Las Vegas has emerged as one of the most dynamic industrial real estate markets in the Western United States, with 174.5 million square feet of warehouse, distribution, and manufacturing space serving as a critical logistics gateway between California and the rest of the country. For investors and owner-occupants seeking industrial loans in Las Vegas, the market offers a combination of competitive financing terms, strong tenant demand, and strategic geographic positioning that few other metros can match.
The Las Vegas industrial sector recorded 5.1 million square feet of positive net absorption for the full year 2025, with vacancy declining to 9.2% by year-end after peaking earlier in the year. Monthly asking rents remain stable at $1.12 per square foot on a triple-net basis. North Las Vegas's Apex Industrial Park alone has 28.5 million square feet completed, under construction, or planned across an 18,000-acre site that represents one of the largest industrial land holdings in the Western United States.
Need Financing for This Project?
Stop searching bank by bank. Get matched with 6,000+ vetted lenders competing for your deal.
What Industrial Loan Programs Are Available in Las Vegas?
Las Vegas industrial property owners and investors have access to a full spectrum of financing options, each designed for different property types, borrower profiles, and investment strategies. Choosing the right program can dramatically affect your cost of capital and return on investment.
Conventional bank loans are the most common financing vehicle for stabilized Las Vegas industrial properties. Local and regional banks including Nevada State Bank, Bank of Nevada, and Western Liberty Bancorp offer rates from 6.00% to 7.25% with terms of 5 to 10 years and up to 75% loan-to-value. These loans work best for well-tenanted warehouse and distribution properties with proven income histories and strong debt service coverage ratios. Relationship pricing from local banks can push rates toward the lower end of the range for borrowers with established banking relationships.
SBA 504 loans represent the most powerful financing tool for Las Vegas business owners who occupy their own industrial space. With up to 90% financing (requiring just 10% down), below-market fixed rates for 20 to 25 years, and the ability to include equipment and renovation costs, the SBA 504 program can save hundreds of thousands of dollars compared to conventional financing over the life of the loan. A manufacturing company purchasing a $3.5 million facility in North Las Vegas could finance $3.15 million at approximately 6.00% for 25 years, compared to $2.625 million at 6.75% for 10 years with a conventional bank loan. The SBA 504 advantage is significant for any Las Vegas business that occupies at least 51% of its industrial space.
CMBS and conduit loans provide non-recourse financing for larger Las Vegas industrial assets, typically $2 million and above. Rates range from 5.88% to 7.49% with 5 to 10 year terms. The non-recourse structure means the borrower is generally not personally liable for the debt, which is a significant benefit for investors managing multiple properties. CMBS lenders evaluate industrial loans primarily based on property income, tenant creditworthiness, and lease term remaining, making them well-suited for single-tenant NNN industrial properties with investment-grade tenants.
Life company lenders offer the lowest rates in the market (5.50% to 6.50%) for Class A logistics and distribution properties in premium Las Vegas locations. These conservative lenders require lower leverage (typically 55% to 65% LTV) but provide terms up to 25 years with predictable, fixed-rate payments. A recently built 100,000 square foot distribution center near the I-15/I-215 interchange leased to a national logistics company on a 10-year NNN lease is the type of Las Vegas industrial asset that life company lenders target.
DSCR loans allow Las Vegas industrial investors to qualify based on the property's rental income rather than personal financials. Rates range from 7.0% to 9.0% with 30-year terms and up to 75% LTV. For investors whose personal tax returns do not reflect their full income capacity, DSCR loans provide a streamlined qualification path.
Bridge loans finance Las Vegas industrial properties in transition, including vacant buildings requiring tenant lease-up, properties undergoing renovation or repositioning, and quick-close acquisitions. Rates range from 8.5% to 11.5% with 12 to 36 month terms. Bridge financing has been particularly active in the Las Vegas industrial market as investors acquire value-add opportunities created by the recent vacancy increase.
