Las Vegas Office Market Information

 

The Las Vegas office market, like most of the other commercial / industrial markets, has been negatively affected by the 2008 recession (yes, it's officially a recession).  Vacancy rates are been climbing, as verified by our various market sources, for office  and medical office properties.  This segment of the real estate market has seen vacancy rate recently top 13.0%. which is a 2.0% increase in just 1 year.  With construction, net absorption and rental rates falling, the office market is currently responding to the economic slow down and the poor residential market conditions.  

 

The Las Vegas office market includes a wide range of property types including; detached, stand-alone, one tenant office buildings, mid-rise office buildings, high-rise office buildings, condo-offices and retail / office buildings.  The market is divided into a number of sub-markets by brokers.  Each sub-market area is influenced by developments within the area like; McCarran Airport, Downtown, the Strip, Hospitals, etc.  Brokerage reports provide statistics by sub-market including; vacancy, buildings, square feet of space, space under construction and average / median rental rate. 

 

Medical offices are considered separately by brokers in their statistical studies and their vacancy rate, rental rate and supply / demand statistics are similar to those found for the general office market. 

 

Expectations for the short-term future in the office market are consistent with the recent past.  The slow market conditions that are being experienced in mid-2008 will likely continue until upward changes / increases in employment begin to influence the market.  Las Vegas is anticipating large employment gains due in part to the opening of the six (6) high-rise towers, casino and 4,000 room hotel that will have cost approximate $ 9.0 Billion dollars at the MGM Mirage CityCenter on the Las Vegas Strip just south of the Bellagio Hotel & Casino.  Early reports indicated that 12,000 new permanent jobs would be created by this project which now has a "late 2009" expected opening date.     

 

The long-term prospects for the Las Vegas office market are, contrary to the relatively dismal current market statistics, considered to be good.  With construction dwindling, a market rebound will eventually create a demand that cannot quickly be met, and owners will be in an enviable limited supply market.          

 

Contact us with your questions or concerns regarding the Las Vegas office market or office appraisals or regarding your specific appraisal assignment in Nevada at 1-702-568-6699.  We can also be e-mailed at grigdon@cox.net.    

 


                    



Copyright 2007 Horizon Village Realty & Appraisal

Commercial Real Estate Appraisals in the Las Vegas & Henderson, Nevada Area.