New Office Product Nears Debut as Job Picture Brightens
- Oct 19, 2013
As office rents stabilize and surge of new office product approaches the Las Vegas market, a new study confirms that local economic fundamentals are continuing to improve.
Employment improved to the tune of a 2.3 percent increase in payroll, reflecting the creation of 19,300 jobs over the past 12 months, reports Marcus & Millichap Real Estate Investment Services Inc. Growth was consistent over a wide range of sectors; professional and business services, leisure and hospitality, and government each added around 4,000 jobs. Unemployment also appears to be leveling off. Although Las Vegas’ 9.7 percent jobless rate remains well above the 7.6 percent national average, the local rate has dropped 470 basis points since the depths of the recession.
In terms of development, Marcus & Millichap’s report indicates that 109,000 square feet of new office came on line during the 12 months that ended with the third quarter. That fell far short of the 535,000 square feet of new product that debuted during the prior 12-month period. Through the third quarter, new office inventory consisted of a single 22,000-square-foot building.
Las Vegas’ office pipeline looks considerably more robust going forward; 600,000 square feet are under construction. By the end of the year, 408,000 square feet are scheduled for completion; 91 percent of it is pre-leased.
Chart courtesy of Marcus and Millichap Real Estate Investment Services @ marcusmillichap.com