Retail had its second slow quarter in a row with only 11 total sales. The third quarter sales volume came in at $10,303,027. In comparison, Q1 2020 had a total sales volume of roughly $42 million and there was just over $48 million per quarter throughout 2019. The average price per square foot was $331.26.
The social distancing mandates have affected the retail landscape and economy, across the nation. From big-box retail to local ‘mom and pop shops’, it has been a challenging time for many retailers.
Restaurant users have been hit especially hard, due to mandatory shutdowns and reopening restrictions in place, limiting occupancy. There have been roughly 10 local restaurants that have closed since the Pandemic struck – including Monaciello, Hard Water House, and Santa Fe Hotel. Chef Mark Estee is in the process of opening Pizzeria Lupo, in the former Monaciello space at 190 California Ave. The former Hard Water House at Winners Crossing is now operating under new ownership as The Parlor.
A decrease in lease rates hasn’t been seen, as of yet. Landlords have been working with their existing tenants by deferring rents.
Retail vacancy, including sublease, decreased 10 basis points (bps) from last quarter yet increased 40 bps year-over-year (YOY) to 7.8 percent in Q3 2020. Occupancy grew this quarter by 97,900 square feet.
Year-to-date, tenants returned 117,000 square feet across the market. The average asking rent of $1.58 per square foot on a monthly triple net basis increased 1.9 percent from last quarter and 6 percent YOY across all centers. The market delivered 131,500 square feet of retail space in Q3 2020. Additionally, there is over 102,900 square feet currently under construction valley-wide, which is concentrated in the southwest submarket (95,400 square feet).
The Las Vegas retail market recorded $182 million in sales volume across 35 centers and 953,000 square feet thus far in 2020, a 77 percent decrease in volume compared to the first nine months of 2019. The leading buyers of retail centers were private investors (96 percent vs. 93 percent in 2019), followed by REITs (3 percent vs. 1 percent in 2019). Private sellers accounted for 99 percent of activity (vs. 45 percent in 2019).