Another Average First Quarter Performance in Northern Nevada0

Posted by Thomas Miller, CCIM

market-advisor-2019-miller-industrial-propertiesIndustrial real estate in northern Nevada for the first quarter of 2019 makes for uninspired reading in the Market Advisor, our quarterly report. Fortunately, we did have useful observations to share about market performance in Reno-Sparks as a whole.

From the Report

“In Q1 2019, we recorded a modest gross absorption of 1.3 million sf; this is vacant space taken by tenants. The market also had quite a healthy return to market of 1.4 million sf; this is vacated space that is now coming available to lease again (move outs). We also had new construction of 388,000 sf added to the available space this quarter. The net result is almost a push, or a balance, between the incoming and outgoing, with a slight negative net absorption of about 100,000 sf. There was a slight shift of vacancy from 7.44% to 7.97%, versus our five-year average of 8.01%. All together, you could say we had kind of an average quarter all around. Zoom out to a 10,000 foot look and, well, yawn.”

The report continues:

“Reno ranks second in the west, just behind Denver, for having the largest sized industrial real estate market as compared to the population. That means we’re small but we have a massive industrial market. Reno-Sparks has a significant set of unique advantages that draws distributors and manufacturers, and those features likely won’t be changing anytime soon. In other words, if you wanted any further proof
that our early founders were right when they selected our area logo, here it is. We truly are the biggest little city.”

The 2019 first quarter issue also features a current quarter market analysis that includes vacancy, historic vacancy, historic gross and net absorption, current quarter net absorption analysis, a submarket statistic breakdown, and significant transactions. It also covers construction and offers a spring 2019 forecast. Download your free copy now.

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About the Author

Thomas Miller, CCIM

Thomas Miller, CCIM is the president and broker of Miller Industrial Properties in Reno, Nevada. He has worked in industrial real estate since 1991, with 15 years of previous experience designing and building industrial warehousing and manufacturing facilities in the northern Nevada market. Contact Tom at tom@mipnv.com or 775-742-9891.

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