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Market Report

Las Vegas Office Market Report

2Q 2021

Las Vegas Office Market a Regional Standout, Attracting Yield-Focused Investors

Sector avoids exaggerated spike in availability. Despite the local economy being hit hard by the health crisis, Las Vegas’ office segment posted a lower increase in vacancy than nearly all major West Coast and Mountain markets over the past 12 months. Historically susceptible to abrupt changes in vacancy due to its comparably smaller office inventory, the metro has registered continual improvement in leasing executions volume since the initial months of the pandemic. This activity has supported a vacancy rate on par with the prior five-year average and partially offset a recent rise in sublet space. Credit One Bank expanding its local operations by occupying 150,000 square feet and the Federal Bureau of Investigation renewing a 107,000-square-foot commitment highlight the list of recent executions. Still, hurdles remain as 10,000-square-foot-plus agreements have been sparse and job gains among traditional office-using firms were minimal during the first quarter of 2021.
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