Las Vegas Industrial Market Report
2023 Investment Forecast
Logistics Demand Necessitates Supply Injection;
Tight Operations Keep Out-of-State Capital Engaged
Recent momentum prepares metro for record wave of deliveries. Reflecting the market’s robust population gains, the local industrial sector is also undergoing rapid expansion this year, leading major U.S. metros with a 6.6 percent supply increase. North Las Vegas and the Speedway area highlight construction hotspots, with the latter submarket receiving nearly 1.5 million square feet of new space this year. Speedway’s extremely tight sub-1 percent vacancy rate should hold relatively firm, however, as most of the deliveries here are accounted for. Metrowide, demand for logistics and warehouse options will keep availability below 3 percent throughout this year, reinforced by economic growth. Las Vegas is projected to record its largest in-migration total in over 15 years during 2023, necessitating last-mile delivery space as a larger consumer pool places pressure on local supply chains. On a regional level, spillover demand from the Inland Empire also continues to drive absorption, as Las Vegas maintains an affordability edge.