Posted by: NAI Alliance Industrial Team
775 336 4600
775 336 4600
Wednesday, July 6, 2011
Tuesday, July 5, 2011
Office Properties Group Lease Transactions for June 2011
Posted by: NAI Alliance Office Group 775 336 4600
The Office Properties Group welcomes:
- Muckel Anderson, CPA'S - 300 East Second Street, Reno
- Fusion Contact Centers LLC - 300 East Second Street, Reno
- Relocation Management Resources, Inc. - 4858 Sparks Blvd., Sparks
- Northshore Construction Inc. - 1140 Financial Blvd., Reno
- Western Asbestos - 300 East Second Street, Reno
Tuesday, June 14, 2011
Rail Served Property in Sparks, Nevada
For Lease or Sale
1285 Southern Way, Sparks, NV
This rail served, industrial property is located at the corner of Greg Street and Southern Way in Sparks, Nevada. With 225,515± sf and more than ample power available, this building can accommodate a variety of space needs. Recent renovations to Southern Way include upgraded T-5 lighting, interior paint, new carpeting in offices and updated landscaping.
Property Highlights-
225,515±sf Available (divisible to 55,515±sf)
14 Dock High Doors
7 Rail Doors
1 Drive In Door
2,000 Amps, 480/277 Volts
40’x40’ Column Spacing
24’-26’ Clear Height
Rates from $0.25±/sf/NNN
View Digital Tour
View Loopnet Listing
View Property Brochure
View Site Logistics
1285 Southern Way, Sparks, NV
This rail served, industrial property is located at the corner of Greg Street and Southern Way in Sparks, Nevada. With 225,515± sf and more than ample power available, this building can accommodate a variety of space needs. Recent renovations to Southern Way include upgraded T-5 lighting, interior paint, new carpeting in offices and updated landscaping.
Property Highlights-
225,515±sf Available (divisible to 55,515±sf)
14 Dock High Doors
7 Rail Doors
1 Drive In Door
2,000 Amps, 480/277 Volts
40’x40’ Column Spacing
24’-26’ Clear Height
Rates from $0.25±/sf/NNN
View Digital Tour
View Loopnet Listing
View Property Brochure
View Site Logistics
Monday, June 13, 2011
Flight to Quality in Industrial Spaces
Our market is currently experiencing a 'Flight to Quality'. Class A product is getting most of the attention while the Class B and C product await interest. We are seeing existing tenants taking advantage of low rental rates to upgrade their building, as well as new tenants to our market focus on these same Class A buildings.Over the past few years, deals completed greater the 50,000sf have landed as follows:
2008 – 22 deals completed, 14 went to Class A (63.6%)
2009 – 18 deals completed, 13 went to Class A (72.2%)
2010 – 14 deals completed, 10 went to Class A (71.4%)
2011 YTD – 10 deals competed, 6 went to Class A (60.0%)
If activity stays up, the Class A inventory could tighten quickly, which will bring hope to Class B and C buildings.
Thursday, June 9, 2011
The Office Properties Team Welcomes Chase Whittemore
Posted by: NAI Alliance Office Group 775 336 4600
The Office Properties Group welcomes Chase Whittemore, MS to their team as a new Associate.
Chase will specialize in office leasing, sales, subleasing, tenant and landlord representations, market knowledge and research.
Chase is a third generation Nevadan who graduated from the University of Nevada, with a Bachelor of Arts in Economics. He received his Master of Science in Real Estate and Construction Management from the University of Denver, Daniel's College of Business.
Wednesday, June 1, 2011
Office Properties Group Lease Transactions for May 2011
Posted by: NAI Alliance Office Group 775 336 4600
The Office Properties Group welcomes:
10 Leasing Insights - #10
Posted by: Dave Simonsen
Industrial Specialist
775 336 4667
Dave has more than 21 years experience as a commercial real estate broker. Dave exclusively works with industrial tenants, buyers, developers, landlords and land owners. He has represented companies such as AT&T, Barnes & Noble, Converse, DHL Worldwide, Delta Industries, Hawco Development, Lucent Technologies, IBM, Hopkins Distribution, Nextel, NEC, Sherwin-Williams Company, and UPS.
~10 Leasing Insights ~
Broker tips to better deals
~10 Leasing Insights ~
Broker tips to better deals
Tip # 10
Why Creating Competition Between Landlords Helps You Get a Better Deal (even on renewals)
In the leasing cycle you have significantly more negotiation power prior to signing your deal (or signing your extension) than you do once you are in contract. Creating competition between landlords to win your business is a powerful tool for achieving a better outcome. Face it, your existing LL is betting you don’t want to move at all, so a deal on your existing space only improves when the landlord believes you have viable alternatives. The downside of this tactic is that finding multiple new spaces, negotiating deals and understanding all the costs associated with each one is a lot of work! There is nothing wrong with making your broker work for his or her commission!
