X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LAS VEGAS-Second quarter net absorption in the office market totaled 916,000 sf while new deliveries totaled 1.2 million sf, pushing the Valley-wide office vacancy rate up 20 basis points to 11%, according to a report from the locally based advisory firm Restrepo Consulting Group LLC and the local office of Colliers International. Supply has outpaced demand for four straight quarters. One year ago, vacancy was 8.7%.

The overall market now has 36.6 million sf of inventory in 1,820 buildings. The highest vacancy rates are in the high-growth submarkets such as North Las Vegas, Airport, Henderson and the Southwest, according to the report.

Despite the rise in vacancy over the past year, asking rents have continued to rise…until now. After seven consecutive quarterly increases, the Valley’s average monthly asking rent in the second quarter remained unchanged from the previous quarter at $2.51 per sf (full service gross). When the consecutive increases began in the third quarter of 2005, the asking rate was $2.12 per sf, according to the report.

The rise in vacancy is not occurring across the board. A new report by CB Richard Ellis finds that Las Vegas CBD had the third lowest office vacancy rate in the nation at 8.5%. The Colliers-Restrepo report pegs the Downtown office vacancy rate at 7.3% but may have different criteria for what is considered part of the Las Vegas CBD.

Looking ahead, another 1.4 million sf of office space is under construction, mostly in the Southwest submarket, and an additional 4.4 million sf is in the planning stages, according to the report.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.