Based on a new report released by Xceligent and the Commercial Alliance Las Vegas (CALV), the commercial real estate market in Southern Nevada continues to recover from the Great Recession, with office, industrial and retail vacancy rates all improving during the first quarter of 2015.
"This report shows the three main sectors of our market all showing improvement from last quarter. You don't see that happening very often, at least not in recent years," said CALV President Bobbi Miracle, a local commercial real estate broker. "Of course, we're still a long way from the peak market conditions we experienced during the real estate boom of a decade ago. So far this year, industrial seems to have the most momentum, while the recovery of our local office market has been more gradual and uneven."
Retail highlights so far during 2015 include IKEA breaking ground on its what is expected to be the largest single store in Nevada, several new retailers and restaurants setting up shop in Downtown Summerlin and national restaurant chain PDQ opening its first location west of Texas in North Las Vegas, with a second location already set to open this summer on West Sahara Avenue.
In the office market, Downtown Las Vegas and new space near the western leg of the 215 Beltway fared the best, with the first tenants preparing to move into One Summerlin on the far west side of Las Vegas and the Gramercy in the southwest part of town being high-profile examples of this trend.
The report shows the industrial market in Southern Nevada started 2015 where it left off in 2014, with 435,000 square feet of positive absorption during the first quarter.
"It was also significant to see major industrial developments being built 'on spec' here for the first time in many years," concluded Miracle.