Thursday, November 5, 2015

Pros and Cons to Short or Long Leases

By Jason Brucella

If you're getting ready to lease a commercial space, finding the right property or unit is just the first step in the process. To get the most benefits out of the right space or property, you need the right lease agreement in place between you and your landlord and that means deciding whether a short or long-term lease is the better option for your business.

So which is best for companies?

There is no single answer. Short and long-term leases both have distinct benefits and drawbacks that you need to be aware of before you begin lease discussions with a prospective landlord.

Advantages and Disadvantages of a Short-Term Lease?  Advantages and Disadvantages of a Long-Term Lease? Click here to find out. 

Thursday, October 15, 2015

Third Quarter 2015 Industrial Market Report

The NAI Alliance Industrial Properties Group has released its Q3 Industrial Market Report.

Overview: 

Our market maintained steady activity during the third quarter. Large deals missing in the first and second quarters reemerged in the third quarter. In addition, three new speculative buildings were completed. On a negative note, two large subleases were added to the market.  The quarter began with a vacancy of 8.7% and ended slightly less at 8.4% so the new activity outweighed the new construction added to the market.  Vacancy changes dramatically when one factors in the sublease space. The second largest building in our market, Kmart’s former distribution facility of 1,557,709sf is now available for sublease. When counting sublease space, overall market vacancy is 11.2%. In summary, market activity continues to be strong.  General sentiment amongst brokers and developers remains highly positive and we anticipate a strong finish to the year.

Monday, July 20, 2015

Second Quarter 2Q15 Industrial Market Report

The NAI Alliance Industrial Properties Group has released its 2Q15 Industrial Market Report.

Market Summary:

Second quarter was another quarter of strong gross and net absorption.  Boosting numbers this quarter was the roof completion on a large build to suit transaction of 770,650sf for Petco in the Stead area.  This one transaction accounted for 40% of the month’s gross absorption and 72% of the month’s net absorption.  Aside from Petco, the quarter was positive with tenants continuing to slowly absorb existing product.  Another factor skewing numbers this quarter was the addition to market of the KTR speculative 566,875 square-foot facility in the Tahoe Reno Industrial Center.  Adding this property to the available inventory resulted in an increase in vacancy rate despite strong absorption. The quarter began with a vacancy rate of 8.6% and finished with a vacancy of 8.8% (8.7% excluding sublease space).  Depending upon demand, this could continue as more speculative buildings are completed in the third and fourth quarters.

To continue reading, click here for the 2Q15 Industrial Market Report.

Wednesday, June 10, 2015

Panattoni launches first phase of largest spec project in the region’s history!

June 4, 2015

Located in the North Valleys submarket near the intersection of Lemmon Valley Dr. & HWY 395, the North Valley Commerce Center will offer 3 buildings totaling over 1.4MM square feet.

The project, which is expected to break ground in late June on phase-one includes a 707,660sf building, the largest spec project ever built in the region. This speaks volumes regarding the confidence Panattoni has in Northern Nevada’s continued economic growth.

Reno/Sparks is headed for explosive growth, according to Mike Kazmierski, CEO and president of the Economic Development Authority of Western Nevada (EDAWN).  “Even if Tesla went away, we’d still see more growth than we’ve ever seen”, he said.

Our location and business cost advantages continue to attract large e-commerce, manufacturing and distribution companies like Amazon, Zulilly, Apple, Petco, Switch and Tesla – as well as many other companies large and small.

Market rents have steadily increased and inventory is getting tighter.   The scope of this project signifies that our economy is on the upswing and the momentum is expected to continue.



Tuesday, May 19, 2015

DON’T HESITATE IN A LANDLORD’S MARKET!

Posted: May 19, 2015 

The Reno/Sparks Industrial Market is bustling with activity.  Tenants who are taking time to decide on space, or pushing back too hard on lease terms are losing out. 

It’s a Landlord’s market!  If you find a space that fits your needs, don’t hesitate! 


Thursday, May 14, 2015

Tesla’s gigafactory in Nevada will be essential in the tech company’s plan for a new line of storage batteries

Posted: May 14, 2015

Tesla debuts a new line up of batteries it calls, Tesla Energy.  The batteries include storage solutions for residential, business and utilities.

The Powerwall home battery is one step closer to the promise of easily accessible off-the-grid power. Solar's big weakness is in generating energy during the evenings and cloudy weather, an issue that storage batteries can help remedy.  Just like cellphone technology circumvented and ousted landlines, batteries can eventually replace power lines, according to Musk.

The new Powerwall home battery is priced at $3,000 and $3,500 depending on capacity.

"A normal household can mount this in their garage or the outside wall of their house", Musk said. "It's designed to work with solar systems right off the box."

In addition to their synergy with solar installations, nine Powerwalls also can be stacked together for folks interested in more energy options or want to further reduce their reliance on the grid.  The battery can now be reserved at the Tesla website and the first deliveries are expected to arrive in the summer.

Read the article in its entirety HERE or at www.RJG.com

Follow Jason Hidalgo, Northern Nevada's guru on Tesla, technology, industry and events that shape our economy. 


Tuesday, May 12, 2015

Industrial Construction is the highest it’s been in Reno, NV since 2006.

With 1.6 million square feet of speculative construction, planned or currently under construction, Reno looks to have a record breaking year adding new state-of-the-art facilities to our industrial base. 

Currently under construction, Panattoni is building a 200,000sf facility in the North Valleys, along with Dermody’s 224,640sf and 402,320sf buildings.  While KTR is building 566,785sf in the Tahoe Reno Industrial Center (TRIC).   Conco recently completed a 300,000sf expansion in TRIC, with another 678,750sf building planned.

