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Market Report

Las Vegas Retail Market Report

2024 Investment Forecast

Robust Tenant Demand in Tourism Hubs and Western
Suburbs Puts Squeeze on Available Supply

Retail spillover may benefit more vacant areas. Eight of the 10 largest submarkets by inventory posted vacancy reductions last year. Tenant demand is particularly strong in the Resort Corridor, where the local rate plunged more than 250 basis points to a sub-3 percent standing, driven by a domestic leisure travel recovery that invigorated leasing. While tourist-centric areas are leading the charge, suburban pockets of robust household creation are also performing very well. Northwest Las Vegas joined the Resort Corridor as the only two submarkets with vacancy rates that were less than half of the overall metro average entering this year. Southwest Las Vegas, meanwhile, registered the second-strongest drop in space availability in 2023. These three areas combined for just 650,000 square feet of vacant stock to begin this year, compared to a historic average of about 1.3 million square feet. This could potentially direct expanding vendors to nearby submarkets with higher availability, such as Central East and West Las Vegas. Overall net absorption is nevertheless expected to soften this year, in part due to the lack of available space in the most desirable areas, producing a mild uptick in vacancy.
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