Solid office demand outpaces development pipeline. Las Vegas’ economy remains tied to tourism, yet hiring velocity among office users has been strong recently, paralleling a span of robust in-migration as companies relocate to Nevada for a more favorable tax treatment. During the past four years, the number of positions added by traditional office-using companies accounted for more than one-fourth of total job creation, with financial services and healthcare-related firms leading the way. This organizational growth bolstered demand for office space, supporting a 48-month stretch of stout absorption that lowered vacancy by nearly 500 basis points. Entering 2020, cycle-low vacancy and rebounding asking rents warrant new construction, yet development activity remains subdued, with less than 300,000 square feet set to be finalized this year. As companies continue to relocate here, consistent space demand will be recorded, driving a rate of absorption that outpaces supply additions. Vacancy will reach a new low for this cycle and the average asking rent will recover at an improved pace for a second straight year.