Las Vegas Industrial Update Doherty Industrial Group | Q3 .../media/Files/United States/MARKETS/Las Vegas/DI… · 2014 | Doherty Industrial Group Significant Transactions Doherty

2014 | Doherty Industrial Group Significant Transactions

Doherty Industrial Group

3960 Howard Hughes ParkwaySuite 150

Las Vegas, NV 89169www.colliers.com/DIG

Dan Doherty, [email protected]+1 702 836 3707

Chris [email protected]+1 702 836 3728

Susan Borst, [email protected]+1 702 836 3719

Jerry [email protected]+1 702 836 3735

Las Vegas Industrial UpdateDoherty Industrial Group | Q3 2014

Colliers International | 3960 Howard Hughes Parkway, Suite 150 | Las Vegas, NV 89169 | www.colliers.com/DIG

Q4 2014The Southern Nevada Industrial market had another strong year in 2014, with 3.4 million square feet of positive net absorption and a vacancy rate dropping to a four-year low of 9.1%. This is the lowest vacancy recorded since the second quarter of 2008 when vacancy was 7.8% and almost 3% lower than the fourth quarter of 2013. Over the last 24 months, the market has absorbed over 7 million square feet of space, clearly putting the Great Recession in the rear view mirror. The limited amount of available space is placing upward pressure on asking rates and lowering landlord concessions; creating the perfect environment for the introduction of new product. With renewed confidence in the market, several developers are finally moving forward with long stalled speculative projects, and acquisitions of new development sites. These speculative projects will bring larger users to the Las Vegas Valley who could not previously find space. Current numbers forecast over 3 million square feet of new construction to be completed by the second quarter of 2016, the majority of which is big box distribution & light manufacturing product. Prologis, the first to pull the trigger with a ±464,000 SF cross-dock facility in North Las Vegas is a testament to the demand for big box product, as the building was fully leased to a single tenant (Systemax) as the walls were being tilted. So far, early signs point to 2015 being very similar to 2014, with decreasing vacancy, rising rents and positive net absorption.

> Total industrial inventory of 118,158,211 SF > Vacancy rate of 9.1%; including sublease space of 258,740 SF > Asking lease rates $0.55 per square foot on a NNN basis; up $0.03 per square foot from previous year > User and investment sale prices continue to increase, with cap rates averaging ±7.1% > 2014 net absorption is positive 3,488,230 SF > A lack of available large contiguous space could result in slightly lower net absorption in 2015

Q4 2014 Industrial Submarket ComparisonSubmarket Ave. Lease Rate PSF Vacancy Rate Net AbsorptionAirport $0.71 12.5% 460,590East Las Vegas $0.49 9.4% 41,094Henderson $0.61 7% 639,708North Las Vegas $0.38 8.8% 1,257,338Northwest $0.77 19.6% 39,415Southwest $0.59 8.9% 965,732West Central $0.61 7.3% 84,353TOTALS $0.55 9.1% 3,488,230











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Documents

Las Vegas Industrial Update Doherty Industrial Group | Q3 .../media/Files/United States/MARKETS/Las Vegas/DI… · 2014 | Doherty Industrial Group Significant Transactions Doherty