Quality Retail Space
Retail vacancy rates remain low, but the lack of quality retail space is keeping rents flat. That’s the conclusion of a recent report released by Colliers International and Restrepo Consulting Group.
In the second quarter, the Las Vegas valley retail market had a 2.9% second quarter vacancy rate, while still absorbing nearly 250,000 square feet. This is an absorption rate of six times more than the previous quarter. However, median asking rents were only $.04 higher ($1.60/sf) than they were two years ago.
As of the end of June, there was 1.9 million square feet under construction with another 4.3 million square feet planned for future development. Experts believe, if all planned current and future construction is built, it will go a long way toward relieving the supply constraint.