Las Vegas Retail Investment Forecast
Visitor Volume Rebound and Continued In-Migration Lift Consumer Spending;
Outside Buyers Bet on Vegas Retail
Positive absorption persists during health crisis. Despite fluctuations in tourism and a lack of conventions, Las Vegas' retail sector has performed exceptionally well throughout the pandemic, aided by robust population growth. From the second quarter of 2020 through the end of last year, more than 2 million square feet of space was absorbed metrowide, supporting vacancy compression of 130 basis points and a 10 percent gain in the average asking rent. Moving forward, the outlook for local retail is bright, as suggested by in-migration projections, recent tourism data and the return of large-scale events. Spanning October through November of 2021, a combined 6.5 million people visited the metro, with major conventions, including RECON and SEMA, held late last year. While virus uncertainty may scale back attendance at large gatherings in the near term, most events are not being canceled, evident by the World of Concrete and Consumer Electronics Show, both occurring in early 2022. As the broader economy continues to rebound, retail demand is slated to further improve, reducing vacancy to its lowest point since 2007.