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Market Report

Las Vegas Office Market Report

2024 Investment Forecast

Contrasting Many Other U.S. Markets, Las Vegas’ Office
Sector Remains in a Favorable Position

Several larger submarkets register encouraging demand. Las Vegas entered this year as just one of three major U.S. markets with sub-15 percent Class A and Class B/C office vacancy. This standing will be preserved during 2024, as traditional office-using roles will account for a record share of the total job count, at approximately 22 percent. This should facilitate consistent demand among employers for spaces larger than 10,000 square feet, extending a two-year trend and aiding overall absorption. An additional boon for conventional office buildings with available space, medical office properties will account for roughly half of this year’s supply additions. As such, prospective tenants are likely to comb Las Vegas’ largest submarkets for traditional floor plans. These firms, however, may find relatively limited options in Southwest and West Las Vegas, as each was home to sub-10 percent vacancy at the onset of 2024. This dynamic may steer more companies to South and Northwest Las Vegas — home to average asking rents slightly below the metro’s mean and double-digit vacancy. Ultimately, these components will translate to a year-end vacancy rate nearly 400 basis points below Las Vegas’ long-term average.
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