Las Vegas Nevada Real Estate Blog

By mid 2007, the Las Vegas industrial market reported vacancies below historical averages.  There is limited supply for strong demand for industrial property, causing an increase in lease rates and investment return.  Across the valley, the average rent for industrial space is $.77 per square foot.  During the past few years, land valuations increased up to 50% in some areas, while land previously entitled for industrial uses were converted to more intense uses.  Other sites were developed with freestanding buildings for sale, allowing many investors to purchase industrial properties as part of their 1031 exchanges.  The industrial market totaled more than 93 million square feet of inventory at the close of the second quarter.  Anticipated product to be on line later this year totaled almost 900,000 square feet.  Market demand created a low vacancy rate of approximately 4.4%.  The major markets for industrial growth are North Las Vegas, the airport submarket and within the southwest corridor of the Las Vegas valley.  The most significant change in the Las Vegas industrial market is that nearly two-thirds of all space is greater than 50,000 square feet.  The industrial market is divided into several classifications:  Incubator – 500/1,500 sf with minimal office and 1 roll-up door; Flex space – 1,500/3,500 s.f. with 40$ or more office build-out, 1 roll-up door; Midbay – 5,000/15,000 s.f. divibility, 10-15% office build-out, dock high and grade level loading; Distribution – more than 15,000 s.f. divisibility with 3-5% office build-out, multiple docks and grade level loading; Freestanding – single or dual user.  There are some great opportunities for investors to buy industrial properties at reduced prices in this “buyers’ market.”  For a list of available properties, and for current market values, contact Las Vegas Properties today at www.lasvegasproperties.com