How Do Las Vegas Industrial Submarkets Compare for Lending?
The Las Vegas industrial market spans several distinct submarkets, each with different inventory levels, vacancy dynamics, asking rents, and lender appetite. Understanding these differences helps borrowers select the right submarket and anticipate the terms lenders will offer.
North Las Vegas and the Apex Industrial Park dominate the Las Vegas industrial landscape with over 55 million square feet of inventory. This submarket is the epicenter of large-format distribution and logistics development, anchored by the 18,000-acre Apex Industrial Park. Six major projects encompassing 1,800 acres and 9.8 million square feet are currently underway at Apex, with developers including Prologis, CapRock Partners, Dermody Properties, and Van Trust Real Estate building the next generation of distribution facilities. Recent activity includes CapRock's 1.48 million square foot Highlander Logistics Center and Saddle Creek Logistics' $97 million warehouse acquisition. Vacancy runs higher than other submarkets at 10% to 12%, reflecting the significant new supply, but absorption has been consistently positive. Rents are the lowest in the metro at $0.85 to $0.95 per square foot, making North Las Vegas the most cost-effective option for large-footprint users seeking California alternatives.
Southwest Las Vegas commands the highest industrial rents in the metro at $1.15 to $1.25 per square foot, with vacancy tighter at 7% to 9%. This submarket features premium logistics facilities serving food distribution, hospitality supply chain, and light manufacturing tenants. The proximity to affluent residential areas in Summerlin and the I-215 beltway makes Southwest Las Vegas attractive to last-mile distribution operators and service-oriented industrial users.
Henderson's industrial corridor, particularly the West Henderson area, benefits from the submarket's reputation for quality infrastructure and lower vacancy. The Haas Automation manufacturing facility (2.5 million square feet) is the flagship industrial development in Henderson, attracting supplier tenants and supporting the submarket's growth as a manufacturing hub. Vacancy of 6% to 8% is the tightest among Las Vegas industrial submarkets, and lenders view Henderson industrial assets favorably.
The Airport/Paradise submarket offers strategic proximity to Harry Reid International Airport and the Las Vegas Strip, making it the preferred location for hospitality supply chain operations, air freight distribution, and time-sensitive logistics. Rents of $1.10 to $1.20 per square foot reflect the location premium.
What Are the Key Qualification Requirements for Las Vegas Industrial Loans?
Lenders evaluate Las Vegas industrial loan applications using property-specific and borrower-specific criteria. Meeting these benchmarks positions your application for the best available terms.
Debt service coverage ratio remains the primary metric for Las Vegas industrial loan underwriting. Lenders typically require a minimum DSCR of 1.25x, meaning the property's net operating income must exceed annual debt service by at least 25%. For single-tenant industrial properties, lenders may accept a lower DSCR if the tenant has investment-grade credit and a long remaining lease term. For multi-tenant properties, lenders evaluate the weighted average lease term and tenant mix to assess income stability. Use our DSCR calculator to determine where your Las Vegas industrial property stands.
Loan-to-value requirements range from 65% to 90% depending on the program. SBA 504 loans offer the highest leverage at up to 90% for owner-occupied industrial properties. Conventional bank loans and CMBS cap at 75% LTV. Life company lenders are the most conservative at 55% to 65% LTV. The property's current appraised value determines the maximum loan amount, and Las Vegas industrial properties have generally maintained or increased values over the past two years, particularly in tighter submarkets like Henderson and Southwest Las Vegas.
Environmental considerations are especially important for Las Vegas industrial loans. Every lender requires a Phase I Environmental Site Assessment, and properties with a history of manufacturing, chemical storage, fuel handling, or automotive use may trigger a Phase II assessment involving soil and groundwater testing. Budget $2,500 to $5,000 for a Phase I and $10,000 to $30,000 for a Phase II if required. Properties in the Apex Industrial Park benefit from master-planned environmental planning that simplifies the assessment process for newer buildings.
