Posted by: Dan Oster
775 336 4665As a member of the Industrial Properties Group, Dan has participated in the sales and leasing of a wide variety of Industrial properties from 1,000 to 700,000 sqft in Northern Nevada. Dan's primary goal is to provide unsurpassed customer service to the clients he represents.
Observation #6-Lower Occupancy Cost
When comparing Manufacture space costs in Reno to LA, according to NAI Global’s 2012 Global Market Report, it’s 49% less expensive for the same facility in Reno as it is in LA. The same manufacturing spaces are 7.2% vacant down there while 17.9% vacant here in Reno. So, the cost is half (½) as much, and they are more abundant (on a percentage basis) in Reno. Bulk Warehouse has a similar cost advantage, and it has even higher vacancy differential. Qualitative arguments are difficult to support, but on more than one occasion, I’ve had clients tell me, “a Class C building in Reno is considered Class B in LA”. Clearly, the same space costs less in Reno than LA and is more available – anecdotally, it’s nicer too.