Southern Nevada has been threatening a construction boom for a few years now, and in 2017 that boom arrived. This quarter saw the completion of over 2.2 million square feet of new industrial projects, and the remainder of 2017 should see inventory expand by an additional 6.8 million square feet or more. New developments sent vacancy up to 6.1 percent from last quarter’s 5.2 percent, a large increase that will probably be repeated through the remainder of the year. The weighted average asking rate decreased to $0.63 per square foot (psf) on a triple net (NNN) basis, a $0.04 decrease from last quarter driven in part by the completion of all that warehouse/distribution space, but also by draw-downs in asking rates in the light distribution, light industrial and incubator sectors. Southern Nevada’s industrial job market improved in January 2017 (the latest month of data available) compared with January 2016, adding only 3,700 jobs in sectors usually associated with industrial real estate in the past twelve months, including 4,300 jobs in the construction sector. The transportation & warehousing sector lost 800 jobs over the past twelve months, which is not a welcome figure considering the large amount of warehouse/distribution product now being completed and under construction in Southern Nevada. The manufacturing sector added 300 jobs and the wholesale sector lost 100. Unemployment in the Las Vegas-Paradise MSA stood at 5.1 percent as of January 2017, down from 6.5 percent in January 2016. From January 2016 to January 2017, total employment in Southern Nevada has increased by 37,500 jobs.