The Las Vegas office market has emerged as one of the strongest performers in the country, recording 378,400 square feet of positive net absorption in 2025 and maintaining vacancy rates 850 basis points below the national average. For investors and owner-occupants seeking office loans in Las Vegas, this relative strength creates favorable conditions for acquisition, refinancing, and development across the city's diverse office submarkets.
With the metro-wide vacancy rate falling to 11.7% by year-end 2025 and the Southwest submarket leading at just 7.6%, Las Vegas offers office investment opportunities that are difficult to find in most major metros where vacancy continues to climb above 20%. Colliers predicts the Southern Nevada office market will continue to improve throughout 2026, supported by population growth, business migration from high-tax states, and the absence of significant new supply in the strongest submarkets.
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What Office Loan Programs Are Available in Las Vegas?
Las Vegas office property owners and investors can access multiple financing programs, each designed for specific property profiles, borrower types, and investment strategies. The right program depends on whether the property is owner-occupied or investment, the tenant roster and lease structure, and the property's current stabilization level.
Conventional bank loans are the most common financing vehicle for stabilized Las Vegas office properties with strong tenant rosters. Local and regional banks offer rates from 6.50% to 8.00% with terms of 5 to 10 years and up to 70% to 75% loan-to-value. The wide rate range reflects the significant variation in office property quality across Las Vegas submarkets. A fully leased Class A building in the Southwest submarket with credit tenants on long-term leases will price near 6.50%, while a Class B building with shorter leases and upcoming rollover risk in the Northwest will price closer to 8.00%.
SBA 504 loans provide extraordinary financing for Las Vegas business owners who occupy their own office space. With up to 90% financing (just 10% down), below-market fixed rates for 20 to 25 years, and no balloon payment risk, the SBA 504 program is ideal for medical practices, law firms, accounting firms, engineering companies, and other professional service businesses purchasing their own Las Vegas office building. A medical practice purchasing a $3.5 million office building in Henderson could finance $3.15 million at approximately 6.25% for 25 years with the SBA 504 program, compared to $2.625 million at 7.25% for 10 years with a conventional bank loan.
CMBS and conduit loans offer non-recourse financing for larger Las Vegas office buildings, typically valued at $2 million or more. Rates range from 6.00% to 7.50% with 5 to 10 year terms and 65% to 75% LTV. These loans evaluate primarily the property's income stream and tenant creditworthiness rather than the borrower's personal financials. CMBS financing works well for stabilized multi-tenant office buildings in the Southwest, Summerlin, and Henderson submarkets where tenant quality and lease terms support institutional-grade underwriting.
Life company lenders offer the lowest rates (5.75% to 6.75%) for trophy-quality Las Vegas office assets. These ultra-conservative lenders target Class A buildings with long-term leases to investment-grade tenants, requiring low leverage (60% to 65% LTV) and pristine property condition. The trade-off for the lower rate is significantly more restrictive underwriting and longer closing timelines.
Medical office loans represent a specialized segment of Las Vegas office financing. Healthcare-anchored properties benefit from lenders' view that medical tenants are recession-resistant, leading to lower rates and better terms compared to general office. Medical office buildings in Henderson's growing healthcare corridor and the Southwest medical district command rates of 6.00% to 7.50% with favorable LTV and DSCR requirements.
Bridge loans finance Las Vegas office properties in transition, including buildings requiring repositioning, tenant improvements, or lease-up from below-stabilization occupancy. Rates range from 9.0% to 12.0% with 65% to 70% LTV and 12 to 24 month terms. Bridge financing is particularly relevant in the Las Vegas office market for investors targeting the Central East submarket's high-vacancy properties for conversion or repositioning.
How Do Las Vegas Office Submarkets Compare for Lending?
The Las Vegas office market's performance varies dramatically by submarket, and lenders adjust their terms accordingly. Understanding these differences helps borrowers select the right submarket for their investment strategy and anticipate the financing terms they can expect.
The Southwest submarket is the undisputed leader of the Las Vegas office market and the preferred submarket for office lenders. With vacancy at just 7.6%, the highest asking rents in the metro at $2.90 per square foot (full-service gross), and no new office developments projected over the next two years, the Southwest offers a supply-constrained environment that supports stable rents, low vacancy, and predictable income for lenders. Office properties in the Southwest qualify for the best available rates across all loan programs. The concentration of Class A suburban product with strong amenities and proximity to the I-215 beltway makes this submarket attractive to both tenants and lenders.