Tenant quality and lease structure significantly impact industrial loan terms. Lenders prefer NNN (triple-net) leases where the tenant is responsible for property taxes, insurance, and maintenance. Single-tenant properties with investment-grade tenants on leases with five or more years remaining receive the most favorable pricing. Multi-tenant properties require lenders to evaluate each tenant's creditworthiness and lease expiration schedule, with higher rent rollover risk translating to higher rates.
How Does the SBA 504 Program Work for Las Vegas Industrial Properties?
The SBA 504 loan program is one of the most underutilized financing tools in the Las Vegas industrial market. For business owners who occupy their own warehouse, manufacturing, or distribution space, the program offers significant advantages over conventional financing.
The SBA 504 structure involves two loans: a first mortgage from a conventional bank (typically 50% of the project cost) and a second mortgage from a Certified Development Company backed by the SBA (up to 40% of the project cost). The borrower provides a minimum 10% down payment. The CDC portion features below-market fixed rates for 20 or 25 years, fully amortizing with no balloon payment.
For a Las Vegas manufacturer purchasing a $5 million industrial facility, the SBA 504 structure looks like this: the bank provides a $2.5 million first mortgage, the CDC provides a $2 million second mortgage at a below-market fixed rate, and the borrower puts down $500,000 (10%). Compare this to a conventional bank loan requiring $1.25 million down (25%) at a higher interest rate with a 10-year balloon. The SBA 504 saves the borrower $750,000 in upfront equity while providing a lower blended interest rate and eliminating balloon payment risk.
Eligible property types include warehouses, distribution centers, manufacturing facilities, flex space, and any industrial building where the business occupies at least 51% of the usable space. The program can also finance building improvements, equipment installation, and energy-efficiency upgrades. Visit our SBA loan programs page for detailed eligibility criteria and documentation requirements.
What Is Driving Industrial Demand in Las Vegas?
Understanding the demand drivers behind the Las Vegas industrial market helps investors and lenders assess the long-term viability of warehouse and distribution investments in Southern Nevada.
California logistics migration is the most significant demand driver. Companies seeking lower operating costs, fewer regulations, and Nevada's zero state income tax are relocating distribution operations from Southern California to Las Vegas. The cost differential is dramatic: industrial rents in the Inland Empire average $1.50 to $2.00 per square foot compared to $0.85 to $1.12 in Las Vegas, and Nevada's lack of state income tax eliminates a major operating expense. Las Vegas properties can serve the Los Angeles basin within four to six hours by truck, making the market viable for next-day delivery to Southern California consumers.
E-commerce fulfillment continues to drive demand for modern distribution space. Las Vegas's position along the I-15 corridor allows same-day or next-day delivery to approximately 9% of the U.S. population. Amazon, FedEx, UPS, and numerous third-party logistics providers have established significant operations in the Las Vegas metro, with North Las Vegas and Apex serving as the primary locations for large-format fulfillment centers.
Hospitality supply chain operations create a unique industrial demand driver in Las Vegas. The city's 150,000+ hotel rooms, 38.5 million annual visitors, and extensive food and beverage operations require a sophisticated network of warehousing, cold storage, and distribution facilities. Industrial properties in the Airport/Paradise and Southwest submarkets are well-positioned to serve this demand.
Data center development has emerged as a new industrial demand category. Novva Data Centers purchased 205 acres in Las Vegas for a major data center campus, and several other operators are evaluating sites in North Las Vegas. Data centers require industrial-zoned land with robust power infrastructure and create long-term, high-value tenancies.
How Are Industrial Cap Rates and Returns Performing in Las Vegas?
Industrial cap rates in Las Vegas reflect the market's strong fundamentals while offering yield premiums over coastal California markets. Understanding the return profile helps investors structure financing for optimal leverage and cash flow.
