Las Vegas Ranks #2 in United States in Lowest Office Vacancy Rates; “Rent Growth Should Continue”
LAS VEGAS, NV – Las Vegas is one of the most coveted marketplaces in terms of office space in the United States, as a new report currently ranks the city as number two in the country when it comes to the lowest amount of office vacancy.
The City of Las Vegas is experiencing its lowest office vacancy rates in over 15 years, according to the Avison Young’s Third Quarter Office Market Report, which notes that the city’s office market has bounced back from the COVID-19 pandemic and recovered 73.1 percent of its occupancy numbers.
In the third quarter of 2022, Vegas had an office vacancy rate of just 12.7 percent, with $234 million being invested in the office market, the highest level since just before the pandemic. The average office rental price was approximately $315 per square-foot, a bump up from the previous average of $299 per square-foot in the second quarter of 2022.
Avison Young – which ranked Charleston, South Carolina at the number one office marketplace in the country, with Nashville, Tennessee coming in third – said that the factors that landed Vegas in the number two spot included a lack of inventory in a hot job market, ensuring that business rents should continue to increase if the country does not enter a recession.
“Rent growth should continue, but concerns surrounding a potential recession and rising interest rates could act as potential headwinds,” Avison Young reported. “The Summerlin and Southwest submarkets are on track to garner office sale prices starting in excess of $400 per square foot over the next few years. Companies and employees alike want to live and work in these desirable suburban Vegas communities.”
North, Southwest, and West Las Vegas currently have the highest average office rents in the Southern Nevada region.
Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.