Local employers are expected to add a total of 32,300 jobs in2007, an increase of 3.5% from 2006, while developers are on trackto deliver 3.2 million sf of space by year end, up from 2.1 millionsf last year, according to the M&M report. Despite the newdevelopment, vacancy is forecast to remain unchanged at 4.2%throughout 2007 thanks to strong retailer demand, which has themajority of space coming online already leased.

With demand meeting supply, both asking and effective rents areforecast to increase 5.6% in 2007. Much of the growth is beingdriven 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 clientgroup in Vegas, says the local investment market here has attracteda lot of Bay Area investors recently. "Bay Area buyers aregenerally accustomed to much lower cap rates than buyers from otherparts of the country," says Roush, who works with fellow CBREbroker Charles Moore. "As a result, our offerings in Las Vegas aretypically more attractive than properties on the market in NorthernCalifornia."