The amount of vacant industrial space in the Reno-Sparks area grew by nearly 760,000 square feet in the first half of this year, the first time that net absorption of industrial space declined in two consecutive quarters.
The industrial group of Colliers International in Reno said the industrial vacancy rate stood at 11.6 percent at June 30 compared with 10.4 percent at the end of March.
The upshot? Price reductions such as the tenant who subleased unused space for a whopping 43 percent below his initial lease costs.
"With new vacancies competing with some offerings that have been on the market quite a while, we may see more hardballing by tenants than we anticipated," Colliers said in a report.
Most of the recent activity in industrial leasing involved existing companies in the area moving to new space.
Few new companies have moved in.
Still, Colliers said that the number of inquiries and tours involving companies interested in the area continues to rise, and most of the second quarter's transactions occurred in June.
Just over the horizon, Colliers said, are announcements by some major Fortune 500 companies "household names" in its description who have been scouting sites in northern Nevada.
The largest industrial construction under way is a 408,000-square-foot building developed by DP Partners in South Meadows.
Hopkins Distribution will take 203,000 square feet of that building, moving from about 115,000 square feet in the Dermody Aircenter, Colliers said.