BROKER INSIGHT: Landlords are like everyone else, they have different motivations at different times. Let’s assume you employ a broker, request proposals from 3 different landlords and gather the responses. Setting aside the financial factor – one is likely the low cost alternative – other important factors in the deal will demonstrate the LL’s motivation to sign a lease with you. One LL may offer more free rent up front in return for a higher face rate. Another LL may offer a low rate for you to take the space “As-Is”. The final LL may give you 3 or 5 year options with a great TI allowance. Each LL is looking for both a way to differentiate their space from the others and get the highest price they can out of you. Knowing a LL’s motivation at any given time is one of the most valuable insights a broker can give you.
Last Tip... How Much Space Do You Need?
Click Here to find out more about NAI Alliance's Industrial Team
10 Leasing Insights - Tip #9
Posted by: Michael Nevis, CCIMIndustrial Specialist
775 336 4623
Mike has specialized in industrial properties since 2004. His leasing assignments included over 4MM square feet of institutional bulk and flex industrial projects. In addition, he participated in over 700,000 square feet of Build to Suit projects on behalf of Landlords and Tenants. Mike’s clients have included: USAA Real Estate Company, Bentall Kennedy, McMorgan and Company, Scannell Properties, Latitude Management, Washington Capital Management, REEF, ING Clarion, Trex Company, and Archbrook Laguna.
~10 Leasing Insights ~
Broker tips to better deals
Tip #9
How Much Space Do You Need?
One of the first questions a real estate broker asks any prospective tenant is, “How many square feet are you looking for?” There are many different ways to approach this question:
• Competitive Analysis – How much space does your competition occupy?
• Budgetary Analysis – Decide how much you can afford and shop for the best space in that price range.
• Demand Analysis – Identify the primary factor driving your requirement for physical space – machines, boxes, employees – and calculate how much space you need.
• Strategic Analysis – How much space will your fully realized business model require?
Try approaching this question from a variety of perspectives to arrive at the best answer you can forecast. Keep in mind that no forecast is ever perfect. Things change. A 3 – 5 year commitment will be based on the best information you have at the time.
BROKER INSIGHT: When a developer plans a project, they target users in a given size range and design the building accordingly. In a normal market, the cost of the project determines the rental rate the owner will accept. A 10,000 SF space in a 30,000 SF Flex Center will likely cost more than a 10,000 SF space in an 80,000 SF Mid-Range Building and much more than 10,000 SF in a 200,000 SF Distribution Building. The foot print in each scenario is the same, but the actual spaces will function much differently. If you involve your broker in the conversation early, he or she should bring insights gained from seeing lots of different types of spaces.
Next Tip.... Why Creating Competition between Landlords Helps You Get a Better Deal
Last Tip... Trade Fixtures vs. Tenant Improvements
Click Here to find out more about NAI Alliance's Industrial Team
Wednesday, May 11, 2011
Second Consecutive Year
For the second consecutive year Scott Shanks, SIOR and Dominic Brunetti, CCIM were named ‘Office Brokers of the Year’ at the Northern Nevada Summit Awards.
Monday, May 9, 2011
NAI Alliance Takes Top Summit Award Honors
Saturday, May 7, 2011 marked the ceremony for the 6th Annual Summit Awards. Both the Office Team and Industrial Team of NAI Alliance took home top awards.
Scott Shanks, SIOR and Dominic Brunetti, CCIM of the NAI Alliance Office Team were named ‘Office Brokers of the Year’. This is the second consecutive year for Shanks and Brunetti to receive this award.
Scott Shanks, SIOR and Dominic Brunetti, CCIM of the NAI Alliance Office Team were named ‘Office Brokers of the Year’. This is the second consecutive year for Shanks and Brunetti to receive this award.
J. Michael Hoeck, SIOR; Dave Simonsen, CCIM, SIOR; Dan Oster; and Paul Perkins, CCIM, SIOR of the NAI Alliance Industrial Team were recognized for the ‘Largest Single Sale Transaction of the Year’.
Honorees were selected based on commercial real estate transactions completed in 2010. The Summit Awards are hosted by Commercial Real Estate Women (CREW), National Association of Industrial and Office Professionals (NAIOP), & Certified Commercial Investment Members (CCIM) to recognize northern Nevada professionals who have excelled in their respective fields of commercial real estate.
