Do-Gooders Virtual Gifting Initiative, Donating to 25 Charities in 25 Days

  • Reno/Sparks Association of REALTORS® Releases December 2020 Existing Home Sales Report

  • Vegas PBS to Host Free Virtual Screening of the Zen Speaker: Breaking the Silence

  • Long-Time Silver State Schools Credit Union Volunteer Leonard Petoske Passes Away

  • Naylor & Braster Recognized in U.S. News Best Lawyers “Best Law Firms” 2021 Edition

  • Goodwill® Among Recipients of $4.2 Billion Funding by MacKenzie Scott

  • St. Jude’s Ranch for Children Begins Healing Center Project for Child Victims of Sex Trafficking with Soil Survey Donated for $1

  • Washoe County Sheriff’s Office and Donor Network West Launch Six-Day “Second Chances” Organ Donation Awareness Program for Minor Traffic Violations

  • Angela Collins Named Chief Operating Officer of Nathan Adelson Hospice; Joins NHPCO’s Quality & Standard Committee

  • NAIOP Southern Nevada Announces Newly Elected 2021 Officers and Directors

  • Immunize Nevada to Host Flu Clinic at Promise Land Community Church

  • Southern Nevada Home Prices End the Year in Record Territory

  • Dickson Commercial Group Represents Buyer of 21,781 Square Foot Medical Office Building

  • Soberlink Joins National Council of Juvenile and Family Court Judges With Corporate Sponsorship

  • Northern Nevada Community Leaders Named to NCET Board

  • Megan H. Hummel Appointed Partner of Lipson Neilson PC

  • Reno/Sparks Association of REALTORS® Installs 2021 Officers and Celebrates Annual Awards

  • Northcap Commercial Arranges Sale of 11.33 Acres of Land for $5,377,268

  • Nathan Adelson Hospice Partners with Six Leading Non-Profit Providers

  • A Plant-Based Change of Pace: Dunkin’ Starts 2021 with the Southwest Veggie Power Breakfast Sandwich

  • Vegas Helps Nonprofit Organization Launches to Facilitate Locals Helping Locals

  • Deadline for Moving Assistance Applications Extended to Jan. 15, 2021 — Move 4 Less Owners Paying for Local Moves of Families Affected by Pandemic —

  • Livestreamed Panel Discussion Will Engage Local Mental Health Experts, Community Leaders, and the PBS NewsHour Student Reporting Lab on the Topic of Youth Mental Health

  • Silver State Schools Credit Union Shares its 2020 Community Giving

  • Jewish Nevada Announces New Board Members and Presents Jewish Community Leader Awards During Virtual Event in January

  • Ava Rose Agency’s Food and Beverage Clients Raise a Glass to Welcome 2021 With New Year’s Specials and Promotions

  • Throw in the New Year With Dueling Axes at AREA15

  • Take (Extra) Charge of 2021: Dunkin’s New Extra Charged Coffee Delivers 20% More Caffeine

  • Non-Profit CORE Welcomes Two New Members to Board of Trustees

  • Non-Profit CORE Treats 70 Scholars and Families to a Drive-Thru Holiday Express

  • Short-Term Career Training is Key to Post-Pandemic Economic Recovery in Las Vegas in 2021

  • Paint Contractor Gives Children Unforgettable Christmas

  • Greater Nevada Credit Union Helps People Live Greater Through Greater Giving Donations

  • Nevada Association Services Pays First Quarter 2021 HOA Assessments for 5 Families Who Lost Their Homes in November Pinehaven Wildfire

  • “Hope for the Holidays” Presented by Hope for the City Wraps With Immersive Drive-Thru Food Pantry

  • Nevada Rural Housing Authority Receives Two Excellence Awards from the National Association of Local Housing Finance Agencies

  • Dickson Commercial Group Completes 36 Acre Land Sale in North Valleys

  • Las Vegas Real Estate Company Focuses on Neighborhoods & Communities

  • Justice Mark Gibbons to Retire from Nevada Supreme Court

  • Spencer Fane LLP Partner Ayesha Mehdi Named to American Bar Association Health Law Section Vice Chairships

  • Newly Constructed Industrial Complex Sells for $6.8 Million in Southwest Las Vegas

  • TSK Architects Promotes from Within

  • USDA Recognizes Greater Commercial Lending As #1 Business and Industry Lender in Top Commercial Lender Rankings

  • Serving our Kids Foundation Hosted Contactless Food Drive with Sponsors Clark County Medical Society Alliance, Southwest Medical, OptumCare and SOS Radio

  • Attorney Leon F. Mead II Receives Recognition for Legal Excellence for 2020 Super Lawyers® Award

  • Mendy Elliott Named Nevada Donor Network Foundation Founding Board Member

  • John Naylor Represented British Columbia Securities Commission in Landmark Decision From Nevada Supreme Court

  • Young Entrepreneur Spills Insight on Launching a Podcast

  • The Private Bank by Nevada State Bank’s High Net Worth Report Summarizes Charitable Giving Trends Impacted by TCJA

