Northern Nevada
By Reed Backstrom, Colliers Reno
Northern Nevada’s office market entered 2025 with signs of resilience, amid ongoing headwinds. A promising highlight is the continued strength of Class A office demand, which remains despite broader economic uncertainty.
The Meadowood submarket led the region with a 0.4 percent rent increase to $2.13/SF, the highest in northern Nevada, underscoring sustained interest in high demand submarkets. Additionally, the region’s overall vacancy rate declined slightly from 9.6 to 9.4 percent. Vacancy under 10 percent is considered healthy for the region and is an encouraging sign.
Tenants are taking more time to survey their options, as they navigate the rapidly changing macroeconomic environment. As such, the market saw negative 17,000 SF of net absorption. Overall rents dipped slightly to $1.82/SF from $1.84/SF, however high-demand submarkets, such as Meadowood, bucked this trend. Investor interest softened slightly but activity continues, and long-term fundamentals remain strong in the region.
Southern Nevada
By John Stater, Colliers Las Vegas
Southern Nevada’s office market got off to a rough start in 2025 with negative net absorption driving vacancy up to 12.1 percent, essentially reversing the gains the market saw in the fourth quarter of 2024. While no new office projects were completed this quarter, the amount of office space under construction increased to 111,497 SF. The weighted average asking rental for office space decreased to $2.65 PSF on a full service gross (FSG) basis.
Southern Nevada started the year with a major vacation of class C office space. Pair this with the same macro trends that have challenged the market over the past decade, from east-to-west business migration within the valley to work-at-home trends and the general increase efficiency of the workforce (i.e. more work with fewer bodies), and there is a recipe for a challenging 2025. Net absorption is expected to improve over the next three quarters, and vacancy should decrease, but most likely at a moderate pace.
