Las Vegas Commercial Office Space for Rent

Q4 2025

Las Vegas Commercial Real Estate Market Report

Focus: Q4 2025 Market Trends

Executive Summary

The Las Vegas commercial real estate (CRE) market is defined by a significant "Great Divergence" between asset quality and location [1, 3]. The Office and Industrial sectors show healthy overall absorption, but top-line vacancy rates (Industrial over 10%, Office over 12%) are misleading, as demand is heavily concentrated in new, modern assets [1, 3]. The region remains one of the fastest-growing and most affordable major metros in the Western U.S. [4].

TenantBase Proprietary Data [9] highlights the distribution of active tenant demand over the last 90 days: Retail/Storefront dominated with 52.29% of all searches [9], Warehouse was the second most active sector at 27.52% [9], and Office accounted for 20.18% [9].

Office Market

Market Overview

The office market is undergoing a strong flight-to-quality, with tenants actively vacating older Class B and C assets for modern space [1, 3]. The market posted a modest net absorption gain in the first nine months of 2025 [1].

  • Vacancy & Availability: Overall vacancy sits between 12.5% and 13.7% [1, 3]. Class A posted positive 98,110 SF of net absorption in Q3 2025, while Class B and C recorded negative absorption [3].
  • Net Absorption: The market posted a net absorption gain of 146,780 SF in the first nine months of 2025 [1]. YTD net absorption was 257,557 SF as of Q2 2025 [4].
  • Rental Rates: Average asking rents were flat year-over-year [1]. The overall average asking rent is $3.64 per SF (monthly full-service) [4].
  • Construction: With no new construction starts or deliveries YTD [1], limited supply is expected to support rent growth in the Class A segment [1].

TenantBase Activity [9]

  • Demand Share: Office accounted for 20.18% of total search volume [9].
  • Lease Term Preference: Demand is polarized, with a strong focus on both the shortest and mid-range terms [9]:
    • Less than one year: 43.18% of deals.
    • 3-5 Years: 29.55% of deals.
    • 2-3 Years: 20.45% of deals.
  • Size Requirements: The average lower SF required for a Less than one year term is 1,025 SF, compared to 1,167 SF for a 3-5 Years term [9].

Industrial & Warehouse Market

Market Overview

The industrial market is absorbing a massive wave of new supply that has pushed vacancy rates to a decade high [1, 2].

  • Vacancy & Rent: The market-wide vacancy rate has crossed 10% for the first time in a decade, settling between 10.2% and 12.6% in Q3 2025 [1, 2]. Average asking lease rates fell slightly to $1.21 per SF (NNN), down from $1.28 one year ago [2].
  • Net Absorption: Q3 2025 posted 1.3 million SF of positive net absorption, the strongest quarterly performance of the year [5].
  • Supply Pipeline: 1.8 million SF of new industrial product was delivered in Q3 2025 [2]. The under-construction pipeline has contracted to 3.9 million units [5].
  • Market Bifurcation: Vacancy is heavily concentrated in the Bulk segment (>100K SF) at 15.1% [2]. The Shallow-Bay segment (<50K SF) remains very tight, with vacancy at only 5.4% [2].

TenantBase Activity [9]

  • Demand Share: Warehouse accounted for 27.52% of total search volume [9].
  • Lease Term Preference: Tenants show a strong preference for mid-term stability [9]:
    • 3-5 Years: 45.83% of deals.
    • 1-2 Years: 29.17% of deals.
    • 2-3 Years: 12.50% of deals.
    • 5+ Years: 12.50% of deals.
  • Size Requirements: Tenants seeking 3-5 Years terms require the largest space on average, with a lower SF requirement of 5,250 SF [9].

Retail Market

Market Overview

The Las Vegas retail market remains resilient, driven by the tourism industry and strong demand for experiential retail, though rent growth has moderated [4].

  • Vacancy & Availability: Retail vacancy was 5.8% in Q2 2025 [4]. The vacancy rate has dropped to a historic low of 5.3% [3].
  • Net Absorption: Net absorption for Q4 2024 was 619,000 SF, a surge driven by major developments [3]. YTD net absorption was -445,790 SF as of Q2 2025 [4].
  • Rental Rates: Average market-wide asking rents are high, with rents outside the resort corridor averaging $29.08 per SF annually [3].
  • Construction: The construction pipeline is modest at 985,182 SF [4].

TenantBase Activity [9]

  • Demand Share: Retail/Storefront activity dominated with 52.29% of total search volume [9].
  • Lease Term Preference: Retail tenants prioritize stability, with mid-to-long terms dominating [9]:
    • 3-5 Years: 33.33% of deals.
    • Less than one year: 21.57% of deals.
    • 2-3 Years: 21.57% of deals.
    • 5+ Years: 19.61% of deals.
  • Top Locations: Tenant interest is highly concentrated in the core cities [9]:
    • Las Vegas (Core): 19.27% of deals.
    • Henderson: 6.42% of deals.
    • Spring Valley/Summerlin: 5.50% of deals.

Multifamily Market

Market Overview

The multifamily sector continues to post positive absorption despite a large volume of new supply, signaling steady underlying demand [4, 5].

  • Vacancy & Occupancy: The vacancy rate was 10.3% in Q3 2025 [5]. Overall occupancy in stabilized properties was 93.8% in May 2025 [4].
  • Rents & Concessions: Average asking rents dipped 2.0% QOQ and YOY to $1,486 per unit [5]. Effective rents fell to $1,460 per unit [5].
  • Construction: The development pipeline has contracted significantly, with 3,904 units under construction, down 49% from the Q2 2024 peak [5].
  • Absorption: Las Vegas recorded its eighth consecutive quarter of positive absorption, with 414 net units in Q3 2025 [5].

Sources

  1. Las Vegas Real Estate Market Reports | Newmark
  2. Las Vegas Industrial Market Analysis: October 2025 - Alignment CRE
  3. Las Vegas Office Market Analysis: October 2025 - Alignment CRE
  4. Las Vegas Commercial Real Estate Market Updates 2025-2026 | Crexi
  5. marketbeat - las vegas - multifamily q3 2025 - Cushman & Wakefield
  6. Las Vegas Office Market Reports | Avison Young US
  7. Las Vegas Retail Market Reports | Avison Young US
  8. Las Vegas Industrial Figures Q3 2025 | CBRE
  9. TenantBase Proprietary Market Data (Last 90 Days)

Information in this report is aggregated from various third-party sources and synthesized using artificial intelligence and other research tools. While we believe these sources to be reliable, we cannot guarantee the absolute accuracy or completeness of the data. This report is intended for informational purposes to provide market insight and should be independently verified prior to any use in a real estate transaction or legal commitment.