LAS VEGAS, March 11, 2008 — Fueled by strong economic expansion and a solid rate of employment growth, the Las Vegas market will register significant office development in 2008, according to the 2008 National Office Report by Marcus & Millichap, the nation’s largest real estate investment services firm. The weak U.S. dollar will support active foreign tourism, providing a significant source of growth and sustaining demand for back-office jobs related to the gaming industry.
Also included in the report is the firm’s annual National Office Index (NOI), a snapshot analysis that ranks 43 office markets based on a series of 12-month forward-looking supply and demand indicators. Las Vegas moves up three places this year to No. 9.
“Private out-of-state investors will maintain an active role in Las Vegas this year due to attractive growth prospects,” says John Vorsheck, regional manager of Marcus & Millichap’s Las Vegas office.
Following are some of the most significant aspects of the Las Vegas Office Research Report:
Employers are expected to increase payrolls 1.3 percent this year with the addition of 11,400 jobs.
Builders will bring 1.8 million square feet of office space to the market.
Vacancy is forecast to end the year at 14.2 percent.
Asking rents are expected to increase 4.9 percent to $27.01 per square foot, while effective rents will gain 4.1 percent to $22.24 per square foot.
Investors looking for small properties with stable tenancies may want to target the Northwest submarket.
In the 2008 NOI, Seattle moved up three places to secure the No. 1 spot, surpassing last year’s leader New York City, which slipped to No. 2. Boston moved up two spots to No. 3, while San Francisco jumped 12 places to the No. 4 position. Los Angeles slipped two spots, coming in at No. 5.
For a copy of Marcus & Millichap’s National Office Report and the complete NOI rankings, visit www.MarcusMillichap.com.
With more than 1,300 investment professionals in offices nationwide, Encino, Calif.-based Marcus & Millichap Real Estate Investment Services is the largest commercial real estate brokerage in the nation focusing exclusively on real estate investments. In 2007, the firm closed $20.7 billion in transactions. Founded in 1971, the firm has perfected a powerful system for marketing properties that combines product specialization; local market expertise; the industry’s most comprehensive research and analysis capabilities; state-of-the-art technology; and established relationships with the largest pool of qualified investors nationally.