Also planned, is an additional 707,660sf facility in the North Valleys, a 855,000sf building west of town, and two buildings in TRIC of 694,640sf and 80,000sf.

Build-to-Suit construction is also underway – with Tesla’s initial 1,000,000sf in TRIC (by Portofino), and PetCo’s 771,000sf in the North Valleys (by Panattoni).   Battery Systems recently occupied a 200,000sf new built-to-suit facility in TRIC.

Construction fever has certainly hit the Reno area, and with it brings the promise of utilizing our abundant labor force – providing new job opportunities and boosting our economy. 




Thursday, April 23, 2015

First Quarter 2015 Retail Market Report

The NAI Alliance Retail Property Group has released its 1Q15 Retail Market Report.

Market Summary:

The Northern Nevada economic climate continues showing signs of improvement into the first quarter. The current overall vacancy level in Reno/Sparks decreased to 14.76% from the previous quarter of 16.59% and is down from the previous year of 17.29% for the same period.

The anchor space vacancy decreased to 11.68%. In-Line shops decreased in vacancy to 19.14% this quarter from 20.28% last quarter. This is the first time the in-line vacancy rate has dropped below 20% in almost 6 years (since Q2 2009). Total net absorption for this quarter was 264,066 square feet, while the gross absorption was 298,936 square feet.

To continue reading, click here for the 1Q15 Retail Market Report.

Wednesday, April 15, 2015

NAI Alliance Wins Multiple Awards at the 10th Annual Summit Awards Event 2015

((Reno, NV) The NAI Alliance offices in Reno and Carson City received seven awards at the 10th Annual Summit Awards recognizing the top brokers in the commercial real estate industry. 


The prestigious Broker of the Decade Award was given to the broker in each sector who has won the award most over the past ten years. J. Michael Hoeck, SIOR, Senior Vice President/Principal of the Reno Industrial Properties Group was named the Industrial Broker of the Decade, and Andie Wilson, CCIM, Owner of NAI Alliance Carson City was named the Generalist Broker of the Decade. These distinguishments are only awarded once every 10 years.

NAI Alliance Senior Vice President/Principal of Retail Properties, Kelly Bland, won the 2014 award for Retail Broker of the Year for the third year in a row.

NAI Alliance Industrial Properties Group, J. Michael Hoeck, SIOR; Michael Nevis, CCIM; Dave Simonsen, CCIM, SIOR; and Steve Kucera, CCIM, received three awards - the 2014 Largest Single Sale Transaction, 2014 Industrial Brokers of the Year, and the 2014 Overall Brokers of the Year award.

Alejandra Avila of NAI Alliance Carson City received the 2014 Extra Mile award. This award is given each year to a commercial real estate practitioner who has gone above and beyond in their industry.

The Summit Awards of Northern Nevada recognizes notable achievements in the commercial real estate sectors. The Summit Awards is the only awards program of its kind in Northern Nevada to encourage and recognize distinguished commercial agents, brokers, property managers, developers and projects. The annual Summit Awards are sponsored by the Northern Nevada chapters of CCIM, CREW, and NAIOP.

2Q15 First Quarter Industrial Market Report

First Quarter 2015
Industrial Market Report

A usual slow start to the year -

Once again, the northern Nevada industrial market took a breather in the first quarter. Historically, Q1 is a slow quarter as companies are just gearing up for annual moves. Decisions to close operations happen quicker than decisions to move and expand sometimes resulting in negative absorption in the first quarter. With few closures and still good market activity, Q1 2015 exhibited stronger numbers than prior year first quarters. Brokers, developers and contractors are all busy and overall market activity remains strong. It appears 2015 will be another banner year for the northern Nevada industrial market.....

To continue reading -  Click Here For Q1 2015 Industrial Market Report  

Tuesday, November 4, 2014

3rd Quarter 2014 Retail Market Report

The NAI Alliance Retail Properties Group has released its Q3 2014 Northern Nevada Retail Market Report.  Here are some of the salient points from the report:

  • Overall vacancy rates increased to 16.76%
  • Anchor space vacancy increased slightly to 13.96%
  • In-line shops decreased in vacancy to 20.75%
  • There were 17 tenants moving into space in Q3 2014 resulting in 53,221 square feet of new leases.
  • In this quarter, net absorption was -37,411 square feet and gross absorption was 65,635 square feet. 
  • There were two significant sales in the third quarter. The Del Monte Center and a set of retail properties on the NEC of Sparks Blvd. and Los Altos. Find more details in our quarterly market report.
Please click here to download the entire report.

Wednesday, August 20, 2014

2Q14 Retail Market Report

The NAI Alliance Retail Properties Group has released its Q2 2014 Northern Nevada Retail Market Report.  Here are some of the salient points from the report:
  • Overall vacancy rates decreased slightly to 16.57%
  • Anchor space vacancy is currently at 13.09%
  • In-line shops decreased in vacancy to 21.52%
  • There were 48 tenants moving into space in Q2 2014 resulting in 247,843 square feet of new leases.
  • In this quarter, net absorption was 109,604 square feet and gross absorption was 247,843 square feet. 
  • There were two significant sales in the second quarter. The Texaco at 1365 Baring Blvd. and a small retail strip center at 1145 N. McCarran Blvd. Find more details in our quarterly market report.
Please click here to download the entire report.

