Las Vegas Sun

March 28, 2024

New report shows a mixed bag for Las Vegas office market

More office space will be newly occupied in Las Vegas in 2011 than companies will vacate for the first time since 2007, a California-based research and brokerage firm reported.

Marcus & Millichap predicts that companies will add 14,000 jobs in 2011 and those that specifically use office space will increase their head count by 3,000.

Despite those gains, Las Vegas will fall from 42nd in the nation in the firm’s national office market rankings to 44th, the last spot. That’s an indication how other markets are recovering faster than Las Vegas.

“Population-serving employers will once again restaff, and some will expand floor plans, though most lease signings in 2011 will involve local companies upgrading at discounted rents,” according to the report.

The office vacancy rate is projected to increase slightly to 24.9 percent in 2011, while rents should decline just under 2 percent.

The report singled out the southwest valley for continuing to have a high vacancy rate for its high-end office space. The northwest valley will have challenges as well, the report said.

The overall vacancy rate will stabilize in the second half of 2011 and help owners hold the line on rent concessions.

Office sales should pick up in Las Vegas in 2011 as buyers focus on the southwest and west valley, where sellers are more realistic about values, the report said.

The firm predicts banks are likely to put more foreclosure properties on the market by the end of the year. But even that will fall short of expectations of out-of-state investors looking for bargains, the firm said.

“As other major markets around the country begin to improve and register price increases, more out-of-state buyers will once again target Las Vegas properties, which should aid in establishing a pricing floor,” the report said.

Join the Discussion:

Check this out for a full explanation of our conversion to the LiveFyre commenting system and instructions on how to sign up for an account.

Full comments policy