Medical Mixed Bag in 2019
Southern Nevada’s medical office market had a positive 2019, but performance was often mixed.
>> Vacancy decreased to 12.1 percent at year’s end 2019
>> Net absorption flagged in the fourth quarter
>> The average asking rental rate decreased to $2.31 psf FSG
Vacancy continued to decrease in 2019, reaching 12.1 percent at year’s end, a 0.3 point decrease from one year ago. Total net absorption in 2019 was 92,828 square feet, less than one-third the net absorption in 2018 and less than one-fourth the net absorption in 2017. This suggests a long-term trend of slowing demand for medical office space, probably an effect of the demand that built up during the healthcare fights in Washington D.C. being played out now that Congress has taken a break from healthcare and moved on to impeachment. Asking rental rates increased to $2.31 per square foot (psf) on a full service gross (FSG) basis in 2019.
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