By STEPHEN DELGADO, CBRE | RENO
Despite a higher interest rate environment and elevated energy costs, tenant demand remained resilient throughout Q3 2026, supporting positive absorption and continued improvement in occupancy fundamentals. Net absorption totaled 701,000 sq. ft., lowering vacancy to 9.3%, while availability remained stable at 12.4%. No new deliveries were completed during the quarter, and approximately 150,000 sq. ft. broke ground, bringing the total under construction to 802,000 sq. ft. Since the beginning of 2025, strengthening demand and limited new supply have supported a steady recovery in occupancy, with vacancy declining from 10.9% in Q1 2026 to 9.3% at the close of Q3 2026.
Tenant demand remained broad-based throughout Q3 2026, with activity originating from a diverse mix of industrial users across multiple sectors. This quarter saw an increase in direct distribution as well as 3PL users. Other demand drivers for the market this quarter included data center suppliers and vendors, EV, and advanced manufacturing. Data center and advanced manufacturing requirements continue to drive activity, especially in the East Valleys.
By LAURA WILHELM, CBRE | LAS VEGAS
The Las Vegas industrial market recorded approximately 1.5 million sq. ft. of positive net absorption in Q3 2026, bringing year-to-date absorption to more than four million sq. ft. Strong occupier demand continued to absorb recently delivered inventory, and leasing activity remained healthy at approximately 3.5 million sq. ft. for the quarter. North Las Vegas remained the market’s primary leasing hub, accounting for the majority of tenant demand and supporting continued occupancy gains across the Valley.
The overall vacancy rate declined 30 basis points quarter-over-quarter to 8.7%, the latest in a series of quarterly improvements since a 10.2% peak recorded one year ago. Vacancy continued to trend lower as tenants leased space delivered during the recent development cycle, particularly in submarkets that experienced the greatest supply growth. Although vacancy remained above long-term norms, ongoing leasing activity continued to improve market conditions.
Construction activity continued to moderate, with the development pipeline contracting to approximately 5.8 million sq. ft. from 6.1 million sq. ft. in the prior quarter. Of the space under construction, 50% is pre-leased or build-to-suit. Deliveries totaled nearly one million sq. ft. in Q3, while new construction starts remained limited relative to historical levels. Slowing deliveries, a shrinking pipeline, and sustained tenant demand continued to ease future supply-side pressure and support the absorption of recently completed product.
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