Las Vegas Commercial Real Estate and Land in 2015

From my perspective it appears that the commercial real estate (CRE) market in Las Vegas in 2015 will continue to improve.  The 2015 market is not the kind of real estate market that real estate owners and agents will love and it still feels like the market is walking and not running, but its is better than crawling.     

There are positive factors that will make a difference for the Las Vegas commercial real estate market in the short term future.  Importantly the population of Las Vegas is expected to increase at a much faster rate (near 3.0% per year) over the next few years.    

There are a number of compelling reasons why California residents may choose to live and work in Las Vegas in the future, and travel back to California on weekends, rather than brave the slings, arrows, population explosion and crazy taxes of the Golden State.

The commercial office market is still negatively affected by a near 19% office vacancy rate.  While that vacancy rate has been consistently falling it’s still relatively high.  I don't expect the office market to become truly healthy again until that somewhat large vacant aggregate office area is absorbed.  If the market continues to absorb the space and the vacancy rate continues to decreases at about 2% per year it will take a while.

While employment appears to be moving up, albeit with mostly service industry jobs, the number of retail sales in 2015 has contrarily slowed.  Retail vacancy rates have stabilized near 10% and asking rents have fallen slightly.  It appears that the retail market in Las Vegas absent an unexpected stimulus will continue to be somewhat stable in 2015.

The industrial market segment appears to be improving since vacancy rates have been falling and are now near 8.0%, which is nearly down to the rates noted prior to the recession, and asking rental rates have been steadily increasing.  Based on market movements from the recent past the industrial market is likely to continue to improve in 2015.  

The vacant land market in Las Vegas, as discussed in my article located at: still favors residentially zoned properties over commercially zoned properties and that mind set is due in large part to the past poor performance of the commercial markets.  As the commercial market, and submarkets, improve and prices increase there will be fewer and fewer owners who will rezone their commercial properties for a residential uses.

Glenn J. Rigdon is a commercial real estate broker and a commercial real estate appraiser located in Henderson Nevada and he can be contacted at his email address and additional information is available via the internet website or at

Glenn J. Rigdon, MA, MRICS, ASA is an experienced commercial real estate broker and commercial real property appraiser located in Henderson, Nevada.  Check out his commercial appraisal articles at or his profile on LinkedIn at and his website at

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