— By Alma Cuevas and Jason Griffis of Cushman & Wakefield —
The Las Vegas industrial market continues to evolve, shaped by new development and sustained demand. While vacancy has increased due to recent deliveries, the market tells a more nuanced story, particularly within smaller space requirements.
Leasing activity in first-quarter 2026 totaled just under 3 million square feet, with an average deal size of about 21,000 square feet. Notably, about 95 percent of all leases occurred in spaces of less than 50,000 square feet. This concentration of activity underscores the continued depth of demand within the small and mid-bay segment.
At the same time, the increase in vacancy is largely attributable to new construction, much of which has been concentrated in bulk distribution product. Continued development and expansion from groups like Prologis, OMP, EBS and Panattoni have added significant Class A institutional inventory to the market. While these projects enhance Las Vegas’ long-term positioning as a regional distribution hub, they have also expanded availability in spaces exceeding 100,000 square feet.
This dynamic is effectively dividing the market into two distinct segments. Larger users are benefiting from increased optionality, more aggressive concessions and greater flexibility in lease negotiations. Smaller users, by contrast, continue to face a more competitive environment as functional space of less than 50,000 square feet remains comparatively constrained.
Geographically, the North Las Vegas and Southwest submarkets continue to capture the majority of leasing activity. North Las Vegas remains a focal point due to its proximity to I-15, Union Pacific Railroad access, and large-scale master-planned industrial parks in the Apex and Speedway submarkets. The Southwest submarket, meanwhile, continues to attract tenants seeking infill locations with easy access to the resort corridor, Harry Reid International Airport and key labor pools.
Infrastructure continues to play a central role in Las Vegas’ industrial growth. Connectivity to Southern California ports has supported the market’s expansion as a logistics and distribution alternative to coastal markets. Power availability has also become an increasingly important factor, particularly in emerging submarkets like Apex where proximity to NV Energy substations is attracting significant data center activity.
This trend is becoming more pronounced as North Las Vegas and Apex emerge as key areas for large-scale data center development. Novva Data Centers and Switch have both recently acquired substantial vacant land positions in the Apex submarket, signaling long-term conviction in the area’s infrastructure capacity and scalability. These groups are targeting sites capable of supporting significant power loads, reinforcing Apex’s position as one of the few markets in the Western U.S. able to accommodate hyperscale demand.
As a result, competition for well-located, power-accessible land is intensifying, with industrial outdoor storage users and traditional logistics operators increasingly intersecting with data center requirements. This convergence is expected to further elevate land values and accelerate development activity across North Las Vegas, particularly in Apex where infrastructure investment and power availability remain key differentiators.
Looking ahead, current absorption trends suggest a meaningful tightening of vacancy by mid- to late 2027, especially as large-block availability is absorbed and new deliveries taper. This outlook suggests that groups controlling well-located sites will be best positioned to meet continued tenant demand and capitalize on the next phase of Las Vegas’ industrial growth.
— By Alma Cuevas and Jason Griffis, Managing Directors at Cushman & Wakefield. This article was originally published in the April 2026 issue of Western Real Estate Business.