Industrial development in Las Vegas could be starting to outpace demand. According to the latest market report from Colliers International, industrial net absorption has been decreasing since 2017. In the fourth quarter, vacancy rate increased as absorption and rental rates decreased in the market. As a result, the vacancy rate is expected to continue increase in 2020.

"Growth has primarily been in industrial properties—the big warehouse spaces—and in multifamily. The industrial activity dwarfs what we saw during the boom," John Stater, research manager at Colliers, tells Globest.com. "Ecommerce is a big part of hit, but there is also an element of the growth of the city. It is becoming more prominent. When you have major sports teams opening up shop, people start looking Las Vegas as real city and not just an after thought to Southern California."

While this is a clear sign that development is outpacing demand, Stater says that it is a minor problem. Developers are already naturally correcting the issue, and new constriction starts were also down in the fourth quarter. "I don't think it is extremely serious. Development may be outpacing demand, but it isn't outpacing it significantly to see vacancy rates jump," he says. "We are starting to see new development slow down a little bit. Developers aren't irrationally exuberant like they were in the boom, before the great recession."