Las Vegas Industrial Market Report

Speculative overhang still lingers. Las Vegas entered July with the third-highest vacancy rate among major U.S. industrial markets, despite seven straight quarters of positive net absorption. This suggests the metro’s 12.1 percent vacancy rate reflects recent speculative supply additions that helped expand local inventory by nearly 14 percent from 2024 to 2025. Fortunately, a recent slowdown in construction activity could help these speculative builds secure tenants. This dynamic may already be playing out. In the second quarter of this year, tenants absorbed nearly 1.5 million square feet amid the delivery of just 200,000 square feet — marking the first time since mid-2023 that demand exceeded supply on a quarterly basis.