Las Vegas Office Market Analysis: November 2025

2. Economic & Demographic Context

To understand the nuanced transactional data of late 2025, one must first contextualize the Southern Nevada economic landscape. Las Vegas in 2025 is a market transitioning from a pure tourism-dependent economy to a more diversified service and professional hub, a shift that directly influences office demand.

2.1 Population Growth and Economic Diversification

As of October 2025, the Las Vegas-Henderson-Paradise metro area supports a population exceeding 2.3 million residents, with the city limits of Las Vegas surpassing 660,000 following nearly 6% growth since 2020. This persistent population growth underpins the entire commercial real estate sector, driving demand for services that occupy office space: healthcare, legal, insurance, and financial wealth management.

The regional economy has scaled significantly, with GDP exceeding $178 billion, marking a rise of nearly 44% since the beginning of the decade. This expansion is not solely gaming-related; it reflects a maturation of the local business ecosystem. For the office market, this means the tenant base is shifting. Historically, Las Vegas office demand was driven largely by back-office support for gaming and tourism. In 2025, demand is increasingly driven by:

• Healthcare Expansion: An aging population and net in-migration of retirees have necessitated a massive expansion in medical services. This is the primary driver behind the Medical Office Building (MOB) boom seen in the sales data, such as the UnitedHealth/Optum acquisition in Henderson.

• Professional Services: The influx of businesses from higher-tax states, particularly California, continues to reshape the market. While the “exodus” velocity has moderated compared to the 2021 peak, the tax advantages of Nevada (zero state income tax) remain a primary draw for small-to-mid-sized business owners who are the most active buyers of office condos and standalone buildings.

2.2 The “Flight to Quality” Phenomenon

The most persistent theme in 2025 is the obsolescence of the middle market. Tenants and investors alike are abandoning older, mid-rise office product that lacks amenities. Leasing data from Q3 2025 reveals a contraction in Class B and C occupancy, while Class A absorption remains positive. This leasing reality has trickled down to investment sales. Investors are wary of acquiring assets with rollover risk in the Class B sector, leading to a widening bid-ask spread and extended days on market (DOM) for these properties.

Conversely, pricing power is concentrated entirely at the top. The sale of the “Narrative” building at nearly $480 PSF  stands in stark contrast to sales in the Central East submarket trading at a fraction of that cost. This phenomenon is driven by the “amenitization” of the workplace; companies attempting to lure employees back to the office require buildings with fitness centers, outdoor spaces, and proximity to retail—features rare in Las Vegas inventory built before 2010.

2.3 Supply Constraints as a Value Driver

A counter-intuitive bullish factor for Las Vegas is the lack of new supply. With high construction costs and financing difficulties for speculative office development, new inventory deliveries have been minimal. There are virtually no new large-scale speculative office projects breaking ground as of late 2025. This supply constraint provides a floor for vacancy rates in Class A properties, as growing tenants have few options for contiguous blocks of premium space, forcing them into existing assets and driving up values for the few available “trophy” buildings.

3. Comprehensive Sales Analysis: September – November 2025

The following analysis synthesizes transaction data from September 1, 2025, through November 30, 2025. This period captures a critical window of activity, revealing how the market closed out the third quarter and positioned itself for year-end.

3.1 Monthly Transaction Volume and Momentum

The deal flow over the last three months demonstrates a back-loaded year, with significant upticks in volume in October and steady closings in November.

Table 1: Sales Velocity and Volume Overview (Sep-Nov 2025)

Source: Analysis of Transaction Data Snippets ²

September Analysis: The Public Sector Shift

September acted as a foundational month for Q4 figures, largely due to the State of Nevada’s strategic acquisition of the Thomas & Mack office portfolio.³ This bulk purchase of six properties (including 6830 Bermuda Rd, 6880 Bermuda Rd, and 770 E Warm Springs) removed a significant chunk of inventory from the private market. This event distorts “market” stats slightly, as it was a government acquisition for occupancy rather than a speculative investment, but it signals strong underlying demand for functional space. The State’s move to purchase rather than lease is a significant indicator of the “own vs. lease” math penciling out in favor of ownership, even for large public entities.¹⁶

