Las Vegas office operations are improving as muted construction directs both new and growing tenants to existing space. Because the metro is a national resort mecca, it’s not surprising one-third of the year-over-year job growth was within the leisure and hospitality sector, yet traditional office-using employers also account for 10 percent of the annual employment growth. This is represented by companies like Sunrun, a national residential solar company that is doubling its local workforce in 2015 in the southeast portion of the metro. Also, to the northwest, cellphone services company Asurion has opened a new call center in the past year and plans to hire 800 workers in the next five years. Rising office space demand over the past three years has restored vacancy 260 basis points from 2010 levels, though it remains double the rate in the prior economic peak. As the amount of vacant space remains elevated, developers are building methodically, more in response to the need for traditional office space based on location and committed tenants. Overall low construction and increasing demand will continue to boost office operations and rents.
