Las Vegas Multifamily Rents and Vacancy Decline
Las Vegas is far from a booming multifamily city at the moment — but some core categories are moving in the right direction.
Vacancies, for one, saw notable improvement, declining by 70 basis points year-over-year in the third quarter to 5.4 percent, according to a market report from Colliers. The West Las Vegas submarket enjoyed the lowest levels at 4.5 percent, followed by University/The Strip at 4.6 percent.
"We feel operationally that apartment performance conditions have stabilized," Colliers said.
"In addition, the sales activity has picked up somewhat with cap rate compression and higher sales comps."
With the average price per unit going for $246,305, a total of 1,421 units traded hands in the third quarter. The largest sale involved The Avondale in Summerlin/The Lakes, going for $152 million. Some other notable trades were The Pearl at St Rose in the South and Colton in Henderson, selling for $64 million and $50 million, respectively.
Meanwhile, rents headed in the wrong direction, with average monthly rates falling from $1,487 in the previous 12 months to $1,467. And while overall average rates per square foot were flat quarter-over-quarter at $1.58, that number was down two cents year-over-year.
Also, construction is starting to spike again, going from 4,680 units to 5,720.
"All submarkets except Green Valley, Summerlin/The Lakes, Sunrise Manor/Northeast, University/The Strip and West Las Vegas have new projects underway," Colliers said.
"The Southwest is set to see [the] largest inventory expansion."
That came as deliveries fell to 350 units in the third quarter, a fraction of the 1,670 posted 12 months prior.
Source: GlobeSt/ALM