Industrial development in LasVegas could be starting to outpace demand. According to the latestmarket report from Colliers International,industrial net absorption has been decreasing since 2017. In thefourth quarter, vacancy rate increased as absorption and rentalrates decreased in the market. As a result, the vacancy rate isexpected to continue increase in 2020.

"Growth has primarily been in industrial properties—the bigwarehouse spaces—and in multifamily. The industrial activity dwarfswhat we saw during the boom," John Stater,research manager at Colliers, tells Globest.com. "Ecommerce is abig part of hit, but there is also an element of the growth of thecity. It is becoming more prominent. When you have major sportsteams opening up shop, people start looking Las Vegas as real cityand not just an after thought to Southern California."

While this is a clear sign that development is outpacing demand,Stater says that it is a minor problem. Developers are alreadynaturally correcting the issue, and new constriction starts werealso down in the fourth quarter. "I don't think it is extremelyserious. Development may be outpacing demand, but it isn'toutpacing it significantly to see vacancy rates jump," he says. "Weare starting to see new development slow down a little bit.Developers aren't irrationally exuberant like they were in theboom, before the great recession."