Miller Industrial Properties is the longest-standing boutique industrial real estate firm in northern Nevada, and we spend a lot of time gathering and maintaining accurate market data pertaining to the local market. Every quarter, we compile that data into an easy-to-understand snapshot and then we make it available to everyone, at no charge. Our Market Advisor for the third quarter of 2019 is now available, and it’s worth the read. At first brush, the quarter comes off a little dull – low gross absorption, low net absorption, low return to market, low number of lease transactions. But digging a little deeper gives some much-needed perspective.
A “Dull” Quarter Yields A Balanced Market
From the report:
For a more detailed view, market trends need to be considered. Trends tend to put dry data point facts into improved overall perspectives for a greater sense of true conditions. Northern Nevada, on average, has absorbed about 1.5 million SF of vacant space each quarter. To get a better understanding of that statistic, the next time you’re watching a football game, check out the field from the sidelines to the end zones closely; it’s pretty big! Imagine a typical business working in that large space with employees, machinery, lighting, products being trucked in and shipped out, an administrative staff in the office, and a few managers. Now line up over 30 of those fields full of businesses side by side – that’s what northern Nevada brings into our community each quarter on average. This picture should give you a far better perspective of the scale of our local industrial market. And while we only filled 25 football fields this quarter, even a “dull” quarter has produced quite an impact on the real estate market and our community in general.
The report includes details regarding significant lease transactions, a submarket breakdown, gross absorption, a vacancy analysis, market velocity, and landlord motivation, as well as an early winter forecast. Again, this is a free report available for download to anyone. If you’re considering buying, leasing, or selling industrial real estate in northern Nevada, this is the kind of information you need. Download your free copy today.