Thursday, May 5, 2011
First Quarter 2011 Office Market Update
775 336 4600
Activity breeds activity and it continues to slowly and steadily increase. Most people report this good news to inbound companies such as Brightpoint North America and Benco Dental Supply which are absorbing hundreds of thousands of square feet within the advanced logistics niche market. On the other hand, we do not hear enough about companies within the business service sectors such as Consolidated Agency Partners, MyNewPlace.com, Sanare, B&B Medical Services, Enel Geothermal and others that are new to our market or expanding locally, creating an economic impact, diversifying the economy and absorbing office space.
Ending 2010 with a decreasing overall vacancy rate of 17.84%, the office market continues to improve with a total gross absorption of 29,625 square feet, netting positive absorption of 8,889 square feet end of Q1 2011 and a reduction in vacancy to 17.73%. Although we continue to see the “flight to quality” or image upgrade of local tenants, we are seeing more and more inbound activity from our neighboring states.
From a building owner’s perspective, let’s not get too bullish. Specific submarkets within Northern Nevada seem to be leading the front from a standpoint of improving quicker. The South Meadows, or often referred to South Reno, and Downtown Submarkets are leading the trend accounting for over 100,000 square feet of gross absorption year over year; a continuation of our flight to quality theory. That said, the Northern Nevada office market still bears approximately 300,000 square feet of Class A and Class B vacancy that would require absorption before Class A (or otherwise) speculative construction would be warranted. Therefore, rents continue to lag behind Q1’s positive absorption results remaining flat within their respective categories.
As mentioned last quarter, we are taking baby steps towards a recovery in the office market. Lingering state legislation and global trends will continue to be the burden or the boost necessary to create the jobs required to have an effect on the Northern Nevada office market.
Tuesday, May 3, 2011
9070 Double Diamond Parkway - For Sale and/or Lease
Posted by: NAI Alliance Office Group 775 336 4600
The Office Properties Group along with the Investment Properties Group is pleased to announce a New Exclusive Sale/Lease Listing for 9070 Double Diamond Parkway in Reno, Nevada. The Office Building is 4,160 square feet.
Office Property for Sale - 175 Salomon Circle, Sparks
Posted by: NAI Alliance Office Group 775 336 4600The Office Properties Group along with the Investment Properties Group is pleased to announce a New Exclusive Sale Listing for 175 Salomon Circle in Sparks, Nevada. The Office Building is 17,640 square feet and is 100% occupied. The Sale Price is $2,650,000.
Office Properties Group Lease Transactions for April 2011
Posted by: NAI Alliance Office Group 775 336 4600
The Office Properties Group welcomes:
Wednesday, April 6, 2011
New Property Listing for Sale and/or Lease
Posted by: NAI Alliance Office Group 775 336 4600
The Office Properties Group is pleased to announce a New Property Listing for Sale and/or Lease:
- 6130 Plumas Street, Reno, Nevada - 10,222 square feet available. Property for Sale at $1,700,000. Available for Lease all or part at $1.00/psf for the first year on a five year lease pending tenant improvements.
Office Properties Group Lease Transactions for March 2011
Posted by: NAI Alliance Office Group 775 336 4600
The Office Properties Group welcomes:
- Chrysalis - 5595 Equity Avenue, Suite 400, Reno
- Avisen Securities - 6880 South McCarran Blvd., Reno
- Ormat Technologies, Inc. - 6225 Neil Road, Suite 100, 200,201, 203 & 300, Reno
- Professional Billing Services - 800 South Meadows Parkway, Suite 500, Reno
- Online Techstores.com - 10381 Double R Blvd., Reno
- My New Place - 300 East Second Street, Suite 1310, Reno
- Curves - 2261 Pyramid Way, Suite 8, Sparks
- Muzea Consulting Services - 9650 Gateway Drive, Suite 100, Reno
- Alliance Home Health Services - 1380 Greg Street, Suite 207, Sparks
Wednesday, March 30, 2011
Mixed Signals Point to a Market Bottom
Posted by: Morgan Walsh Multi-Family Specialist 775 336 4646 mwalsh@naialliance.com
Morgan Walsh is a commercial broker with 20 years experience in investment sales, multifamily and specialty sales, representing buyers and sellers, institutional and private developers in market rate apartment sales, mixed-use residential devepment and the development of affordable housing projects.
