LAS VEGAS (KSNV MyNews3) -- If any company decides it wants to expand and do some hiring, there is an awful lot of empty office space in the Valley. But analysts say it may be actually turning around, just very slowly.
Office space vacancy is at 26 percent, up slightly from 25 percent last year, this according to a report from Applied Analysis. The density of vacancies varies. In the Southwest, there are a lot of office space lease signs and unused properties.
John Restrepo of RCG Economics says while it may not look great, leasing commercial property is actually moving.
“But we're moving slowly in the right direction, maybe two steps forward, one step back but we're moving ahead. But we have to be careful about looking from one quarter to another quarter. It could be an odd quarter,” Restrepo said.
This may be an odd quarter, meaning we’ve had some recent move-outs including the Nevada Cancer Institute which shut its practice near Town Center and the 215.
While office vacancy rates are not great, anchored retail centers and industrial space have fared slightly better compared to last year.
But Restrepo says office vacancies will fill, eventually. He says that depends on employment and income.
“Because of those factors, companies are not expanding into their hiring they're doing better profitably. That’s why we call it a profits recovery not a jobs recovery, and because we have no job recovery or I should say a weak job recovery we have a demand for office space because it’s so dependent on the job market,” Restrepo said.
He says that’s going to take some time, because our recession was driven by a financial crisis and that take a while to get cured.