Las Vegas Office Market Report

Mid- and lower-tier commitments power market. Las Vegas registered the largest drop in office vacancy among major U.S. markets over the 12-month span ended in March, supported by the strongest four-quarter period for Class B/C absorption on record. The 330-basis-point reduction in overall availability during the yearlong stretch slashed vacancy to a more than 15-year low, enhancing the sector's outlook heading into the second quarter. Moving forward, more traditional office users and medical providers are likely to establish or expand local operations, motivated by Las Vegas' population growth and regionally discounted asking rents. These commitments will support a second straight year of above-average demand that enables Las Vegas to rank among the nation's tightest office markets.