Las Vegas Industrial Figures Q1 2026

The 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. While activity slowed from the previous quarter’s pace, underlying demand remained healthy. The overall vacancy rate declined to 8.8%, marking the second consecutive quarterly improvement and signaling that the market is gradually absorbing the elevated supply. Although vacancy remains above historical norms, the steady downward movement points to a more balanced environment emerging as tenant activity aligns with available inventory. These dynamics suggest that new supply is being absorbed steadily instead of creating further market softness.

Approximately 530,000 sq. ft. of new space was delivered during Q1 2026, with about 22% preleased by completion. Construction starts increased, bringing total under construction to 6.8 million sq. ft. While this represents a notable uptick from Q4 2025, development is more measured than recent years, suggesting developers are adjusting and focusing on projects with clearer demand visibility heading into mid‑2026. This more selective approach to new starts reflects a closer alignment between development activity and current leasing conditions.