Las Vegas Office Market
Office occupancy in the third quarter of 2024 increased by 92,660 SF, lowering vacancy by 20 basis points quarter-over-quarter. Under-construction activity is measured at best, representing only 0.7% of existing inventory. Most construction projects are built-to-suit, small scale or linked to mixed-use projects. Asking rents were up from 12 months ago, but the rate of growth has slowed significantly relative to prior years. Sublease availability increased moderately quarter-over-quarter. Tenant downsizing continues but the velocity of large blocks entering the market has slowed, with small subleases making up the bulk of availability
Download Las Vegas Office Market Report 3Q24Las Vegas Industrial Market
Total vacancy rose to 9.0%, up 420 bps from year-end 2023. Net absorption has lagged construction deliveries for four-straight quarters. Available sublease space climbed to 1.7 MSF, representing 1.0% of existing inventory. While the square footage figure is pronounced, the percentage figure is still low relative to the market’s 1.7% high, reached in early 2010. Still-high inflation and more-restrained retail spending is prompting some occupiers to shed extra space to reduce overhead. Others are delaying their expansion plans. Leasing activity is sharply down this year, while 8.7 MSF in under-construction space (9.6% of which has pre-leased) will eventually deliver. Vacancy will continue to rise.