During the past several years, demand for large industrial buildings has significantly exceeded supply in Southern Nevada. In fact, according to a 2014 study released by LVGEA and RCG Economics, Southern Nevada missed out on up to 151 businesses and 18,000 jobs over 12 months because potential companies were not able to find suitable large industrial space.
The good news is that a group of developers has recently stepped up to help solve this imbalance by advancing approximately five million square-feet of speculative industrial space in Clark County.
This is a huge opportunity for Southern Nevada. As Colliers notes in Nevada Business Magazine, we are already seeing strong local demand for warehouse/distribution space. Vacancy rates in the commercial and industrial market continue to decline from recession highs.
Certainly, this is not unique to Southern Nevada. There’s strong demand nationwide for large industrial space as the economy continues to expand and as market trends increasingly make large “big box” space attractive to corporations.
To date, however, industrial developments in our region haven’t garnered the same attention as in other U.S. West markets. Furthermore, it’s been my experience that out-of-market brokers, consultants and business location specialists have been conditioned over the past few years to believe that Las Vegas does not have large industrial space. That perception doesn’t jibe with recent developments. There’s an industrial boom going on here. But few know about it.
Given, however, that the shortage of appropriate large industrial space is also a national problem, increased awareness of available space in Southern Nevada should strategically position us as a very attractive market for businesses. In turn, this may lead to an overall increased interest in Southern Nevada commercial and industrial real estate.
It’s incumbent upon us now to get the word out about our industrial boom. If we successfully get that message out to the commercial real estate and corporate site selection community, our industrial market should experience healthy growth as developers building on a speculative basis begin to fill their buildings with clients.
Furthermore, we have significant tracts of land held in both private and public hands that are ripe for additional largescale commercial and industrial development. Granted, many of these sites require significant capital investments to qualify them as “shovel ready.” Others, however, are ready for development with little to no ancillary site improvements required.
As we look to build upon the industrial market demand study from 2014, the LVGEA will be evaluating Southern Nevada’s industrial sites over the coming months. The study should open the door to even more industrial and commercial development as we identify which sites are ripe for a groundbreaking. Stay tuned for more information as we approach a release date for the study.