Las Vegas Retail Market Report

Suburbs in a better near-term spot than tourism-fueled areas. Las Vegas is historically among the most impacted markets during periods of economic headwinds, as the metro’s leisure travel retail spending foundation entails visitors feel comfortable in their financial standing. However, recent internal growth fueled by net in-migration should bolster the market’s appeal to retailers leasing space this year, even as spending by traveling consumers softens. In 2023, the metro will register the second-fastest pace of population expansion among major markets nationally, producing the quickest rate of household formation in the country. These residents and households warrant new shopping options, likely nudging retailers to favor fast-growing suburbs over tourism-heavy zones. Northwest Las Vegas could maintain the tightest vacancy in the metro, having entered 2023 with a rate more than 100 basis points below any other submarket, with less than 25,000 square feet expected to deliver here in 2023. Conversely, the Resort Corridor may be the most impacted locale in the near term, as a moderation in tourism-related activity could curb tenant demand for local floor plans. Meanwhile, Project 63 is set to finalize about 50,000 square feet of retail space here that was unaccounted for at the onset of 2023.