Market Trends & Analysis
The following sections outline the major market trends in the Los Angeles, Inland Empire, Las Vegas, and Reno market sectors with data as reported by CoStar, along with key indicators.
4Q25 CA Quarterly Newsletter
In 2025, Los Angeles faced widespread market pressure with nearly 16 million SF of industrial space completed since 2023 - 30% still vacant - and asking rents down over 20% from peak. Retail struggled with 60% of available space vacant over a year, while the April 2023 ”Mansion Tax” nearly froze hospitality investment with only four hotel sales over $10 million since enactment.
The Inland Empire delivered nearly 60 million SF of industrial space since 2023 with over 25% available, though new supply is forecast to plummet from 25 million SF in 2024 to under 5 million by 2026. Medical office construction thrived with 32 buildings achieving 85% occupancy since 2020, while pre-existing luxury multifamily vacancy climbed toward 20-year highs near 7%.
4Q25 NV Quarterly Newsletter
In 2025, Nevada's markets faced dramatic supply imbalances. Reno confronted industrial oversupply with 8 million SF under construction while tenant expansion cooled sharply, yet multifamily development nearly ceased with just 110 units underway.
Las Vegas absorbed its largest multifamily delivery wave since the Great Recession - 15,000 units in three years - while retail vacancy hit a 15-year low of 5.1%. Hospitality construction slowed to historic lows with only 640 rooms in the pipeline, even as the industrial sector saw $1.6 billion in transaction volume.
3Q25 CA Quarterly Newsletter
In Q3 2025, Los Angeles and Inland Empire commercial real estate markets exhibited contrasting trajectories. Over the quarter, Los Angeles confronted widespread sector challenges with vacancies, with industrial climbing to 6.5%, office space remaining stubbornly elevated at 16.0%, and multifamily reaching decade highs at 5.3%. Hospitality fundamentals remained strong with top-tier occupancy and ADR performance.
Meanwhile, the Inland Empire demonstrated bifurcated conditions across sectors: a robust office market tightened vacancy rates to 4.9%, and multifamily absorption was steady. Industrial availability expanded to 11.8% and retail space availability climbing over 100 basis points from decade-plus lows.
3Q25 NV Quarterly Newsletter
In Q3 2025, Reno and Las Vegas commercial real estate markets showed divergent performance. Over the quarter, Reno demonstrated atypical resilience in office and multifamily sectors while facing supply pressures in industrial.
Meanwhile, Las Vegas experienced bifurcated conditions across sectors: strong hospitality fundamentals offset by elevated multifamily vacancy and retail space constraints.
