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Las Vegas apartment demand improved considerably and now exceeds the pace of deliveries, compressing the vacancy rate to 9.4%. High-income households are

keeping occupancy more stable at the top of the market. On average, 4 & 5 Star assets built before 2023 have a vacancy rate below 8%. Supply-side pressure will continue to be a significant factor in the near term. Roughly 6,600 units are under construction, which would expand Las Vegas apartment inventory by 3.5% once all projects in the pipeline are complete. On the positive side, construction has slowed considerably in recent quarters and could ease supply concerns in the long run.

Unrelenting supply pressure is the most prominent factor driving the rising industrial vacancy rate in Las Vegas. About 14.7 million square feet of industrial space delivered in the past 12 months, an all-time high on an

annual basis. The pace of completions also accelerated to an all-time high in 24Q1 as nearly 4 million SF delivered. At about 8.6%, the vacancy rate has continued to rise since mid-2022 and is above the historical average of 7.2%. A glut of speculative construction in the pipeline could continue the trend of rising vacancy, which is forecasted to eclipse 8% by 2025. There is currently 8.9 million SF of space under construction market wide, about

70% of which is available for lease.

The current office vacancy rate of 10.0% remains below the historical average of 13.5%. However, on a submarket level, there are clear winners and losers. In these conditions, the pace of rent growth has

decelerated slightly. The average office rent is still growing by 4.5% year-over-year and mirrors the annual trend of the past two years. The forecast calls for more downward pressure on rents in the near term as the

market grapples with upward pressure on the vacancy rate.

The Las Vegas retail market is as competitive as it has been in nearly two decades for tenants seeking space. The availability rate is 5.4% and the vacancy rate is 5.1%, both 17-year lows, as demand has consistently nullified supply pressure. Leasing activity has decelerated from its peak in 2021, primarily due to the lack of available space that meets

tenant requirements. The roughly 2.6 million SF of leased space last year was the lowest in 15 years, and Las Vegas is on pace to post similar numbers this year.

Tourism is the main economic driver in Las Vegas, as the destination is famed for its gaming industry, nightlife, convention business, events, and expanding sports destination. Las Vegas is the nation's largest hospitality market by room count and still achieves the third-highest 12-month average occupancy in the U.S., only trailing New York and Oahu. Driven by leisure and group demand, the 12-month occupancy through February was 78.7%. In 2024, RevPAR is projected to increase by approximately 8%, lifting occupancy above 80% and ADR above $200, a historic peak. The market is boosted.

by hosting mega events such as the Formula 1 Grand Prix race and the 2024 Super Bowl.

 The Boring Company, a tunnel construction firm founded by billionaire Elon Musk, is expanding a major underground transportation project in Las Vegas and adding a corporate location in Austin, Texas, as the startup tries to test superfast hyperloop transit across the United States that could eventually affect real estate development.