There are fewer and fewer vacant commercial lots seen around the Las Vegas Valley. Many of which were graded more than half a decade ago. Weeds are replaced by survey stakes, soon followed by construction equipment. In addition, new commercial sites are springing up around the Valley giving the community a feeling of optimism. Seeing is believing but here are five additional indications of an improved Las Vegas Commercial Real Estate Market.
1: Many would consider vacancy rates still higher than desirable, but the trend is in the downward direction. Commercial vacancy rates in 2014 were the lowest since the economic crash of 2009 and industrial vacancy rates have also seen great improvement.
2: Employment in industries requiring office, industrial and retail space is improving. Need for industrial space led the pack due to a growth in e-commerce, increasing the need for large distribution centers.
3: Commercial owners and developers are charging higher rents compared to previous years. The metrics for 2014 actually indicated a trend reducing supply and increasing demand.
4: The Las Vegas Valley is seeing an increased need for tech friendly spaces. The technology sector in the United States is growing rapidly requiring office spaces be able to accommodate modern tech business needs. Locally, informational technology companies are more in demand than ever and making new commercial spaces IT friendly, or upgrading existing older spaces is key.
5: The Valley is experiencing a positive retail trend with the completion of upscale centers like the Tivoli Village expansion and Downtown Summerlin. These retail centers are an indication that an important part of the Valley’s retail sector is growing again - an increase in upper income families.
The recovery of the Commercial Real Estate Market in the Las Vegas Valley has been long and painful. 2015 looks to be a year of recovery that will be felt through many sectors. Occupancy and rents are stable and even rising, generating new interest in developing or investing in Commercial Development. One of the premier companies leading the way is First Federal Realty DeSimone, who has vast experience in both Commercial Development and Investing. They can be contacted at 702 990-8660.
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