The West/Summerlin submarket ranks second, with vacancy around 9.5% and asking rents of approximately $2.75 per square foot. Summerlin's affluent demographics and master-planned community infrastructure create steady demand for professional and medical office space. Several planned projects, including Halo Tower (210,000 SF), UnCommons Building 5 (120,000 SF), and a Downtown Summerlin office tower (140,000 SF), remain stalled as developers seek pre-leasing commitments, which limits new supply risk. Lenders view Summerlin office assets favorably for their stable demographic base.
The South/Henderson submarket offers moderate vacancy around 10.8% with asking rents of $2.45 per square foot. Henderson's growing medical corridor and diversified employment base support demand for professional and healthcare office space. Lenders are comfortable with Henderson office properties, particularly medical office buildings with long-term healthcare tenant leases.
The Northwest submarket has vacancy around 12.0% and asking rents of $2.30 per square foot. Lending appetite is moderate and property-specific, with lenders favoring well-located buildings with strong tenant rosters over speculative or highly vacant properties.
The Central East submarket presents the most challenging financing environment, with vacancy estimated at 18.5% and asking rents of just $1.85 per square foot. Conventional office lenders are cautious in this submarket, though bridge and value-add lenders see opportunity in repositioning aging office stock for alternative uses including medical, coworking, or conversion.
What Do Lenders Require for Las Vegas Office Loans?
Office loans carry more stringent underwriting requirements than multifamily or industrial financing, reflecting the inherent risks of tenant concentration, lease rollover, and market volatility that affect office property income.
Debt service coverage ratio requirements for Las Vegas office loans are typically higher than for other property types. Most lenders require a minimum DSCR of 1.30x (compared to 1.25x for multifamily and industrial), meaning the property's net operating income must exceed annual debt service by at least 30%. This higher threshold accounts for the greater income volatility that office properties can experience when tenants downsize, relocate, or fail to renew leases. Use our DSCR calculator to evaluate your Las Vegas office property.
Occupancy requirements start at 85% for conventional and CMBS office loans, with many lenders preferring 90% or higher. The occupancy must be economic (tenants paying rent, not just occupying space under free-rent concessions) and sustained for at least 90 days prior to closing. Las Vegas office properties in the Southwest and Summerlin submarkets typically meet this threshold, while properties in the Central East and Northwest may require bridge financing to achieve stabilization before qualifying for permanent debt.
Tenant quality and lease structure receive intense scrutiny in office loan underwriting. Lenders evaluate each tenant's creditworthiness, the remaining lease term, renewal probability, and the weighted average lease term (WALT) across the entire property. A Las Vegas office building with a 7-year WALT and three investment-grade tenants will receive dramatically better terms than a building with a 2-year WALT and small local tenants on short-term leases.
Rollover risk, the percentage of total rent expiring within the first two to three years of the loan term, is a critical concern for office lenders. If 40% or more of the property's rent rolls over during the loan term, lenders will either reduce proceeds, increase rates, or require lease rollover reserves. Borrowers should present a clear lease renewal strategy and evidence of market demand in their Las Vegas submarket to mitigate this concern.
How Does the SBA 504 Program Work for Las Vegas Office Buildings?
The SBA 504 loan program is the most powerful financing tool available to Las Vegas business owners who occupy their own office space. Medical practices, law firms, accounting firms, engineering companies, technology businesses, and other professional service providers can leverage this program to purchase their office building with minimal equity and exceptional long-term rates.
The SBA 504 structure provides up to 90% financing through a combination of a conventional bank first mortgage (50% of project cost) and a Certified Development Company second mortgage backed by the SBA (up to 40%). The borrower provides just 10% down. The CDC portion features a below-market fixed rate for 20 or 25 years with full amortization and no balloon payment.
For a Las Vegas medical practice purchasing a $4 million office building in Henderson, the SBA 504 structure works as follows: the bank provides a $2 million first mortgage, the CDC provides a $1.6 million second mortgage at a below-market fixed rate, and the practice puts down $400,000 (10%). Compare this to a conventional bank loan requiring $1 million down at a higher interest rate with a 10-year balloon. The SBA 504 saves $600,000 in upfront equity while providing a lower blended rate and eliminating balloon payment risk for 25 years.
Eligibility requires the business to occupy at least 51% of the building's usable space. The program can also finance building improvements, tenant buildout, furniture and equipment, and energy-efficiency upgrades. New construction of an owner-occupied office building also qualifies. Visit our SBA loan programs page for detailed eligibility criteria.
What Makes Medical Office Properties Easier to Finance in Las Vegas?
Medical office buildings represent a preferred asset class for Las Vegas commercial lenders, consistently receiving better terms than general office properties. Understanding why helps investors and healthcare providers leverage this advantage.
