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Las Vegas Retail Space In-depth
Las Vegas is on course to be one of the top U.S. retail space markets in the upcoming years. The 43.7-million square feet Las Vegas Valley retail space market continued to perform well, with 210,000 square feet of new additions.
The high-octane gaming and tourism industries have fueled record growth in the entertainment capital of Las Vegas, c... Read More
Las Vegas Retail Space In-depth
Las Vegas is on course to be one of the top U.S. retail space markets in the upcoming years. The 43.7-million square feet Las Vegas Valley retail space market continued to perform well, with 210,000 square feet of new additions.
The high-octane gaming and tourism industries have fueled record growth in the entertainment capital of Las Vegas, creating a booming Las Vegas retail space market that has sparked development, sent Las Vegas retail space vacancy rates plunging, and driven shopping center prices to new heights.
The Las Vegas retail space market ranks No. 4 in the country, with an annual growth rate of 7%, according to the International Council of Shopping Centers. But demand is so great that Las Vegas retail space vacancy rates dipped to 4.2% in 2006. Meanwhile, mixed-use and neighborhood retail projects are popping up across the valley.
It's no secret that tourists fuel the Las Vegas economy and an increasing number of big spenders come from abroad. One reason businesses are relocating, expanding or opening retail space in Las Vegas is the weak U.S. dollar. A weak U.S. dollar means foreign currency goes a lot further and increases the odds that visitors will be even more willing to spend in Las Vegas.A good example was the recent opening of the region's first H&M, a Swedish-based clothier, at the Miracle Mile Shops at Planet Hollywood. Although grand openings of the clothier are always well attended, an informal survey of those waiting in line revealed that many were foreign visitors looking to take advantage of the relative strength of their native currency.
Las Vegas retail space is constantly expanding. Las Vegas retail space has provided homes to many businesses including the 450,000-square-foot retail component of the Venetian's sister property that is scheduled to open this month will include more than 60 upscale boutiques and is anchored by an 85,000-square-foot Barneys New York department store.
The areas most likely to experience retail growth continue to be North Las Vegas, which has traditionally been underserved and the burgeoning southwest valley.
Even downtown Las Vegas might finally start to see some significant retail space growth. With Union Park moving forward on the 61 acres and high-profile developers such as CIM and Forest City planning major redevelopment projects, the long-awaited downtown renaissance could finally occur, increasing the amount of retail space in Las Vegas.
The Las Vegas retail space squeeze is especially acute in Southern Nevada's fast-growing neighborhoods and master-planned communities. Grocery-anchored centers, malls, lifestyle centers and single-tenant specialty users are fueling the greatest demand, but every type of retail space is needed in newly built areas of Las Vegas.
Still, with 3.6 million square feet of Las Vegas retail space either being built or planned to begin construction in the next year, even with a few potential hiccups, it seems the retail space market in Las Vegas is poised for significant and continued growth.
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