After several quarters of stability, Las Vegas retail experienced a pullback in the first quarter, according to a market report from Colliers1
For the first time in five quarters, absorption was negative at -126,720 square feet. Vacancy ticked up 40 basis points from the fourth quarter to 4.3 percent, the same level it was in the same period the year prior.
That came as "several retailers closed their doors in the new year," according to Colliers.
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While it's unclear which brands' shuttered locations, a big chunk of the negative absorption occurred in power centers (-85,068 square feet).
On the bright side, rents hit $1.78 per square foot in the first quarter, up from $1.70 in the previous three months. Also, the first quarter amount is up 12 cents year over year.
"The Southwest submarket, with 2.6% vacancy, had the Valley’s highest asking rates at $2.45 psf NNN. It was followed by the 4.2% vacant West Central submarkets’ $2.05 psf NNN asking rate," said Colliers.
So far in 2025, sales have reached $62.3 million in volume, with 13 total transactions. For all of 2024, the numbers were $205.2 million across 46 transactions.
Overall, signs could point to optimism for retail in Las Vegas. Colliers believes the worst might be behind the store closures in the market.
"Some of that big box space that entered the market in the first quarter may be leased in the near term, and with no other major closures announced that should translate into improved net absorption and lower vacancy rates by the end of 2025," it said.
Also, it's worth noting that units under construction fell to 266,300 in the first quarter, from 320,400. Plus, the 375,106 square feet of projects scheduled to deliver over the next year are 86.2 percent pre-leased, according to Colliers.
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