Las Vegas Office Market Report

Standout job tally a boon for leasing velocity. Las Vegas was the only major Southwest office market to register vacancy compression over the past year ended in June. The metro’s number of traditionally office-using roles, which reached a record mark this June, has fueled demand for space of various quality, despite some companies’ adoption of hybrid work. Vacancy across property tiers reflects this. Entering July, the Class B/C rate stood at 12 percent, after a 100-basis-point decline over the prior four quarters. The Class A sector noted positive net absorption during the same interval, with vacancy 410 basis points below the national mean. However, the upper-tier segment will face some slight supply-induced headwinds, as more than 400,000 square feet is slated for second half delivery, most of which was available as of August. Still, overall vacancy is expected to end the year 400 basis points below the metro’s long-term average.