Southern Nevada’s beleaguered office market could catch some breaks in 2015.
A new national report shows the Las Vegas Valley’s office sector on the upswing. The city moved up seven places, from No. 46 in 2014 to No. 39 in 2015, on national brokerage Marcus &Millichap’s National Office Property Index.
The biggest factor driving the gain? Vacancy rates, which the report predicted would finally fall below the 20 percent threshold.
Vacancies should drop even as new construction picks up: Builders will debut 530,000 square feet of space in 2015, up from 201,000 square feet.
Those new projects should be outweighed by job growth, though, so that vacancies slip.
Offices will fill up thanks to a job-formation rate forecasted at 3.2 percent, or 28,000 jobs. The share of office-based jobs will grow at an even faster pace of 4.3 percent, or 7,500 jobs, the study said.
Also, expect slight upward pressure on rents, which are projected to rise 1.2 percent in 2015 to an average of $20.16 per square foot.
Individual investors will likely gravitate toward smaller office parks near amenities, while institutional investors will focus on acquiring assets near downtown redevelopment projects, as well as Class A space along the 215 Beltway and in and around Summerlin.
In its report, Marcus &Millichap highlighted projects including the 1 million-square-foot expansion and renovation of the Las Vegas Convention Center, Tony Hsieh’s Downtown Project and the 200,000-square-foot, Class A One Summerlin office tower in Downtown Summerlin. The brokerage also noted that Barclaycard is in the midst of hiring up to 1,000 people at its 91,000-square-foot call center at Green Valley Corporate Center.
Helix wins national honors
Helix Electric won honors at the national Associated Builders and Contractors’ annual Excellence in Construction Awards in Florida on March 5.
Helix won Pyramid Awards for its work at the Downtown Container Park and at the Sales @ Congress at The Venetian.
For the container park, Helix helped execute an “innovative conceptual design and unique construction process.” The 19,000-square-foot park uses shipping containers to create spaces for restaurants and stores. At its center is a playground with a shipping container turned into a treehouse. There’s also an outdoor music amphitheater.
The Sales @ Congress project involved an office expansion via the addition of a mezzanine level between two existing floors. The project transformed space once filled with cable tray and ductwork into a 15,000-square-foot area with office space, conference rooms and break areas. Helix had to complete its work without affecting the fully booked convention schedule of the Sands Expo and Convention Center.
Pyramid Awards recognize outstanding performance in the areas of complexity, attractiveness, innovation, safety and cost.
Silver Nuggets April 18
The Southern Nevada Home Builders Association will partner with the Las Vegas Review-Journal to hold its annual Silver Nugget Awards dinner on April 18. The event, inside Red Rock Resort, recognizes and honors achievements in the local home-building industry. Networking will kick off at 6 p.m. The dinner and awards program starts at 7 p.m. Tickets are $125 a person, while VIP tables for 10 are $1,250. For more information, call Melissa McCabe at 702-383-0469.
Contact Jennifer Robison at jrobison@reviewjournal.com. Follow @J_Robison1 on Twitter.
