Las Vegas Office Market
Office occupancy in 2023 increased by 56,422 SF. Office vacancy has found stabilization with a balance of square feet entering the market at a similar pace as what is leaving the market. Under-construction activity is measured at best, representing only 1.3% of existing inventory. Most construction projects are built-to-suit, small scale or linked to mixed-use projects. Just 32,900 SF in new construction delivered in the fourth quarter of 2023. Asking rents are up from one year ago.
Download Las Vegas Office Market Report 4Q23Las Vegas Industrial Market
Total vacancy increased for the sixth consecutive quarter, going from 2.1% in the second quarter of 2022 to 3.8% in the fourth quarter of 2023. Net absorption over this period totaled 10.2 MSF versus 12.7 MSF in new construction deliveries. Sublease space totals 656,873 SF and represents 0.4% of existing inventory. These averages are low relative to the highs reached in the Global Financial Crisis. Some occupiers are focused on cutting costs amid still-high inflation and more-restrained retail spending. Shedding extra space is one way to reduce overhead. Delaying expansion plans is another. Leasing activity is somewhat uneven, while 16.9 MSF is under construction (22.3% of which has pre-leased to date). Vacancy will rise in the quarters ahead.