Tuesday, May 6, 2014

Retail Market Report Q1 2014

The Northern Nevada retail vacancy rates continued to decline during the first quarter of 2014. 
  • Overall vacancy rate: 17.29%
  • Anchor space vacancy rate: 13.78%.
  • In-Line shops vacancy rate: 22.30% 
  • Net absorption: 76,960 SF
  • Gross absorption: 144,319 SF

Friday, April 25, 2014

NAI Alliance Wins Three Categories at the Annual Summit Awards 2014 Event


Kelly Bland with NAI Alliance Reno Retail Properties group, members of the NAI Alliance Reno Industrial Properties group, and Andie Wilson, CCIM of NAI Alliance Carson City received coveted awards at the 9th Annual Summit Awards Event held Friday, April 18th at the Eldorado Hotel Casino Convention Center. 

NAI Alliance Principal/Senior Vice President of Retail Properties, Kelly Bland, won the 2013 award for Retail Broker of the Year for the second year in a row!  The Broker of the year award is based on total production from a broker in the retail industry.  Some of Mr. Bland’s transactions in 2013 included the renewal of TJ Maxx, DB Shoes and Michael’s stores at Firecreek Crossing located at 4821-4871 Kietzke Lane; the sale of the former K-Mart building located at 4855 Summit Ridge; and the new CarMax Development along South Virginia Street in South Reno.

Also, the NAI Alliance Industrial Property brokers received the award for the 2013 Largest Single Sale Transaction.  J. Michael Hoeck, SIOR; Michael Nevis, CCIM; Dave Simonsen, CCIM, SIOR; and Dan Oster, SIOR of NAI Alliance Reno represented the seller, PanCal Fernley LLC, in the investment sale of a 337,500sf distribution warehouse.  The building is fully leased to Trex Company, Inc.    

And finally, Andie Wilson, CCIM, Principal/Broker-Salesperson of NAI Alliance Carson City received the 2013 award for Generalist of the Year. Based in Carson City, this is the third time Ms. Wilson has won this award. A generalist doesn’t specialize in any one area of commercial brokerage, instead participating in transactions across the board: industrial, retail, office, land, and investment.
           
The Summit Awards of Northern Nevada recognizes notable achievements in the commercial real estate sector from 2013. The Summit Awards is the only awards program of its kind in Northern Nevada to encourage and recognize distinguished commercial agents, brokers, property managers, developers and projects.  The annual Summit Awards are sponsored by the Northern Nevada chapters of CCIM, CREW, and NAIOP.

Friday, February 7, 2014

Ground Breaking Ceremony for First New Constuction in N. Nevada in Nearly 2 years Mon. February 10 - 1 p.m.

Lake Washington Partners, a commercial real estate firm owning, managing and developing properties across the United States, will break ground Feb. 10 for phased development of 1.5 million-square-feet of distribution/warehouse space within Spanish Springs Business Center. Seattle area-based Lake Washington Partners purchased the 66-acre site from Spanish Springs Limited Partnership in October, 2013.

The ceremony is Monday Feb. 10 at 1 pm at 450 Ingenuity Ave. with representatives of Spanish Springs Limited Partnership, including Hawco Properties, the Economic Development Authority of Western Nevada (EDAWN) and Washoe County in attendance.

With an anticipated completion in late 2014, the first phase will be a 750,000-square-foot distribution center for SanMar Corporation – the first new construction in Northern Nevada in nearly 2 years, making it a fantastic story in terms of positive economic activities impacting the area.

The NAI Alliance Industrial Property Group of Dave Simonsen, SIOR, CCIM, J. Michael Hoeck, SIOR, and Michael Nevis, CCIM, represented the owner of the land, Spanish Springs Limited Partnership, in the transaction. Representatives from NAI Alliance will be in attendance at the event and will be available for additional comment.

Monday, January 20, 2014

NAI Alliance Releases Q4 2013 Office Market Report

A good end to the year for the Northern Nevada Office Market.  The office market in Northern Nevada continued to improve at a rate not seen since the start of the recession in Q3 and Q4 2013.  Here are a few of the highlights from the report.
  • Q4 absorbtion nearly quadrupled quarter over quarter measures
  • Net absorbtion in 2013 was over 5x the 2012 net absorbtion at 202,244 square feet
  • Overall vacancy is down to 13.64%
  • Quality spaces in Class A buildings are at a premium, resulting in developers planning speculative building projects
  • Notable transactions:
  • Custom Ink, 50,000 square feet in the Reno Tech Center (100% occupancy)
  • LP Insurance, 22,000 square feet at Park Center Tower in Downtown (close to 100% occupancy 
 Click here to view the entire market report.

Tuesday, January 14, 2014

NAI Alliance Retail Group Releases Q4 2013 Market Report

The NAI Alliance Retail Properties Group has released its Q4 2013 Northern Nevada Retail Market Report.  Here are some of the salient points from the report:
  • Overall vacancy rates decreased slightly to 17.45%
  • Anchor space vacancy is currently at 13.79%
  • In-line shops decreased in vacancy to 22.8%
  • There were 23 tenants moving into space in Q4 2013 resulting in 74,406 square feet of new leases.
  • In 2013, net absorbtion was 117,873 square feet and gross absorbtion was 465,798 square feet. 
  • There were 4 significant investment sales in the second half of 2013, including the Sparks Galleria which sold for $26.2 Million.
Please click here to download the entire report.

Monday, January 6, 2014

NAI Alliance Industrial Team Releases Q4 2013 Market Report

The fourth quarter of 2013 continued the momentum from Q3 for the Industrial Commercial Real Estate market in Northern Nevada. It was a great close of the year as we look towards 2014.