October Analysis: The Trophy Benchmark

October was the “headline” month. The sale of 1111 N Town Center Dr to NV Energy for $28,000,000 ³ and the Optum/UnitedHealth acquisition of 1385 E Cactus for $46,111,341 ³ showcased the deep pockets of corporate owner-users. These buyers are cash-rich or credit-worthy enough to bypass high interest rates, acquiring strategic HQs. Simultaneously, the Narrative sale closed, proving that private family office capital is willing to pay premiums for yield in Class A assets.¹⁷

November Analysis: The Mid-Market Return

November saw a return to the “bread and butter” of the Las Vegas market: private investors and smaller owner-users. The standout transaction was 9127 W Russell Rd, selling for $11,125,000 ($373 PSF).³ This deal reinforces the desirability of the Southwest submarket. The month also saw numerous smaller transactions (under $2M), indicating that the small business sector remains active despite borrowing costs.

3.2 Pricing Trends: The Divergence Analysis

The raw data confirms the bifurcation thesis. When analyzing Price Per Square Foot (PPSF), the disparity is geographic and asset-class specific. The weighted average price for office sales in November hovered around $410 PSF, but this is heavily skewed by high-value transactions. A closer look reveals distinct pricing tiers.

Table 2: Pricing Tier Analysis by Asset Class (Sep-Nov 2025)

Source: Derived from Transaction Snippets ³

The “C” Discount:

Properties in the Central East submarket (e.g., Maryland Pkwy, Eastern Ave) are consistently trading below $250 PSF. For example, 1500 E Sahara Ave sold for roughly $204 PSF in October.3 This reflects the higher risk, lower credit quality of tenants, and deferred maintenance often found in this corridor. The cap rates for these assets are effectively pushed into the 8-9% range to attract capital.13

The “A” Premium:

Conversely, 1855 Village Center Cir in Summerlin (Northwest) traded at a staggering $677 PSF.3 This micro-office (4,325 SF) likely appealed to a high-net-worth owner-user who prioritizes location and prestige over economic ROI, a common dynamic in Summerlin. This pricing is more akin to luxury residential real estate than commercial office, highlighting the unique psychology of the Summerlin submarket.

3.3 Time on Market (TOM) and Liquidity

Market momentum is heavily segmented by asset quality.

• Prime Assets: High-quality assets are transacting with efficiency, often off-market. The Narrative sale was an off-market transaction ¹⁷, implying zero effective days on market for the general public. This indicates that for the “right” asset, capital is waiting on the sidelines, ready to deploy without a broad marketing campaign.

• Mid-Market Drag: The data shows extended marketing times for mid-tier assets. For instance, 9127 W Russell Rd was on the market for 714 days before selling in November.³ This is a critical data point; it indicates that even good assets in desirable locations (Southwest) can languish if initial pricing expectations are misaligned with the current interest rate environment. The seller likely had to wait for the buyer pool to adjust to the new pricing reality or for their own price expectations to soften.

• Condo Velocity: Office condos (e.g., 7373 Peak Dr, 6725 S Eastern) show varied market times, ranging from 69 days to 271 days.³ This sector is highly sensitive to SBA 504 loan rates. As rates stabilized in late 2025, velocity in this sector began to improve, but the backlog of inventory from earlier in the year has kept average TOM elevated.

4. Deep Dive: Significant Transactions (The “Story” Deals)

To understand the market’s psyche, we must analyze the “headline” transactions of the last quarter. These deals are not merely data points; they are bellwethers for capital behavior, revealing what the largest players in the market are thinking.

4.1 The Institutional Benchmark: “The Narrative”

• Property: 6795 S Agilysys Way (“The Narrative”)

• Sale Date: October 15, 2025

• Price: $48,000,000 ($479 PSF)

• Buyer: Private Family Office (Undisclosed)

• Seller: LaPour Partners / G2 Capital

• Tenant Anchors: Agilysys, Colliers, Intermountain Health

The Insight: This sale is the definitive “comparable” for Class A office in 2025. Built in 2022/2023, the building represents the new standard for office stock: 4 stories, 100,000 SF, and amenity-rich with outdoor wellness paths and high-end finishes. The fact that it traded to a private family office rather than a publicly traded REIT suggests that institutional public capital remains cautious, but private wealth—looking for generational holds and tax advantages—is active. The $479 PSF price tag sets a high watermark, validating the Southwest submarket’s dominance. It signals that assets with modern specs (high ceilings, ESG compliance) are decoupled from the general office malaise.

