Las Vegas Office Market
Despite muted leasing activity, the market posted a modest net absorption gain of 208,017 SF in the first half of 2025. Overall vacancy declined to 12.0%, down 50 basis points from year-end 2024. Asking rents have softened since late 2024 but remain flat year-over-year. Class A space continues to lease quickly, while older, long-vacant spaces are dragging down average rates. Sublet availability remains low at 0.9%, outperforming other Southwest markets. With no new construction starts or deliveries to date, limited supply could pressure vacancy lower and support rent growth, even in a softer economic environment.
Download Las Vegas Office Market Report 2Q25Las Vegas Industrial Market
0.3 MSF in quarterly net absorption gains were met with 2.0 MSF in construction deliveries, causing vacancy to rise to 12.2%. Total vacancy has been in the double-digits since the fourth quarter of 2024. Available sublease space (just 2.0 MSF) dropped 29.6% from last quarter. Modern space offerings are finding sub-tenants quicker than second-gen space. Still-high inflation and more-restrained retail spending continue to delay the expansion plans of some tenants. New and ever-changing tariffs are a factor, too. New construction is taking longer to lease. Purpose-built construction (e.g., Haas Automation’s 2.4-MSF manufacturing facility in Henderson) aside, most developers have hit the pause button on groundbreakings.