Saturday, July 11, 2026
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Market ReportsNevadaRestaurantRetailWesternWestern Market Reports

From Office to Experience: Retail Repositioning Gains Ground in Las Vegas

by John Nelson

Adaptive reuse has always been an astute trend when it comes to utilizing location, existing bones, and saving a little time and money on delivery. It’s also particularly useful in submarkets like the southeast Las Vegas submarket of Henderson where strong population growth and rising household incomes outpace the availability of new retail. This long-standing unmet demand for Class A retail has inspired one developer to reshape how it views underperforming office assets. Steve Neiger, managing principal at CAST Capital Partners, is co-developing the Cliff, a 100,000-square-foot office-to-retail conversion in Henderson’s Green Valley Ranch submarket.  The project involves the repositioning of a vacant, low-density suburban office property that had struggled to remain competitive as newer product and shifting workplace trends weighed on demand. Rather than pursue a traditional office lease-up or a residential conversion, the development team, which includes Partners Capital, is transforming the site into an open-air retail and dining destination designed to better align with the area’s demographics, accessibility and surrounding residential density. The repositioning reflects a broader trend in how developers are evaluating aging office assets in high-growth suburban markets, particularly where strong consumer demand is not being met by existing retail supply. Situated along Paseo Verde …

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HospitalityMarket ReportsNevadaWesternWestern Market Reports

Las Vegas Strip Isn’t Cooling — It’s Normalizing

by John Nelson

— By Mike Mixer of Colliers — Recent headlines have pointed to a “cooling” of the Las Vegas Strip, with RevPAR down, visitation below peak levels and growth moderating from 2022 and 2023 highs. On paper, the numbers look softer. But before drawing conclusions, it’s important to consider how the data is being viewed as the comparisons most often used are distorted. The Pandemic was Not a Normal Cycle COVID-19 shut down the Strip in March 2020, an unprecedented event in modern history. Southern Nevada visitor volume dropped by more than 50 percent. Resorts closed, occupancy collapsed and revenues fell sharply. The 2021 to 2023 rebound that followed was equally unusual. Pent-up demand, stimulus liquidity and limited new supply drove record ADR growth and historic RevPAR levels.  Both the downturn and the surge were outliers. When those years are used as a benchmark, today’s performance appears negative. In reality, it reflects normalization. Rates Remain Elevated Even with recent moderation, Strip ADR remains materially above pre-pandemic levels. Operators have maintained rate discipline and are not aggressively discounting to chase occupancy. That suggests stability rather than weakening demand. Capital Signals Confidence If the Strip were in decline, capital would be retreating. Instead, …

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Market ReportsNevadaRetailWesternWestern Market Reports

Las Vegas’ Retail Market Holds Firm as Growth Moderates

by John Nelson

— 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 …

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Market ReportsMultifamilyNevadaWesternWestern Market Reports

Las Vegas’ Multifamily Market Enters a New Demand Era as Supply Normalizes

by John Nelson

— By Justin Neubeck of CBRE — Las Vegas is approaching an important turning point in its multifamily cycle. After several years of elevated construction, the market is now moving beyond its peak delivery period. The region completed about 7,071 units in 2023 — the highest total in more than 20 years. This was followed by 5,247 units in 2024 and 6,302 units in 2025.  Deliveries are expected to decline again in 2026, to roughly 5,334 units. Meanwhile, 2027 deliveries areprojected to return to the 30-year average of about 3,500 units, including the 3,321 units currently scheduled. This shift marks the beginning of a more balanced supply environment. At the same time, the region continues to attract new residents at levels that outpace the national average. Clark County reached a population of about 2.4 million in 2024, an increase of 2.1 percent from 2023. It is projected to grow to more than 2.9 million by 2040, and to surpass 3 million by 2045. Southern Nevada also welcomed more than 40,000 new residents in 2025 alone. Nearly 47 percent came from California. This included 14,200 from Los Angeles County and thousands more from Orange County, San Diego and the Bay Area. …

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IndustrialMarket ReportsNevadaWesternWestern Market Reports

Las Vegas’ Industrial Market Splits as Small-Bay Demand Holds Firm

by John Nelson

— 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, …

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Market ReportsMultifamilyNevadaWesternWestern Market Reports

Limited Pipeline Positions Reno Multifamily for Rent Growth

by John Nelson

— By Jared Glover of Berkadia — While several Sun Belt and Rocky Mountain markets continue to work through challenging operations, elevated supply and weakening fundamentals, Reno has emerged as a bright spot in the West. The city posted 2.5 percent year-over-year employment growth, adding more jobs in 2025 than Las Vegas. This is a remarkable stat given that Reno’s population is roughly one-fifth the size of its Southern neighbor.  At the same time, Reno’s population grew at roughly four times the national average as median household income climbed to just over $90,000 as the economy continued to diversify into technology, healthcare and manufacturing. In fact, Northern Nevada saw 14 site visits per month last year for potential corporate relocations, according to a recent report by the Economic Development Authority of Western Nevada (EDAWN). This places the region it in the top 1 percent of U.S. markets, reinforcing long-term growth expectations. Several major development projects look to keep this momentum going. The most significant is the $1 billion transformation of the Reno-Tahoe International Airport, which saw a record 4.9 million passengers in 2025. The University of Nevada, Reno, also continues to invest heavily in new buildings to attract and retain top …

