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. 

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.

To continue reading, click her for the Q3 Industrial Market Report. 

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.

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.

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! 

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. 

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. 

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.

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