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.
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.