4.2 The Strategic Owner-User: Optum / UnitedHealth

• Property: 1385 E Cactus Ave (Henderson)

• Sale Date: October 17, 2025

• Price: $46,111,341 (~$582 PSF)

• Buyer: UnitedHealth Group (via Sierra Health and Life Insurance subsidiary)

• Seller: Sheq Properties LLC

The Insight: This is arguably the most significant deal of the quarter for the “Occupier” market. Optum acquired this 79,000 SF facility to consolidate operations in West Henderson, creating the “Cactus Healthcare Center”.

• Implication: This confirms the trend of large corporations preferring ownership over leasing to control long-term operational costs. In the healthcare sector, where build-out costs are exorbitant (plumbing, specialized HVAC), owning the real estate hedges against future rent spikes.

• Location Strategy: It cements West Henderson as the premier medical hub of the valley, supporting the narrative that healthcare is the most resilient asset class in Southern Nevada. The $582 PSF price is astronomical for general office but justifiable for high-acuity medical infrastructure.

4.3 The Public Sector Play: State of Nevada Portfolio

• Property: 6+ Building Portfolio (Bermuda Rd, Amigo St, Warm Springs Rd)

• Sale Date: September 18, 2025

• Price: ~$54.1 Million (Aggregate)

• Buyer: State of Nevada – Division of State Lands

• Seller: Thomas & Mack Company

The Insight: This portfolio sale removes over 300,000 SF of inventory from the competitive market. The State of Nevada is aggressively purchasing office space to move agencies out of leased facilities, a fiscally conservative move to reduce long-term operating variances. For the market, this is a “supply shock” that technically lowers vacancy rates in the Airport/South submarket, potentially tightening rents for remaining landlords in the area. It also highlights the liquidity provided by the public sector during periods of private sector hesitation.

4.4 The Mid-Market Bellwether: 9127 W Russell Rd

• Property: 9127 W Russell Rd (Desert Canyon Business Park)

• Sale Date: November 10, 2025

• Price: $11,125,000 ($373 PSF)

• Buyer: West Russell Holdings Too LLC (Private Local Capital)

• Market Time: 714 Days

The Insight: This transaction represents the “healthy middle” of the market. It is a Class A suburban asset, roughly 29,824 SF, sold to a local investment group. The pricing ($373 PSF) is strong but rational compared to the $480+ of the Narrative. The 714-day market time is a crucial warning sign: liquidity for these assets exists, but sellers must be patient. It suggests a price discovery phase that lasted nearly two years before buyer and seller met, likely bridging a gap between 2023 pricing expectations and 2025 reality.

5. Submarket Performance & Trends

The phrase “location, location, location” has evolved in 2025 to “amenities, demographics, access.” Performance is not uniform across the valley.

5.1 Southwest (The Powerhouse)

• Geography: Along the I-215 Beltway, from Summerlin to Decatur.

• Trend: This is the only submarket seeing speculative heat. The Narrative ($48M) and Russell Road ($11M) sales underscore this.

• Why: Proximity to executive housing (Summerlin, Southern Highlands), newer building stock (post-2010 construction), and retail integration (UnCommons, The Bend).

• Sales Activity: High volume, highest PSF. Vacancy rates here are the lowest in the valley, often dipping below 7% for Class A product.

5.2 West Henderson / South Las Vegas (The Medical Hub)

• Geography: St. Rose Parkway corridor, surrounding Henderson Hospital.

• Trend: Dominated by Medical Office. The Optum sale is the flagship here.

• Why: Rapid residential growth in master-planned communities like Cadence and Inspirada requires servicing. This tenant base is viewed as “recession-proof.”

