Posted by: Dan OsterIndustrial Specialist
775 336 4665
As 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.
No comments:
Post a Comment