Stabilized Class A industrial properties in premium Las Vegas locations trade at cap rates of 5.5% to 6.5%, with the tightest pricing for newly built distribution centers with long-term NNN leases to credit tenants. These assets attract institutional capital from REITs, pension funds, and life insurance companies, which keeps pricing competitive.
Class B industrial properties, typically 10 to 25 years old with functional design and good locations, trade at cap rates of 6.0% to 7.0%. These assets offer a balance of current yield and potential for rent growth as older leases roll to market rates.
Value-add and repositioning opportunities trade at 7.0% to 8.5% going-in cap rates. Properties requiring roof replacement, dock upgrades, office buildout, or tenant improvements to attract modern users can be acquired at discounts and repositioned to achieve stabilized cap rates. The recent increase in Las Vegas industrial vacancy to 9.2% has created more of these opportunities than were available during the sub-5% vacancy environment of 2021 to 2023.
Compared to the Inland Empire in Southern California, where industrial cap rates average 4.5% to 5.5%, Las Vegas offers 100 to 200 basis points of additional yield. Combined with Nevada's zero state income tax and lower operating costs, the after-tax return differential is even more significant.
What Financing Strategies Work Best for Las Vegas Industrial Acquisitions?
Different investment strategies require different financing approaches. Matching the right loan program to your Las Vegas industrial investment plan maximizes returns and minimizes risk.
For stabilized acquisitions of well-tenanted Las Vegas industrial properties, conventional bank loans or CMBS financing provide the most straightforward path. If the property has a strong tenant roster, NNN leases with five or more years remaining, and DSCR above 1.25x, you can expect rates in the 6.00% to 7.25% range with 75% LTV. Life company lenders offer even lower rates for Class A assets at lower leverage. Use our commercial mortgage calculator to model different rate and leverage scenarios.
For value-add industrial investments, a bridge-to-permanent strategy works best. Acquire the property with a bridge loan at 8.5% to 11.5%, complete tenant improvements or repositioning, lease vacant space, and then refinance into permanent financing at a significantly lower rate. The Las Vegas industrial market's positive absorption trend (5.1 million square feet in 2025) supports lease-up projections for well-located, competitively priced space.
For owner-occupant purchases, the SBA 504 program should be the default consideration. The 90% financing, below-market rates, and 20 to 25 year terms create a cost structure that conventional financing cannot match. Any Las Vegas business purchasing or expanding its own warehouse, manufacturing, or distribution facility should evaluate SBA 504 before committing to conventional financing.
For NNN industrial properties with credit tenants, CMBS or life company financing provides the lowest cost of capital with non-recourse protection. These properties behave more like bonds than traditional real estate, and lenders price them accordingly.
What Risks Should Las Vegas Industrial Investors Consider?
While the Las Vegas industrial market offers strong fundamentals, prudent investors and lenders account for specific risks that affect financing terms and investment returns.
Vacancy has risen from historic lows. After bottoming below 5% in 2021 to 2022, Las Vegas industrial vacancy reached 11.6% in Q3 2025 before declining to 9.2% by year-end. The spike was driven by significant new construction deliveries outpacing absorption in the short term. While the absorption trend is positive (5.1 million square feet in 2025), investors should underwrite conservatively on lease-up timelines, particularly for properties in North Las Vegas where vacancy is highest.
Sublease space represents a concern that lenders are monitoring. Some tenants who leased more space than needed during the logistics boom are returning excess capacity to the sublease market, creating competition for direct landlords. Borrowers should account for sublease availability in their absorption projections.
Construction cost volatility affects the economics of ground-up development and major renovations. Steel, concrete, and labor costs in Las Vegas have fluctuated significantly, and investors financing construction or renovation projects should include 10% to 15% contingency budgets.
Single-tenant concentration risk applies to properties leased to a single occupant. If that tenant vacates, the property generates zero income while the mortgage remains due. Lenders mitigate this risk by requiring higher DSCR, shorter loan terms that align with remaining lease term, or personal recourse guarantees for single-tenant industrial loans.