• Sales Activity: Strong institutional interest; very low vacancy risk. Transactions like 876 Seven Hills Dr ($5.8M) reinforce the demand for mid-sized medical assets.

5.3 Central East / Maryland Parkway (The Value/Distressed Play)

• Geography: East of the Strip, older stock near UNLV and Sunrise Hospital.

• Trend: High volume of low-dollar transactions.

• Why: Affordability. Assets trade at $150-$200 PSF. Buyers are often local owner-users who cannot afford the Southwest, or value-add investors looking to repurpose buildings.

• Examples: Sales at 3039 Contract Ave and 1414 S Eastern Ave. These are “functional obsolescence” plays—cheap space for cost-conscious businesses or those needing proximity to the older hospital systems (Sunrise/Desert Springs).

5.4 Northwest (The Owner-User Fortress)

• Geography: Summerlin North, Centennial Hills.

• Trend: Quiet but expensive.

• Why: Supply constrained. Very little new office zoning compared to residential.

• Examples: 1111 N Town Center (NV Energy). This submarket is increasingly becoming an area where major entities buy and hold long-term. The high PSF for office condos here (like 7373 Peak Dr) reflects the high incomes of the surrounding residential base.

6. Capital Markets & Financing Environment

The transaction activity in Q4 2025 cannot be separated from the financing environment. The Federal Reserve’s monetary policy throughout the year has kept borrowing costs elevated, reshaping the buyer pool.

6.1 Interest Rates and the Buyer Pool

With mortgage rates for commercial property stabilizing in the 6.0% – 7.0% range, the “negative leverage” era of 2021-2022 (where borrowing costs exceeded cap rates) has mostly ended, but cash flow remains tight.

• Institutional Capital: Faced with a cost of debt near 6.5%, institutional buyers are demanding cap rates of 7.5% – 9.0% to ensure positive leverage. This explains the decompression of cap rates seen in sales like 880 Grier Dr (sold in September at a reported 9.5% cap rate).³

• Owner-Users: This group is less sensitive to cap rates and more sensitive to monthly occupancy costs versus rent. With rents rising in Class A buildings, the SBA 504 loan program (allowing 10% down) makes purchasing attractive for established businesses, even at 7% interest rates. This dynamic is fueling the sub-$5 million market.⁷

6.2 Cap Rate Trends by Asset Class

While specific cap rates for every deal aren’t disclosed, the market sentiment and available data points suggest the following yield requirements:

Table 3: Estimated Cap Rate Ranges (Q4 2025)

Source: Market Analysis and Brokerage Trends

7. 2026 Strategic Forecast

Looking ahead to the first quarter of 2026, the Las Vegas office market is poised for continued transformation. The stabilization seen in November 2025 provides a foundation for the coming year.

7.1 Supply Crunch in Class A

With virtually no major speculative office towers breaking ground in late 2025 due to financing constraints, a shortage of large contiguous blocks of Class A space will emerge by late 2026.

• Implication: Tenants requiring 20,000+ SF of premium space will face limited options, driving pre-leasing activity or forcing them into build-to-suit arrangements. This will support rent growth in the Southwest submarket, further justifying the high valuations seen in deals like “The Narrative.”

7.2 The Rise of Office Condos

With lease rates rising in Class A buildings, small tenants (law firms, CPAs, insurance agents) will increasingly look to buy office condos to lock in their facility costs. Expect new construction or conversion of small office parks into “for sale” condos to meet this demand, particularly in the Northwest and Henderson.

7.3 Distress in the Core

We anticipate an increase in “short sales” or lender-facilitated dispositions in the Central and Downtown markets. Assets with maturing CMBS debt that cannot refinance at current rates—and which lack the amenity base to raise rents—will be forced to trade at reset valuations. This presents a buying opportunity for value-add investors willing to inject capital into renovations.

7.4 Investment Recommendation

• For Sellers: If you own Class A or Medical Office in the Southwest/Henderson, liquidity is high, and pricing is near peak. It is an opportune time to exit. If you own vintage Class C product, prepare for a price-driven exit or hold for cash flow; the buyer pool is shallow.

