Northern Nevada
By Reed Backstrom, Colliers | Reno
At the close of Q1 2026, Northern Nevada’s office market posted modest improvement across several key indicators, with vacancy declining 20 basis points quarter-over-quarter to 8.8%. Leasing activity totaled nearly 150,500 SF during the quarter, an increase of almost 50% compared to Q4, signaling a pickup in tenant movement following the slower pace observed at the end of 2025. Net absorption totaled 3,926 SF, continuing a pattern of manageable quarter-to-quarter fluctuations that indicates the market remains capable of absorbing newly available space. Both sublease and direct availability also trended downward, reflecting steady tenant engagement despite renewed economic and geopolitical uncertainty. Overall, market fundamentals remain within the range established over the past several quarters, marked by limited volatility and gradual tightening.
Total building area sold reached 320,847 SF during the quarter, already accounting for a significant share of the full-year 2025 sales total of 502,269 SF, suggesting an acceleration in transaction activity. Continued cap-rate compression indicates investors remain confident in long-term market fundamentals. Stable asking rents and improving capital market conditions continue to support investment activity, positioning Northern Nevada’s office market for sustained interest as 2026 progresses.
Southern Nevada
By John Stater, Colliers | Las Vegas
Southern Nevada’s office inventory decreased by 54,046 SF in the first quarter of 2026 due to the conversion of two Henderson office buildings to retail use and minimal office completions.
Net absorption was -50,225 square feet this quarter, an improvement over one year ago when net absorption was -122,965 SF. The overall office vacancy rate increased to 11.9% this quarter. Sales volume this quarter in both owner/user and investment sales decreased on a quarterly basis but improved compared to one year ago.
Southern Nevada’s office market had a strong fourth quarter in 2025 and was generally less volatile in 2025 than in 2024. That strength was not carried into the first quarter of 2026, with net absorption moving back into negative territory.
Southern Nevada’s office market faces numerous headwinds in 2026, from the impact of A.I. on office work to a general lack of economic growth. The office market is currently stable, but it is not growing. Moderate improvements in vacancy and asking rental rates are possible in 2026 if the national economy avoids recession.
