— By Charles Van Geel of Cushman & Wakefield —
Despite broader economic headwinds, Southern Nevada’s commercial real estate market continues to showcase remarkable resilience – especially in the office sector. The demand for high-quality office space remains strong in the Southwest and Summerlin submarkets, underpinned by a flight to quality and shifting corporate priorities toward top-tier environments.
The bulk of today’s office activity is concentrated along the critical Interstate 215 corridor, stretching from Green Valley to Summerlin parkways. This corridor has become the heartbeat of the region’s office market. However, within this high-demand stretch, the availability of true Class A product (particularly in the Southwest submarket) is diminishing. Small blocks of space are becoming increasingly rare, while sublease opportunities along this corridor are practically nonexistent.
Adding pressure to this is the fact that new construction is largely stalled. Speculative development is not economically feasible with the current market dynamics. Lenders are unwilling to fund projects unless developers can demonstrate significant preleasing commitments, often north of 50 percent. This has been a challenge, as preleasing activity in the broader market remains minimal.
Still, the area has received a few recent high-profile deliveries. These include Downtown Summerlin’s 1700 Pavilion, Phase II of UnCommons and Meridian, Howard Hughes’ new Class A project in Summerlin.
Recent leasing success at mixed-use developments like Downtown Summerlin and UnCommons provide optimism that momentum will continue in desirably located properties.
Meanwhile, Meridian introduces a different design for the Las Vegas office market: a central lobby serving both the East and West buildings, which offers operational flexibility. The West Building is available to accommodate a full-building user, while the East Building is designed for multi-tenant occupancy, with suites starting as small as 3,500 square feet.
Looking ahead, well-located office buildings could become even more valuable. Should the Nevada Legislature pass proposed tax credits aimed at expanding motion picture and television production in the state, Meridian would be centrally located adjacent to new production studios and related retail developments.
As speculative development remains elusive, the scarcity of top-tier office space positions well-located assets to lead the next chapter of Southern Nevada’s office market evolution.
— By Charles Van Geel, Senior Director, Cushman & Wakefield. This article was originally published in the May 2025 issue of Western Real Estate Business.