X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(For more retail coverage, click GlobeSt.com/RETAIL.)

LAS VEGAS-A recent report focused on the local retail industry points to a continued robust market. Key indicators from the report released by Marcus & Millichap suggest the “market is enjoying healthy retail sales growth and tightening property vacancy,” and much of that bullishness is being spurred by job and population growth.

“The local retail sector continues to expand, following in the footsteps of residential growth,” says Christopher E. LoBello, regional manager of the firm’s Las Vegas office. “The job market remains strong, and gains in median household income are supporting growth in retail sales.”

While the market continues to grow, the pace is slowing from a year ago. In 2005, job growth held a healthy 6.8% increase. This year, the number is expected to slow to 3.8% growth. That slower growth is reflected in Marcus & Millichap’s annual National Retail Index, which takes a snapshot analysis in ranking “42 retail markets based on a series of 12-month forward-looking supply and demand indicators. The report had Las Vegas’ rank fall from the No. 7 spot in 2005 to No. 19 this year.

The market will expect to see 34,000 new jobs this year, with some 9,500 coming from the construction sector. Those construction jobs will contribute to bringing 1.7 million sf of new retail product to the market, according to the report. Even with that level of new inventory in the pipeline, new construction is not meeting the demand in the market.

According to Phillip Baca, a retail specialist in Las Vegas with NAI Horizon and affiliate of NAI Global, the imbalance has caused a tight market. Baca tells GlobeSt.com that the price for raw land has exploded over the past two years, going from around $18 per sf to $25 per sf. He says that along Blue Diamond Highway it’s even hit $35 per sf. According to the Marcus & Millichap report “median prices for multi-tenant properties have climbed to more than $200 per sf for both strip centers and larger properties.”

With the market remaining strong, Baca says the local retail industry is not without its challenges. “The biggest challenge is positioning, finding the right 20-25 acres that will be available,” Baca adds. “We’re all vying (for the same type of space), asking ‘where’s Main and Main going to be next’ and looking to find it at the right price.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.