There is currently an excess of office space in Las Vegas, leading to a high vacancy rate. The rates are in the range of 17 to 19% which is very high. The financial crisis in the US hit the real estate sector hard, causing a reduction in demand for office space in Las Vegas. In 2008, required workspace hit a low of 637,800 square feet. People have to wait until the end of 2010 for vacancy rates to drop and get closer to the normal rate of 10%. New office products are already visible online in the current year, which is a healthy change from last year. With so much vacant workspace, construction work on many executive office suites has naturally been put on hold.
Vacancy rates have already started to decline and new job opportunities are gradually being created. With the start of construction work currently pending, many of the ongoing projects can be expected to be completed within the next 9-12 months. Therefore, the market is expected to stabilize along with the recovery in all major industrial and financial domains. With the prevailing uncertainty, the offices owned by the banks are involved in most of the sales that are made now. Banks are also trying to take advantage of this opportunity by concentrating on the sale of office space in Las Vegas. They are improving their portfolios with less competition from private players. Individuals/individuals are waiting for the situation to improve.
It is worth mentioning that in 2008 the commercial real estate markets were facing a major credit crunch. But in the current fiscal year, previously hesitant financial institutions are offering home loans to those who possess an adequate amount of equity and have a good credit/business history. Today, credit card companies follow a security approach and keep your money intact. The sooner they start to relax this focus, the quicker business recovery can be achieved in office rental and office space. The average rental cost for office space in Las Vegas is approximately $2.5 per square foot. Many projects have already been completed, such as the 65,000-square-foot Hughes Airport Center, the 144,300-square-foot Eastgate Plaza II (Houston), etc.
Commercial offices at the moment are fearful of buying any office property and are more willing to rent office space. With each passing day, one can notice an improvement in the real estate market situation. Executive office suites are primarily provided in Henderson, Summerlin, Central Vegas and near the airport. The highest vacancy rate was noted in the northern part of Las Vegas with numbers reaching an abysmal 31.6%. Although any category and size of business can obtain office space in Las Vegas, commercial/business real estate is not in high demand in downtown Las Vegas. Shared office space, temporary work space, furnished units, serviced units are provided in Las Vegas by real estate agents/brokers. Businesses prefer short-term and monthly lease options over long-term leases.