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Market ReportsNevadaRestaurantRetailWesternWestern Market Reports

Northern Nevada Retail Gears Up for a Transformative Year

by John Nelson

— By Shawn Smith and Sean Retzloff of Colliers — Northern Nevada retail has entered 2026 with a sense of forward motion, shaped by population growth, changing consumer spending habits and renewed interest from national retailers. Grocery-anchored centers continue to serve as reliable engines of demand, particularly in Sparks, where national chains and quick-service restaurants (QSR) are actively pursuing space. These QSR brands continue to be fueled by the post-pandemic preference for convenience and speed — and they find Northern Nevada’s demographic expansion particularly attractive. The lifestyle shift toward wellness is also redefining the tenant mix, with concepts like Planet Fitness building on momentum and gravitating toward suburban neighborhoods where resident demand for amenity-rich environments close to home is rising. This suburban pull is especially evident in Spanish Springs, South Reno and the North Valleys. Growth is moderate in these areas, which justifies new retail infrastructure with flexibility to accommodate retailers eager to enter maturing communities. Once considered fringe, these outer markets are now central to the region’s retail growth story. Shifting Economics of Retail Space The economics of securing space are evolving as demand grows outward. Lease rates are expected to rise modestly to the $2.25 to $2.50 per square foot …

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IndustrialMarket ReportsNevadaWesternWestern Market Reports

Northern Nevada Industrial Finds Its Balance

by John Nelson

— By Joel Fountain of Dickson Commercial Group —  After several years defined by rapid expansion and record development, Northern Nevada’s industrial market closed 2025 showing clear signs of stabilization. Vacancy leveled off, leasing momentum returned and capital markets activity began to pick back up. All told, these indicators point to a market that’s entering a more balanced phase. One of the most notable shifts has been the normalization of vacancy after an unprecedented wave of new supply. Direct vacancy hovered around 11 percent throughout 2025, suggesting the market has reached a temporary equilibrium between supply and demand. While elevated compared to the sub-3 percent vacancy levels seen during the pandemic-driven surge, continued positive absorption helped keep the market stable as it digested several million square feet of recently delivered product. In terms of region, submarket performance varied considerably. Central-West, Airport and South Reno tightened meaningfully during the year, with combined vacancy falling from 10.4 percent in late 2024 to 6.1 percent by the end of 2025. These areas benefited from limited new construction and steady demand from regional service users and smaller distribution tenants. Conversely, the North Valleys and the I-80 East corridor, which accounted for roughly 83 percent …

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IndustrialMarket ReportsNevadaWesternWestern Market Reports

Northern Nevada’s Industrial Market Balances Supply, Strategy, Workforce Readiness

by John Nelson

— By Rick Nelson of Mark IV Capital —  The Northern Nevada industrial market continues to stabilize following several years of rapid expansion and then a recalibration driven by broader economic uncertainty. Current conditions have presented challenges, particularly in the logistics and distribution sectors where tariffs and shifting trade policies have created a more cautious investment climate. Fortunately, there are signs of resilience and forward momentum. The region’s vacancy rate stands at 11.7 percent, down from its peak in fourth-quarter 2024, per CBRE. The market also recorded its third consecutive quarter of positive net absorption, with 130,433 square feet absorbed that quarter, bringing the year-to-date total to 1.9 million square feet. Although current construction activity has moderated to 1.6 million square feet currently underway, the development pipeline remains robust, with an additional 15.8 million square feet in planning stages. This underscores sustained investor interest despite elevated vacancy and measured tenant activity. Advanced manufacturing and data centers are poised to be the vanguard of industrial development in the greater Reno area going forward. Cushman & Wakefield recently named Reno No. 5 among emerging data center markets worldwide in its 2025 Global Data Center Market Comparison Report. This recognition reflects the growing …

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Market ReportsMultifamilyNevadaWesternWestern Market Reports

Reno’s New Multifamily Supply Boosts Market Fundamentals

by John Nelson

— By Ben Galles of CBRE — The Reno multifamily market started 2025 with a large supply of new Class A units that was delivered in the fourth quarter of last year. Despite some market challenges, leasing activity of the new supply has gone well, given the limited construction pipeline. There are currently fewer than 700 market-rate units under construction, with very few projects moving forward and starting construction. The constrained development pipeline will likely lead to a significant decrease in vacancy in the second half of 2026 and beyond. This should also start to push rental rates higher, which have been static or slightly down for most of the year, as many owners have offered rent concessions to lock in new tenants.  While future market fundamentals are promising, many buyers remained on the sidelines because most deals have been presented at negative leverage. The average price per unit in 2025 (year to date) is down about 22 percent, while the price per square foot is down about 16 percent (year to date) from the previous year.  This is due to a few things. First, there was an increase in the number of Class B and C assets that traded …

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