Retail
In the first quarter of 2006, only 500,000 square feet of retail space was completed in the Valley. Additionally, the retail vacancy rate dropped to around 3%. According to John Restrepo, of the Restrepo Consulting Group, a vacancy number so low isn’t healthy for the market in the long term. While there are 1.3 million square feet of retail space currently under construction and another 3.3 million square feet of space planned, it may not meet market demand.
Grubb & Ellis Las Vegas also cautioned that the amount of new construction may drop in coming years as less land becomes available for the development of large industrial buildings. Moreover, lease rates have increased as the industrial market becomes tighter and as developers struggle to find land. A not-so-distant shortage of available industrial space may be looming if left unaddressed.