Retail A retail boom is ongoing in Las Vegas, including a tight neighborhood and community shopping center market. For that segment, Reis reports third quarter 2006 vacancy at 4.8%, down 10 basis points over the quarter and 90 basis points year-over-year. Rent gains are strong. The average asking rent rose 2.1% to $22.13 psf, and the average effective rent increased 1.6% to $20.01 psf, from the prior quarter. The year-over-year gain is 6.0% by both measures.

Office Rapid rent gains testify to the strength of the Las Vegas multi-tenant office market, although vacancy is above average. Reis reports third quarter 2006 vacancy at 12.0%, down 10 basis points from the prior quarter and unchanged year-over-year. Reis reports average asking and effective rents of $23.81 psf and $19.60 psf, up 2.1% and 2.3% over the quarter, respectively. The year-over-year gains are 7.7% and 8.2%.

Multi-Family A massive condo glut had yet to affect the rental apartment market in Las Vegas as of the third quarter of 2006, but excess for-sale units are beginning to enter the market as rentals. Reis reports vacancy at 3.9%, down 10 basis points from prior quarter and unchanged year-over-year. Both the average asking rent and the average effective rent rose 1.5% during the quarter, to $826 per month and $788 per month, respectively.