Like many things, industrial real estate in northern Nevada moves with an ebb and flow. There are many factors that influence the market, and if you own, lease or are in the market for either, this is what you need to know about the local industry today.
1. Be very clear about for whom your agent works.
Currently, just a few agencies represent the majority of for-lease space in northern Nevada. Real estate signs in front of these facilities indicate which agent and agency work for the landlord of that property. Understand then, that the name on that sign represents the agent hired to work for the landlord – not for you. The agent and his agency will advocate solely for the interests of the landlord. Anything you say to them whatsoever can and will likely be used against you in any negotiations you may have down the road.
We elaborate on this topic on our post, “The Hidden Trouble with the Landlord’s Real Estate Agent,” and it’s worth reading.
2. There is a new sheriff in town.
Massive sized portfolio sales have occurred and the landlord makeup has drastically changed. This is important to know because the methods and processes to help create maximum leverage for your negotiations have likewise shifted. Your commercial real estate agent will need to be even more creative and tactful to have an impact. What worked well in the past to help create negotiating leverage for the tenant was easily achieved by market and overall economic dynamics. Those days are over. Your agent must use new, more reined strategies to put you in the best negotiating position. Make sure he can clearly state them.
3. Northern Nevada – the mixed market.
Reports have been widely distributed about the markets vacancy shifts, price increases and dwindling inventory. Is any or all of it accurate? Well, kind of. What needs to be understood is that the market now is highly segmented. Some market sizes still offer ample opportunity for securing excellent lease values. Your commercial real estate agent can guide you in this area, but your takeaway needs to be the understanding that a very mixed market means you should expect a specific game plan from your agent before entering the market. Expect your agent to share his thoughts but look for specific data on similar transactions that you can use to help gauge what type of deal the landlord is proposing for your chosen location. This level of backup should come from your agent.
Given this understanding about the current state of industrial real estate in northern Nevada, keep these three tips in mind when it’s time to partner with a local agent. Find an agent who works solely for you and not the landlord. Pick an agent who is experienced, market-aware and knowledgeable – in this highly segmented market, you don’t want to risk working with an amateur. And choose someone who is capable and creative – with proof of both – in creating negotiating leverage for your transaction.