Las Vegas Real Estate Market Reports

Las Vegas Office Market

3Q22

The Las Vegas office market continues to buck against national office trends, with vacancy rates lowering and positive absorption for another quarter in 2022. Economic insecurity concerning inflation and the potential impact lowered consumer spending could have on the tourism-dependent Metro are top concerns as the market moves into coming quarters. Industry diversification efforts over the last decade may help in tempering any upcoming economic turbulence as the Metro becomes an even more attractive option for users looking to enter growing markets with strong fundamentals at a lowered cost.

Las Vegas Industrial Market

4Q22

Even with a three-year quarterly high of 2.5-million-square-feet of deliveries occurring in the quarter, the market remains supply-constrained, with sub-3.0% vacancy for the sixth consecutive quarter. Vacancy rose by only 10 basis points from three months ago to finish the year at 2.1%. Several under construction projects, which were scheduled to deliver earlier in 2022 but were delayed by supply chain issues and labor shortages, delivered this quarter. Much of this newly delivered space was already pre-leased, hence the negligible change in vacancy, as deliveries and net absorption were nearly balanced. For the year, net absorption outpaced deliveries, with 8.0 million square feet to 7.1 million square feet. The construction pipeline reached a historic high of 13.1 million square feet in the fourth quarter, and given economic headwinds, will likely go down as a cyclical high. Rising interest rates and illiquidity in the debt markets will hamper construction starts over the next few quarters. Developers will increasingly pivot to build-to-suit projects, wait for rate hikes to subside before pursuing speculative development, or exit land positions.