Mid-2022 Las Vegas Office Market ReportSeptember 21st, 2022
The Las Vegas commercial real estate (CRE) market has continued its recovery and stabilization since emerging from the pandemic. Positive signs for Q2 2022 include reduction in vacancies, positive net absorption, increased asking rents, and the delivery of two projects adding 188,909 square feet (sq/ft) office space to the market.
Strong pre-leasing and inquiry numbers for planned and under-construction projects, along with a rise in companies looking to the Las Vegas Valley to expand or relocate operations entirely, round out the positive sentiment currently seen in the market.
For office product in particular, Las Vegas saw a Q2 of mixed results. On the back of some notable expansion in Q1 2022, Southern NV’s office market has appeared to cool at mid-year. Investment prices reached record levels, however, vacancy rates edged higher. The Southwest submarket continues to see rising rents and additional leasing activity as tenants continue to funnel to this historically popular region.
There are currently 4,660 CRE spaces for lease in Las Vegas, amounting to 41.5 million square feet of space. Out of the 1280 commercial buildings available for sale, 505 have been leased in the past month, with 12 new listings coming onto market at time of print.
- Total inventory under construction – 468,400 square feet
- Overall vacancy – 12.7% (a rise from 12.5% in Q1)
- Net absorption – negative 284,323 square feet
- Availability – 6.2 million square feet
- Average asking rents – $28.50 per square foot per year (a decline of $0.02 from Q1)
- Investment sales – $50.5 million (down from $75.5 million in Q1)