The Calm Before The Storm
- Office vacancy decreased to 12.1 percent in the first quarter of 2020
- Southern Nevada’s office inventory rebounded from 2019’s decrease
- Asking rents remained stable at $2.22 psf
There was no other way to describe Southern Nevada’s office market in 2019 than “strange”, with an overall reduction in office inventory for the first time since we started tracking the market 20 years ago. The first quarter of 2020 offered a refreshing change, posting 225,720 square feet of net absorption, up from one year ago. New construction in the first quarter reversed the decrease in inventory experienced in 2019. This sent office vacancy down to 12.1 percent, while the weighted average asking rate for office space remained stable at $2.22 per square foot (psf) on a full service gross (FSG) basis. All would be well, if not for the emergence of the COVID-19 pandemic.
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