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Market Report

Las Vegas Industrial Market Report

4Q 2021

Outside Industrial Users and Investors Drawn to Las Vegas’ Growth Prospects, Improving Fundamentals

Metro evolving beyond local service market. Las Vegas entered the latter half of 2021 with its lowest industrial vacancy rate in 16 years. Consumer goods and logistics companies from outside Nevada are largely responsible for this strong demand, with these firms inking leases for higher-tier properties at discounted rents to their home markets. A number of these tenants hail from Southern California, where average asking rents are $1 to $7 per square foot higher than Las Vegas’ mean rate, dependent on locale. Lower operating costs and the metro’s proximity to major California and Mountain markets are poised to attract more companies that are upgrading their supply chains. Additionally, net migration projections point to a future increase in last-mile warehouse demand, factors that will preserve tight conditions.
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