Here are a few quick points. Further details are in the PDF.
  • Vacancy rates are below 10% for the first time since Q1 2008 – 9.1%
    • A balanced Northern Nevada market is in the 8-10% range
  • Gross absorbtion was 89% higher than Q4 2012
  • Net absorbtion was 526% higher (not a typo) than Q4 2012 and 768% higher (also not a typo) than the 5 year average.
  • There were 41 transactions in the quarter with an average size of 41,000 SF per transaction.
  • Only one developer is grading on a 399,000 SF
    • Might cause the market to tighten with tenant inability to wait for ground up development.
 All of this means that we’re still on the path to recovery and have viable optimism for 2014.

Click here to download the entire report.

Wednesday, December 18, 2013

NAI Alliance Represents Both Sides in Sale of 61,000sf Building in Reno

Another good win continuing the momentum heading into 2014 as the NAI Alliance Industrial Properties Group of Dave Simonsen, Senior Vice President, SIOR, CCIM, J. Michael Hoeck, Senior Vice President, SIOR, Michael Nevis, Senior Vice President, CCIM, and Steve Kucera, Industrial Specialist recently completed the sale of the 61,152 square foot manufacturing facility at 400 Western Road in Reno, Nevada. The stand alone facility is situated over 5.0 acres of land.

NAI Alliance’s Dan Oster, Senior Vice President, SIOR represented the new owners of the building, ECO Windows. ECO Windows is relocating to the new, larger facility from their current location in Sparks, NV. 

The industrial market has seen a great deal of activity in the last two quarters of 2013.  Cautiously optimistic on the recovery, as we like to say, but very encouraging activity as we close 2013 and look forward to 2014.

NAI Alliance Office Team Secures Exclusive Listing for One East Liberty Street

Scott Shanks SIOR, along with his partner Dominic Brunetti, CCIM have secured the exclusive lease listing for One East Liberty Street in downtown Reno, NV. The six-story downtown professional office building is 96,832 square feet. The lease price is $1.65 up to $1.90 per square foot.

The owners of One East Liberty have renovation plans for the 96,832 square foot building currently in progress. The owners have commenced on a $1.8 Million renovation project to modernize the building over the course of the 6-month project. The $750,000 Phase I ‘Green” renovation started in mid-August and was completed in early-October helping the building achieve 97% energy efficiency.

The in-progress Phase II plans call for lobby expansion, new building finishes, elevator enhancements, and new landscaping that is expected to be completed by December 2013. 


With construction beginning in January 2014, Phase III includes an addition of a new 1,800 square foot retail building facing Virginia Street for a coffee and quick food establishment. Phase III will also feature a large landscaped outdoor seating/plaza area for tenants of One East Liberty and other downtown patrons.

Wednesday, December 11, 2013

NAI Alliance Industrial Properties Group Secures 60,000 SF Lease in the Reno Aircenter

The industrial market in Northern Nevada continues to see a positive uptick in 2013.

The NAI Alliance Industrial Properties Group of J. Michael Hoeck, Senior Vice President, SIOR, Dave Simonsen, Senior Vice President, SIOR, CCIM, Michael Nevis, Senior Vice President, CCIM, and Steve Kucera Industrial Specialist has recently secured a 10-year, 60,000 square foot lease for Winzer Corporation at 4795 Longley Lane in Reno, NV.

The space is part of the 13MM square foot portfolio IndCor operates in Reno.

Winzer Corporation has been in Northern Nevada since 2004. Winzer opened a regional distribution center in Sparks, NV to expedite services to their west coast franchises and their customers.

The move to a new 60,000 square foot location provides additional space to accommodate their growth. The facility will also feature enhanced automation and fulfillment solutions as well as storefront capabilities.

Friday, December 6, 2013

NAI Alliance Secures Exclusive Lease for Dunkin' Donuts - Sites Being Sought

Dunkin' Donuts is coming to Northern Nevada and they're looking to move quickly. Mark Keyzers, Senior Vice President of the NAI Alliance Retail Properties Group recently completed the exclusive lease agreement with Dunkin’ Donuts.

Dunkin’ Donuts is currently seeking sites for the nine new store locations from existing land and property owners throughout Northern Nevada. With this agreement between HT2 Franchising and Dunkin’ Donuts, all franchise opportunities are sold out in Reno.

For more information on locations and planning, please contact Mark Keyzers, the exclusive leasing agent, at (775) 336-4663 for details and requirements.

Wednesday, November 27, 2013

NAI Alliance Industrial Group Receives National Recognition at SIOR Conference

The NAI Alliance Industrial Properties Group was recognized by Panattoni Development for significant transaction volume at the Society of Industrial and Office Realtors® (SIOR) Fall World Conference in Chicago, IL held October 24-26.

Among nationwide lease transactions by SIOR professionals for Panattoni, the NAI Alliance Industrial Team ranked second overall with the 337,500 square foot lease to Trex Company at 2375 East Newlands Drive in Fernley, NV. NAI Alliance also brokered the sale of this property, which placed them third nationwide on a square footage basis for a property sale.

SIOR designees in the NAI Alliance Industrial Properties Group are J. Michael Hoeck, Senior Vice President, Principal and Dave Simonsen, Senior Vice President, Principal.

Wednesday, November 20, 2013

NAI Alliance Releases Q3 2013 Office Market Report

The office market in Q3 2013 in Northern Nevada was exceptional.  Signs in the quarter were that not only are new businesses moving to the area, many local businesses are expanding in Northern Nevada.  While there are no promises that this will continue, there are activity indicators that we are moving ever-closer to at least a hint of normalcy as the rebound conitnues.