Owners, buyers and investors are carefully watching the spring lease-up in Reno for signs that the apartment market bottom has been reached. Market bottoms show a very characteristic pattern-- low sales activity, high bid/ask spreads, negative sentiment widely shared, little new construction, slow absorption, flat rents and little investor interest. Market turns, however, occur unpredictably because they begin when conditions look a lot like the past six months. The period 2008-2010 saw falling occupancy, then falling rents, followed by flat rents and another dip in occupancy, and another dip in rents. Job loss, double-up of tenants, tenants leaving the region, and the rapid expansion of the single-family rental market are critical factors in apartment demand, and the large property owners have reacted by adjusting rents to demand, qualification criteria to the recession tenant, and marketing to a labor force which must reduce housing cost.
In 2011, Class A and B properties have achieved normal occupancy (with some exceptions of distressed property or owners unprepared to adjust). In many cases, utilities have been passed through to tenants in whole or part, and major, new construction has stopped. This spring, those owners will begin raising rents. If successful, the value and attractiveness of their properties as investments will sharply diverge from the rental market segment still struggling with occupancy, declining rents and values.
The Class C apartment market is suffering a dramatic loss of value from three sources—sharply reduced demand for property in location or condition deemed difficult to rent, finance, manage and maintain; falling rents with 7-8% of additional rent reductions required to achieve stabilized occupancy above 85%; and occupancy by tenants most vulnerable to further declines in income and job loss. To the extent these property have been over-leveraged, with debt service levels predicated on high occupancy and rising rents, the risk of distress and default is high and properties have been liquidated at a fraction of their stabilized value.
Meanwhile, the shadow market for single-family rentals continues to grow (10% per year and likely to continue for 3-5 years) but the median landlord for such property is increasingly a savvy investor, not a distressed small investor, so the tenant selection, leasing, property management and maintenance of this housing stock is increasingly sophisticated and able, pushing the housing cost to rent a home up, especially in attractive submarkets. The net effect for rental tenants is a small gap between the high-end apartment and the attractive house, so the tenant seeking convenience will lean toward the well-managed apartment property. Finally, the net cost for move-in is now clearly in favor of the apartment property and will likely continue to grow.
2011 will bring two interesting effects. First, the Class A and B markets will strengthen profitability and gain market share in rental housing. Class C properties will find the rent level needed to maintain normal occupancy, de-leverage as quickly as possible or re-leverage at a lower value under a new owner, but no appreciable increase in Class C property value will occur until jobs return. Many low-end properties will change hands this year, as occurs at the bottom of every recession, with a new owner group bringing capital and expertise to exploit the property’s full potential. Traditionally, Reno’s opportunistic owners have bought and held. This time, we may see a significant fraction who stabilize the property and then exit for a new opportunity.
Financing remains exceptionally affordable, although underwriting has never been more demanding for borrowers and their collateral. We expect favorable financing to remain in place through the end of 2011. Apartment expense levels are highly manageable, with a soft market in property coverage, competitive vendors and owner’s high attentive to cost reduction. Fuel remains the wild card and could ripple into a major headache for apartment owners, as added expenses and reduced demand for tenants whose commute becomes too expensive. Further job loss is likely to affect the Class C market early and hard, and remains the most likely probable negative factor affecting apartment operations in 2011.
Tuesday, March 29, 2011
775 336 4600
A college friend of mine who is the managing partner of a major commercial real estate brokerage firm in the Bay Area expressed they are seeing drastic increases in lease rates and effective rents. In addition, I've talked to some other Bay Area brokers who said tenant bidding wars are back. Although the real estate cycles in the Silicon Valley recover faster, it's still a positive sign for commercial real estate brokers in Northern Nevada. This will have a beneficial impact on Reno and Sparks.
Monday, March 14, 2011
10 Leasing I sights - Tip #8
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.
~10 Leasing Insights ~
Broker tips to better deals
Tip # 8
Trade Fixtures vs. Tenant Improvements
The shell of a building (floor, roof, walls and basic systems like heat) are often called the envelope. Everything inside the envelope falls into one of two categories – Trade Fixtures or Tenant Improvements. Tenant Improvements (TIs) include the office space, restrooms or any other generic improvements to a building that any future tenant will typically utilize. Trade Fixtures are the improvements specific to a user’s business. These might include ovens in a commercial kitchen or machines in a factory. By law, as soon as something gets permanently attached to the envelope, it becomes a part of the building and is owned by the landlord – unless it’s a Trade Fixture which remains the tenant’s personal property.
BROKER INSIGHT: Nothing in life is always black or white. The line between TIs and Trade Fixtures is no exception. If a standard user needs 5 -10% office improvements in a warehouse, and you need 25%, 50% or 75%, the question of who pays for the excess build-out in what proportion will make or break a deal. In practice, a variety of factors may include, tenant’s credit, market condition, LL’s cash position and many others, determine who pays for TIs. Often finding a building with the required improvements already in place will go a long way towards getting a functional space for your business at a price you can afford.
