Commercial Real Estate News / General CRE / 2022 Office Space Report: Las Vegas

2022 Office Space Report: Las Vegas

Published: 07-13-22 Category: General CRE

Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.

While Las Vegas is often associated with tourism and gambling, it has also developed into an increasingly popular location for businesses.

The increased demand for office space in Las Vegas is due to several factors, including its warm weather and lower cost of living.

And as the population and local economy of Las Vegas continue to recover from the pandemic, the need for more commercial real estate developments will increase.

Investors can capitalize on this trend by investing in Las Vegas office buildings.

Las Vegas Office Space Highlights

There are several factors that will affect the demand for office space in Las Vegas in 2022.

These include population growth, increased interest from businesses looking to expand or relocate their operations, and increased demand from existing businesses seeking to expand or upgrade their facilities.

Our Las Vegas office space report about the Las Vegas office space market shows that:

Office workers came back to the office and improved rent prices and demand.
People from other states moved to Las Vegas for more affordable living, which increases the demand for office space.
Available office space decreased by 652,641 square feet in 2022.

Las Vegas is seeing an increase in its number of people and businesses but an overall decrease in the amount of available office space.

The Pacing of Office Space Rents in Las Vegas

The national vacancy rate for office rentals is 15.4%, and the average listing costs $33.08 a square foot. In Las Vegas:

Average office vacancy rate in 2020 was 13.62%.
Year-over-year asking rents increased by a slow 1.96%.
The average asking rent for office spaces in Vegas is $25.96.

Rent prices have remained stable and consistent over the last few years, making it easier to predict the long-term condition of this office space market.

This can be an advantage if you are looking to make a larger investment.

Long-Term Changes in Rent

Growing numbers of long-term investments in Las Vegas are expected to drive office space rentals. Investors are taking advantage of market conditions to renovate and build new office spaces.

An influx of businesses and employees is also expected to drive demand for office space as businesses relocate.

Short-Term Changes in Rent

The warm weather and reduced restrictions as COVID-19 regulations change are driving companies to relocate to Las Vegas.

Companies are taking advantage of this opportunity, and it is driving demand for office space.

Office Space Sales in Las Vegas

The Las Vegas office space market is expanding, and property owners and investors are taking notice.

Here are the sales and acquisitions in the Las Vegas market that you should be aware of.

Notable Acquisitions So Far

In April 2022, a Boston investment firm acquired a large 857,000 square-foot building off of Interstate 15.

The building was formerly owned by Amazon and used as a warehouse. It was one of two properties sold in the deal.

In May 2022, REIT Vici Properties acquired MGM Growth Properties for $17.2 billion.

This makes the REIT the largest casino owner on the strip.

Notable Sales So Far

Thomas & Mack Development sold the Beltway Business Park through an online auction for $205 million.

The property at 5650 Badura Avenue was sold through a digital marketplace for CRE.

Market Forecast for the Rest of 2022

Office space for rent in Las Vegas is expected to remain high due to the increase in demand.

The positive outlook has been driven by the influx of people moving to Las Vegas from other states.

The population continues to grow, driving demand as people seek more diverse job opportunities.

Real estate investors are expected to continue buying office buildings in anticipation of an increasing market and high rental prices.

General Investor Activity: Where is the most money flowing?

Investors are moving into secondary markets and targeting office spaces in cities with low rental prices and high occupancy rates.

Las Vegas is one of the best places to invest if you want to get a good payout without taking on any added risk.

Our Las Vegas office space report shows that office space demand is growing steadily throughout the region, which has created a win-win situation for investors.

High demand has led to a reduction in office space availability, which is increasing rental prices.

This steady increase in rental rates is opening up new opportunities for investors to take advantage of the current market and generate a healthy return on their investment.

Investors are turning their attention to Las Vegas because of its growing population, and the increasing number of businesses that are moving into the area is driving demand.

This steady increase in rent prices opens up new opportunities for investors seeking to create wealth through real estate.

Takeaways for Office Space Investors

Investors should focus on trying to find undervalued spaces in order to generate the highest ROI.

By taking advantage of market conditions, investors can boost ROI and potentially increase their profits by increasing their investment in Las Vegas.

Another thing that investors should take note of is the steady growth of new business relocations in Las Vegas.

This steady growth in business relocations is resulting in increased long-term demand for office space.

This has led to a decrease in available office spaces and a corresponding increase in rent prices over the last few years.

This Las Vegas office space report shows that the rise in rent prices has translated into higher profits for investors who have taken advantage of this as they build their portfolio of commercial real estate investments.