A flurry of recent multifamily openings and groundbreakings is slated to bring hundreds of new apartment doors to the Greater Reno-Sparks market.
A decade ago, Tahoe Reno Industrial Center employment was just shy of 2,000. Ten years later, employment tops 15,000, and some of the world’s best-known companies have built world-class facilities at the massive industrial park in the Northern Nevada high desert east of Sparks.
Expanded services at SAMSARG Field in Fernley and Silver Springs Airport could prove beneficial to corporate executives and likely would become a part of marketing efforts for a new industrial park.
Lance Gilman and Don Roger Norman, developers of Tahoe Reno Industrial Center in Storey County, are now eying their next big project, a similar but smaller development in Lyon County at Fernley dubbed, simply, “TRI II.”
The wildly successful Grupo Firme concert in October at Greater Nevada Field represents one part of an overhaul in the business model of the Reno Aces, hastened by a pandemic-canceled baseball season in 2020 and the loss of the popular minor-league soccer team Reno 1868 FC.
Motorists driving by The Park at McCarran development at the eastern end of Mill Street might be a bit awestruck by the magnitude of the massive 995,782-square foot building being erected for a still-undisclosed national tenant.
Renown Health sent a clear message last week to unvaccinated employees: get jabbed or get gone.
While the lingering pandemic continues to disrupt office vacancies in larger markets, Reno-Sparks remains buffered from the work-from-home trend mainly because its average office rents are so much lower than in primary markets.
Twelve months ago, the Northern Nevada retail market was murkier than Virginia Lake. Fast forward to the third quarter of 2021, and it’s clear there’s been more than just a soft rebound as retailers and consumers alike adjusted to pandemic-related restrictions.
In summer of 2011, there were 1,761 licensed real estate agents in Washoe County. A decade later, it's up to 2,791 licensed agents — representing a 58% increase.
In Reno-Sparks, the average rent across all apartment product types and sizes was $1,632 in the third quarter, according to Johnson Perkins Griffin — that's up 21% from the same quarter just two years prior, and a 94% surge from a decade ago.
Investors near and far continue to clamor for Reno-Sparks investment opportunities as they seek opportunities to either enter the market — or diversify their holdings in a flourishing industrial market.
Regional office brokers say the Northern Nevada office sector is nearing a semblance of normalcy, although some companies are still navigating the aftereffects of work from home trends.
A dearth of multifamily deals has professional investors adjusting their strategies and pursuing different avenues to deploy investment funds and gain a foothold in the Reno-Sparks market.
The sheer scope of Victory Logistics District, currently under construction in Fernley, is drawing interest from large national tenants that likely would create a “critical mass” once they begin planting their flags in Northern Nevada.
While big box developers can seemingly do no wrong these days in Northern Nevada, new space for smaller light and flex users has been somewhat of a neglected product class throughout this latest extended round of boom development, industrial developers and brokers say.
Regardless of the many ups-and-downs of 2020 and the unknown risk factors brought on by COVID-19, the Reno-Sparks office market wasn’t pummeled as hard as some expected, brokers said.
Reno Public Market — where Sprouts opens in 2 weeks, and CVS just reopened in a new location — is one of the more high-profile retail developments that has seen vertical movement amid the pandemic. Despite the industry being ravaged throughout most of 2020, optimism in the retail sector abounds.
“We had 90% of this center in LOIs (Letters of Intent), and overnight it went to zero," S3 Development founder Blake Smith sayid with a wry laugh when reflecting on how COVID pumped the brakes a year ago on the much-anticipated Keystone Commons development at Fifth Street and Keystone Avenue.
Billions of dollars of institutional investment money, low interest rates and unparalleled demand to deploy capital out of California and into Nevada has created a perfect storm for owners of multifamily apartment complexes across greater Reno-Sparks.
There is currently 4.2 million square feet of industrial space under construction across greater Reno-Sparks, a figure greater than any high-water mark achieved prior to the recession — yet that space isn’t able to drive down vacancy rates because tenants are queuing up to ink deals on those buildings.
“Home prices can’t keep accelerating at these prices. You just have to hope for a soft letdown instead of a crash," says longtime Reno developer Perry Di Loreto. The NNBW recently spoke with Di Loreto and three other regional homebuilders to discuss the challenges they face in meeting the region’s pressing need for residential housing.
Perhaps lost amid the news of COVID restrictions and vaccine rollouts over the past several weeks, Renown Health in November unveiled a $469 million plan to upgrade both its main hospitals in a project that officials say will "improve care and have a tremendous, positive effect on our local and statewide economy."
“Reno has gone viral — (sales) activity has been phenomenal. When we fully expose properties to the market, we are getting like 15 offers," Ken Blomsterberg, senior managing director of investments with Marcus & Millichap, told the NNBW recently.
IGT's decision to list its 1.2 million sq. ft. campus for lease this month and the recent $3.8 million sale of Harley Davidson's 3-story financial services building in Carson City are the latest examples of companies no longer needing larger-scale office properties to maintain productivity levels and meet customer needs.
Phase 1 of Victory Logistics District in Fernley includes everything south of Interstate 80. The first speculative building will be an 815,000-square-foot distribution facility, with additional buildings of 170,000 square feet and 217,000 square feet planned after that.
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