At Sunbelt, our seasoned team of Las Vegas land realtors keeps a constant eye on insightful market reports to help us empower buyers and sellers with the information they need to make smart, strategic decisions as they list or purchase Las Vegas land. Today, then, we’re taking a look at CoStar’s 2018 Retail Real-Estate Sales Report for the Las Vegas area. Read on for an overview of the report.
An overview of the market:
Let’s start with an overview of the 2018 retail real-estate market in Las Vegas:
• Sales Volume: In 2018, there were a total of 230 retail real-estate transactions in the Las Vegas Valley—totalling a sales volume of $985M, with a total 4,536,880 square-feet sold. When it comes to retail real estate, the average square footage sold was 21,155—with the smallest square-footage retail sale at 825 square-feet, and the largest at 400,000 square-feet.
• Sales Numbers: Retail real-estate went for an average sale price of $4.3M, with a low sale price of $1.0M and a high of $56M. The average sale price per-square-foot landed at $203, with the lowest retail real-estate price at $12 per-square-foot and the highest at $1,856 per-square-foot. (We saw the average price-per-square-foot steadily increase in Q1, Q2, and Q3 and then slightly decline in Q4.) The cap rate (or the rate of return expected to be generated on an investment property), for retail real-estate sales in 2018 was 6.9% in 2018—with a low cap rate of 3.4% and a high of 9.8%.
• Properties Numbers: Existing retail real-estate square footage in Las Vegas was at 4,647,478—with a low existing square footage of 825 and a high of 400,000. With the highest rent price-per-square-foot at $3.57 and the lowest at $0.63, rent price-per-square-footage landed at an average of $1.47 for retail real estate. Finally, the 12-month absorption rate for retail real-estate sales in 2018 was 88,324 and the 12-month leasing square-footage rate was 329,714.
• Buyer Types: Of all retail real-estate transactions in the Las Vegas Valley in 2018, 78% were completed by private buyers; 10% were completed by user; 9% were completely by institutional buyers; and 3% were private equity buys.
Top Buyers in 2018 Retail Real-Estate Sales in Las Vegas:
Overall, the top ten retail real-estate purchasers in Las Vegas in 2018 collectively invested $363,757,854—with 45% of the top purchasers having origins in California and 30% having local origins in Nevada. The top purchasers included Bridgestone Americas, Inc., Vestar, The Krausz Companies, Inc., 3D Investments, and Gilbert & Anna Maria Barbieri. Amongst the top 142 buyers, the highest sales value was $87M, while the lowest was $1M.
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