Las Vegas Office Figures Q4 2024

Despite the challenges faced throughout the first half of 2024 year, the key take away from 2024 was the market’s ability to stabilize. The recent positive trends laid the foundation for a stronger 2025. The vacancy rate fell 10 basis-points (bps) from the previous quarter, indicating a minor decrease in unoccupied spaces. Average monthly direct asking lease rates stabilized, reaching $2.63 FSG in Q4 2024, down from $2.64 FSG in Q3 2024. A decrease in vacancy rates and average asking lease rates, signals that landlords are aiming to fill vacant spaces faster than in previous quarters of 2024.

Sublease availability dropped to 427,306 sq. ft. in Q4 2024 from 521,109 sq. ft. in Q3 2024, reversing the four-quarter upward trend of increased sublease space. This significant decrease in sublease availability may indicate that companies are reoccupying previously subleased spaces or that there is a higher absorption of sublease inventory. Direct net absorption remained positive for the second consecutive quarter with 79,894 sq. ft. in Q4 2024. However, total net absorption for 2024 was negative 518,602 sq. ft., highlighting the challenges faced earlier in the year.