Page 13 - Las Vegas LVQR Market Research Report Q1 2024

Colliers 2
Office
Las Vegas 24Q1

Employment Employment Growth by Sector

According to DETR, Southern Nevada’s office job market added February 2024 | YOY
5,700 jobs between February 2022 and February 2023. The
healthcare and social assistance sub-sector saw the most job
growth over the period, adding 2,900 jobs. Healthcare 2.9
Unemployment in the Las Vegas-Paradise MSA was 5.2% in
February 2024. Over the past 12 months, total employment in
Southern Nevada increased by 31,200 jobs, a 2.8% increase. Financial Activities 1.8
Construction and Absorption
Prof/Sci/Tech 0.9
No new office buildings were completed in the first quarter of
2024. There was 262,860 sf of office space under construction. A
total of 230,204 sf was scheduled for completion in the next
quarter, and this space was 31% pre-leased. The next four Information 0.5
quarters should see office inventory increase by 369,464 sf.
The Southwest remained the Valley’s most popular submarket for Management 0.2
new development, especially along the I-215 Beltway, where
188,300 sf of office space was under construction this quarter.
Admin/Support -0.6
Demand for office space decreased this quarter, with net
absorption of -118,759 sf. Class A office posted the only positive
net absorption among subtypes this quarter at 84,372 sf. -1.0 0.0 1.0 2.0 3.0 4.0

Job Change (000s)
Vacancy vs. Rents
Source: Colliers International
Vacancy Rate Asking Rent (FSG)
The industries most active in occupying office space over the past
four quarters in Southern Nevada were involved in professional
$2.58 12.5% and business services (27.9%), financial activities (19.7%) and
health services (14.1%).
$2.56
12.0% Local companies took 53.7% of the leased square footage we
tracked over the past four quarters. Companies headquartered in
$2.54
the Northeast states took 11.8% of the space occupied, followed
Asking Rate (FSG) $2.52 11.0% Vacancy Rate by the Southwest at 8.9% and Mountain West at 8.1%.
11.5%
Vacancy
Office vacancy increased this quarter to 11.4% from last quarter’s
$2.50
10.5% 11.2%. Vacancy was 0.3-points lower than one year ago.
Downtown vacancy was 12.8% this quarter, compared to 11.2% in
$2.48
the suburbs. On a submarket basis, the Valley’s highest vacancy
rate was in East Las Vegas at 22.7%, while the lowest vacancy rate
$2.46 10.0% was 2.3% in North Las Vegas.
23q1 23q2 23q3 23q4 24q1
Of the 4.6 million sf of office space that was vacant this quarter,
Source: Colliers International 662,415 sf was offered for sublease, an annual increase of 45.0%.

Colliers | Las Vegas | 24Q1 | Office Report