Las Vegas office market report
The Las Vegas office market saw notable improvements following a period of relative uncertainty during the height of the COVID-19 pandemic. Workers continued to return to the office, resulting in a boost to leasing activity as well as rent pricing. The outlook for 2022 is positive given the increased level of office demand from out-of-state workers moving to Las Vegas in search of more affordable cost of living.
Las Vegas saw its first office delivery of at least 20,000 sf since Q3 2020, with the 80,000 sf Axiom building at 7160 Rafael Way finishing construction in March. Existing office inventory has increased by 725,000 sf in total since the start of 2018.
Las Vegas recorded its second consecutive quarter of positive net absorption with a gain of 333,993 sf in Q1 2022. This marks the second largest gain in net absorption since the start of 2018, trailing only Q1 2020 when net absorption totaled a gain of 523,594 sf.
Direct asking rent
Leasing activity remained below pre-pandemic levels in 2021, coming in 29.7% below the average activity level during the 2010s. There was 1.8 msf of office leasing activity in 2021.
Total available office space declined by 652,641 sf in Q1 2022, lowering available office space below 6 msf for the first time since Q2 2020. At the end of Q1 2022 there was 5,210,471 sf of direct availability and 553,877 sf of available sublease space.
The direct vacancy rate and the sublease vacancy rate both declined in Q1 coming in at 12.9% and 1.4% of total market inventory respectively. At the end of the quarter there was 5,380,045 sf of vacant office space in total.
Investment activity is often slower to start the year and that trend continued in 2022 with just $75.5M in transactions. The average sale price in Q1 was $181 psf, as a couple low-priced sales brought the average sale price to its lowest level since Q1 2021 when the average transaction was priced at $161 psf.
Your source for the latest Las Vegas office market reports
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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