The University of Nevada, Las Vegas’ Lied Institute for Real Estate Studies and RCG Economics released their Las Vegas Valley Quarterly Commercial Surveys showing the commercial real estate market in the Southern Nevada area getting better in the third quarter.
Important Points from the Report:
- The industrial vacancy rate dipped 12.6% from last year’s third quarter to 8.6% of this current quarter.
- Warehouse-distribution submarket decreased by 5.7%.
- The office space vacancy rate dropped from 24.9% of last year to 21.4% this year.
- Retail vacancies dropped by 1.4% from last year.
- The Valley has a 6.5 year-supply of inventory to spare before it hits the 10% vacancy rate, which is considered the stabilized level for this sector.
- Office rents are considered stable at $1.88 per sq.ft. The current office rent per sq.ft stands at $1.22 per sq.ft.
Empty buildings that were once lifeless are now getting filled up around the Valley, which indicates that the commercial real estate is on the rise. Even experts predict a gradual but steady recovery for this sector.
What the Experts have to Say
John Restrepo, RCG Economics principal said, “As incomes improve and spending starts improving, particularly on the retail side, you’ll start seeing more stores and more shops and more commercial development occurring, to provide greater amounts of services and goods to
consumers.” He added, “The Commercial real estate markets in southern Nevada are in the first phase of kind of a slow but steady climb out of the recession.”
NAIPO (National Association of Industrial and Office Properties) President, Mike Montandon said, “We’re still in that recovery process. Maybe not as fast as other recoveries have happened in the past, but still going in the right direction.”
More and more consumers are getting confident in spending their money on real estate and that includes spending in the office market. Whether it’s residential, commercial, or industrial real estate, the good news is that the market is buzzing with activity again with Henderson and the northwest leading areas when it comes to the retail market.
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