Northern Nevada
By Reed Backstrom, Colliers | Reno
Reno’s office market closed Q4 2025 showing impressive steadiness, with vacancy holding at 9.0% and staying essentially level with where it stood a year earlier.
Even though net absorption dipped slightly this quarter, the market still posted positive gains for the year, reinforcing its resilience compared to many other office markets.
Asking rents remained strong at $1.83/SF (FSG), reflecting continued confidence from property owners despite a slight uptick in availability. Leasing activity, while a bit lighter than last year, still demonstrated solid tenant engagement at roughly 75% of 2024’s total.
Investor sentiment strengthened meaningfully, with year-over-year pricing rising more than 5% and cap rates tightening to just above 6%.
Sales volume continued its upward trajectory from the lows of 2023, supported by rate cuts and Northern Nevada’s consistently strong fundamentals. Altogether, the Reno office sector is heading into early 2026 with momentum, stability, and clear signals of longterm investor confidence.
Southern Nevada
By John Stater, Colliers | Las Vegas
Southern Nevada’s office market was less volatile in 2025 than in 2024, and saw a surge of activity in the fourth quarter that resulted in the highest net absorption the market has seen since 2021. Vacancy reached 12.1% at mid-year 2025, but ended the year at its lowest level since the second quarter of 2024. Asking rental rates remained down from the peak of $2.68 PSF full service gross in the fourth quarter of 2024, but trended up at the end of 2025.
This suggests that the office market, which has weathered several challenges over the past two years, is beginning to recover. Job growth in sectors associated with office product was positive, and moderation in rent growth produced a friendlier market for local businesses.
A major improvement in office demand requires a significant stimulus in office jobs, which continue to face headwinds – most recently from the introduction of A.I. to business operations. If the overall economy remains stable, or even grows, in 2026, Southern Nevada’s office market will continue to show moderate improvement.
