Northern Nevada
By Stephen Delgado, CBRE | Reno
The market shifted from tight to oversupplied over the past three years. In 2023, net absorption was positive each quarter and vacancy remained low, but by Q1 2024 absorption flipped from 842,000 sq. ft. in Q4 2023 to negative 751,000 sq. ft., lifting vacancy 340 basis points (bps) quarter-over-quarter to 7.6%. The correction deepened through Q4 2024 as vacancy rose to 12.1% and availability to 14.0%, up 790 bps and 740 bps year-over-year, while average asking rents moved lower, falling about 5.0% on average from 2023 to 2024. For 2024 overall, the market gave back about 4.9 million sq. ft.
Momentum improved in 2025 as absorption turned positive and totaled roughly 4.3 million sq. ft. for the year, pulling vacancy down to 10.9% in Q4 2025 and 10.6% in Q1 2026. Availability nonetheless edged higher through 2025, reaching 15.1% in Q4 2025 before easing to 14.0% in Q1 2026, and rents stabilized in a lower band of $0.80per sq. ft. on a monthly NNN basis, about 11–14% below Q1 2023 levels. Over the last three years, nearly 14.7 million sq. ft. was delivered while the construction pipeline shrank from 5.1 million sq. ft. in Q1 2023 to no projects underway by Q1 2026, underscoring the overlap of elevated supply and a later pullback in new starts.
Southern Nevada
By Laura Wilhelm and Garrett Toft, CBRE Las Vegas
The Las Vegas industrial market recorded 1.7 million sq. ft. of positive net absorption in Q1 2026, with approximately two‑thirds of occupancy gains concentrated in properties delivered to the market within the past two years. Leasing activity remained healthy, with larger transactions (100,000+ sq. ft.) comprising a significant portion of overall quarterly volume.
The overall vacancy rate declined 70 basis points quarter over quarter to 8.8%, marking the second consecutive quarterly improvement and signaling that the market is gradually absorbing the elevated supply introduced during the recent development cycle. Although vacancy remains above historical levels, the steady downward movement points to a more balanced environment emerging as tenant activity continues to align with available inventory.
The construction pipeline stands at 6.8 million sq. ft. This level reflects a 20% increase from the prior quarter, driven by approximately 1.5 million sq. ft. of new groundbreakings. However, it is important to note that approximately 3.4 million sq. ft., or 50%, of this construction pipeline is preleased or build to suit. The remaining available speculative construction space remains far below the levels from recent years.
