Page 12 - Las Vegas LVQR Market Research Report Q1 2024

Office
Las Vegas 24Q1 Key Takeaways
Office vacancy increased to 11.4% in 24q1
Net absorption decreased to -118,759 square feet
The asking rental rate was $2.53 psf

YOY YOY Under YOY Overall Asking YOY
Vacancy Rate Net Absorption Construction Lease Rates (FSG)
11.4% FORECAST -119K SF FORECAST 263K SF FORECAST $2.53/ SF FORECAST

Las Vegas Office Hits a Rough Patch

After hitting a recent low vacancy rate in the second quarter of 2023, office vacancy has increased for two consecutive quarters.
Southern Nevada had -118,759 square feet of net absorption in the first quarter of 2024, sending vacancy up to 11.4%. The
weighted average asking rental for office space decreased to $2.53 psf on a full service gross (FSG) basis.

Market Indicators Market Graph

6.74% 2.85% 4.192% 500,000 16.0%
Unemployment GDP - Quarterly % U.S. 10 Year 400,000
Rate change yr/yr Treasury Note 14.0%
300,000
Historic Comparison 200,000 12.0%
23Q1 23Q4 24Q1 100,000 10.0%
0 8.0%
Total Inventory -100,000 6.0%
(in Millions of SF) 46.6 46.3 46.3 -200,000 4.0%
New Supply 404.6 154.5 0.0 -300,000
(in Thousands of SF) -400,000 2.0%
-500,000 0.0%
Net Absorption 205.7 33.3 -118.8 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
(in Thousands of SF)
2021 2022 2023 2024

Overall Vacancy 11.7% 11.2% 11.4% Absorption New Supply Total Vacancy

Under Construction 230.8 230.8 262.9 Southern Nevada’s office market got off to a rough start in 2024
(in Thousands of SF) with -118,759 sf of net absorption and rising vacancy rates

Overall Asking Lease
Rates (FSG) $2.50 $2.57 $2.53

Recent Transactions

Lease Lease Lease Lease Sublease Lease
Colliers | Salt Lake County| 21Q1 | Office Report
2460 Paseo Verde 1160 N Town Center 7905 W Sahara 9225 W Flamingo 7160 Rafael Rivers 1160 N Town Center
31,087 SF 14,190 SF 9,775 SF 8,703 SF 7,884 SF 6,048 SF