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. 

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.

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. 

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  

Ground Breaking Ceremony for First New Constuction in N. Nevada in Nearly 2 years Mon. February 10 - 1 p.m.

Lake Washington Partners, a commercial real estate firm owning, managing and developing properties across the United States, will break ground Feb. 10 for phased development of 1.5 million-square-feet of distribution/warehouse space within Spanish Springs Business Center. Seattle area-based Lake Washington Partners purchased the 66-acre site from Spanish Springs Limited Partnership in October, 2013.

The ceremony is Monday Feb. 10 at 1 pm at 450 Ingenuity Ave. with representatives of Spanish Springs Limited Partnership, including Hawco Properties, the Economic Development Authority of Western Nevada (EDAWN) and Washoe County in attendance.

With an anticipated completion in late 2014, the first phase will be a 750,000-square-foot distribution center for SanMar Corporation – the first new construction in Northern Nevada in nearly 2 years, making it a fantastic story in terms of positive economic activities impacting the area.

The NAI Alliance Industrial Property Group of Dave Simonsen, SIOR, CCIM, J. Michael Hoeck, SIOR, and Michael Nevis, CCIM, represented the owner of the land, Spanish Springs Limited Partnership, in the transaction. Representatives from NAI Alliance will be in attendance at the event and will be available for additional comment.