— By Hillary Steinberg of Avison Young —
The Las Vegas retail market delivered a mixed but resilient performance in 2025, with vacancy remaining tight and demand holding steady. Vacancy closed the year at 5.6 percent with nearly 5.6 million square feet of available space. While these fundamentals reflect a healthy market, rent growth softened, increasing by just 2.4 percent year over year.
At the same time, development activity remains robust, with roughly 880,000 square feet of retail space currently under construction. New projects continue to emphasize mixed-use and experiential concepts, positioning the market to capture sidelined capital and evolving consumer demand in the year ahead.
Vacancy held steady at 5.6 percent in fourth-quarter 2025, supported by sustained population growth, a continued rebound in tourism and stable consumer spending. This momentum is being reinforced by Las Vegas’ economic diversification, which continues to fuel expansion across food, wellness and entertainment retail segments.
Although rent growth has moderated from its 2022 peak, leasing fundamentals remain strong. Limited availability continues to favor landlords, who are maintaining pricing power and offering minimal concessions. However, rising construction and tenant improvement costs are placing upward pressure on deal economics.
With inventory across Las Vegas, North Las Vegas and Henderson remaining historically constrained, both developers and landlords are responding with a dual strategy: delivering new projects while actively backfilling existing centers. Developments such as the Bend and the Cliffs are moving forward, while projects like UnCommons and Tivoli Village continue to attract new tenants.
That activity is especially visible along the Strip and surrounding areas, where high-profile destinations like BLVD, Fashion Show, the Grand Canal Shoppes and AREA15 are driving leasing momentum with a steady pipeline of new and notable tenants. In total, nearly 880,000 square feet of mixed-use, experiential and entertainment-driven retail space is underway.
Recent leasing activity highlights the market’s continued appeal. Notable additions include the world’s largest In-N-Out Burger at BLVD; the Taco Stand, Arhaus and Lyte House at the Cliffs; Sliceteria, St. Felix and the Electric Pickle at the Bend; Stix Asia food hall at UnCommons; Saatva and Eichholtz at Tivoli Village; and the 30,000-square-foot global flagship Museum of Ice Cream, along with MINISO and Good Company Burgers, at AREA15.
Meanwhile, in North Las Vegas, 215 Losee Village has broken ground. Phase I of Paramount Engineering & Development’s project will include restaurants, self-storage, a gas station, dental space and tavern uses. Phase II is expected to bring additional retail, dining and a five-story hotel.
Just south, Station Casinos continues to invest heavily in its local portfolio. A $385 million, 275,000-square-foot expansion at Durango Casino & Resort is underway, featuring a bowling alley, luxury movie theater and country music venue Moonshine Flats. The project is anticipated to deliver by mid-2027. Separately, Stoney’s Rockin’ Country is slated to open at Sunset Station in Henderson in fourth-quarter 2026, with a new high-end steakhouse expected in 2027.
Additional retail announcements include Hat Club and Blue Bottle Coffee at Fashion Show, as well as Horologio and Gol Art at the Grand Canal Shoppes, both targeting early 2026 openings.
Overall, the Las Vegas retail market remains fundamentally sound. While rent growth has moderated, strong demand, limited supply and continued investment in experiential retail position the market for steady performance moving forward.
— By Hillary Steinberg, Vice President of Retail at Avison Young. This article was originally published in the April 2026 issue of Western Real Estate Business.