Healthcare tenants are viewed as recession-resistant by lenders. Medical practices, dental offices, imaging centers, outpatient surgery centers, and other healthcare providers generate demand regardless of economic conditions. People require medical care in recessions and expansions alike, making healthcare-anchored properties more predictable income generators than general office buildings dependent on business-cycle-sensitive tenants.
Longer lease terms are standard in medical office. Healthcare tenants invest significantly in specialized buildout (exam rooms, imaging equipment, surgical suites) that makes relocation expensive and disruptive. As a result, medical leases in Las Vegas typically run 7 to 15 years with renewal options, compared to 3 to 5 years for general office tenants. Longer leases reduce rollover risk, which is the primary concern lenders have with office properties.
Henderson and the Southwest Valley have developed significant medical corridors with clusters of healthcare tenants, hospitals, and ancillary medical services. Medical office buildings in these corridors benefit from the agglomeration effect, where proximity to other healthcare providers and hospitals drives additional tenant demand and supports premium rents.
The lending differential is measurable. Medical office loans in Las Vegas typically price 25 to 75 basis points below general office for comparable leverage and term. LTV limits may be 5% higher, and DSCR requirements 5 to 10 basis points lower, reflecting lenders' greater confidence in healthcare income stability. Cap rates for medical office in Las Vegas run 6.0% to 7.0%, compared to 7.0% to 8.0% for general Class A office and 8.5% to 10.0% for Class B/C office.
What Are the Current Investment Metrics for Las Vegas Office Properties?
Las Vegas office investment metrics reflect a market that offers higher yields than coastal metros while outperforming national benchmarks on occupancy and absorption.
Class A office cap rates in Las Vegas range from 7.0% to 8.0% for stabilized properties in premium submarkets. These yields are significantly higher than Class A office cap rates in markets like San Francisco (6.0% to 7.5%), Los Angeles (6.5% to 7.5%), or Denver (6.5% to 7.5%), providing Las Vegas investors with a meaningful income advantage.
Class B and C office cap rates range from 8.5% to 10.0%, reflecting the higher vacancy risk and capital expenditure requirements of older properties. These assets can generate attractive cash-on-cash returns for investors willing to actively manage and improve them, but the financing options are more limited and more expensive.
Price per square foot for Las Vegas office properties ranges from $175 to $300 depending on class, location, and condition. Class A buildings in the Southwest command the highest pricing, while aging Central East properties trade at significant discounts. The wide pricing range creates opportunities for investors at every entry point.
The positive absorption trend is the most encouraging metric for Las Vegas office investors. The 378,400 square feet of net absorption in 2025, with 280,600 square feet coming in Q4 alone, demonstrates strengthening demand that should continue improving vacancy and supporting rent growth through 2026.
What Financing Strategies Work Best for Las Vegas Office Properties?
Different office investment strategies require tailored financing approaches. Matching the right loan program to your Las Vegas office property maximizes returns and mitigates risk.
For stabilized Class A acquisitions in the Southwest and Summerlin, conventional bank loans or CMBS financing provide the most efficient capital structure. Properties with 90%+ occupancy, strong tenant credit, and 5+ year weighted average lease terms qualify for rates of 6.50% to 7.25% with 70% to 75% LTV. Life company lenders offer even lower rates for trophy assets at reduced leverage.
For owner-occupant purchases, the SBA 504 program should be the default consideration for any business purchasing its own Las Vegas office building. The 90% financing and below-market rates create a cost structure that conventional financing cannot replicate. Medical practices, professional service firms, and technology companies all benefit from this program.
For value-add and repositioning strategies, bridge loans provide the short-term capital needed to acquire, renovate, and re-tenant underperforming Las Vegas office buildings. After stabilization, the investor refinances into permanent debt at significantly lower rates. This strategy is most relevant for the Central East and Northwest submarkets where acquisition pricing reflects elevated vacancy.
For NNN-leased single-tenant office properties with credit tenants, CMBS or life company financing delivers the lowest cost of capital with non-recourse protection. These loans price based on the tenant's credit rating and remaining lease term rather than the broader office market conditions.
Use our commercial mortgage calculator to model different financing scenarios for your Las Vegas office property.
What Risks Should Las Vegas Office Investors and Lenders Consider?
While the Las Vegas office market outperforms national averages, prudent investors and lenders account for specific risks that affect financing terms and investment returns.
Remote work trends continue to influence office space demand nationally, though Las Vegas has been more resilient than many major metros. The market's concentration of small and mid-size businesses, many of which require in-person operations, has insulated Las Vegas from the severe demand destruction experienced in tech-heavy markets like San Francisco and Seattle. However, borrowers should underwrite conservatively on future tenant demand and account for the possibility of further space-per-employee reduction.
