Page 26 - Las Vegas LVQR Market Research Report Q1 2024

Colliers 3
Medical
Las Vegas 24Q1

Medical Office Investment Sales Glossary
'22 '23 '24
No. Sales 11 3 3 Office Classes
Total Sales (SF) 164,080 45,545 52,179 Class A: Buildings, often multi-story, with steel frame construction,
Sales Volume ($MM) $62.8 $14.1 $9.3 high-end exterior finishes, distinctive lobbies with upgraded finishes,
Sales Price/SF $382.81 $309.03 $178.67 amenities including on-site security, state-of-the-art communications
and data infrastructure and covered parking.
Average Size of Sale (SF) 14,900 15,200 17,400
Class B: Buildings, often multi-story, with steel frame, reinforced
Medical Office User Sales concrete or concrete tilt-up construction. Class B buildings contain
common bathrooms and hallways and their lobbies may have granite
'22 '23 '24 and hardwood detailing.
No. Sales 5 6 1 Class C: Buildings of wood frame construction, often garden-style and
Total Sales (SF) 48,670 63,375 6,041 are built around courtyards.
Sales Volume ($MM) $16.1 $13.6 $0.9 Construction Definitions
Sales Price/SF $330.18 $214.11 $140.71
Under Construction: Project has gone vertical; i.e. foundation poured,
Average Size of Sale (SF) 9,700 10,600 6,041
walls framed or tilted, etc.
Planned Construction: Project is scheduled to begin construction
Sales within the next twelve months.

Medical office investment sales volume in the first quarter of General Definitions
2024 was $9.3 million in three sales totaling 52,179 sf with an
average sales price of $178.67 psf. Direct Lease: Space in a building offered for lease directly by the
owner of the building.
User sales volume was $0.9 million in one sale totaling 6,041 sf
with an average sales price of $140.71 psf. Sublease: Space in a building that is offered for sublease by the
primary tenant.
Forecast
Net Absorption: The difference in occupied square footage from one
One cycle of medical office activity seemed to end in the third period to another.
quarter of 2023, and a new cycle began at the end of that year.
Direct Availability Rate: The percentage of total inventory available
The market has had two consecutive quarters of improved
for direct lease, regardless of whether it is vacant.
performance, bringing vacancy back towards its recent low of
6.2% that recorded in the second quarter of 2023. Sublease Availability Rate: The percentage of total inventory available
for sublease, regardless of whether it is vacant.
Healthcare employment and taxable sales had robust annual
growth in January, and if this presages continued growth we Availability Rate: The percentage of total inventory available for direct
should be in for a productive 2024. Investment sales in the first lease or sublease, regardless of whether that space is vacant or
quarter were already on pace to match or exceed sales in 2022, occupied.
and they were a definite improvement over 2023.
Vacancy Rate: The percentage of total inventory that is available for
direct lease or sublease that is vacant.

Colliers | Las Vegas | 24Q1 | Medical Report