Written by Ken Stark
In Q3 2023, Northern Nevada’s industrial market exhibited resilience with moderate tenant demand and consistent deliveries. Vacancy rates stabilized at 4.6%, a welcome change after dipping below 1% in 2022. Direct asking rents experienced a slight dip of 1.5%, settling at $0.88 NNN for the quarter, but they remained notably elevated by 6% compared to Q3 2022. Impressively, pre-leasing of newly delivered industrial space reached an impressive 86.0%, underscoring the ongoing demand in the Reno region. The quarter also saw net absorption expand to 1.9 million square feet (MSF), contributing to an annual net absorption of 2.9 MSF, while warehouse/distribution vacancy decreased to 4.8%. Moreover, the Reno-Sparks area recently witnessed a substantial surge in industrial properties being offered as subleases, signaling an impending market transformation likely to exert downward pressure on rental rates. Businesses seeking industrial space may anticipate more competitive pricing as this shift unfolds.
Contact Ken Stark (775)825-4400 to negotiate your next lease or lease renewal.