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."