COLLIERS LAS VEGAS PUBLISHES Q2 MARKET RESEARCH REPORT
Las Vegas will be revitalized in 2021 with significant advances in several sectors in Southern Nevada, including employment, hospitality, and land development
LAS VEGAS – Southern Nevada’s economy is in full recovery mode. With employment back above 1 million jobs and taxable sales in the first three months of 2021 exceeding taxable sales for the same period in 2019, the market looks strong and the future looks bright. Commercial real estate investments hit a three-year high and the Southern Nevada industrial market had an exceptionally strong performance in the second quarter with net absorption of more than 3.3 million square feet – a new record. Market research shows that from a hospitality and retail perspective, Las Vegas continues to enjoy the trust of tourists and investors alike.
Industry
E-commerce-driven logistics continued to dominate industrial history in southern Nevada, but sectors outside of large warehouses began their own recovery in the second quarter. The renewed broad demand for industrial space increased net absorption to over 3.3 million square feet, a new record. Industrial development now sees a fourth major wave of completions in the next four quarters, which shows confidence in the future of the market.
country
The development situation in southern Nevada looks strong, with a high level of industrial, multi-family and single-family housing developments lasting mid-2021 and more office development than we’ve seen in several years, including two large mixed-use projects. Real estate development is consuming land, so land sales now show confidence in the future of the valley. While land sales are generally strongest within the valley, further waves of development could stimulate interest in land outside the valley, in areas such as Apex, Boulder City, Jean, and Nye Counties. Opportunities for redevelopment and replenishment should encourage the sale of smaller plots within the valley.
office
The office market saw improved performance in the second quarter of 2021, with demand driving net absorption to its highest level since the governor’s business shutdown in 2020, fueling cost-conscious tenants who may be exploring new work paradigms following the pandemic.
retail trade
The retail market in southern Nevada seems to be back on track after a strange 2020. By mid-2021, the retail market is well on the way to surpassing 2020 net absorption, almost all of which occurred in the first quarter of 2020. We think this will largely be lifted with store closures and restrictions, and with the return of largely unrestricted visits and conventions to the resort industry, the retail market in southern Nevada should continue to improve in 2021.
doctor’s office
In the first two quarters of 2021, the medical office market absorbed 86,882 square feet, bringing the market to a better 2021 than 2020. The key to the future demand for medical offices is demographics. Where do future patients live? How far are you willing to travel? The west side of the valley benefits from continued population growth, while the east side benefits from an aging population and thus a greater need for medical care. We believe the medical office market in southern Nevada will grow along with the Valley’s population.
hospitality
A year after the Las Vegas hospitality shutdown in April 2020, the southern Nevada hospitality market has made serious strides in recovery. Data points that were down slightly a quarter ago drove, perhaps most importantly, room occupancy. In June, the conventions return and this should further bolster the post-pandemic recovery. A key recovery metric from this point on is how the current market is doing compared to Q1 2020 – how close are we to returning to normal before the pandemic? As it stands, the market is likely to be at least six months away from normal. The other key metric is hospitality property sales. Sales are a sign of investor confidence in the future of the Las Vegas hospitality industry. So far, it looks like Las Vegas is still an attractive bet for those in the know.
The full report is available for download here: https://www.colliers.com/en/research/las-vegas/2021-q2-las-vegas-lvqr-market-research-report
About Colliers International
Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With offices in 66 countries, our more than 15,000 enterprising professionals work together to provide expert advice to property users, owners and investors. For more than 25 years, our seasoned leader with significant insider exposure has brought shareholders average annual investment returns of nearly 20%. With $ 3.0 billion in annualized revenue ($ 3.3 billion including affiliates) and $ 40 billion in assets under management, we are maximizing real estate and accelerating the success of our clients and our employees. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.
For more information please contact:
Stephanie Ceccarelli | Mass media
