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Industrial

CBRE ranks Las Vegas's industrial market as the 35th largest in the United States. The industrial inventory reported by the major real estate firms in Las Vegas ranges from 102 to 119 million square feet. Based on this, the industrial sector has the highest inventory of the three non-residential commercial real estate products.

Asset Insight's main focus is on industrial properties. Industrial uses from small single-tenant industrial buildings to multi-tenant buildings over 100,000 square feet in size each present unique challenges and opportunities for investors, owner/users and lending institutions. Las Vegas has a low utilization of rail spurs, limited large-box facilities and has undergone a major transformation from a build it and they will come scenario to a conservative build-to-suit market.

Focusing on industrial properties allows Asset Insight to concentrate on the extraction of market data and investor yield demands that can change rapidly in a dynamic market. There was minimal new construction in 2012 that began a resurgence of new product.



 

Beginnins in 2013, there was significant new industrial product deliveries in the Las Vegas market. This included over 650,000 square feet within two projects in the southwest submarket, a 100,000 square foot research lab in the Henderson submarket and a 156,000 square foot high-tech building in the North Las Vegas submarket. Speculative development was subdued until Prologis announced the first speculative industrial project in Las Vegas since the recession in 2014.

Following Prologis' lead, other developers including Panattoni Development, Pauls Corporation, Harsch Investment, Jackson Shaw and Juliet Companies all announced speculative industrial projects. Time will tell if too many projects were started or if the demand will support the projects announced.

The majority of the proposed projects are big-box and mid-bay space. There has been muted talk of new development of small industrial buildings, but no announcements have been made.