As an established Land Brokerage group in Las Vegas, we work to empower buyers and sellers with helpful guidance and actionable information before they list their land for sale in Las Vegas or purchase Las Vegas land. And one major way we do this is by remaining on top of local real-estate trends and keeping a constant eye on market reports. Today, then, we’re offering a look at CoStar’s 2018 Office Real-Estate Sales Report for Las Vegas—read on for a complete breakdown of the report.
An overview of the market:
Let’s start with an overview of the 2018 office real-estate market in our Valley:
- Sales Volume: There were a total of 157 office real-estate sales in the Las Vegas Valley in 2018—totalling a sales volume of $950M, with a total 4,536,880 square-feet sold. The average square footage sold for office real-estate transactions was 28,083—with the smallest square-footage at 3,800, and the largest at 731,561, for an average square-footage of 29,083.
- Sales Numbers: Office real-estate had an average price $209 per-square-foot in 2018, with the lowest office real-estate price at $73 per-square-foot and the highest at $1,993 per-square-foot. (We saw the average price-per-square-foot drop in Q2 before rising in Q3 and Q4.) With a low sale price of $1.0M and a high sale price of $60M, the average sale price for office real estate in Las Vegas landed at $6M. The cap rate (the rate of return expected to be generated on an investment property) for office real-estate sales in 2018 was 7.7%—with a minimum cap rate of 5.6% and a maximum of 9.6%.
- Properties Numbers: Existing office real-estate square footage in our Valley was at 5,062,769 in 2018–with a low existing square footage of 3,800 and a high of 350,000. Rent price-per-square-foot landed at $1.69 on average for office real estate, with the highest rent price-per-square-foot at $2.75 and the lowest at $0.09. Lastly, the 12-month absorption rate for office real-estate sales in 2018 was 357,066—and the 12-month leasing square-footage rate was 462,506.
- Buyer Types: Of all office real-estate sales in our Valley in 2018, 78% were completed by private buyers; 12% were private equity buys; 6% were completely by institutional buyers; and 4% were completed by user.
Top Buyers in 2018 Office Real-Estate Sales in Las Vegas:
In 2018, 62% of the top purchasers in office real-estate had origins in Nevada—while 19% came from California. Overall, the top ten purchasers collectively invested $1,350,900,000 in office real-estate purchases in Las Vegas in 2018, with the most prominent purchasers including Davidson Kempner Capital Management LP, Moonwater Capital Management, TPG Capital LP, BKM Capital Partners, and JMA Ventures LLC. Overall, amongst the top 111 buyers, the highest sales value was $726M, while the lowest was $1M.
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Looking to learn even more about our Valley’s unique real estate market? Browse our blog for further insight—or reach out to our team of Las Vegas land realtors today to learn more about listing your land for sale in Las Vegas or buying Las Vegas land.