Las Vegas Industrial Market Report

Speculative construction outpaces demand, pushing vacancy higher. Las Vegas saw its inventory expand by 8 percent last year, as many developers were attracted by the metro’s sub-5 percent vacancy in 2022. Of the space delivered in 2024, about two-thirds remained vacant as of June 2025, resulting in vacancy above 10 percent. If these facilities were to lease-up, it would reduce the rate by half. Most unoccupied buildings are warehouse and distribution facilities in North Las Vegas. Vacancy there jumped by over 300 basis points year over year in March. Although construction will slow this year, the backlog of available space continues to weigh on the market. Net absorption is muted as well, expected to stay below 1 million square feet for a second year as tariff-related uncertainty keeps leasing activity subdued. Over time, however, the market’s supply overhang in the north is set to be absorbed, supported by tenants serving local consumers. The metro is projected to rank among the top 15 major markets in population growth over the next five years, reinforcing industrial space demand.