Our closest competing industrial market is Sacramento California. A recent market reports states that the Sacramento market has turned the quarter and that may bode well for Northern Nevada. Many of the statistics over the hill to the west mirror Reno’s:
· 5 straight quarters of negative net absorption
· High water mark vacancy rates seem to be dragging the bottom but not increasing
· Rents are at levels comparable to the early 1990’s
· Zero new construction underway
· A surge in inquiries
Where we differ is Sacramento’s Industrial Market is experiencing interest from more than 40 prospects for spaces over 40,000sf. Reno is lagging in that category, but it often does and is usually a laggard in terms of recovery. With that said, it looks like the 1st and 2nd Quarters of 2011 could be promising for Reno especially in light of continued concern over the business climate in California. For more information download the latest Q3 2010 Northern Nevada Industrial Report at our website www.naialliance.com/MarketReports.