X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LAS VEGAS-The Las Vegas retail market will remain prosperous in 2007 and in the years to come, according to new information released by the local offices of Marcus & Millichap Real Estate Investment Services and CB Richard Ellis. Robust population growth has new retail developments under construction and retailers preleasing significant amounts of space, which is keeping vacancy low and rates high, the reports conclude.

Local employers are expected to add a total of 32,300 jobs in 2007, an increase of 3.5% from 2006, while developers are on track to deliver 3.2 million sf of space by year end, up from 2.1 million sf last year, according to the M&M report. Despite the new development, vacancy is forecast to remain unchanged at 4.2% throughout 2007 thanks to strong retailer demand, which has the majority of space coming online already leased.

With demand meeting supply, both asking and effective rents are forecast to increase 5.6% in 2007. Much of the growth is being driven by healthier retailer demand and the influence of newer, more expensive developments, according to the M&M report.

Christina Roush, who heads up CB Richard Ellis’ private client group in Vegas, says the local investment market here has attracted a lot of Bay Area investors recently. “Bay Area buyers are generally accustomed to much lower cap rates than buyers from other parts of the country,” says Roush, who works with fellow CBRE broker Charles Moore. “As a result, our offerings in Las Vegas are typically more attractive than properties on the market in Northern California.”

In 2007, Roush and Moore continue to see interest from Bay Area investors. Besides having an attractive pricing model compared to California, many well located properties in Southern Nevada have experienced 20-25% rent growth over the past 18 months, they say.

With some 6,000 people moving to Vegas every month and more than $30 billion worth of development underway on Las Vegas Boulevard, “the economic throw-off effect of the Strip development alone should buoy the Las Vegas economy well into the next decade,” Roush says.

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
  • 3 free articles* across the ALM subscription network every 30 days
  • 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

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.