Las Vegas Office Market Report

Office fundamentals moderate, following historic run. Spurred by a rapidly diversifying local economy, Las Vegas’ office sector has observed prolific growth in recent years. Net absorption exceeded 1 million square feet in each of the past two years, a first for the metro. Record leasing volume by square footage achieved during the third quarter of last year indicates that long-term demand remains solid, likely keeping near-term availability well below the level typical during the pre-pandemic cycle. Relatively tight operations should also be supported on the supply side, with inventory expanding by just 0.6 percent in 2023 and the pipeline narrowing further out. The recent batch of leases executed at rents notably above the market average suggests space that does come online this year should be well received, as prospective tenants appear to value amenity-rich offices. Macroeconomic headwinds and the longer-term adoption of hybrid work schedules, however, are poised to decelerate the pace of overall leasing activity as corporations re-assess staffing and physical space requirements.