Page 24 - Las Vegas LVQR Market Research Report Q1 2024

Medical
Las Vegas 24Q1 Key Takeaways
Medical office vacancy decreased to 6.4%
Net absorption increased to 40,000 SF
Asking rents remained at $2.43 psf FSG

YOY YOY Under YOY Overall Asking YOY
Vacancy Rate Net Absorption Construction Lease Rates (FSG)
6.4% FORECAST 40K SF FORECAST 230K SF FORECAST $2.43/ SF FORECAST

Demand Slows for Valley Medical Office

Southern Nevada’s medical office sector improved in the first quarter of 2024, posting 40,430 square feet of net absorption,
more than double the net absorption of the previous quarter. With no new completions of medical office space this quarter,
vacancy decreased to 6.4%. The weighted average asking rental rate increased to $2.43 psf on a full service gross (FSG) basis.

Market Indicators Market Graph

6.74% 2.85% 4.192% 200,000 12.0%
Unemployment GDP - Quarterly % U.S. 10 Year
Rate change yr/yr Treasury Note 150,000 10.0%

Historic Comparison 100,000 8.0%
23Q1 23Q4 24Q1 50,000 6.0%
0
Total Inventory
(in Millions of SF) 8.4 8.4 8.4 -50,000 4.0%
New Supply 111.7 35.3 0.0 -100,000 2.0%
(in Thousands of SF)
-150,000 0.0%
Net Absorption 160.1 20.1 40.4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
(in Thousands of SF)
2021 2022 2023

Overall Vacancy 7.0% 6.9% 6.4% Absorption New Supply Total Vacancy

Under Construction 46.6 41.9 230.2 Demand for medical office space appeared to have hit a low
(in Thousands of SF) point in the third quarter of 2023, and has improved for two
consecutive quarters thereafter
Overall Asking Lease
Rates (FSG) $2.43 $2.28 $2.43

Recent Transactions

Lease Lease Lease Lease Lease Lease
Colliers | Salt Lake County| 21Q1 | Office Report
861 Coronado Center 2870 S Maryland 2870 S Maryland 1815 E Lake Mead 861 Coronado Center 1815 E Lake Mead
6,900 SF 2,827 SF 2,758 SF 2,702 SF 2,507 SF 1,451 SF