Next Tip.... How Much Space Do You Need?
Last Tip... Representation
Click Here to find out more about NAI Alliance's Industrial Team
Wednesday, March 9, 2011
NAI Closes Pfizer Sale
On February 17th, the NAI Alliance industrial team closed on the sale of 1025 Sandhill Road. Brightpoint, Inc purchased the 263,924sf building from Pfizer Inc for $11,500,000. This deal makes a positive impact on the Reno/Sparks Industrial market and is the largest industrial user sale completed in the past 2 years. NAI represented Pfizer Inc and Jones Lang LaSalle represented Brightpoint, Inc.
If you have any questions on Industrial Real Estate in Northern Nevada, please give us a call at 775.336.4600.
NAI Alliance Industrial Team Signs 3.5M Square Feet
The 3.5MM square feet of listings Michael Nevis, CCIM has signed since joining NAI include 201 Ireland, Greg Street Commerce Park, Sierra Commerce Park, Southwest Commerce Park and 104 acres of land in the Tahoe-Reno Industrial Center.
201 Ireland
257,400SF Available
Spaces starting from 117,000sf
257,400SF Available
Spaces starting from 117,000sf
Sierra Commerce Park
475,282SF Available
Spaces starting from 25,508sf
475,282SF Available
Spaces starting from 25,508sf
Greg Street Commerce Park
24,288SF Available
Spaces starting from 4,608sf
24,288SF Available
Spaces starting from 4,608sf
TRIC Land
104 Acres Available
Build-to-Suit sites starting
from 300,000sf
104 Acres Available
Build-to-Suit sites starting
from 300,000sf
We are getting bigger to help you better! If you have any questions on Industrial Real Estate in Northern Nevada, please give us a call at 775.336.4600.
Michael Nevis, CCIM Joins NAI Alliance
This year brings us our newest Vice President. Michael Nevis, CCIM has joined J. Michael Hoeck, SIOR, Dave Simonsen, CCIM, SIOR and Dan Oster making the NAI Alliance industrial properties team the largest in Northern Nevada. Nevis has represented some of the largest names in industrial real estate and brings over 3.5MM square feet of institutional leasing assignments to NAI. Mike is a board member for the Juvenile Diabetes Research Foundation and involved in numerous civic organizations.
We are getting bigger to help you better! If you have any questions on Industrial Real Estate in Northern Nevada, please give us a call at 775.336.4600.
We are getting bigger to help you better! If you have any questions on Industrial Real Estate in Northern Nevada, please give us a call at 775.336.4600.
2011 Brings a New Office Location
The NAI Alliance industrial properties team has an active start to the New Year. 2011 has brought a new office, an addition to the team, new listings and the largest transaction the industrial market has seen in over two years.
As of January 1st, NAI is downtown in the Bank of America building. We have expanded our office and moved into the heart of Reno. Our new address is:50 West Liberty Street
4th Floor West Tower
Reno, NV 89501
You can still reach us by phone at 775-336-4600 or Find us online at http://www.naialliance.com/.
If you have any questions regarding Industrial Real Estate in Northern Nevada please give us a call at 775.336.4600.
Thursday, March 3, 2011
10 Leasing Insights - Tip #7
Posted by: J. Michael Hoeck, SIORIndustrial Specialist
775 336 4621
Mike began specializing in industrial brokerage with Colliers International in 1999, and in May 2005, joined Alliance Commercial as a Partner and as Vice President of its Industrial Properties Group. In May of 2007 Alliance Commercial became NAI Alliance and Mr. Hoeck became a Senior Vice President.
~10 Leasing Insights ~
Broker tips to better deals
Tip # 7
Representation (why choosing an agent to represent your interests helps)
Can you think of a single complex task you got 100% right the first time around? Sure, it gets done, but by the 10th time through it gets done much better (and quicker), and by the 100th time you’ve worked through almost every eventuality. The challenge in representing yourself in lease negotiations is that you only do it every 1 – 5 years. Typically, your landlord is likely more practiced and has an information advantage based on their experience as well. What’s a tenant to do???? You can hire a broker to represent your interests in the transaction. A broker (or better yet a team of brokers) typically has the experience from seeing lots of deals, and they can often avoid pitfalls you might not have thought to address.
