Price Per Square Foot Analysis

Mean Price Per SF declined -19.4% from $393/SF in November to $317/SF in January, while median PPSF fell -14.4% from $379/SF to $324/SF. Both measures register a Decelerating trend, defined as a directional change exceeding ±2% over the three-month window. The divergence between mean and median is notable: the mean dropped faster, indicating that the upper-end of the market pulled back more sharply than the middle. The 3-month simple moving average (SMA) stands at $355.93/SF (mean) and $342.90/SF (median), establishing a working benchmark for current market pricing.

Note: PPSF statistics derived from confirmed-price transactions only. Small monthly sample sizes (N=6 in Nov and Jan) reduce statistical reliability; December’s N=13 is the most representative observation.

Submarket Breakdown

The Southwest Las Vegas submarket is the clear market leader by every measure — 11 transactions, $99.5 million in confirmed volume (83.7% of the market total), a median PPSF of $401.82/SF, and a 90.1% average occupancy at sale. Its dominant building class is B, with an average cap rate of 6.28%. This submarket benefits from proximity to the 215 Beltway, newer inventory, and strong healthcare/professional tenant demand. It is the most liquid office submarket in Las Vegas by a substantial margin.

At the other end of the spectrum, Central East Las Vegas recorded only 2 transactions at a median PPSF of $248.56/SF — a 38% discount to the market median — with average occupancy of just 66.7% at sale. South Las Vegas also underperforms on pricing ($259.69/SF median) despite a relatively high average occupancy of 98.6%, suggesting that its Class C-dominant inventory caps pricing potential even at full occupancy. Submarkets with fewer than 3 transactions (Downtown, North Las Vegas, Central North, Central East) should be interpreted with caution.

Table A — Ranked by Total Confirmed Volume

Note: * Central North Las Vegas: N=1, insufficient for statistical conclusions. Pricing excluded from volume ranking.

Table B — Ranked by Median Price Per SF

⚑ Four submarkets (Downtown, North LV, Central North, Central East) each had fewer than 3 confirmed transactions. Their pricing data is directionally informative but statistically unreliable.

Building Class Analysis

Class B assets dominated the transaction landscape, representing 57.6% of all closings (19 of 33 transactions with a known class). Class A captured only 9.1% of activity (3 deals), while Class C accounted for 33.3% (11 deals). A significant anomaly emerges in the PPSF comparison: Class A recorded a median PPSF of $315.92/SF — an 18% discount to Class B’s $385.38/SF. This counter-intuitive result stems from the very small Class A sample (N=3) which includes lower-occupancy assets averaging 73.5% leased versus Class B’s 93.9%. The Class A assets in this dataset are not premium trophy towers commanding top rents — they are mid-rise suburban professional buildings where occupancy drag suppresses pricing. Class B commands pricing leadership in this market cycle.

Class C assets are priced at a median of $252.79/SF — a 34.4% discount to Class B — consistent with their older average age of 41 years versus 25 years for Class B. Despite comparable occupancy levels (92.3% vs. 93.9%), age and functional obsolescence impose a meaningful pricing penalty. The Class A premium over Class C stands at +25.0% on a median basis, a more intuitive relationship. Cap rates follow the expected hierarchy: Class A at 4.43% (N=1, low confidence), Class B at 6.63%, and Class C at 7.06%.

⚑ Class A discount vs. Class B is driven by occupancy mix (73.5% vs. 93.9%) and sample size (N=3). Interpret with caution — not indicative of true Class A market positioning in Las Vegas.

Building Size Segmentation

The Las Vegas office sales market is dominated by small-format transactions: 26 of 45 closed deals (57.8%) involved buildings under 5,000 SF, consistent with a market driven by owner-user buyers and single-tenant medical/professional suites. This segment carries a mean PPSF of $362/SF and a median of $365/SF — competitive with larger formats — reflecting high demand from users willing to pay occupancy premiums.