Below are a few of the key points regarding the Northern Nevada office market in Q3:
  • In Q3, there was 105,000 square feet of space absorbed by local economic growth
    • This number almost quadrupled absorbtion quarter over quarter
    • This number nearly tripled absorbtion in all of 2012
  • The overall vacancy rate is down to 13.9%· 
  • The South Meadows submarket led with 46,000 net square feet   
  • The downtown submarket absorbed nearly 30,000 net square feet
Scott Shanks, SVP/Principal, SIOR and Dominic Brunetti, SVP/Principal, CCIM prepared the report on the office market in Northern Nevada.  

To read the entire report, click here.

Tuesday, November 5, 2013

NAI Alliance Office Group Secures Lease for Pacific Business Centers in Downtown Reno

A new entry into downtown Reno.  Palo Alto-based Pacific Business Centers (PBC) has secured a 13,000 square foot lease with One East Liberty, LLC, for their recently announced expansion into Northern Nevada. This new expansion will be Pacific Business Centers’ 17th location, and first in Nevada.

The NAI Alliance Office Properties Group, Scott Shanks, Senior Vice President, SIOR, and Dominic Brunetti, Senior Vice President, CCIM, represented the landlord, One East Liberty, LLC in the transaction. 

PBC is one of the undisputed market leaders for on-demand office space in Northern California. PBC tends to cater to local businesses such as attorneys, consultants, start-ups, and small to medium size professional firms. 

PBC will be occupying the entire 6th floor, 13,000 square feet, of One East Liberty. The signature tenant remains U.S. Bank. Tenant improvements and space renovations on the 6th floor have been completed and the official opening for PBC is November 1st. 

PBC had been performing due diligence on the Northern Nevada market for over five (5) years before finally making the decision. 

Click here to read the entire press release.

Thursday, October 31, 2013

Q3 2013 Retail Market Report Now Available

Recovery is continuing, however, history says we need to persevere and be prepared for a long run.  A very slight increase in vacancy (.02%) in Q3 2013 is still nearly a full percentage point lower than Q2 2012.   

The anchor space vacancy is currently at 13.52%. In-Line shops have increased in vacancy to 23.46% this quarter from 23.42% last quarter. Total net absorption for this quarter was a negative 7,162 square feet, while the gross absorption was 68,391 square feet.

New tenant locations and new investments are happening.  Positive news for tenants is that there are good rates on good spaces available.

Many of the underlying statistics are improving. Housing value and consumer spending are trending higher, housing sales are increasing, while unemployment has dropped significantly. These numbers allude to an improving local economy.

Things are picking up, but we must be patient in the retail sector. 

To read the entire report click here.

Tuesday, October 8, 2013

Q3 Industrial Market Report Now Available

The third quarter of 2013 in the industrial market was exceptional here in Northern Nevada. The absorption of industrial space in the Reno-Sparks market in the third quarter — 1.8 million square feet — was more than five times greater than absorption in the same quarter last year. 

Bargains have nearly disappeared as the vacancy rate in industrial properties stands at 10.5 percent.  That's nearly a 2% drop in vacancy rates.  There were 9 transactions of more than 95,000 square feet.

So while we don't want to get too carried away, 2013 has continued to reward our cautious optimism in the industrial market.  The fourth quarter is a bit more concerning with governmental activity creating some skepticism on when and where to grow.  But right now, we will continue our optimism for Northern Nevada and the rebound we're seeing.  Good for the economy.  Good for jobs.  Good for Northern Nevada.
 
Click here to download the entire report.

You can also view an article published by the Reno Gazette Journal on the news by clicking here.

Wednesday, September 4, 2013

NAI Alliance Office Q2 2013 Market Report Available

There has been a good deal of buzz regarding Industrial and Retail Commercial Real Estate space in Northern Nevada. Now it's time to shed some light on the Office Market.  Net absorbtion was positive, but a little slower than Q1.  There are a number of transactions we know about on the horizon, so we're anticipating a good report in Q3.  Again the phrase cautious optimism in a slow, but continually upward trending, recovery.

Of interest in the report is the American Care Act (ACA) enrollment beginning October 1.  Small businesses in the service industries are in agreement that hiring full-time employees is a risk only a few are willing to take.

Here are some of the highlights of the report: 
  • The decelerated, yet positive, net absorbtion does not accurately depict the activity levels in the market.
  • Much of the activity can be attributed to local expansion within service industries
  • Downtown continues to see signs of health at 14.42% vacancy
  • The Meadowood submarket continues to be the stronghold at 12% vacancy
  • There were a total of 34 transactions in Q2
You can read the entire report by clicking here.



Tuesday, September 3, 2013

Myers Industries Moves Back to Sparks Facility - More Jobs to Northern Nevada

On the heels of the announcement of Aragh Group moving to McCarran, NV in the largest user transaction of the year to date, Myers Industries Lawn & Garden recently announced that they are returning to Sparks, NV.


Myers Industries owned the facility at 550 Spice Island - a property that had been brokered by the NAI Alliance Industrial Properties group of J. Michael Hoeck, SIOR, Dave Simonsen, SIOR, CCIM, and Michael Nevis, CCIM.

Myers initially moved out of the building in 2009, but as part of an asset reallocation, decided to move back to the area to get a better stronghold on their western states distribution, particularly in the Pacific Northwest.

Northern Nevada continues to be an attractive option for advanced manufacturing organizations. Skilled workforce, business friendly climate, and proximity and access to the Western United States are just a few of the reasons companies are moving in.