BROKER INSIGHT: When a tenant is clearly represented by a broker, and there is a trust between those two parties, deals which are outside the formal Commercial Leasing Market can get done. If the perfect space for a tenant is somehow in a grey area (say it won’t be vacant for another 3 months), but a broker knows the tenant will protect them absent a landlord’s listing agreement, maybe a better deal gets done that otherwise wouldn’t have. These grey area deals can be great. They can also be a disaster. Without a broker you really trust, it would be difficult to know the difference.
Next Tip.... Trade Fixtures vs. Tenant Improvements
Last Tip... Option to Purchase
Click Here to find out more about NAI Alliance's Industrial Team
Tuesday, March 1, 2011
Office Properties Group Lease Transactions for February 2011
Posted by: NAI Alliance Office Group
775 336 4600
The Office Properties Group welcomes:
- Prism NV, LLC - 100 Washington Street, Lower Level Suite 80, Reno
- Kautz Environmental Consultants - 1140 Financial, Suite 100, Reno
- SOS Staffing Services - 394 East Moana Lane, Suite B-27, Reno
Thursday, February 24, 2011
Wednesday, February 16, 2011
Exclusive Property Listing In Downtown Reno
Posted by: NAI Alliance Office Group
775 336 4600
The property is a total of 118,741 square feet and currently has 21,965 square feet of space available for lease.
Tuesday, February 8, 2011
Fourth Quarter 2010 Office Market Update
Posted by: Dominic Brunetti, CCIM
Vice President
NAI Alliance Office Group
775 336 4600
Reno/Sparks
We heard it again last week from a business colleague in the telco sector; every time it feels like the overall health of the market is improving; a national disaster, political eruption, or other news worthy event impedes momentum and causes for a retreat of attitude and the effect of hesitation to trickle back into Northern Nevada. After a surprisingly active December, do we dare hold our breath as activity continues to increase?
Ending 2009 with a record high overall vacancy rate of more than 20%, the office market is beginning to see positive activity ending 2010 at 17.84%. Most of the activity has been internally driven, with upgrades in space classification being optimized as prices continue to trade at ten-year lows. The Downtown submarket has recently seen a good deal of activity as more businesses are attracted to the revitalization of Downtown Reno and the amenities offered. Overall pricing continues to be stagnant, but this should improve as vacancy declines due to no new construction in place or planned.
The activity producing most benefit is that of local expansions and new business to our community. Notable transactions for the quarter included leases by Western Title Company (10,228 sf), Delphi Asset Management (5,524 sf), Greater Nevada Credit Union (5,400 sf) and Stifel Nicolaus & Company (5,117 sf). The quarter over quarter total office vacancy rate decreased slightly from 18.42% to 17.84%. This reflects the lowest overall vacancy rate since 2006.
Although conditions are looking more favorable, building owners are continuing to be aggressive with low rental rates and sale prices to fill buildings. The market will need to experience a few more quarters of declining vacancy before landlords firm up rents. The median asking rents for Class A office space was $1.58 per square foot, Full Service, while median asking rents for Class B and Class C office space ranged between $1.20 and $1.30, Full Service. Effective rates are negotiated 10% to 25% below asking rates.
The pattern of stabilization we are experiencing is approximately 1 year old. Yes, in its infancy, but we remain optimistic. The end of 2010 brought us into a positive net absorption of just over 1,000 square feet. The first positive within this data set since 2006. Baby steps indeed, but as no new speculative construction was built or planned and the build-to-suits for Williams Gaming and Customs Immigration Services are complete, we look to cautiously develop this trend through 2011.
Thursday, February 3, 2011
Office Groups New Property Listings
Posted by: NAI Alliance Office Group
775 336 4600
The Office Properties Group is pleased to announce New Property Listings:
- US Bank Building - 1 East Liberty Street, Reno, Nevada - 30,910 SF Available for Lease
- 8610 Technology Way, Reno, Nevada - 2,577 SF or 3,905 SF or 6,482 SF Available for Sale
- 911 East Second Street, Carson City, NV - 400 t0 8,256 SF Available for Lease
- The McCarran Mansion - 401 Court Street, Reno, NV - 7,000 SF Available for Lease
- 427 Ridge Street, Reno, NV - 1,555 SF Available for Lease
Monday, January 31, 2011
10 Leasing Insights - Tip #5
Posted by: Dave Simonsen
Industrial Specialist
775 336 4667
Dave has more than 21 years experience as a commercial real estate broker. Dave exclusively works with industrial tenants, buyers, developers, landlords and land owners. He has represented companies such as AT&T, Barnes & Noble, Converse, DHL Worldwide, Delta Industries, Hawco Development, Lucent Technologies, IBM, Hopkins Distribution, Nextel, NEC, Sherwin-Williams Company, and UPS.
