9 Dec

Las Vegas Industrial Real Estate Snapshot 2019: Leases, Sales & Construction Projects

It goes without saying that Las Vegas is famous worldwide for its nickname, Sin City. People flock from all over to spend time in the city and enjoy the many restaurants, casinos, entertainment venues, and spectacles.

While The Strip sees plenty of activity year-round, there is a lot of economic action taking place, particularly within the commercial real estate industry. One of the primary contributors for generating positive economic results is population growth. Currently Las Vegas is 11th in population growth nationwide for metropolitan areas. Furthermore, Las Vegas-Paradise projections estimate that the population will reach 3.2 million by 2042, which is one of the largest projected growths in the country.

Backed by this strong, steady population growth, there are many new construction projects underway. The year-over-year for rentals are growing and there are relatively low vacancy rates for the industrial properties around Las Vegas.

“Las Vegas has grown into a major logitics hub for the west coast. Although there has been significant construction, absorption has kept up creating a balanced market. The transaction landscapte has been dominated by large sales to REITS, PE, and Institutional Investors. We expect this trend to continue in 2020.” – John Gilchrist, Founder, Atalyst

Atalyst provides periodic reports on the Las Vegas Industrial Real Estate market. The summary includes the most important statistics for industrial property leases, sales, and projects currently under construction.

Las Vegas Industrial Real Estate Snapshot 2019 - Atalyst Financial Group

Top Las Vegas Industrial Real Estate Lease Statistics

12 Month Deliveries (Square Feet): 6.5 million
12 Month Net Absorption (Square Feet): 5.5 million
Vacancy Rate: 4.6%
12 Month Rent Growth: 9.4%

Las Vegas Industrial Lease Highlights (Past 12 Months)

1) Property: 5430 Donovan Way
Submarket:
North Las Vegas
Leased SF:
313,688
Quarter:
Q4 2018
Leasing Rep:
CBRE

2) Property: 6405 E Centennial Pky
Submarket: 
Speedway
Leased SF:
213,818
Quarter:
Q3 2019
Tenant:
WestRock
Tenant Rep:
Cushman & Wakefield
Leasing Rep: CBRE

3) Property: 4660 Berg St
Submarket:
North Las Vegas
Leased SF:
213,316
Quarter:
Q2 2019
Tenant:
Insomniac
Tenant Rep: Cushman & Wakefield
Leasing Rep:
CBRE

4) Property: 3732 N Lamb Blvd
Submarket:
North Las Vegas
Leased SF:
204,924
Quarter:
Q4 2019
Leasing Rep:
CBRE

5) Property: 2821 Marion Dr
Submarket:
North Las Vegas
Leased SF:
124,546
Quarter:
Q2 2019
Tenant:
Amazon
Leasing Rep:
Colliers International

Las Vegas Industrial Sales Statistics (Past 12 Months)

Sales Comparables: 335
Average Cap Rate: 
5.7%
Average Price/ SF: 
$123
Average Vacancy at Sale: 8.6%

Top Las Vegas Industrial Property Sales

1) Property: 4300 Flossmoor St
*Rating: 4
Year Built: 2002
Building SF: 277,380
Vacancy: 
0%
Price (PSF): $27,843,196 ($100)
Cap Rate: Not Listed

2) Property: Henderson Interchange (5820 Wigwam Pky)
*Rating: 4
Year Built: 2017
Building SF: 197,120
Vacancy:
0%
Price (PSF): $25,100,000 ($127)
Cap Rate: 5.5%

3) Property: National Indoor RV Center
*Rating: 4
Year Built: 2018
Building SF: 215,804
Vacancy: 
100%
Price (PSF): $24,500,000 ($114)
Cap Rate: Not Listed

4) Property: 6065 Polaris Ave
*Rating: 3
Year Built: 1964
Building SF: 158,260
Vacancy: 
0%
Price (PSF): $21,318,885 ($135)
Cap Rate:Not Listed

15 Property: Northern Beltway Industrial (5406 E El Campo Grande)
*Rating: 5
Year Built: 2007
Building SF: 234,836
Vacancy: 
13.6%
Price (PSF): $21,247,419 ($90)
Cap Rate: Not Listed

*Rating is 1-5, 5 being the best

Las Vegas Industrial Construction Projects Stats

Properties Currently Under Construction: 31
Total Size: 
4,634,365 SF 
Percent of Inventory:
3.8%
Preleased: 18%

Top Las Vegas Industrial Projects Under Construction

1) Property: Google Data Center (1627 Athol Ave)
Rating*:
4
Building SF:
750,000
Stories:
1
Completion:
Q4 2020
Developer/ Owner:
Google Inc

2) Property: Bldg 2 (3325 E Washburn Rd)
Rating*:
4
Building SF:
652,010
Stories:
1
Completion:
Q2 2020
Developer/ Owner:
Golden Triangle Development Inc

3) Property: E (4004 W Cheyenne Ave)
Rating*:
4
Building SF:
478,000
Stories:
1
Completion:
Q3 2020
Developer/ Owner:
Matter Durango LLC

4) Property: North 15 Logistics (E Speedway Blvd)
Rating*:
5
Building SF:
373,363
Stories:
1
Completion:
Q1 2020
Developer/ Owner:
Clarion Partners

5) Property: Tropical Logistics Center (Tropical Pky)
Rating*:
4
Building SF:
341,254
Stories:
1
Completion:
Q4 2019
Developer/ Owner:
Blake H Brown

*Rating is 1-5, 5 being the best

 

Services provided by Atalyst are regulated by state and federal agencies. Atalyst is a licensed mortgage broker and a licensed real estate broker in Nevada and California (NMLS ID: 369363 / CAL BRE: 01980073 / NV DRE: 181750). Private securities placement services are offered by John Gilchrist (“GCS Rep“) who is also a registered representative of Growth Capital Services, Inc., a licensed broker-dealer and member of FINRA/SIPC (“GCS”), office of supervisory jurisdiction located at 582 Market Street, Suite 300, San Francisco, CA 94104. GCS and Atalyst are separate entities, and only certain securities brokered by GCS Reps are offered and sold through GCS. You can find more information about GCS and GCS Reps here and through FINRA Broker check.

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