• For Buyers: The “deals” are in the mid-market Class B sector—assets that are well-located but need cosmetic upgrades (lobbies, common areas) to compete with the “Narrative” style product. Institutional competition is low here, and owner-user utility is high.

• For Tenants: The window to buy vs. lease is wide open. With SBA financing available and price stability in the small-building sector, controlling real estate costs is a prudent hedge against the Class A rent spikes on the horizon.

IX. Forward-Looking Momentum: The On-Market & Pipeline View

A review of assets currently “Under Contract” or in “Escrow” provides the clearest signal of where the market is headed in Q4 2025 and Q1 2026. This pipeline confirms that the bifurcation is accelerating.

Table 3: Summary of “Under Contract” / “Escrow” Pipeline

Analysis of Pipeline

• Class A Pricing Accelerating: The pipeline data is stunning. The asking prices for new, prime Class A assets (10799 W Twain @ $650/SF; Deer Springs Condos @ $610/SF) are significantly higher than the $479/SF “Narrative” sale that just closed. This signals that comps for premier assets will continue to appreciate.
• Southwest Dominance: Four of the six major deals in the pipeline are in the Southwest, reinforcing its status as the most in-demand submarket for capital.

The Bifurcation Widens: The pricing gap is structural. The Class C asset (9225 W Flamingo) is in escrow at $252/SF, while prime Class A assets are fetching 150-200% premiums.

X. Concluding Insights & Advisor Recommendations

The Las Vegas office sales market is healthy but fractured. The “flight to quality” is no longer a forecast; it is the dominant, driving reality. This creates distinct strategies for different market participants.

For Investor Clients (Buyers)

• Core/Core+ Strategy: The “flight to quality” is real and accelerating. You must pay a premium for Class A assets in the Southwest, Henderson, and Summerlin. The pipeline shows this premium is increasing. Your competition is both institutional capital and high-net-worth owner-users.
• Value-Add Strategy: The true opportunity—and true risk—is in Class B/C. The leasing market is against you.2 You can acquire assets at a deep discount (e.g., $252/SF for 9225 W Flamingo), but you must have a clear plan and deep capital for repositioning, amenities, and aggressive tenant improvements to capture the tenants fleeing other B/C buildings.
• Specialty Strategy: Focus on MOBs. They are trading at a premium for a reason. They are defensive, WFH-resistant, and a favored 1031-exchange product.

For Owner-User Clients (Buyers)

• This is your moment. The “buy vs. lease” calculation is heavily in your favor. You can acquire a Class B building (e.g., 6224 W Desert Inn @ $273/SF) for a total occupancy cost that is likely less than leasing Class A space, all while building long-term equity.
• Lock in fixed-rate debt. This is your primary advantage over investors and your primary hedge against future rent growth.
• Target Class B assets in A-grade submarkets (Southwest, Henderson, Northwest). Avoid the Central East unless you are a specialized user.

For All Clients (Sellers)

• If You Own Class A / MOB: You are in the strongest possible position. The market is liquid, and pricing is at or near peak levels. Market your asset’s “defensive” characteristics to a national pool of 1031 and institutional buyers.
• If You Own Class B / C: You have a critical decision.
• Option 1 (Best Exit): Your best buyer is an owner-user. Market your building as a “hedge against rising rents” and “an equity-building opportunity.”
• Option 2 (Tenant-Driven Exit): Your next-best buyer is your own tenant. The Pecos 215 Plaza sale is the perfect playbook: break up the asset and offer to sell directly to your tenants.1
• Option 3 (Investor Exit): To attract a value-add investor, you must be prepared to offer a significant discount (like 2543 S Bruce St @ $51/SF) that provides them with the “meat on the bone” required to justify the high leasing risk and capital expenditure.

Works cited

1. CostarExport 3 Month Office Sales Aug-Oct.xlsx
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4. Las Vegas MarketBeats | US | Cushman & Wakefield, accessed November 1, 2025, https://www.cushmanwakefield.com/en/united-states/insights/us-marketbeats/las-vegas-marketbeats
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