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The Newsroom - 2003 |
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Industrial space sizzles in the third quarter
October 2, 2003 - Southern Nevada's industrial market remained robust in
the third quarter, reports Applied Analysis, a Las Vegas-based economic research
firm.
Consisting of 76.4 million square feet in 2,336 buildings, the industrial sector
had a low 9.3 percent valley-wide vacancy rate from July to September, 2.1
percent lower than a year ago. Although 753,000 square feet of new space came
online in the third quarter, including the 130,540-square-foot Arrowhead
Commerce Center at 6180 Pearl Street, demand was unexpectedly strong, resulting
in a 0.3 percent drop in vacancies over the previous quarter.
"Absorption has continued to keep pace with a stream of new inventory," says
Brian Gordon, a principal at Applied Analysis. "The trend of owner-occupied
buildings has helped keep the supply-and-demand ratio in better balance than
other sectors, helping keep vacancy rates low."
There were 91 new industrial buildings, totaling 1.7 million square feet, under
construction in the third quarter, including the new $24 million, 613,000
square-foot Cheyenne Distribution Center in North Las Vegas, and 4 million
square feet planned for future development.
North Las Vegas continues to dominate all industrial submarkets, accounting for
more than 50 percent of all new space coming online and 53 percent of all net
absorption.
"Competitive pricing, well-positioned products, infrastructure improvements and
a booming population and employment base have drawn a number of developers and
tenants to North Las Vegas," says Kevin Higgins, senior vice president of Voit
Commercial Brokerage. "Today, the city accounts for more than 13.7 million
square feet, or 18 percent of the marketplace, and is home to some of the
valley's largest companies." |
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Our
Services |
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Applied Analysis provides professional services in urban
economics, market analysis, financial advisory services,
information technology and hospitality/gaming consulting
services.
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Our
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Reliable data is the foundation of any solid analysis.
We are the market leader in information and research. We
track economic, development and fiscal trends, and
publish the area's most comprehensive office, industrial
and retail market survey.
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Applied Analysis has a broad client base, including both
public entities and private companies. We exceed our
clients' expectations by taking the time to listen to
their goals and then committing the time, resources, and
know how to help them find success.
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By contrast, the weakest industrial submarket was in the northeast valley, which
had a negative net absorption of 43,831 square feet in the third quarter for a
15.9 percent vacancy rate.
"We do anticipate a strong fourth quarter in the industrial market," says Jeremy
Aguero, a principal at Applied Analysis. "There will be some notable corporate
relocation/expansion announcements and various delayed business decisions
translating into added industrial space requirements."
Despite rising land costs, now at $6.06-per-square-foot, market-wide industrial
rents averaged 0.51 per-square-foot in the third quarter, which is slightly
lower than in prior months. However, that could soon change as competing
interests, including residential and retail projects, vie for available land,
says Aguero. New industrial developments could face still.
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Article Copyright ©: T. Illia, Las Vegas Business
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