Page 25 - Las Vegas LVQR Market Research Report Q1 2024

Colliers 2
Medical
Las Vegas 24Q1

Employment and Taxable Sales Vacancy vs. Rents

According to DETR, Southern Nevada’s healthcare sector added
2,900 jobs between February 2023 and February 2024. The Vacancy Rate Asking Rent (FSG)
ambulatory health care subsector added 600 jobs, while hospitals
added 100 jobs.
$2.50 7.2%
Unemployment in the Las Vegas-Paradise MSA was 5.2% in
February 2024. Over the past 12 months, total employment in $2.45 7.0%
Southern Nevada increased by 31,200 jobs, a 2.8% increase.

The health care sector had taxable sales of $123.4 million in the $2.40 6.8%
12 months ending in January, a 2.7% increase from the previous
12-month period. Taxable sales over that period decreased by $2.35 6.6%
1.8% for ambulatory health care, but increased by 15.0% for Asking Rent (FSG)
hospitals and by 2.6% for nursing and residential care facilities. $2.30 6.4% Vacancy Rate
Construction and Absorption $2.25 6.2%

Southern Nevada’s medical office inventory did not increase in
the first quarter of 2024, and development for the remainder of $2.20 6.0%
the year should be light. There was 230,204 sf of medical office
space under construction at quarter’s end. $2.15 5.8%
23q1 23q2 23q3 23q4 24q1
Net absorption was 40,430 sf this quarter. This was approximately
one quarter the net absorption posted in the first quarter of 2023,
Source: Colliers International
but represented the second consecutive quarter of increased net
absorption for the market. Class B medical office buildings posted
the most net absorption at 30,620 sf, while Class C space has the Vacancy and Rents
lowest net absorption at -6,225 sf.
Medical office vacancy decreased to 6.4% this quarter, reversing
Medical Office Vacancy by Class two consecutive quarters of increased vacancy rates. Vacancy

23q1 23q4 24q1 decreased by 0.6 points on a year-over-year basis.
10.0% 9.3% Class B buildings had the lowest vacancy rate among medical
office classes at 5.5%, while class A and class C buildings had a
9.0%
8.0% 7.9% 7.0% vacancy rate. This represented a decrease in vacancy for
8.0% class A buildings, and an increase for class C.
7.0% 6.8% 7.0%
7.0% 6.4% Vacancy decreased in Downtown, East Las Vegas, Henderson,
6.0% 5.5% North Las Vegas, Northwest and Southwest this quarter. Vacancy
4.9% increased in West Central and remained stable in Airport.
5.0%
The weighted average asking rental rate for medical office space
4.0%
was $2.43 psf FSG this quarter, even with one year ago. This
3.0% reversed a significant decrease in the weighted average asking
2.0% rental rate experienced in the fourth quarter of 2023.
1.0% The Valley’s highest asking rental rate for medical office was in the
Northwest submarket at $2.94 psf FSG. It was followed by
0.0%
A B C Henderson at $2.66 psf.

Source: Colliers International

Colliers | Las Vegas | 24Q1 | Medical Report