Marcus & Millichap released its 2016 US Office Investment Forecast and have Las Vegas tabbed at #6 for 2016 employment Growth. Here’s a sampling from the report:
Office-using businesses will ramp up hiring in 2016, accelerating the pace of job growth and intensifying demand for Las Vegas office space. This along with an affordable cost of living and a housing market that is beginning to stabilize will encourage corporate investment in the area. SolarCity recently announced plans to open a new flagship training facility in West Las Vegas, further growing its Nevada footprint. This type of business growth has helped push the unemployment rate down to the lowest point since the recession. Developers will remain skittish in 2016 as new office completions slip below the five-year average, despite builders finishing the large Federal Justice Tower downtown. The 140,000-square-foot office project represents the most significant development of the year and will come online 100 percent pre-leased by government organizations. High net absorption amid limited construction will put downward pressure on the metrowide vacancy rate, reaching its tightest level since late 2008. As market conditions continue to improve, the average asking rent will finally start seeing some upward movement as the metro posts back-to-back years of annual growth of 2 percent or higher.
