Las Vegas office market report

Q2 2024

16.4%

Total vacancy (%)

Over the last two quarters, the direct vacancy rate for traditional office properties in the Las Vegas market has risen by over 2%. The total vacancy came in at 16.4% for direct and sublet combined. From Q3 2023 to Q1 2024, the direct vacancy rate increased from 12.5% to 13.5%, and from Q1 2024 to Q2 2024, it climbed further to 14.7%. This represents a 220-basis point increase from the start of Q3 2023 to Q2 2024. While Las Vegas has historically maintained relatively low vacancy rates for its office market compared to national averages, this rise in available direct space signals a potential shift in market conditions.

$30.10($2.51 psf/mo.)

Average FS asking rent ($ psf)

The Las Vegas office market experienced a consistent increase in rents throughout the period from Q2 2023 to Q2 2024, reaching an annual average of $30.15 per square foot. When contrasting rents to pre-pandemic levels, on average there has been a 21.76% increase (+$5.39) since Q2 2019. This upward trend was particularly driven by key submarkets including Southwest Las Vegas, West Las Vegas/Summerlin, Central North Las Vegas, Northwest Las Vegas, and South Las Vegas. Notably, West Las Vegas/Summerlin stood out with the lowest availability among these areas, marked at just 8.5%, underscoring significant demand in the region.

-180k

Net absorption (sf)

Q2 2024 marked the second consecutive quarter of negative net absorption, closing with a net absorption of -180,260 square feet. This trend raises concerns about the health of the Las Vegas office market, which had previously fared well post-pandemic. From Q2 2021 to Q4 2022, the market consistently recorded positive absorption or low levels of negative absorption. However, Q1 2023 saw a sharp increase in negative absorption, which then leveled out over the next two quarters. By Q1 2024, the market once again experienced significant negative absorption, indicating potential challenges ahead.

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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