Las Vegas Office Market
| Average Asking Rent (Price/SF) | $1.84 |
| Vacancy Rate (%) | 14.1% |
| Net Absorption (SF) | -122,513 |
After nearly three years of continual progress and strengthening economy, 2020 reversed some of the progress made during that time due to the impact that COVID-19 had on the overall national, state and Metro economy. As a popular tourist destination, the local economy was hindered once travel stopped and much of the hospitality industry shut down. After unemployment reached a high of 34.0% in April 2020, 2021 finally saw unemployment dip below 10%, coming in at 9.3% in February. Although the Metro still ranks among the highest in terms of unemployment across the nation, there are many indicators at the start of 2021 that show Las Vegas is primed to recover over the coming quarters. The American Rescue Plan Act of 2021 included nearly $4.5 billion in relief funds for the state that will help state and local governments administer aid to constituents. Unemployment has declined by 70.0% from April 2020 to February 2021, with over 320,000 net jobs created in that time frame. More and more businesses, including office users, are returning to the workplace with safety measures in place as the Metro waits for the vaccine rollout to fully open for all those eligible for the COVID-19 vaccine.
Download Las Vegas Office Market Report 1Q21
Las Vegas Industrial Market
| Average Asking Rent (Price/SF) | $0.71 |
| Vacancy Rate (%) | 5.8% |
| Net Absorption (SF) | 1,268,050 |
The strong momentum from year-end 2020 carried into the first quarter of 2021 for the Las Vegas industrial market. Net absorption remained strongly positive and measured 1.3 million square feet in first-quarter 2021, which is the second-highest quarterly total in the last five years. Vacancy continues to remain low, dropping 30 bps from fourth-quarter 2020 to 5.8%, even with robust development of speculative space. Asking rent growth is flat quarter-over-quarter at $0.71/SF but increased modestly year over year by 1.4%. Construction levels continue to remain elevated thanks to strong tenant demand, particularly for newer vintage Class A space. Investor demand remained strong in first-quarter 2021, although sales volumes were down relative to previous quarters, with fewer, larger portfolio transactions occurring in first-quarter 2021.