LAS VEGAS, NV-- The slowdown in the housing market will weigh heavily on operating fundamentals in the Las Vegas office market through 2008, according to a second-quarter Office Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.Long-term projections remain positive, driven by forecasts for robust population growth.
“During the past year, institutional and out-of-state investors have increased their presence in the market, targeting stable-tenanted properties in prime locations with cap rates in the mid- to high-6 percent range,” says John Vorsheck, (top right photo) regional manager of the Las Vegas office of Marcus & Millichap.
Following are some of the most significant aspects of the Las Vegas Office Research Report:
· Developers are on pace to complete more than 1.5 million square feet of office space in 2008.
· Vacancy is forecast to end the year at 19.7 percent.
· Asking rents are projected to finish 2008 at $25.65 per square foot.
· Effective rents will hit $20.63 per square foot.
· Lower-tier and value-add properties will likely be located in established areas, such at the Airport and West submarkets.
For a copy of the complete Las Vegas Office Research Report, as well as reports on other markets nationwide, visit our website at http://www.marcusmillichap.com/.
Press Contact: Stacey Corso, Communications Department, (925) 953-1716
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