The combination of jobs being created in the next 6 months between Ardagh and Myers totals over 160. A summer of great news with more on the horizon. Fantastic work by the NAI Alliance Industrial Properties Group, EDAWN, and the Governor's Office of Economic Development in helping ensure that the future continues to be trending in a positive manner here in Northern Nevada.

Wednesday, August 28, 2013

NAI Alliance Industrial Team Represents Tenant - Ardagh Group - in Largest User Transaction Thus Far in 2013

Luxembourg-based Ardagh Group recently secured the $11.5 Million purchase of property at 900 Waltham Way, McCarran, NV in the Tahoe Reno Industrial Center. Dave Simonsen, CCIM, SIOR; J. Michael Hoeck, SIOR; and Michael Nevis, CCIM of the NAI Industrial Properties Team represented Ardagh Group in this transaction. 

The purchase includes the acquisition of an existing 330,000 square foot Class A manufacturing facility and two 18 acre parcels on the east and west side of the building for future expansion. Ardagh Group had looked at 37 facilities in three (3) states before deciding on the new location in Northern Nevada. 

The move will bring approximately 140 technical jobs to Northern Nevada throughout the next five years, including 72 jobs within the first six months. In addition to job stimulus for the area, Ardagh will have a total capital investment of close to $80 Million - $20 Million dedicated to building retrofitting and an additional $60 Million for equipment and installation. They’re expecting to produce nearly 3 Million cans per day from the state-of-the-art, advanced manufacturing facility beginning in January 2014. 

Ardagh Group is a global leader in glass and metal packaging solutions for most of the world’s leading food, beverage and consumer brands. Ardagh Group generates $5.5 billion in worldwide sales and produces 32 billion containers annually for such customers as Coca-Cola, ConAgra, InBev and Bumble Bee Foods. The company has operations in 25 countries and employs 18,000 people in more than a hundred facilities. 

The company’s U.S. metal packaging operations are based in Carnegie, Pa. In addition to the new facility in McCarran, NV, the company has facilities in Bloomsburg, PA, Weirton, WV, Conklin, NY, Terminal Island, CA, and the recently announced expansion in Roanoke, VA.

Thursday, August 22, 2013

Industrial Deals Painting a Bright Picture in Northern nevada

Ahead of today's new company announcement by EDAWN, the Northern Nevada Industrial Commercial Real Estate Market has been buzzing for the past few months.  

Published by the Reno Gazette Journal this week was an article focusing on the Industrial market and the millions, yes millions, of square feet that has been occupied this summer.  Dave Simonsen, Senior Vice President, Principal of the NAI Alliance Industrial Properties Group provided much of the commentary for the piece.

The main point is that, currently, companies are looking to expand.  More importantly, they are looking at Northern Nevada as a very attractive option.  A total of 38 transactions were closed in the second quarter of 2013 alone, bringing the vacancy rate down to 12.9%.  Diversified Distribution Services, UTI/Starbucks, Arrow Electronics, and Jacobsen Companies are just a handful of the companies expanding in Northern Nevada.

Today, EDAWN will be announcing a company bringing close to 140 jobs to Northern Nevada, and will follow up on Monday with an announcement of a new company who will inject another 150 jobs to the market.  

Good things are in the air for jobs and new business in Northern Nevada.  Now if somehow we could get out of fire season....

You can view the entire article by the RGJ by clicking here.

Thursday, August 1, 2013

NAI Alliance Q2 2013 Retail Market Report Now Available

The Northern Nevada economic climate is showing signs of improvement, perhaps indicating that the retail vacancy rates may have peaked. The current overall vacancy level in Reno/Sparks declined to 17.54% from the previous quarter of 18.25% and from the previous year of 18.52%. 

The anchor space vacancy is currently at 13.52%. In-Line shops have increased in vacancy to 23.42% this quarter from 23.10% last quarter. Total net absorption for this quarter was 104,226 square feet,
while the gross absorption was 201,501 square feet. 


Click here to read the entire Q2 2013 Retail Market Report from NAI Alliance

Friday, July 19, 2013

The Nevada Legislature in 140 Words - a Social Media Observation

John Sande IV, an attorney and member of Fennemore Craig Jones Vargas’ government relations and transactional practice groups, recently wrote an article on the use of social media in the Nevada Legislature.  Mainly, can policy be debated on Twitter in 140 characters or less?

We all know that many legislators take to social media during campaigning.  It's free, and possibly the best way to continually drip messaging, gain followers (support) and amplify a campaign.  However, now, it goes a step further.  Special interest groups now communicate immediately with legislators and can almost simultaneously speak to their supporters in an effort to engage them to join the conversation.

The #NVLeg has become a popular trending discussion piece between legislators, SIGs, and us perhaps not in the know, but want to be.  In the recent SJR 15 debate, folks took to Twitter to provide commentary during the legislative hearing.  However, some of that information was erroneous.  Egg on face for some people wanting to get the news out fast.

I guess the moral of the story is when it comes to the legislative and political issues, be careful where you get your information before you start RT’ing and sharing what you see. Many people want to jump quick to “scoop” the story in the social media crazy environment. It’s no different than in entertainment, sports, business, etc. 

However, as we know, once you put your stamp on it, whether an RT or a share, you’ve validated it for all your followers and friends for better or worse. And there’s no going back.  #NVLeg

Click here to download the PDF of the article in its entirety - published in the Northern Nevada Business Weekly July 15, 2013.

