Las Vegas office market report

Q1 2024

16.2%

Total vacancy (%)

While many office markets across the nation are grappling with increasing vacancy rates, Las Vegas stands apart. Thanks to its predominantly suburban-style office setup, companies in Las Vegas have largely avoided the challenges of getting employees back into the office, as their workplaces are conveniently situated near their homes. Although there was a slight uptick in vacancy rates during the peak of the pandemic, they have consistently remained below historical averages. As of the close of Q1 2024, the current vacancy rates stand at 16.2%, with 14.5% being direct vacancies and 1.7% sublet vacancies.

$28.15 ($2.35 psf/mo.)

Average FS asking rent ($ psf)

Las Vegas continues to be a leader in office rent growth, reaching a peak of $28.15 per square foot annually by the end of Q1 2024. Specifically, Class A offices commanded $33.01, Class B were at $24.95, and Class C stood at $18.45. Notably, Class A rents have steadily risen quarter over quarter for the past 8 quarters, climbing from $30.99 in Q2 2022 to $33.01 in Q1 2024, marking a 6.5% increase.

While the economy strengthens and population increases, office supply remains tight and demand high, driving consistently increasing asking rents.

-85,823 sf

Sublet net absorption (sf)

The Las Vegas office market has remained relatively stable after the pandemic, with no significant negative changes in net absorption. However, there is a notable difference among submarkets. Downtown areas have seen higher negative net absorption, while suburban office areas generally maintain positive net absorption. In Q1 2024, Las Vegas recorded a net absorption of -85k square feet, primarily due to a single 95k square foot sublet space in the Downtown submarket. Apart from this, the Northwest and Southwest submarkets both showed significant positive absorption, resulting in no significant changes for net absorption of direct leases in the overall market.

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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.