Las Vegas office market report

Las Vegas remains an appealing market for office trends, boasting some of the lowest vacancy rates in the country. Although vacancy has increased over the past six quarters, the growth has been slower and more manageable compared to many larger metropolitan areas. In Q2 2024, the national office availability rate stood at 23.7% (which includes spaces nearing lease expiration without renewals), while Las Vegas' vacancy rate in Q3 2024 sits at a much lower 15.2%, an impressive 850 basis points below the national average.

The Las Vegas office market has experienced steady annual increases in direct asking rents, reaching a decade-high of $30.47 per square foot. This marks a 5% rise from Q3 2023, when rents were $1.50 lower. Rent growth is primarily driven by the limited availability of new buildings compared to the overall market, along with strong demand for these modern spaces. Additionally, the growing population and the appeal of suburban markets have further fueled this trend. Since 2016, rents have increased by an average of 4.6% annually, equating to approximately $1.02 per year.

The Las Vegas office market is showing promising recovery in return-to-work trends, exceeding national averages. Using 2019 as a benchmark for in-office visitation—set at "100%"—data from Placer.ai integrated into our Office Busyness Index indicates that by Q3 2024, visitation reached 77%, significantly higher than the national average of 60.4%, reflecting a rise of 174 basis points. Contributing factors include a growing local economy, increased business activity, and the appeal of Las Vegas as a desirable workplace, as companies adopt hybrid work models that encourage office attendance while maintaining flexibility.