Valley office vacancy fell slightly by 0.5% in the third quarter to 23%, said RCG Economics LLC. Although small and virtually unchanged, this marks the first quarter in five years that vacancy dropped. Put into perspective, the vacancy rate rose steadily since Q3, 2006’s 8.3% rate, but has since hovered around the 23% mark during the past 5 quarters. No new office space in the third quarter, leaving the valley’s total inventory remained at 42.8 million square feet in 2,081 buildings. Two of the valley’s eight submarkets had vacancies below 20%, including Downtown (13%) and West Central (18%). The highest rate was in the Southwest submarket at 27.1%, but it’s better than second quarter’s 29.2%. All product types posted positive, though small, levels of absorption, RCG Economics LLC said.
Nevada is starting to show signs of a stabilizing market and an optimistic economic outlook, says Commercial Real Estate Solutions, the local Cushman & Wakefield office. Year-to-date direct net absorption is in the positive for the first time since 2008. Tourism has increased, visitor volume is up, and conventions are up. Commercial Real Estate Solutions doesn’t see any more major swings in the labor market or the commercial real estate market like those experienced over the past few years. Varying vacancy rates are expected over the next few years, however, with rises in one quarter and losses the next. Compared to last year, however, vacancies and rents are not rising and falling as fast as they had been. Some early signs of stabilization may come from growth in the federal government, health care, energy, and clean technology market sectors. Building sales are expected to continue to grow due to deflated pricing, which should rents low. To view the report, CLICK HERE