Following Southern Nevada's unusually low pace of retailexpansion in 2005--just over one million sf was delivered--thefirst quarter of 2006 represented the beginning of some significantdeliveries in the coming quarters. Applied Analysis principal BrianGordon tells GlobeSt.com that projects containing 3.7 million sfremain under construction.

Given the substantial amount of pre-leasing that has occurred inthose projects, "vacancies will remain tight and additional rentincreases are inevitable," adds company principal Jeremy Aguero."Average asking rates jumped 8% in the during the past 12 months,and increases during the coming year are anticipated to be in the8% to 12% range due to stable demand and rising developmentcosts."

A lot of developers have burnt through land they acquired lastyear and the year before at price substantially lower than today,says Nick Hannan, a VP with locally based developer Montecito Cos.,which has some 700,000 sf of commercial space under development inthe areas. "So the next wave of open-air centers will require aquantum rent increase" in order to pencil, he tellsGlobeSt.com.