~10 Leasing Insights ~
Broker tips to better deals
~10 Leasing Insights ~
Broker tips to better deals
Tip # 5
Personal Guarantees
When you start a small business, it often feels like it owns you. Your financial health and that of your business are initially one and the same. As the years pass and the business grows, it can eventually take on a financial life of its own. From the other perspective, landlords give legal control over an asset (often worth a million dollars or more) in return for a promise from you to pay rent. They want to know they will get paid from the entity or its owner. So when and how can you avoid Personally Guaranteeing your lease?
BROKER INSIGHT: If you’re a startup company, you likely won’t avoid a Personal Guarantee. What you can try to do is structure an out after a period of time to limit your personal exposure. If this is your second lease or you have some operating history, phasing out the personal guarantee over time becomes much more likely. An alternative to a Personal Guarantee, particularly when a new venture is well funded, is to offer a surety bond or a letter of credit guaranteeing the lease. This will tie up some of your operating capital, but is often preferable to a Personal Guarantee. Recognize that as with individuals, businesses build credit worthiness over time. If you have to give a Personal Guarantee on your first deal, work toward building the business credit to the point you won’t have to in the future.
Next Tip.... Option to Purchase
Last Tip... You Covet Your Neighbor's Space
Click Here to find out more about NAI Alliance's Industrial Team
Friday, January 28, 2011
Thursday, January 20, 2011
Wednesday, January 5, 2011
Office Properties Group Sale Transaction for December 2010
775 336 4600
The Office Properties Group welcomes:
- CFCP, LLC who purchased 5.57 acres of river front land located in downtown Reno.
Office Properties Group Lease Transactions for December 2010
775 336 4600
The Office Properties Group welcomes:
- Nevada Mining Association - 201 West Liberty Street, Suite 300, Reno
- MBA Reno-Randen L. Brown, Ltd., - 6151 Lakeside Drive, Reno
- Enel Geothermal, LLC - 1755 East Plumb Lane, Suite 151, 153, 155, & 159, Reno
- Contemporary Services Corporation - 2321 Pyramid Way, Suite B, Sparks
- American Family Insurance - 294 East Moana Lane, Suite 700, Reno
- Associated Mortgage Center, Inc. - 294 East Moana Lane, Suite 25, Reno
Thursday, December 2, 2010
Office Properties Group Sale Transaction for November 2010
775 336 4600
The Office Properties Group welcomes:
- TAJ Management Company, LLC who purchased Suite 703 at Damonte Ranch Parkway, Reno
Office Properties Group Lease Transactions for November 2010
775 336 4600
The Office Properties Group welcomes:
- Stifel, Nicolaus & Company Incorporated - 50 West Liberty, Suite 100, Reno
- McClintock & Hall, Ltd. - 2281 Pyramid Way, Suite 9 & 10, Reno
- Greater Nevada Credit Union - 9790 Gateway Drive, Suite 120, Reno
- Consolidated Agency Partners, Inc. - 190 West Huffaker, Suite 402, Reno
- B & B Medical Services Inc. - 5355 Capital Court, Suite 101, Reno
- Aesthetic Restoration Dental Laboratory - 2281 Pyramid Way, Suite 12A & Suite 13, Sparks
- Alliance DUI School & Counseling - 1201 Terminal Way, Suite 200, Reno
Monday, November 29, 2010
10 Leasing Insights - Tip # 4
Posted by: Paul Perkins, CCIM, SIOR
Senior Vice President
Industrial Properties Group
Industrial Properties Group
A graduate of California State University, Northridge, Paul has more than 40 years of experience as a real estate broker. He relocated to Reno in 1978, and since 1986 has specialized in the leasing and sale of industrial properties. In May of 2005, Paul joined 26 of his former Colliers colleagues in founding Alliance Commercial Real Estate Services.
~10 Leasing Insights ~
Broker tips to better deals
Tip # 4
You Covet Your Neighbor's Space:
When you pay your lease on time every month and want to grow, landlords are usually all too happy to give you more space. Typically 50% growth (or more) in square footage will compel a LL to tear up your existing lease for a new one in larger space within their building or portfolio. If they have the space, that’s easy. Let’s imagine a more complex case. You’re moving into a space, your business is growing and the adjacent unit is vacant. You’d like to wait until your actual business supports the extra space before you commit to it, but you’re nervous the owner may lease the unit to someone else. What can you do?
