In our first quarter report of 2017, we were facing a potential 6.8 million square foot expansion of the industrial inventory, and worried that this rapid expansion could lead to much higher vacancy rates. At year's end 2017, we find that industrial inventory expanded by 6.3 million square feet, and strong demand for industrial space sent vacancy rates down to a very healthy 4.3 percent. All in all, an excellent year for Southern Nevada's industrial market. The overall weighted average asking rate remained at $0.68 per square foot (psf) on a triple net (NNN) basis at the end of 2017, just as it was one year ago.
Construction employment still dominates the industrial jobs market in Southern Nevada. The construction sector added 10,500 jobs between October 2016 and October 2017. Manufacturing also showed positive job growth of 700 jobs, while the wholesale and transportation & warehousing sectors continued to show year-over-year job losses of 1,700 jobs and 900 jobs respectively.