Monday, July 15, 2013

NAI Alliance Q2 Industrial Market Report Now Available

The past three months have felt like a throwback to the pre-recession busy days of old. Phones are ringing again, tours are taking place and deals are getting done. At the end of last quarter, we were poised to expect a good second quarter and we got it. Over the past 5 years we have been discounting good news with bad news. In 2009 and 2010 the scales were
tilted strongly negative. In 2011 and 2012 the scales were balanced with much of our quarterly market report describing good news being offset by bad news.


Thirty eight transactions were completed in the second quarter of 2013 with a gross absorption total of 1,234,86 square feet (sf). This is higher than prior quarters wherein we were struggling to reach one million sf. The 38 transactions are 12% above the prior three year quarterly average and the 1.23 million sf of gross absorption is 17% greater than the average of 1,055,889 sf. Average deal size was 33,375 sf which was again 11% larger than the three year average.

.....Click here to read the entire report.

Tuesday, July 9, 2013

NAI Global Economic Briefing - Thursday July 11

Please join Dr. Peter Linneman, NAI’s Chief Economist & Jay Olshonsky, NAI Global President July 11, 2013, 12:00 PM – 1:00 PM Eastern for an enlightening briefing on the global economic environment.

Where are we in the recovery? Which markets still hold investment opportunities?  Dr. Linneman will address several topics during this Web conference including:
  • Real Rent Analysis: Which markets are below historical averages?
  • A comparison between this cycle and the 1990s
  • More reasons the Euro will fail
  • How we are repeating Japan’s mistakes
  • An update of capital markets
  • Social Security implications as the boomers retire
 Registration is required for the event.  Please click here for registration instructions and information



Friday, June 7, 2013

Looking Beyond the Price Per Foot in Commercial Realty

Article published in the NNBW "How To Analyze, Buy Commercial Real Estate" special June 3, 2013. Contributed by the NAI Alliance Investment Services Group.

Successfully investing in commercial real estate has never been easy and today’s sophistication and tight margins make this as true as ever. This is true from both the investor and broker standpoint. Many potential investors have typically done quick search, perhaps through a commercial real estate search engine, to find properties that fit their spatial and/or return requirements, drive the properties and search a few comparables, and then try to get the best value based off of the information they were able to gather. 

Is this really the best way to identify CRE opportunities? There are a number of approaches to determining value. A good broker can quickly acquire the same data using the aforementioned methods. In residential real estate, this can be a pretty reliable indicator of value and will typically satisfy the client. However, in commercial real estate, an experienced broker knows that this simplistic approach has its shortcomings as it oftentimes is akin to comparing apples to giraffes. Price per square foot isn’t the only barometer mark for achieving the best value, it’s just one component. 

Savvy brokers know that the most important benefit they can provide a prospective investor is their knowledge of market conditions, their understanding of the client’s needs, and ultimately the ability to marry the two together to achieve the best possible deal. Specific to comps, a per square foot number on a land deal might get us in the ballpark but a per square foot on a leased asset may tell us virtually nothing as market strength, quality of tenant, lease type and length, age and quality of the asset, debt considerations and the seller’s cap rate all play predominantly in assessing an accurate value.

Capitalization rates are one of the primary metrics you hear about when comparing income producing properties. Quite simply, a capitalization rate represents a property’s annual net income divided by the purchase price. It is called a cap rate because the inverse of the percentage is how many years it will take to full capitalize the property based off of the first year’s net income. For example, an investor buys a property at a 10% cap rate, it will take (1/.10) 10 years to capitalize, or pay off, the property. The cap rate is a function of how much return an investor expects for their perceived risk associated with the property. By being active members in the commercial real estate market, good brokers not only know what cap rates have been paid on all current transactions but they are able to qualify the cap rates with an analysis of the physical asset and the asset’s existing and future income stream. This combined with a clear understanding of the client’s goals allow for the establishment of a proper cap rate target for a particular property. 

A quality broker understands all of these aspects and is able to confidently and effectively convey to a client how a particular opportunity is priced against the competition and thus how it may perform in the market over time. Engaging a professional, experienced brokerage firm from the beginning is will best insure identifying the opportunity that best fits the investment goals of a particular buyer. 

In our initial meetings with clients, it is paramount that we go over every aspect of their current and future real estate needs and goals in order to formulate a strategy. Understanding an investor’s profile is one of the key factors in determining what type of properties will be considered. Some example investor profiles are; owner/user, high net individuals, moderate sized investment companies, and institutions. Institutional investors are organizations that control large sums of money for diversified investment in securities, real property and a range of other investment vehicles. Institutional investors include banks, insurance companies, retirement or pension funds, private equity firms, hedge funds, investment advisors and mutual funds, just to name a few. 

In the end, as commercial real estate brokers, we understand that today’s investors don’t select their broker solely by what we do but also because of why they do it. And in Northern Nevada, this is key. Commercial real estate brokerage these days is much more than just answering calls made off of listing signs but now requires a passion for the community and its growth, a real time knowledge of the market at all levels and a genuine and deep understanding of a client’s goals., In doing this, a quality broker can provide the services, options, and preparedness that the client demands. That’s the win-win all clients deserve. 

Tuesday, May 28, 2013

New Local Owners for 1 East Liberty, NAI Alliance Brokers Deal and Maintains Exclusive Lease Listing

Area local, Blake Smith and his investment group have purchased 1 East Liberty (the US Bank Building) and intend to spend $1.6 million to renovate, expand and modernize the 92,000+ sq. ft. building with work planned to begin within the next two weeks. The NAI Alliance Office Properties Group of Scott Shanks, SIOR, Dominic Brunetti, CCIM, and Chase Whittemore, MS, helped broker the sale to Smith and will continue to have the Exclusive Lease Listing for the building.

