Las Vegas Office Market
Office occupancy in the first quarter of 2024 contracted by 193,722 SF. Partially occupied construction deliveries and tenant givebacks contributed to an increase in vacancy. Under-construction activity is measured at best, representing only 1.0% of existing inventory. Most construction projects are built-to-suit, small scale or linked to mixed-use projects. Just under 150,000 SF in new construction delivered in the first quarter of 2024. Asking rents are up from one year ago.
Download Las Vegas Office Market Report 1Q24Las Vegas Industrial Market
Total vacancy rose to 5.7% in the first quarter of 2024, up 200 bps from year-end 2023. Net absorption losses of 554,584 SF, paired with 3.1 MSF in new construction deliveries, are behind vacancy’s increase. Available sublease space totals 1.5 MSF and represents 0.9% of existing inventory. This is still low relative to the market’s 1.8% high, reached in early 2010. 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. This quarter’s leasing activity totaled 2.1 MSF compared with 4.0 MSF in early 2023. Slower leasing activity and the eventual delivery of 15.5 MSF in under-construction space (19.0% of which has pre-leased to date) will lead to further vacancy increases.