Las Vegas Industrial Figures Q4 2024

The industrial market experienced mixed yet expected performance in Q4 2024. Net absorption for the quarter reached 305,000 sq. ft., bringing the annual total to 3.2 million sq. ft., or about 60.0% lower than in 2023. Despite this decline, the market saw a record-breaking 14.1 million sq. ft. of new deliveries for the year, surpassing the previous record by 2.8 million sq. ft. However, the overall vacancy rate increased from 7.5% to 9.1% this quarter, reflecting a 160 basis-point (bps) rise quarter-over-quarter and a 440-bps increase since Q1 2024.

The construction pipeline showed an expected year-over-year decline of 51.8%, with 6.0 million sq. ft. of speculative space and 2.4 million sq. ft. of built-to-suit space currently under construction. With the speculative construction pipeline rapidly tapering off in 2025, the market is expected to stabilize over the course of the year. As developers pause new projects and demand starts to align with supply, the vacancy rate will begin to shift downward. Tenants have been relatively slow to sign leases over the last two years, and any uptick in activity will be a favorable sign for the market.