The new deliveries, including the second phase of Montecito Marketplace and a portion of Southwest Marketplace, brought the six-month total to 2.6 million sf, well above the historical 10-year historical average of 1.9 million sf, according to the report. Net absorption through the first six months of the year was 2.5 million sf.
"The Las Vegas commercial retail sector continues to respond to continued population growth and increasing development opportunities," says Jeremy Aguero, a principal of Applied Analysis. "While reporting some signals of slower growth, a substantial number of residents continue to seek out Las Vegas as their future home."
That having been said, Aguero adds that the economics in the residential sector remain a concern for the retail sector. "Improvements may prevail by mid-2008," he says.
Power centers registered the lowest vacancy rate at 1.3%, according to the report. Neighborhood centers posted the highest average vacancy at 3.8%. As for future deliveries, the report found 4.4 million sf under construction and another 14.1 million sf further back in the planning process.
Another second quarter retail market report, by the locally based Restrepo Group and Colliers International, recorded approximately the same net absorption figure and a slightly higher new delivery total. That report puts the overall retail vacancy rate at 3.3%.
"While current vacancy remains above 2000, our best year, the Valley's anchored spec retail market continues to have a vacancy rate that is effectively near full occupancy," says Vic Donovan, managing director of the local Colliers office.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