A meaningful size discount exists at the large end of the market. The 50,000+ SF category (N=2, Class A assets) averaged $261/SF — a 28% discount to the overall market mean and a 28.5% discount to sub-5,000 SF buildings. This likely reflects the thin institutional buyer pool for large Las Vegas office assets and the higher vacancy risk embedded in larger single-tenant structures. The 5,000–19,999 SF segment shows the highest mean PPSF ($406/SF), capturing the sweet spot of investor demand for multi-tenant mid-size office condominiums.

Note: 20,000–49,999 SF bucket lacks cap rate data. 50,000+ SF cap rate (4.43%) reflects a single Class A transaction — insufficient for generalization.

Capitalization Rate Analysis

Cap rate data is the single greatest data quality challenge in this dataset: only 9 of 45 sold transactions (20.0%) carry an Actual Cap Rate. With such limited coverage, the aggregate statistics should be treated as directional indicators, not definitive benchmarks. No Pro Forma Cap Rate data was present in the export. All nine recorded cap rates fell within the normal range of 4%–8.5%; no outliers require flagging.

The market median cap rate of 6.50% (mean 6.43%) is consistent with a secondary market with moderate rent growth expectations. The range of 4.43%–7.67% reflects the span from institutional-quality Class B multi-tenant assets to single-tenant Class C properties in secondary locations. Interestingly, the occupancy-cap rate relationship holds: fully leased assets (95–100%) averaged 6.61%, while the one sub-80%-leased transaction carried a 4.43% cap rate — suggesting that the distressed asset was acquired at a compressed cap rate likely reflecting a value-add premium, not a yield premium.

Sale Conditions & Deal Structure

Sale condition data is extremely sparse in this dataset: 40 of 45 transactions (88.9%) carry no sale condition designation. The five flagged transactions break down as follows: 2 High Vacancy Property sales (4.4%), 1 Investment Triple Net (2.2%), 1 Investment Triple Net combined with Sale Leaseback (2.2%), and 1 deal combining 1031 Exchange with Investment Triple Net (2.2%). No standalone 1031 Exchange or standalone Sale Leaseback transactions were recorded.

Given the minimal sample sizes, drawing strong conclusions about tax-motivated buyer pricing premiums is not statistically supportable. The single investment sale combining 1031 Exchange and Triple Net structures is insufficient to establish a pricing premium pattern. The overall mean PPSF is $367.67/SF, and the two High Vacancy Property transactions represent the clearest deal-type signal: distressed assets where pricing concessions are baked into the basis. Buyers of High Vacancy Properties are acquiring below market PPSF in exchange for lease-up risk.

⚑ Sale condition fields populated for only 5 of 45 transactions. Pricing comparisons by deal structure are not statistically reliable. CoStar condition coding is inconsistently applied in this market.

Occupancy at Sale

Occupancy data reveals a bifurcated market: the vast majority of transactions (22 of those with recorded occupancy) closed with 95–100% occupancy — indicating that most sellers in this cycle are disposing of stabilized assets rather than distressed ones. Only 2 transactions occurred below 80% occupancy, with no deals recorded in the 80–94% occupancy band.

Fully leased assets (95–100%) averaged $360.02/SF, compared to $344.47/SF for sub-80%-leased properties — an occupancy premium of approximately +4.5%. This modest premium is below what would be expected in a supply-constrained gateway market, and likely reflects the fact that the sub-80% transactions are value-add acquisitions where buyers are pricing in lease-up costs and risk, compressing the implied going-in basis. The cap rate differential reinforces this: stabilized assets traded at 6.61% while the partial-occupancy transaction carried a 4.43% cap — a value-add compression suggesting a buyer who priced the deal on a pro-forma basis.

Note: Occupancy data populated for only 24 of 45 transactions. The 0% representation of the 0–49% and 80–94% buckets reflects data gaps, not necessarily a true absence of those asset types.