Industrial Investment in Las Vegas
Vegas industrial is riding the e-commerce wave, but smart money knows the story's more complex than the headlines suggest. While cap rates compressed through 2024, we're seeing selective buying now. The I-15 corridor still drives most institutional interest, but you'll find value plays in the older Lamb Boulevard properties if you can stomach the truck access issues. Clear heights matter more here than most markets - anything under 24 feet is functionally obsolete for modern users.
Market Context
Cap Rate Range
5.25% to 7.75%, with Class A I-15 corridor properties trading in the mid-5s and older flex space pushing high 6s to low 7s
Current Vacancy
4.2% overall, down from the 2.8% trough in late 2022 but still historically tight
Rent Trend
Rent growth slowed to 4-6% annually after the 18-22% spikes of 2021-2023. Expect single digits going forward.
Absorption
2.1 million SF absorbed in trailing twelve months, down from the 3.5 million peak but still healthy
Price Per Unit Trend
$85-$140 per SF depending on location and vintage, with newer I-215 properties commanding premiums
Transaction Volume
$1.8 billion in 2025, off the $2.4 billion peak but institutional appetite remains strong for quality assets
Submarket Analysis
I-15 South Corridor
5.25% to 6.0% capVacancy
2.8%
Avg Rent (1BR)
$8.50-$11.25 NNN
Institutional favorite with limited available land. Expect continued compression.
OM Tip
Emphasize proximity to McCarran and I-15 access. Include truck turn radius specs.
North Las Vegas/Apex
5.75% to 6.75% capVacancy
3.1%
Avg Rent (1BR)
$7.25-$9.50 NNN
Development hot spot but infrastructure still catching up. Good value play.
OM Tip
Address utilities capacity and road improvements timeline. Power availability matters.
Henderson Industrial
5.50% to 6.25% capVacancy
4.7%
Avg Rent (1BR)
$8.75-$10.50 NNN
Stable with limited new supply. Owner-users active.
OM Tip
Highlight proximity to residential workforce and established infrastructure.
Lamb Boulevard/East Vegas
6.50% to 7.75% capVacancy
6.2%
Avg Rent (1BR)
$6.50-$8.25 NNN
Value play territory but functional obsolescence concerns persist.
OM Tip
Be honest about truck access limitations. Focus on smaller user appeal.
I-215 West Beltway
5.75% to 6.50% capVacancy
3.8%
Avg Rent (1BR)
$7.75-$9.75 NNN
Emerging area with some new construction. Watch for oversupply risk.
OM Tip
Emphasize master-planned development integration and future infrastructure.
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What Your OM Needs to Address
Clear Height and Column Spacing
Don't bury this in the back of your book. Lead with clear heights - anything under 24 feet needs explanation.
Data to Include
Exact clear height measurements, column spacing dimensions, any height restrictions from mezzanines or HVAC
Dock Door Configuration
Vegas users expect modern dock layouts. Count matters but so does spacing and truck court depth.
Data to Include
Total dock doors, drive-in doors, truck court dimensions, turning radius specs, trailer parking count
Power Infrastructure
Manufacturing users ask about this first. Don't make buyers hunt for electrical specs.
Data to Include
Current power capacity, panel locations, NV Energy upgrade options, three-phase availability
Airport Proximity Marketing
McCarran access is a selling point but be specific about drive times during different periods.
Data to Include
Actual drive time to McCarran cargo facilities, proximity to UPS/FedEx hubs, customs clearance access
Labor Market Access
Workforce availability matters more post-COVID. Include residential proximity data.
Data to Include
Drive time heat maps to residential areas, public transit access, parking ratios
Expansion Capability
Many users want growth options. Address this upfront even if the answer is no.
Data to Include
Available adjacent land, zoning for expansion, utility capacity for additional square footage
Investment Outlook
Short Term
Selectivity rules the next 18 months. Buyers want stabilized assets with credit tenants or clear value-add angles. Construction costs remain elevated so replacement cost supports pricing, but debt markets are still working through rate adjustments.
Medium Term
E-commerce growth continues but at normalized rates. Nearshoring trends benefit Vegas's position as a Southwest distribution hub. Watch for potential oversupply in North Las Vegas if all announced projects deliver simultaneously.
Long Term
Demographics support long-term demand - Vegas population growth outpaces most western markets. Climate change might actually help as businesses relocate from extreme weather markets. Gaming industry evolution toward entertainment/sports creates new industrial demand categories.
Buyer Profile
Institutional buyers focus on I-15 corridor Class A properties. Regional operators and family offices active in the $5-25 million range. Owner-users strong in Henderson and smaller flex properties. Foreign capital less active than Phoenix or LA but present for trophy assets.
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