Las Vegas Industrial Space by Freeport West

Las Vegas and Southern Nevada were among the fastest growing metropolitan areas in the country in 2005. The U.S. Census Bureau ranked Las Vegas the second fastest growing city among the 30 largest cities in America during the years 2000 to 2005. Las Vegas was the fastest-growing city among those with a population over 250,000 between 1990 and 2000, increasing its population by more than 85% during the decade. According to the Nevada State Demographer, the Clark County population grew by more than 60,000 residents, or by 3.8% from 1.7 million in 2004 to 1.8 million in 2005.

The major force behind this growth was a robust local economy, which was driven by the expansion of the tourism industry and non-gaming businesses, and a surge in economic development. These factors had a major impact on the demand for Las Vegas industrial space and commercial real estate.

As the population increases, the demand on existing companies expands and increases the need for new businesses, which then fuels the need for more Las Vegas industrial space. Clark County, Nevada officials estimate that there are approximately 47,000 undeveloped acres in the county zoned for industrial use. Most commercial realtors agree that the amount of available industrial land is shrinking.

Developers and planners are wondering what to do when that land runs out. Additionally they expect thousands if not millions of square feet of warehouse and industrial space may be taken off the market west of the Strip to make way for new projects.

In 2005, nearly 15,500 jobs were created in the leisure and hospitality industries and 18,100 jobs were created in the industrial-using sectors, such as the construction, manufacturing, transportation and warehousing and wholesale industries. Much of this growth propelled the increase in the demand for Las Vegas industrial space in 2005. This rapid economic growth posed challenges to industrial developers in 2005 as land became scarce and construction costs soared. The increased demand for Las Vegas industrial space and the increasing scarcity of available developable land started putting upward pressure on asking rents in 2005, tipping the market in favor of landlords

With a projected population and employment growth of over 3% in 2006, current economic indicators suggest a strong economy for the foreseeable future. This, combined with Southern Nevada’s geographic strengths, strongly indicate that the industrial market should continue to remain fairly tight. The Las Vegas industrial space in the planning stages should hold vacancies in check by maintaining a relative balance between supply and demand over the next two years.

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