— By Liz Claire of Avison Young —
The Las Vegas retail market continued its strong performance in fourth-quarter 2024. Vacancy rates declined to 5.3 percent, marking a 200-basis-point drop from the fourth quarter of 2020. Strong absorption rates and healthy rent increases highlight the market’s resilience, even as growth has moderated since its peak in first-quarter 2021.
Vacancy Declines and Strong Absorption
Las Vegas experienced a significant increase in positive retail space absorption in fourth-quarter 2024, following eight quarters of minimal movement, with a total of 619,000 square feet absorbed. This surge was primarily driven by major developments, including the completion of the 500,000-square-foot BLVD retail project, which saw strong pre-leasing activity from prominent tenants like Adidas, H&M, Lululemon and In-N-Out Burger. Sustained high demand lowered the vacancy rate by 40 basis points from the previous quarter, further solidifying Las Vegas as a leading retail market.
Retail Rents and Growth Trends
Market-wide retail asking rents averaged $35.20 per square foot, with rents outside the high-priced resort corridor averaging $29.08 per square foot. Year over year, rents increased by 5.8 percent, significantly outpacing the national average rent growth of 3 percent. This steady rent appreciation demonstrates continued demand for retail space in Las Vegas, even as the pace of growth slows compared to its peak four years ago.
Top-Performing Retail Sectors
Las Vegas’ retail sector saw significant foot traffic. A handful of key categories drew millions of monthly visitors, including:
Gas Stations and Convenience Stores: Terrible’s led the way with 4.3 million monthly visits
Fast Food and Quick-Service Restaurants (QSRs): McDonald’s recorded 3.8 million monthly visits
Shopping Centers: The Grand Canal Shoppes ranked highest in this category, attracting 1.6 million monthly visitors
Superstores: Walmart saw 4.3 million monthly visits, solidifying its place as a retail traffic leader
Retail Development Continues
The city added 742,000 square feet of new retail space last year, marking a 182.5 percent increase in new deliveries compared to 2023. This includes the aforementioned BLVD with its 700-plus feet of Strip frontage. Experiential concepts are also on the rise with immersive, entertainment-driven developments like Area15 and the Sphere attracting more locals and tourists. Sports and entertainment are further reshaping the landscape The proposed LVXP Resort features an NBA arena, while the Bjarke Ingels Group is leading the design for the Oakland A’s new home stadium, which is set to break ground at the former Tropicana resort site.
The Las Vegas retail market continues to experience declining vacancy, sustained absorption and above-average rent growth. The city’s vibrant tourism industry and ongoing demand for retail space, particularly in high-traffic sectors, suggest that Las Vegas will remain a key retail hub moving forward. Despite slowing growth compared to past peaks, the market has been outperforming national trends, making it an attractive destination for retailers and investors.
— By Liz Claire, Principal, Avison Young. This article was originally published in the May 2025 issue of Western Real Estate Business.