Northern Nevada
By Gary Tremaine, Dickson Commercial Group
The fourth quarter sales volume for Q4 2022 saw a slight increase in comparison to the prior quarter, with an increase of nearly $8 million, but the year ended up with much lower transaction volume in 2022. There was a decrease in both volume and number of sales in 2022, but a slight increase in the average price per square foot per transaction purchased by the Boys and Girls Club.
Two notable lease transactions took place in Q4 in excess of 10,000 square feet. Pioneer Meadows in Wingfield Springs anchored by Raleys signed a lease with Ace Hardware for 16,400 square feet. The second largest lease this quarter was The Rock Thrift Store, a 10,000-square-foot space in the Ironhorse Shopping Center in Northeast Sparks.
There have been a few recent notable developments announced with large retail components. In South Meadows, DiLoreto has joint ventured with David Duffield to create a headquarter campus for Ridgeline and an adjacent mixed use development. Downtown Damonte includes 244,000 square feet of planned retail and 150,000 square feet of office space. On the entertainment front, Reno is set to get its first ground-up hotel-casino project in decades, tentatively named the Firecreek Crossing Resort-Casino project.
Southern Nevada
By Hillary Steinberg, Avision Young
The market is proving to remain very strong on a number of levels. Investors and tenants capitalized on investment opportunities in 2022 – with property sales volume and sales price per-square-foot (PSF) numbers both reaching near-record highs. Total sales volume increased from $746 million in 2021 to $1.2 billion in 2022, a 58.1 percent increase year-over-year. The average price on retail asset sales increased by $93 PSF (45.5 percent) to $296 PSF over the same period.
Total space availabilities were down 596,600 SF (8.92 percent) year-over-year ending Q4 2022 with 6,091,024 SF of total available space. This marks the least amount of available retail space in Las Vegas since 2007. New construction deliveries checked in at 503,694 SF for 2022. Las Vegas is poised to open Durango Station, Fountainbleu, MSG Sphere and sports-related venues, like Formula 1 Racing.
Vacancy for Las Vegas retail continued its downward trend coming in at 6 percent to end Q4. This decline has been largely fueled by rising tenant demand post-pandemic. Net absorption was down 41.45 percent when compared to 2021’s total of 1,417,390 SF of positive absorption. There was 829,861 SF of positive absorption in 2022, representing 0.9 percent of the total inventory. Though net absorption was down year-over-year, 2022 was the second largest year of positive net absorption for Las Vegas retail over the past six years.
