The Las Vegas office of Cushman & Wakefield/Commerce released its Q3, 2016 Marketbeat report, which details the office, industrial and retail markets, economy and the state of commercial real estate in Southern Nevada. One of the key insights of the report indicates that the lagging Las Vegas office market may be showing signs of resurgence.
“The industrial market is strong and growing, and the retail market has essentially already recovered from the recession,” said Michael Dunn, market leader for the Las Vegas office of Cushman & Wakefield Commerce. “We are now seeing indications that the office market, which has been sluggish, is showing new signs of growth and vitality. There has been an increase of office product for sale, and with occupancy rates hitting in the 90 percent range in some buildings, and more property owners are looking to sell. These are all positive signs for the market.”
In addition to increase in properties for sale, the Marketbeat report details an uptick in leasing activity and declining vacancy rates. The overall vacancy rate at the close of third quarter 2016 was 16.1 percent. Due to lack of new development, especially in high-demand submarkets, it is likely that vacancy rates will continue to slowly decline. However, during the coming quarters, with lower vacancy rates, and higher lease rental rates, new construction may become a justifiable option in the near to mid-term future.
During third quarter 2016, the Las Vegas office market reported positive absorption for the quarter and year to date with a continuously declining vacancy rate.
To access the full Marketbeat reports, please visit: http://www.comre.com/research
