Northern Nevada
By Reed Backstrom, Colliers Reno
Northern Nevada’s office market tightened further in the third quarter, reaching a vacancy rate of 8.7 percent, the lowest level seen in 20 years. This milestone reflects steady absorption and limited new supply, even as economic uncertainty continues to shape tenant decisions.
Leasing activity totaled 172,458 square feet, holding steady from the previous quarter but down from 265,362 square feet in Q3 2024. Much of the slowdown stems from cautious tenants and a shortage of high-quality Class A space, which has kept rents flat at $1.79 per square foot. Despite this moderation, the overall trend suggests stability rather than contraction.
Investment sales tell a different story, with year-to-date volume surging to $91.7 million, already surpassing annual totals for the past two years. Average pricing climbed to $277/SF, signaling strong investor confidence as interest rates ease. These dynamics point to a market that, while adjusting, remains fundamentally healthy.
Southern Nevada
By John Stater, Colliers Las Vegas
There were no new office completions in southern Nevada in the third quarter of 2025, office inventory remaining at 46.5 million square feet in total. Net absorption was 18,113 square feet this quarter, lower than one quarter ago, but a significant improvement over one year ago. The overall office vacancy rate decreased to 11.9 percent. The weighted average asking rental rate remained steady at $2.63 psf on a full service gross (FSG) basis. Sales volume in owner/user sales decreased in the third quarter, while investment sales volume edged up slightly from last quarter.
Overall, southern Nevada’s office market has been less volatile in 2025 than in 2024. Net absorption over the past two quarters has been positive, but minimal, and vacancy has ranged between 11.8 to 12.0 percent. Asking rental rates have remained at $2.63 psf FSG for the past two quarters, down only slightly from $2.65 psf FSG in the first quarter of the year. A less volatile office market, coupled with some improvement in the employment situation for the office sector, would suggest stronger demand in the future.
On a class-by-class basis, however, the office market has been anything but calm. Net absorption in the different office classes has shifted significantly from quarter to quarter, the result of changing requirements from office occupiers.
