We are starting to see some retail and office firm up in many areas throughout the Valley. Some submarkets still struggle, particularly for office but there is noticeable, gradual improvement. In most submarkets, increasing lease rates and dropping vacancy rates have yet to reach a threshold that invites new construction. Generally, most of the construction you see when driving around the Las Vegas Valley is either multifamily or single family. A couple of major exceptions is the Zuffa Entertainment (UFC) building in the Southwest near the 215, along with the recently built Ainsworth building. Additionally, Panattoni has a major industrial development in the Henderson Executive Area. Overall, commercial will lag the residential sector significantly. But there are more rooftops and unlike the pre-recession era, a majority will be occupied. Ultimately, this will drive demand for retail and restaurants and eventually medical office and other service based office users like insurers.
So while population growth and some wage growth reveals an improving picture, if we zoom out, we still see commercial permit activity pale in comparison to even the pre-great recession time period.