Miller Industrial Properties maintains a comprehensive database of industrial real estate data in northern Nevada, and we share that information quarterly for the benefit of our clients and community.
The first quarter of 2018 yielded the fewest completed industrial real estate transactions in quite some time. The market saw just about one half of the number of deals completed in the first quarter of 2017, and only about one third of deals completed in the third quarter of 2017. Gross absorption is a direct measure of demand, which begs the question – does this dramatic change indicate a cooling of Reno’s overheated industrial real estate market?
From the report:
“Time will tell, but our opinion is not at all. Reading too much into any single quarterly report statistic is like judging the country’s economic health by its stock market values on a daily or even weekly basis. Remember, fluctuations are part of any economic model. Reno’s industrial real estate market velocity, measured by property tours and showings of vacant space, is on a par with recent years and shows little sign of slowing. And, the biggest factor in the market’s continued growth – the willingness of institutional investors to place large amounts of capital resources into northern Nevada – remains strong. Developer partners continue to buy land, develop new projects and build more inventory. As long as the vacancy rate stays in the region of the recent several quarters, we can expect to see a continuation of this trend as our area continues to be one that yields some of the highest investment returns.”
The first Market Advisor of 2018 rounds up major transactions in the first quarter of the year and analyzes overall market performance in terms of percent market vacancy, lease rates, gross and net absorption, and more. Download your free copy now for details on the amount of space that returned to the market in Q1, the current landlord climate, and information on what we’re calling our new normal.