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Kal Vaughan
Kal Vaughan
  • 1 Minute Read
  • 11th January 2013

Las Vegas office buildings have the highest vacancies in the U.S.

Office buildings in Las Vegas have the highest vacancy rates in the U.S, according to a report out on Thursday from CBRE Group, the real estate brokerage firm.

The city, which bills itself as the entertainment capital of the world, saw a marginal increase in take-up throughout 2012, but still had the highest vacancy levels in the 63 markets tracked in the report.

According to the report’s figures, during Q4-2012, its vacancy rate was 25.8%, down from 26.4% a year earlier, with neighbouring real estate submarkets in the valley also continuing to struggle.

The national average for vacant space in office buildings of the nation was reported to be 15.4%, with Honolulu’s rate of 6.6% being the lowest in the market. Detroit had the second highest vacancy rate in Q4-2012, at 24.9%.

Retail space occupation in Las Vegas also saw minimal improvement during the last quarter, with its vacancy rate of 16.4% jointly tied with Cleveland for the fifth highest in the country.

The national average for vacant retail space in the U.S. during the fourth quarter was 12.8%.

Overall, the report found that despite economic headwinds, progress has been made in the market, with the national vacancy rate continuing to decline on a year-to-year basis.

Occupancy improved in 36 markets, including 16 markets where vacancy decreased by at least 50 bps. Technology- and energy-driven markets continued to set the pace, including San Jose, Boston, Portland, Fort Worth and Austin.” CBRE said.