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OfficeForLease.com
Your guide to commercial office buildings and office suites for lease.
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 E-Lease Report - Las Vegas Commercial Real Estate
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Las Vegas Commercial Real Estate
The Vegas Valley Office Team
Colliers International
The Team
The Vegas Valley Office Team offers over 75 years of office leasing and sales experience. Comprised of 5 brokers and 1 executive administrator, the Team offers a hands on approach to all facets of landlord and tenant representation. Current listings include the 2 largest office developments in Nevada; Hughes Center (1.4m sf) and Marnell Corporate Center (500,000 sf). Tenant Representation clients include Pulte Homes, Humana Health and Ameristar Casinos. The Team offers unrivaled market insight while fostering a culture of personalized service for its clients.
Ryan Martin, Tom Stilley, Lizz Stilley, Dean Kaufman, Megan Hatala, Michael Koontz
The Team Website
Market Update; 2009 Q2:
Is it safe to come out now? Apparently the answer is "Yes". Fearing the unknown, office tenants were in hibernation during Q1. Pounded by a continuous flow of bad news, decision makers avoided commitment. During the later part of Q2, market sentiment saw a distant light at the end of the tunnel and leasing activity has increased from dormant to moderate.
Renewals continue to dominate leasing activity for several reasons. Firstly, in an uncertain economy most tenants remain focused on short term commitments (less than 3 years). The cost and business disruption associated with moving offices usually isn't justified by a short term solution.
Secondly, landlords have come to appreciate the value of a bird in the hand. Market rates are irrelevant if there are no new tenants willing to commit. In recent months, landlords have lowered their short term expectations and signed renewals at rates they would have turned away just 12 months ago. Also, renewals usually minimize costs to the landlord associated with re-tenanting (tenant improvements and leasing down time) and those savings can be passed on to the tenant.
So who is moving? Though still in the minority, an increasing number of tenants are looking closely at the market with serious intent to re-locate their office. They fall into the following categories:
1. Expansion
The few tenants experiencing growth are limited by their landlord's office portfolio. If their landlord can't offer enough contiguous space, they have no choice but to look elsewhere.
2. Contraction
A substantial reduction in size often renders the existing space inefficient. Break rooms, lobbies and conference rooms are no longer in proportion and the result is a relocation or substantial (and disruptive) construction.
3. Cost
Landlords are more flexible than ever, however their lenders and expense overhead will only allow them to drop their rates so far. Class A buildings can't sustain Class C prices, at least not for an extended period. If a tenant needs to lower their cost of occupancy dramatically, a new landlord and product type may be the only solution.
 Subleasing continues to be popular for tenants seeking low rates, a short term commitment, or both. While the supply of direct office space continues to grow, the supply of sublease space has remained neutral at approximately 650,000 sf. In other words, sublease space is being absorbed as quickly as it comes onto the market.
Looking forward to the remainder of 2009, tenants can expect continued discounting of lease rates, greater willingness of landlords to agree to short term renewals, and increased supply from which to choose. Looking further out to late 2009 / early 2010, commercial loan defaults will result in a change in ownership for some office projects. New owners purchasing loans or real estate from lenders at discounted prices will put further downward pressure on leasing rates. If your lease expires in the next 18 months, an overwhelming number of attractive options will be available for consideration.
www.vegasvalleyofficeteam.com
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