Vegas Retail Market Poised for Growth

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.