Las Vegas Office Investments See Healthy Appreciation
Las Vegas office assets are seeing healthy appreciation. MCA Realty has sold a nearly 30,000-square-foot office asset in Henderson, a submarket of Las Vegas, for double the original sales price. MCA purchased the asset in 2016 and executed a renovation project to market the property to global call centers. The price appreciation in only two years shows the growth in the Las Vegas market.
“The pricing appreciation has largely been a product of the reduction in the supply-demand imbalance in the office sector,” Tyler Mattox, principal at MCA Realty, tells GlobeSt.com. “Vacancy at quarters end was about 15%, and while this is still relatively high, it is about 50% below vacancies from only a few years ago. Further, Las Vegas has significant vacancy concentrated in some buildings and submarkets like the East and Central East that have significant functional obsolescence, so this dynamic skews the statistics a bit as well.”