Industrial Real Estate Report for Third Quarter 20160

Posted by Thomas Miller, CCIM

free“E-Commerce Continues to Drive Area Growth” is the headline of our Market Advisor report, a free quarterly publication that reviews local industrial market performance. Miller Industrial Properties makes these reports available at no charge to local news outlets and visitors to the website.

From the report:

“What do many consumers do when they need diapers, dog food, golf clubs or a new pair of shoes? Most of us cue up Google and within a few minutes we’re shopping away. A few clicks and within a few days or less, our items are on our doorstep. It’s a way of life now, but how does this transaction really happen? Well, a lot of these logistics are running through those large warehouses you pass along the freeways of northern Nevada. It’s called e-commerce and that distribution segment continues to drive growth in this region.

“E-commerce distributors tend to be large warehouse users, so when one relocates here or expands, it tends to take large enough chunks of space that the transaction moves the needle on our overall market quarterly absorption and vacancy rates. That was the case again this quarter as Jet.Com secured a new 672,000 SF space in Tahoe Reno Industrial Center. Jet leased a new speculative warehouse that is just now having its roof installed. This represents a 125% growth factor for Jet.Com locally, similar to Zulily.com and chewy.com, which both recently doubled their footprint in the area as well. These large e-commerce transactions are absorbing the new state-of-the-art, Class A, speculative warehouse spaces that continue to expand our industrial real estate market.”

Download your free copy of this quarter’s Market Advisor for more, including quick trends, absorption and vacancy rates, a sub-market breakdown, significant transactions to date, and a fall/early winter forecast. Visit our Resources page now for your free download. Our Market Advisor reports are listed under “2016 Northern Nevada Market Reports.”

 

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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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