Northern Nevada
By Gary Tremaine & Amanda Brierton, Dickson Commercial
Retail had another strong quarter with Q3 total sales being $28.32 million and 10 total sales. The average price per square foot in the third quarter was $200. The first neighborhood center traded hands in the third quarter of 2021.
The market has limited inventory and single tenant net leased deals priced under $5 million are still seeing strong buyer interest. The buyer demand for well-priced product with credit tenants remains as high as we have seen in recent memory. Reno’s retail leasing market remained steady throughout the year, but we have seen a decrease in vacancy this quarter, from 6.3 to 5.3 percent.
There have been quite a few larger retail lease transactions this year, including 67,769 square feet leased by Cal-Ranch at the Kietzke Center, 30,000 square feet leased by Crunch Fitness at the Legends at Sparks Marina and The Salvation Army leasing 19,370 square feet at McCarran Plaza.
The largest lease transaction this quarter was for Flooring Liquidators within Northtowne Marketplace shopping center. Flooring Liquidators leased 32,587 square feet. They will be joining WinCo Foods, Planet Fitness, Ross Dress for Less, Party City and many more within the center.
Southern Nevada
By Liz Clare, Avison Young
The third quarter of 2021 for Las Vegas retail property ended strong. Overall, leasing velocity has been very high, and the Las Vegas market posted a low 6 percent vacancy rate. Retail concepts that were in trouble pre- and early pandemic had largely been phased out prior to Q3 2021 and new and expanding retail brands have been looking to fill vacant spaces. On a national basis, 2021 is the first year in many years that will see more new national stores expanding and opening than closing – this bodes well for retail-abundant Las Vegas.
There has been a renewed confidence in the Las Vegas region. Retail centers with some degree of historical vacancy over the years are now fully occupied. In addition, a lot of big box stores are being leased up and available restaurant space is extremely hard to find.
From an investment sales standpoint, all types of retail property are attractive to investors. There is a lot of capital waiting on the sidelines and when a property is put on the market, it typically has a significant amount of interest. Cap rates on the best properties are ranging between 4 to 6 percent.
Retail is thriving in Las Vegas to the surprise and pleasure of customers, investors and new retail and restaurant concepts and the retail sector should remain strong over the next several quarters.
