Las Vegas Nevada..it’s a unique city. It’s more than just the Strip with all of it’s casinos and venues. Las Vegas in particular, and Henderson as well, is a great place for people to live. The price of housing is reasonable, and with more and more retirees exiting expensive places to live to settle here, there are also more demands for goods and services. This demand creates job, a stable work environment, and ultimately attracts companies who need a strong, trained workforce.
I just read a post in the publication, Nevadabusiness.com which is reporting demand for office space varies a little, at times there is more demand than office space, once buildings are completed, inventory goes up and there is less demand for a while. Overall however, things are looking very promising in the commercial office arena.
The have also noted that with interest rates being so low, more companies are opting to buy building and offices rather than paying rent. Overall, the figures show office space is in demand and growth in once again happening in the Las Vegas area:
“Reflecting the slow and steady growth that the economy in the Silver State is experiencing now, the demand for commercial office space periodically puts pressure on available product.
“All of our locations are filling up. The demand is the general growth of Las Vegas,” said Roland Sansone, president of Sansone Companies in Las Vegas. The 2016 first quarter Las Vegas Speculative Office Survey showed that 262,300 or 32 percent of all private payroll jobs in Clark County were office-related compared to 256,600 for first quarter 2015. Although that’s not a huge movement, at least it’s in the right direction for those who are invested in the office market.
Other figures for the Las Vegas Valley for Q1 2016, however, showed that additional space was added, vacancy rates rose slightly and monthly rates decreased a bit. New space totaling 15,788 square feet came into the market while the vacancy rate rose from 18.4 percent in Q4 2015 to 18.7 percent. A desirable vacancy rate is around 10 percent, according to Restrepo, which would open the door to new construction.Average monthly asking rents dipped from $1.97 per square foot to $1.89. Statistics also indicate a net negative absorption of -130,802 square feet following positive absorption for the past 10 of 11 quarters.
Following the desire to create a pleasant work space for employees, increasing numbers of tenants are asking to upgrade their offices. “People want the class A look,” Sansone said. Although some class B and C properties are struggling, growing pressure in the market is expected to help them fill up. Tenant improvements have also gotten upscale and specific.
“We have to put in server rooms with heating and cooling and also a lot of glass. It’s not cheaper, but just a different look,” Sansone said. Some tenants also prefer a wide open look with taller ceilings and lots of collaborative space.
Promoting environmental awareness and sensitivity is also important, according to Restrepo. “We’re seeing larger users trend toward green buildings. They’re moving toward smaller offices with open areas. It ebbs back and forth, but, in general, seems to be going back to eco-friendly and traditional,” he said. The rule of thumb used to be 250 square feet per employee, but some buildings are now providing only 176 square feet.”
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