Northern Nevada
By Gary Tremaine, Dickson Commercial
The Washoe County retail market continues to remain strong as it has throughout previous quarters. Reaching $54,824,280 in transaction volume, there was a slight uptick compared to Q1 2024. Retail vacancies maintain historic lows, signifying that there is much demand with lessening supply. Similar to last quarter, retail has sustained being a center of attention for investors and owner users in the Reno-Sparks area. However, interest rates throughout the year will still lay the foundations for how the retail market transaction flow will develop for the rest of 2024.
The retail market has encountered ongoing development obstacles, such as elevated construction expenses and the imperative to address escalating inflation. However, retail is still very strong. The overall vacancy rate is 3.9% and with lack of spaces available, competition for spaces are driving lease rates up.
The biggest project to move forward in Q2 was Double R Market Place. The development is now underway at the NW, NE, and SW corners of Double R and Damonte Ranch Parkway. It will be approximately 135,000 sf of retail and office space. DCG represents the Developer and is currently pre-leasing space.
Southern Nevada
By Liz Clare, Principal-Capital Markets, Avison Young – Las Vegas Office
Las Vegas remains a top market in the nation for retail as the region attracts large numbers of visitors as a popular tourist destination and as a result, has a fast-growing population. In Q2 2024, the valley’s overall retail vacancy rate posted a low 5.7 percent, with specific submarkets like Northwest Las Vegas and East Las Vegas reporting vacancies under 3 percent.
In Q2 2024, Las Vegas retail asking rents averaged $33.05 per square foot annually across the valley, which is a 28 percent increase from Q2 2020 and about $1.50 higher than Q2 2023. While rents have consistently risen over the past seven years, the rate of increase has slowed. Rents in the resort corridor submarket (The Strip), averaging over $88 per square foot, reflect high demand and limited supply. Outer submarkets range from $20 to $30 per square foot, emphasizing the competitive nature of prime retail locations in high-traffic areas.
The fast food/quick service restaurant (QSR) retail category is the leader in foot traffic at 14 million visits in June of 2024, followed by superstores and shopping centers with close visitation numbers. Standout tenants include Walmart at 4.5 million monthly visits, and McDonald’s and 7-Eleven tied at 3.2 million monthly visits.
Note: All data provided is based Avison Young’s Q2 2024 Las Vegas Market Report
