Northern Nevada Industrial Real Estate Back on Pace in Q20

Posted by Thomas Miller, CCIM

miller-industrial-properties-reno-sparks-market-dataWith the second quarter of 2018 behind us, Miller Industrial Properties has released its latest edition of the Market Advisor, our free quarterly report reviewing industrial real estate performance in northern Nevada. The big news this quarter is that activity is back on pace after a slower start to the year, with 45 new transactions completed – a 30% increase from Q1 and a 15% increase on the five-year average.

From the Report

“Northern Nevada’s industrial real estate roller coaster is still chugging up the grade. Generally, demand remained robust in the larger big box sizes where inventory is currently somewhat limited. Likewise, the under 30,000SF size is also active, with availability starting to dwindle.We are seeing owners subdividing their mid-sized (40,000 to 75,000 SF) spaces into smaller increments, as this middle- sized market remains slow in activity. Redemising spaces solely on speculation is something our market has not seen in quite a while, which underscores the sagging middle-sized market and the far more desirable smaller-sized spaces.

Another observation in our last report was the continued willingness of institutional investors to place large amounts of capital resources into northern Nevada. That trend continues, and local industrial real estate agencies are regularly greeting out-of-state investors looking to place fresh resources into northern Nevada. Our local market is considered a lucrative market for investors seeking to grow their portfolios and capture better yields currently offered in capital markets.”

For a complete look at industrial real estate activity in the second quarter, including lease rates, a vacancy analysis, gross and net absorption, a statistical submarket breakdown, significant transactions, and forecasting into the third quarter of 2018, download your free copy of the Market Advisor 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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