Las Vegas Industrial Market Report

Speculative deliveries abound over the near term. Las Vegas entered last year with a 1.9 percent industrial vacancy rate, the second lowest among major U.S. markets. Tight conditions and the metro’s rapid growth facilitated a surge in warehouse and distribution center project starts. Many of these properties were delivered in the first half of 2024 and immediately impacted fundamentals. The 4.9 million square feet that came online, included a group of speculative projects that lifted vacancy by 300 basis points. A similar dynamic is expected in the second half as 3.2 million square feet is slated for delivery, 85 percent of which was available as of early July. While upward pressure on vacancy appears imminent, leasing activity in the 100,000-square-foot-plus segment improved year over year during the 12-month span ending in June, suggesting near-term vacancy will hold slightly below the long-term average.