“Office deal flow in Las Vegas has decelerated over the past year and will likely remain light until a greater number of lender-owned assets come to market,” says John Vorsheck, (top right photo) regional manager of the Las Vegas office of Marcus & Millichap.
- Total employment in Las Vegas will retreat by 57,000 jobs this year, or 6.4 percent. Office-using employers are expected to trim 7,400 positions, a 4.5 percent decrease.
- Developers are scheduled to bring 893,000 square feet of new office space to the Las Vegas metro in 2009, after nearly 1.1 million square feet was added last year. Deliveries have averaged almost 1.3 million square feet annually during the past five years.
- A slowdown in the formation of new companies, coupled with expectations for further downsizing, will push up vacancy 510 basis points to 24.2 percent this year. In 2008, vacancy increased 570 basis points.
- In 2009, asking rents in the Las Vegas market are forecast to drop 5 percent to $24.75 per square foot, while effective rents are on pace to retreat 8.6 percent to $18.88 per square foot.