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The eCommerce Growth Of Las Vegas
Las Vegas is heating up in more than one way this summer. With temperatures soaring over 100 degrees (at the time of this article) not only is the air hot but so is the eCommerce 3PL market. As we predicted back in 2019, the E-Commerce boom has taken over Fabulous Las Vegas (The eCommerce Fulfillment Boom In Nevada ) and it is here to stay. Last year despite the global Covid-19 pandemic, consumers spent over $4.4 Trillion dollars online. The supply chain disruptions experienced around the world could not dampen the thirst for gadgets and gizmos as well as the everyday staples needed in every household. With closures crippling the US economic recovery, businesses deemed "non-essential" were shuttered while warehousing and fulfillment centers struggled to keep up with an ever growing demand. Now as we emerge from the darkness as a global population we are seeing spikes once again in demand.
Not Enough Space
As we move forward into 2021, our local commercial real estate market has again seen a surprising growth rate. Real Estate Agents that saw large warehouses closing their doors forever just a few short months ago are now seeing a flood of new commercial warehousing projects emerge. Online distributions centers are grabbing everything available within hours of properties being listed while many out of state companies are again flooding into the Las Vegas Valley. Since Las Vegas (Nevada) has No Corporate Income Tax, No Admissions Tax, No Personal Income Tax, No Unitary Tax, No Franchise Tax on Income and No Inventory Tax, it is easy to see why businesses are so eager to be in this market. The Las Vegas area currently has more than 55,000 workers in the logistics and manufacturing industries. These same industries are now currently experiencing 2.5 times the national average for growth while still offering the lowest operating costs in the region. Currently there is 1.5 million sq/ft of warehousing available in the local market with over 7.3 million sq/ft of new construction, at or almost near the end of construction. What does this say? It says in my humble opinion that, eCommerce online stores from small to large have pivoted and gone all in, to the online eCommerce world of tomorrow. With supply chain disruptions now fading off into distant memories, a world awakening from turmoil and the future once again looking bright, the next eCommerce boom is just around the corner.