Need An Office With A Vegas Address?
With Las Vegas real estate still noticeably suffering from the poor market conditions, commercial retail and office space is at a seven-year rental low. The Las Vegas Sun reported that, “newly released second-quarter statistics from brokerages show industrial and warehouse vacancies running at about 15 percent, retail vacancies at about 11 percent and office vacancies at about 23.5 percent.”
Currently, Vegas area commercial real estate has dipped consecutively over the past few quarters bringing us to a current rate this year of $1.90 per square foot down from $2.01 this month last year. So what’s in a number, right? Well, to give you a comparison – I happen to call on an office recently in the West Hollywood area of Los Angeles. …And the price per square foot? Drumroll please. $45 to 52/SF! Yeah.
Even with the market rates being at an embarrassing low, it’s still not all bad news. “Commerce Real Estate Solutions said industrial vacancies fell from 15.6 percent to 14.9 percent — marking the first time since 2009 that the rate has been under 15 percent, according to its calculations.” Additionally, “Colliers International, in its quarterly report, said office vacancies declined from 24.1 percent to 23.7 percent.”
People sometimes forget about the commercial real estate world because most of the news is concerned with people loosing their homes… not too often covering the dreaded day Joe lost his corner office on that nice block. Yet, many people did, which in turn made the people who depended on that office rental income to pay for their own homes – and boom, there you go. Back to home loosing news. So hopefully, the depressed rental rates may spark enough interest to get lessees to commit to a term, sign, and most importantly, pay!