Office Vacancy Rising as Supply Outstrips Demand

LAS VEGAS-Office vacancy in the Las Vegas valley is on the increase. Depending on which firm crunches the numbers, office vacancy rose during the fourth quarter to somewhere between 12% and 16% from around 10% at the end of the third quarter.

Applied Analysis, a locally based business research and advisory firm, says 508,000 sf was completed during the quarter while absorption was 470,000 sf, taking the full-year totals to 3.4 million sf of new construction deliveries and 2.4 million sf of absorption, a one-million-sf miss that pushed vacancy to 12.4% from 10.8% at the start of the year.

A joint report by Colliers International and Restrepo Consulting Group LLC reports finds 1.1 million sf of space was delivered in the fourth quarter and absorption was half the total, pushing the year-end numbers to 3.8 million sf of new construction deliveries against 2.3 million sf of absorption, a 1.5-million-sf miss that pushed vacancy to 12.2% from 9.3% at the start of the year.