Las Vegas Office Market Reports | Avison Young US - Las Vegas
Las Vegas office market report
Three key market themes:
Average direct market rent
Rents have remained consistent from Q1 to Q2 – showing a modest $0.05 increase over the $30.03/sf recorded in the 1st quarter, with average direct market rents ending the 2nd period at $30.08/sf.
“Class A” office space saw the largest jump in asking rents over the past quarter, increasing $0.55/sf to $32.75/sf – a 1.7% increase quarter-over-quarter. This significant increase in asking rents for “class A” space can be credited to the willingness of prospective lessees to compete for high-end office space with upgraded amenities to attract employees back to the office.
Total vacancy rate
Las Vegas’s total vacancy rate increased for the second consecutive quarter, following five consecutive quarters of decreases. The direct vacancy rate increased from 13.0% in Q1 to 13.9% in Q2, while sublet vacancy decreased by 30 basis points over the same period ending the quarter at 1.8%.
Las Vegas rebounded from Covid-19 and its associated mandates much better than other large markets, given lenient business regulations and an increase in office workers from struggling west coast markets. However, the second consecutive increase in the total vacancy rate may indicate a small pull-back to market equilibrium.
Sales volume (Q2)
Transaction volume (by $) in the Las Vegas office market was down significantly in Q2 when compared to historical averages, as only $27.9m was transacted throughout the quarter –down approximately 66% from its 5-year moving average of $82.3m.
Though transaction volume fell in Q2, price per square foot ($/sf) on transactions increased by $45/sf over the quarter to $211/sf –slightly above par when compared to the 5-year moving average. This indicates that the slowdown in transactions is likely due to more macroeconomic uncertainty, such as rising interest rates, recent publicized bank failures, etc.
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Get in-depth office market reports and insights from commercial real estate experts in the Greater Las Vegas area. Avison Young advisors look at Nevada's commercial real estate activities and the latest Las Vegas statistics to provide you expert market research on the area's office properties.
Explore different topics like the latest office market pricing trends and analysis of Las Vegas's current office real estate market conditions. Gain a better understanding of the city’s office real estate outlook and stay ahead of current office space trends. Make smart decisions when it comes to investing in office properties in Las Vegas's competitive office real estate market. Avison Young is your trusted source for commercial real estate office market insights in Las Vegas.
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