BROKER INSIGHT: You can ask for a Right of First Refusal (ROFR) on the space which would give you the opportunity to match any qualified offer presented on the space in question. The owner may be reluctant to grant one citing the effort and expense they must go to in order to generate an offer for you to match and possibly lose an otherwise qualified prospect. In that case you might structure a “Staged Take Down” of the adjoining space which would contractually bind you to take the expansion space after a given period of time (say a year or two). The LL may ask for some type of consideration for holding that space off the market for you. If the adjoining space is occupied, and you want the first crack at it when that tenant’s lease expires, you can ask for a Right of First Offer (ROFO) which would obligate the owner to offer it to you prior to taking it to the market. Be aware that ROFR, ROFO or other options are usually “one time” exercises – either use them or lose them.
Next Tip.... Personal Guarantees
Last Tip... Beneficial Occupancy vs. Free Rent
Click Here to find out more about NAI Alliance's Industrial Team
Monday, November 22, 2010
10 Leasing Insights - Tip #3
Posted by: J. Michael Hoeck, SIORIndustrial Specialist
775 336 4621
Mike began specializing in industrial brokerage with Colliers International in 1999, and in May 2005, joined Alliance Commercial as a Partner and as Vice President of its Industrial Properties Group. In May of 2007 Alliance Commercial became NAI Alliance and Mr. Hoeck became a Senior Vice President.
~10 Leasing Insights ~
Broker tips to better deals
Tip # 3
Beneficial Occupancy vs. Free Rent:
It’s common knowledge that you can often get a few months free to offset the cash flow crunch associated with a move. Landlords look at this period in one of two ways, Beneficial Occupancy or a Free Rent Period. ‘Beneficial Occupancy’ is the period of time before a lease starts when the tenant has access to the building to prepare it for operations -- think of installing the machinery associated with a manufacturing process or the racking for a distribution use. The language in a lease covering this period often specifically excludes normal business operations during this ‘Make Ready’ time. ‘Free Rent’ periods are less restrictive – you can be in full operation and are usually responsible for just the operating expenses during this time.
Tenants don’t often understand the difference – they think a discount is a discount by whatever name you call it! Some LLs look at it that way too. Some don’t, so over the term of a lease, there can be a significant savings associated with starting your lease the right way.
BROKER INSIGHT: Delineating Beneficial Occupancy separate from a free rent period can benefit a tenant because a landlord might be willing to grant two months Beneficial Occupancy and two months Free Rent but might be less willing to grant four months of free rent. If the intent is to use some of the free rent period for setup, separating the terms lowers the “free” rent requested. Definitions do make a difference and can result in a better deal for the tenant if properly defined and outlined in the contract.
Next Week.... You Covet Your Neighbor's Space
Last Week... Fixed Rate Options
Click Here to find out more about NAI Alliance's Industrial Team
Thursday, November 18, 2010
Railroad Dilemma
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.
CSCMP and the UP Railroad hosted a great tour of the Sparks Rail Yard yesterday. It was awesome to drive through the trench and think about the positive impact that it has had on Downtown Reno. One troubling revelation, however, was the fact it costs Northern Nevada Rail users LESS to have rail cars traveling East to West pass through Reno/Sparks, get unloaded in Roseville, and then trucked back to Reno/Sparks! Rail rates are a bit of a "Chicken or the Egg" type problem. Rates don't go down until volume increases. Volume won't increase until rates go down!!! If this topic is of interest to you, please drop me a line. We'll see if there is anything we can do together to solve this one.
Wednesday, November 17, 2010
10 Leasing Insights - Tip #2
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.
~10 Leasing Insights ~
Broker tips to better deals
Tip # 2
Fixed Rate Options:
Options in leases almost always favor tenants. Landlords know this all too well. In the negotiation process, tenants often ask for them and LLs often agree to them in order to get the deal. Fixed rate options, where an additional time period at an agreed upon price at the tenant’s sole election are built into the lease, are particularly difficult for a LL to accept. Why? When leases roll over and an option exists, tenants only exercise them when they are in their own favor. LLs know that when a lease rolls and the option rate is higher than the market, tenants usually shop for an alternative space and will renegotiate. When the option price is lower than the market rate, tenants hold the LL’s feet to the fire.
BROKER INSIGHT: Fixed rate options are great…if you can get one. Success will depend upon how much power you have in the negotiation or how much you are willing to pay from day one. If you want to control your lease expense farther into the future, consider extending the term of the lease. LLs almost always perceive a longer term favorably. You may use a longer term to win other concession in the deal.
Next Week.... Beneficial Occupancy vs. Free Rent
Last Week... NNN vs. Gross Leases
Click Here to find out more about NAI Alliance's Industrial Team
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