Office construction has hit the brakes in the Las Vegas Valley.
No new office projects broke ground in Southern Nevada during the second quarter, continuing a period of “stagnation” that lasted through 2024, according to a report from CBRE Group, which said the slowdown reflects ongoing caution from developers.
The brokerage firm pointed to elevated vacancy rates, limited pre-leasing commitments and “broader economic headwinds” such as tariffs, and it alluded to elevated borrowing costs.
CBRE broker Brad Peterson, a Las Vegas office specialist, told the Las Vegas Review-Journal that a number of factors are slowing construction.
He cited limited land availability, higher interest rates, lender uncertainty about the long-term demand for space, and escalating construction costs.
Overall,