Northern Nevada
By Gary Tremaine, Dickson Commercial Group
As the year came to a close, the retail market in Washoe County remained resilient. Transaction volume reached $94,388,853, marking a significant increase from Q3, while retail vacancies remained at historic lows, with the overall vacancy rate edging up to 3.7%. Despite limited supply, demand from owner-users and investors remained strong. Looking ahead to this year, the retail sector is expected to remain stable and competitive, with supply and demand dynamics holding steady despite broader economic uncertainties.
Three significant lease transactions in the fourth quarter of 2024, each over 20,000 SF, demonstrate the continued demand for retail space. A national restaurant chain secured 8,000 SF at The Outlets at Legends, Planet Fitness leased 23,723 SF at the Southwest Pavilions Shopping Center, and Birdeez took over 23,058 SF in downtown Reno near the Riverwalk District. As seen in previous quarters, these transactions reflect the increasing demand for high-quality indoor recreational spaces, which are becoming highly sought after in retail developments. The primary challenge this region faces is the scarcity of new inventory, with a lack of new retail construction leading to very few available spaces.
Southern Nevada
By Giovanna Abraham, Avison Young
The Las Vegas retail market continued its strong performance in Q4 2024, with vacancy rates declining to 5.3% marking a 200-basis-point drop from Q4 2020. Favorable absorption and healthy rent growth highlight the market’s resilience, even as growth has moderated since its peak in Q1 2021. Las Vegas experienced a significant increase in positive retail space absorption in Q4 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. Sustained high demand lowered the vacancy rate by 40 basis points from the previous quarter.
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%, significantly outpacing the national average rent growth of 3%. 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. Despite slowing growth compared to past peaks, the market continues to outperform national trends, making it an attractive destination for retailers and investors.