For a comprehensive overview of all commercial lending options in Las Vegas, visit our Las Vegas commercial loans hub. Ready to discuss industrial financing? Contact our team for a customized rate quote.
Frequently Asked Questions About Industrial Loans in Las Vegas
What is the minimum loan amount for a Las Vegas industrial property?
Most Las Vegas commercial lenders set minimum industrial loan amounts at $250,000 to $500,000 for conventional bank financing. SBA 504 loans have a minimum CDC portion of approximately $125,000, making the total project cost floor around $350,000 to $500,000. CMBS lenders typically require $2 million or more. Community banks and credit unions in the Las Vegas area may consider smaller deals on a case-by-case basis. The sweet spot for competitive pricing and lender interest is $1 million to $15 million, where multiple lending programs compete for your business.
How long does it take to close an industrial loan in Las Vegas?
Conventional bank loans for Las Vegas industrial properties typically close in 45 to 60 days from application. SBA 504 loans require 60 to 90 days due to the dual approval process. CMBS loans take 60 to 90 days for underwriting and securitization. Bridge and hard money loans can close in as few as 14 to 21 days for experienced borrowers with clean properties. The environmental assessment process is often the longest lead time item for industrial properties; if a Phase II assessment is triggered, add four to six weeks to the timeline.
Do I need a Phase I Environmental Assessment for a Las Vegas industrial loan?
Yes, virtually every lender requires a Phase I Environmental Site Assessment for industrial property financing. This assessment reviews the property's environmental history, including prior uses, storage tank records, and regulatory filings. For newer properties in master-planned industrial parks like Apex, the Phase I is typically straightforward. For older properties with manufacturing, automotive, or chemical handling history, the Phase I may recommend a Phase II assessment involving soil and groundwater sampling. Budget $2,500 to $5,000 for a Phase I and $10,000 to $30,000 for a Phase II.
Can I finance a vacant Las Vegas industrial building?
Financing vacant industrial buildings in Las Vegas is possible but requires specialized lending programs. Conventional bank loans and CMBS require stabilized income, making them unsuitable for vacant properties. Bridge loans are the primary financing tool for vacant industrial acquisitions, lending based on the property's projected stabilized value and the borrower's lease-up plan. Hard money loans can also finance vacant buildings for quick-close situations. SBA 504 loans can finance a vacant building if the borrower will occupy at least 51% of the space for their business. Rates for vacant property financing run 200 to 400 basis points higher than for stabilized assets.
What insurance do Las Vegas industrial lenders require?
Las Vegas industrial lenders require comprehensive property insurance including fire and hazard coverage for the full replacement cost of the building, general liability coverage ($1 million per occurrence, $2 million aggregate), business interruption or loss of rents coverage for 12 to 18 months, and environmental liability coverage for properties with identified contamination risks. Properties with hazardous materials storage or manufacturing operations require additional pollution liability coverage. Unlike many markets, Las Vegas industrial properties generally do not require flood insurance unless located in a designated flood zone.
How does the Las Vegas industrial market compare to the Inland Empire for investment?
Las Vegas offers several advantages over the Inland Empire for industrial investors. Cap rates are 100 to 200 basis points higher (5.5%-7.0% vs. 4.5%-5.5%), providing stronger cash-on-cash returns. Rents are 30% to 50% lower ($0.85-$1.12 vs. $1.50-$2.00 per SF), reducing tenant cost burden and supporting occupancy stability. Nevada's zero state income tax eliminates a significant operating expense compared to California's 13.3% top rate. Land availability in North Las Vegas's Apex Industrial Park provides room for expansion that the land-constrained Inland Empire cannot match. The trade-off is that Las Vegas has higher current vacancy (9.2% vs. approximately 5% in the IE) and less established logistics infrastructure.