Las Vegas continues to attract industrial users due to its favorable business climate.
Nevada’s tax structure, no corporate or personal income tax, combined with over $150M in recent incentive deals, makes it a cost-effective location for both logistics and manufacturing operations. The region also benefits from a growing labor pool, with warehouse employment projected to grow nearly 14% by 2033 and on a regional basis, wages remain highly competitive. Strategically located, Las Vegas offers one-day truck access to over 64M consumers via I-15 and US-95, making it a key logistics hub for the Western U.S. Infrastructure investments, including a $250M water recycling project in North Las Vegas, are enhancing long-term reliability for industrial users.
The Las Vegas industrial real estate market is navigating a period of recalibration following a historic development cycle. Year-to-date deliveries totaled 6.9M SF, putting it on pace to finish the year lower than last year’s record figure of 16.0M SF but already higher than the 5-year average of 6.8M SF between 2019-2023. As expected with the high volume of activity, both new construction starts and under construction levels have decelerated as 5.4M SF is currently under construction.
As of Q3 2025, the market-wide vacancy rate rose to 10.5%, an increase of 270 bps year-over-year, driven by significant new supply. Despite this upward trend, leasing activity remained strong, totaling 2.8M SF during the quarter, bringing the year-to-date total to 8.6M SF. Net absorption was positive at 440K SF in Q3 2025, pushing year-to-date absorption above 2.0M SF. Meanwhile, average asking rents held steady, averaging between $1.10 and $1.11 PSF over the past four quarters.
While elevated vacancy rates and tighter lending conditions present short-term challenges, the market is showing signs of stabilization. Over 90% of new deliveries in Q3 were preleased, and developers are beginning to scale back speculative construction. With continued population growth, strong absorption, and a favorable economic environment, Las Vegas is well-positioned to remain a leading industrial market in the Southwest.
3Q 2025 Las Vegas Industrial Market: Key Data Points
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Explore our full Las Vegas industrial market review for deeper insights into leasing trends, sale activity, and submarket performance.
- Vacancy Rate Climbs: Market-wide vacancy reached 10.5%, up 270 bps year-over-year.
- Asking Lease Rates Hold Steady:Average asking rent remained at $1.11 PSF NNN, consistent with prior quarters.
- Construction Pipeline Contracts: Space under construction dropped to 5.4M SF, down from 10.2M SF a year ago.
- New Deliveries Slow: 2.1M SF delivered in Q3, bringing YTD deliveries to 6.9M SF, below 2024’s record pace.
- Leasing Activity Strong: Q3 leasing totaled 2.8M SF, pushing YTD activity to 8.6M SF, outpacing last year.
- Sales Prices Surge: Average sales price per SF rose to $247, a 35% increase from Q2.
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