Las Vegas Retail Market Report
Influx of Tourists and New Residents Bolster Performance Prospects for Las Vegas Retailers
Standout in-migration fosters retailer expansions. Las Vegas' populace swelled by nearly 60,000 residents over the past 18 months ended in March, heightening local demand for necessity-based retailers, home furnishing shops and dining options. Vendors responded to the expanding consumer base by absorbing more than 2 million square feet of space during the six-quarter span, compressing vacancy 150 basis points to its lowest rate since early 2008. The strong pace of population growth that is motivating retailer expansions is expected to persist, with forecasts calling for the addition of 235,000 people over the next five years. Many vendors with plans to enlarge their local footprints will browse the metro's existing vacant stock, as Las Vegas' active construction pipeline is well leased and equates to less than 1 percent of current inventory.