This is great news in the continued story of downtown revitalization, growth, and continued optimism in Northern Nevada.


You can view the entire release by clicking here.  To read the story published by the RGJ, click here.

KOLO TV also reported the story.



Thursday, May 23, 2013

Office Property Transactions Continue to Pick Up Steam

The NAI Alliance Office Properties Group of Dominic Brunetti, CCIM, Scott Shanks, SIOR and Chase Whittemore, MS have recently closed three new deals. The office market is continuing to show signs of gradual improvement, particularly in the Downtown, South Meadows, and Meadowood submarkets. Here are a few of the most recent transactions by NAI Alliance:
  • California Broadband Cooperative leased nearly 600 square feet of space at 200 S. Virginia. Chase Whittemore, MS, represented the landlord Basin Street Properties. The California Broadband Cooperative’s Digital 395 Middle Mile project proposes to build a new 553-mile, 10 Gbps middle-mile fiber network that would follow U.S. Route 395 between southern and northern California. 
  • Dominic Brunetti, SVP/Principal, closed the sale of an office building at 401 Flint Street. Mr. Brunetti represented the buyer in the transaction. The property at 401 Flint Street is 3,716 square feet in two buildings. 
  • And finally, Immunize Nevada leased 1,600 square feet of office space at 427 Ridge Street. In this transaction, Chase Whittemore, MS, represented both the tenant and the landlord. 
Our immediate future looks bright. Over the past 5 years, our local economy has never been more attractive than it is today. Another shining prospect is private equity investments. As cap rates reach historical lows in major metro markets, real estate investors will search tertiary markets for higher returns.

Overall, Northern Nevada, there are things to smile about. 

Wednesday, May 8, 2013

NAI Alliance Releases Q1 2013 Office Market Report

Driven by California’s outrageous Prop 30, which retroactively raised state income taxes on many individuals in the Golden State, growth in the first quarter of 2013 was more than noticeable. New companies like Rogue Gaming continue to enhance our Downtown economy. Call center and data center activity has remained strong throughout the market. Henry Schein stayed in the market signing a new lease for 75,000 square feet, adding to the proof that Reno is a great small market call center location.

Also new, is San Francisco based Bookkeeper Zoo. The mobile bookkeeping startup opened their national service and data center in South Meadows. This continued level of activity will certainly create more momentum for the Reno Tahoe area as regional companies realize they can take advantage of our competitive taxes, real estate prices, and labor pool.

To read the entire NAI Alliance Q1 2013 Office Market Report, click here.

Thursday, May 2, 2013

NAI Alliance Q1 2013 Retail Market Report Now Available

The Northern Nevada economic climate is showing signs of improvement, perhaps indicating that the retail vacancy rates may have peaked. The current overall vacancy level in Reno/Sparks declined to 17.99% from the previous quarter of 18.52% and 18.60% from the previous year.

The anchor space vacancy is currently at 14.88%. In-Line shops have decreased in vacancy from 23.07% last quarter to 22.62% this quarter. Total net absorption for this quarter was 16,779 square feet. The total gross absorption was 117,700 square feet for this quarter.

Click here to read the entire report.

 

Monday, April 22, 2013

NAI Alliance Wins Three Categories at the Annual Summit Awards 2013 Event

The Retail, Industrial, and Office Properties Teams at NAI Alliance received three coveted awards at the 8th Annual Summit Awards Event held Friday April 19th at the Eldorado Hotel Casino Convention Center.

NAI Alliance Principal/Senior Vice President of Retail Properties, Kelly Bland, won the 2012 award for Retail Broker of the Year. The Broker of the year is based on total production from a broker in the retail industry. Some of Mr. Bland’s transactions in 2012 included TJ MAXX in South Lake Tahoe, and two openings of 99¢ Only Stores, as a landlord and tenant rep at the new store in Sparks at 580 E. Prater Way, and as a tenant rep for the new location at 595 South Virginia in Reno.

The NAI Alliance Industrial Property Team received the 2012 Largest Single Industrial Lease Transaction award. J. Michael Hoeck, SIOR; Michael Nevis, CCIM; Dave Simonsen, CCIM, SIOR; and Dan Oster of NAI Alliance represented the landlord, Panattoni Development Company, and tenant in this transaction and were all in attendance to accept the Award. Trex Company leased a 337,500sf building at 2375 Newlands Road in Fernley NV. Trex Company is the country's largest manufacturer of wood-alternative decking and railing products, marketed under the brand name Trex®.

And finally, the NAI Alliance Office Team received the award for the 2012 Largest Single Office Lease Transaction. Scott Shanks, SIOR; Dominic Brunetti, CCIM; and Chase Whittemore secured the lease of the 75,500sf building at 520 South Rock Boulevard for Henry Schein. Henry Schein employs nearly 400 people in Northern Nevada and this new lease reflects their commitment to the area.

The Summit Awards of Northern Nevada recognizes notable achievements in the commercial real estate sector from 2012 while also looking forward to 2013. The Summit Awards is the only awards program of its kind in Northern Nevada to encourage and recognize distinguished commercial agents, brokers, property managers, developers and projects. The annual Summit Awards are sponsored by the Northern Nevada chapters of CCIM, CREW, and NAIOP.

Congratulations to all the winners! 



NAI Alliance's Dominic Brunetti presents the Retail Broker of the Year Award to Kelly Bland.