Submarket divergence is the most significant risk factor in Las Vegas office lending. The gap between the Southwest (7.6% vacancy) and Central East (approximately 18.5% vacancy) demonstrates that location selection dramatically impacts investment outcomes. Lenders differentiate pricing by submarket, and borrowers should expect materially different terms depending on where the property is located.
Lease rollover concentration can create income cliffs for office properties. If a major tenant representing 30% or more of the building's rent expires during the loan term, lenders will either reduce proceeds or require rollover reserves. Proactive lease management and renewal negotiation well ahead of expiration dates protect both the investment and the financing.
Capital expenditure requirements for office properties are typically higher than for other commercial property types. Tenant improvement allowances of $20 to $60 per square foot, building system upgrades, and common area renovations require ongoing capital investment that reduces distributable cash flow. Lenders evaluate the property's capital reserve plan and may require funded reserve accounts.
For a comprehensive overview of all Las Vegas commercial lending options, visit our Las Vegas commercial loans hub. Contact our team to discuss office financing for your Las Vegas property.
Frequently Asked Questions About Office Loans in Las Vegas
What is the minimum down payment for a Las Vegas office building?
The minimum down payment depends on the loan program and whether the property is owner-occupied or investment. SBA 504 loans for owner-occupied office buildings require just 10% down (90% LTV). Conventional bank loans typically require 25% to 30% down (70% to 75% LTV). CMBS loans require 25% to 35% down (65% to 75% LTV). Life company loans require 35% to 40% down (60% to 65% LTV). Bridge loans for repositioning or lease-up require 30% to 35% down (65% to 70% LTV). The SBA 504 program offers by far the lowest equity requirement for qualifying owner-occupants.
How long does it take to close an office loan in Las Vegas?
Conventional bank office loans in Las Vegas close in 45 to 60 days. CMBS loans take 60 to 90 days. SBA 504 loans require 60 to 90 days due to the dual approval process. Life company loans can take 60 to 90 days due to thorough underwriting. Bridge loans close the fastest at 21 to 30 days. The primary timeline drivers are the commercial appraisal (3 to 5 weeks), environmental assessment (2 to 3 weeks), and tenant estoppel certificate collection (2 to 4 weeks for multi-tenant buildings).
Can I finance a Las Vegas office building with high vacancy?
Financing office buildings with vacancy above 20% to 25% requires bridge or value-add lending programs rather than conventional permanent financing. Bridge lenders evaluate the property based on its as-stabilized value and the feasibility of the lease-up plan. Expect rates of 9.0% to 12.0% with 65% to 70% LTV for vacant or high-vacancy Las Vegas office buildings. The borrower must present a detailed lease-up plan supported by submarket demand data, a competitive rent analysis, and evidence of tenant interest. Once occupancy reaches 85% or higher and income stabilizes, the investor refinances into permanent debt at significantly lower rates.
What types of Las Vegas office properties are easiest to finance?
Medical office buildings with healthcare tenants on long-term leases are the easiest Las Vegas office properties to finance, commanding the lowest rates and highest leverage. Single-tenant NNN-leased office buildings with investment-grade tenants rank second. Stabilized multi-tenant Class A office in the Southwest and Summerlin submarkets with 90%+ occupancy and strong tenant credit rank third. The most difficult office properties to finance are Class B/C buildings in the Central East submarket with high vacancy, short lease terms, and deferred maintenance.
Do Las Vegas office lenders require tenant estoppel certificates?
Yes, virtually all Las Vegas office lenders require tenant estoppel certificates from major tenants (and often all tenants) as a condition of closing. An estoppel certificate is a signed statement from the tenant confirming the terms of their lease, including rent amount, commencement and expiration dates, security deposit, tenant improvement allowances, and any amendments or side agreements. Estoppels protect the lender by verifying that the landlord's representations about lease terms are accurate. Collecting estoppels from multiple tenants can add 2 to 4 weeks to the closing timeline.
How does the Las Vegas office market compare to the national average?
Las Vegas significantly outperforms national office market averages. The metro's vacancy rate of 11.7% at year-end 2025 compares favorably to the national availability rate of 23.7%, a difference of 850 basis points. Net absorption of 378,400 square feet in 2025 was positive while many major metros recorded negative absorption. Average asking rents of $2.42 per square foot full-service gross are competitive for the quality of space available. The Southwest submarket's vacancy of 7.6% is remarkably tight by any standard. These metrics make Las Vegas one of the strongest relative office markets in the country for both investment and lending.