Nationwide

• The U.S. retail market is shifting, with tenant bankruptcies and store closures slowing. Demand for space is up, and retail availability is at historic lows, with only 4.8% available.

• The focus is now on entertainment, dining, and community spaces. Mixed-use developments are popular, but rising real estate costs are causing established tenants like Walgreens and Red Lobster to reevaluate, possibly leading to more closures.

• Inflation is reducing disposable income, causing cutbacks on fast food spending. Major chains like McDonald's and Yum Brands are seeing shrinking profits and are offering more affordable options and loyalty programs. The focus is on affordability and convenience.

Las Vegas Highlights

• The retail vacancy rate in Las Vegas is stable at 5.1%, near a 15-year low. Single-tenant spaces are scarce, with vacancy rates under 3%, leading to new ground-up construction projects.

• Less than 500,000 sq. ft. of leases were signed last quarter, with low space availability impacting leasing volume. Competition is fierce, especially on the Las Vegas Strip and in areas like Henderson and Summerlin.

• Rents have grown by 3.9% annually, with landlords offering minimal concessions. Despite steady market performance, sales volume is below pre-2019 levels, and cap rates have risen over 50 basis points in 2023. Well-located drive-thru QSRs are seeing stronger pricing due to limited land availability.

With access to nearly 400 retail markets nationwide, we provide invaluable insight to support your commercial real estate investment goals. Reach out to us today to begin a conversation about how we can help you navigate the complexities of the retail real estate landscape.