Las Vegas Office Market
Office occupancy in the first nine months of 2023 contracted by 23,610 SF. Recent net absorption losses can be attributed to tenants renewing or relocating at smaller footprints. Under-construction activity is measured at best, representing only 1.4% of existing inventory. Most construction projects are built-to-suit, small scale or linked to mixed-use projects. Just 37,400 SF in new construction delivered in the third quarter of 2023. Total availability and vacancy averages are stable. Asking rents are up from one year ago.
Download Las Vegas Office Market Report 3Q23Las Vegas Industrial Market
Total vacancy increased for the fifth consecutive quarter, going from 2.1% in the second quarter of 2022 to 2.8% in the third quarter of 2023. Net absorption over this period totaled 8.2 MSF versus 9.6 MSF in new construction deliveries. Sublease space totals 733,808 SF and represents 0.5% of existing inventory. These averages are moderate relative to the highs reached in the Global Financial Crisis. Most 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 continues to slow, while 17.8 MSF is under construction (27.6% of which has pre-leased to date). Vacancy will rise in the quarters ahead.