Retail Rents Unchanged
The demand appears to be there, but the quality space isn’t. Thus, retail rents found themselves flat in the second quarter of 2006. According to Colliers International and Restrepo Consulting Group, the Las Vegas valley retail market had a low 2.9 percent second quarter vacancy rate with the market absorbing nearly 250,000 square feet. Median asking rents trended at $1.60 per square foot whioch is just 4 cents higher than two years ago.
In the second quarter of 2006, area retail inventory grew to 35.5 million square feet. This is more than 1.5 million square feet available more than two years ago. If all projects currently in the works are built, and additional 6.2 million square feet of inventory will become available and hopefully ease existing supply constraints.