  • Application Is Now Open for the Cannabis Equity and Inclusion Community (CEICNV) NCCRFund Grant Program in Nevada

  • Adam S. Kutner, Injury Attorneys Wins “Best Accident Lawyer” in the Las Vegas Review-Journal’s “Best of Las Vegas” Reader’s Poll

  • An Outpouring of Support for Las Vegas Cyclist Memorial: Lamar Advertising Donates 68 Billboards

  • Lake Las Vegas Named #1 Southern Nevada Master Plan

  • St. Vincent’s Thrift Stores Offer Unique Gifts

  • William V. Craig, M.D. Joins Nathan Adelson Hospice in Pahrump

  • Behavioral Health NV Encourages Families to Find Substance Use Help During the Holidays

  • Project Worth Encourages Problem Gamblers to Seek Change this Holiday Season

  • JB Public Relations – Boutique Public Relations & Social Media Agency Offers Free Initial PR Crisis Communications and Consultations for Small Businesses in Las Vegas During the COVID-19 Pandemic

  • Move 4 Less Owners Provide Moving Help for Families Being Evicted, Affected by the Pandemic — Applications DUE by Dec. 31 —

  • D’Agostino’s Trattoria Offers Holiday Gift Baskets, In-Dining Specials, and Signature Festive Drink to Ring in the Season

  • MGM Resorts Selects TuffSkin Surface Protection for Leadership Program

  • Kelly LeGrow Named Nevada Donor Network Foundation Board Member

  • BRAZEN Architecture Founder Receives AIA Nevada’s First Ever “Citizen Architect” Honor

  • ‘Weekend College’ Launches at CSN – Designed for Busy Students, Programs in Business, IT, Healthcare and More Are Available

  • Faith Lutheran Middle School & High School Breaks Ground New $3.4 million Tennis Complex

  • Goettl Air Conditioning and Plumbing Looking to Hire Call Center Representatives Throughout Las Vegas

  • Trosper Public Relations Adds to Team

  • Clinician Experience Project Recognizes Southwest Medical Physician

  • Goodwill® of Southern Nevada Names New Chief Human Resources Officer

  • Dermody Properties Leases Remaining Space at LogistiCenter℠ at Speedway in North Las Vegas

  • Rita Vaswani Named Nevada Donor Network Foundation Founding Board Member

  • Nevada State Bank Wins “Best Bank” in Las Vegas Review-Journal Poll for Fourth Straight Year

  • Community Support Needed to Help Homeless Youth for the Holidays –Donate Gifts or Host a Drive–

  • SR Construction Makes Donation to St. Jude’s Ranch for Children

  • Colliers Las Vegas Broker Recognized as Broker of the Year by Prestigious Industry Society

  • Fernley Community Foundation Celebrates Progress with Polaris Grant, New Senior Center Opening

  • Vegas PBS Selects Mary Mazur as New President and General Manager

  • Silver State Schools Credit Union Receives Gold Award for “Best Credit Union” with the 2020 Best of Las Vegas Award

  • Blume Kitchen & Cocktails Plans Pop-up Dinner Featuring Chef Lanny Chin Mon., Jan 11

  • Coral Academy Awarded Gold in Four Categories for Best of Las Vegas Awards

  • NAWBO Southern Nevada Awards Henderson Councilwoman Michelle Romero With Corporate & Government Services Award

  • Nevada State College’s Early Childhood Education Center to Open Fall 2021 Within the New $61.8m School of Education Building

  • Justice Mark Gibbons Honored at Virtual Pro Bono Awards Luncheon

  • Foster Youth and Adoption Agency Mountain Circle Family Services, Inc. Celebrates 35 Years With New Name, Same Community Focus

  • Nevada REALTORS® Present Annual Awards, Including Honoring Chris Bishop as Its REALTOR® of the Year

  • Blume Kitchen & Cocktails and the Stove Host Holiday Drive-Through Experience to Distribute Meals and Essentials

  • Reno Experience District’s First Luxury Apartment Building is Now Open

  • Founders of a Boutique Design Firm Spill Insights on Building a Team and a Partnership With Intentional Leadership



 
Submit Your News & PR | Subscribe
Submit Your News & PR

Business Connection

Business Connection Portal

Log In Sign Up

Business Connection Portal

Log In Sign Up

Nevada Business Calendar

  • Ely Film Festival 2021
    March 12, 2021 12:00 pm

    Location: 501 E Aultman St, Ely, NV 89301, USA

    More details...
  • Ely Film Festival 2021
    March 12, 2021 12:00 pm

    Location: 501 E Aultman St, Ely, NV 89301, USA

    More details...
View Full Calendar ►

Nevada Business Directory

Featured Businesses
Find a Nevada-Based Business Submit Your Business Subscribe to the Nevada News & PR Wire

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
Utilities

Footer

Subscriptions

  • Print Subscription
  • Mobile App
  • E-mail Subscription

Editorial

  • Features
  • Departments
  • Events

Advertising

  • Advertise
  • Submission Requirements

Connect

  • Contact
  • LinkedIn
  • Facebook
  • Twitter

Copyright © 2020, 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