It seems as no one has been spared some impact of this continuing recessionary downturn.
Caught in a Down Spiral
Now, the giant of all office master-planned developments in Las Vegas is admitting to the pressure on them to reduce rents and offer incentives to entice tenants. Truly the standard for Class A office space in the Las Vegas valley, Hughes Center has come off its higher asking rents in the up to $4.oo per square foot ( monthly ) range and is re-aligning with the overall market, but still retaining what could be argued as the highest office rents in the market. Even though the rates are still at the top of the market, the office product presented by Hughes Center is clearly at the high end of the market as far as amenities, lobby design and suite build-outs.
Hughes Center, Las Vegas, NV
Current owner representatives say that they are holding their own and working to stabilize occupancies. While Hughes Center is the most desirable of Class A space in the whole market, tenants are still very conscious of the need to find suitable space at a reasonable square foot rate with workable tenant improvements and if possible concessions to reduce the overall effective rental rate. It has been reported in the early second quarter that the previous 90-days showed a Class A office vacancy rate of almost 32% compared to the total office market vacancy of 23%.
Hughes Center Properties
Even in a recessionary period, many of the larger national companies and the larger law firms in the market prefer and often demand the true Class A office surroundings that Hughes Center has long offered in the Las Vegas market.
Bloggers Note: Hughes Center is represented by Tom Stilley of Colliers International located within the Hughes Center at 3960 Howard Hughes Parkway.
Vic Donovan, www.VegasCommercialBroker.com
