Healthy Commercial Space Vacancy Leads to More Construction

Commercial growth is leading to more construction for new and expanding companies.

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More restaurant chains are moving to Northern Nevada for the first time, with franchises like Jersey Mike’s, Firehouse Subs and Dutch Bros. Coffee moving to town recently. Damon Kreizenbeck is the franchise owner of Firehouse Subs. He opened his first location in Carson City about four years ago, added a second location in Sparks, less than one year ago. His Damonte Ranch location is set to open in the spring of 2020, near the Walmart.

“We’ve tried to be in this center for a while and then things worked out in our way and we’re happy to get into south Reno,” Kreizenbeck said.

Kreizenbeck says he wants to open even more locations in the future. He says Northwest Reno is a good place for his restaurant, and growth in places like Spanish Springs and the North Valleys could also increase demand.

“This will be our first one in Reno but we still want to expand and get to those areas where the population asks for more food,” Kreizenbeck said.

Many chains have either moved to the Truckee Meadows over the past several years or expanded. Another Dutch Bros. Coffee is under construction at the Village at Double Diamond. Panera Bread is expected to open three locations in Reno and Sparks, at the University of Nevada, Damonte Ranch and the Outlets at Legends. Kreizenbeck says new franchises are exciting to residents.

“It’s something new and everybody wants to try something new,” Kreizenbeck said. “When we first opened in Carson City, we were absolutely bombarded and it was great to see and same with Sparks.”

Experts say commercial real estate is doing better than it has in the last 15 years. Dominic Brunetti is a partner at Dickson Commercial Group. He says it has taken more than a decade for the market to recover from the Great Recession.

Over-building in 2002, three, four, five created vacancy rates that were astronomical, 20 percent plus,” Brunetti said. “It’s taken us a good decade to climb out of that hole.”

Brunetti says a big reason for the strong market is because more companies are moving into town. The vacancy rate is less than 10 percent. He says the demand is also creating more need for construction of new commercial space, mostly for professional services and tech start-ups that are expanding.

“Some of those that have been around for three, four, five years are starting to grow and expand and takedown space,” Brunetti said.”We’ve got a lot of medical work going on,” Kevin Weiske, Partner of Moody Weiske Contractors said. “We’re seeing a lot of industrial growth, obviously, but on a smaller scale it’s growing also.”Weiske says his company is working on eight different renovation projects and has plans to build two shopping centers from the ground up in early 2020. He says business is growing at a steady pace that is more sustainable for the future.

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Thursday, November 14th, 2019, 7:05 PM PST by Paul Nelson – Ktvn.com (2 news)

source: https://www.ktvn.com/story/41324540/healthy-commercial-space-vacancy-leads-to-more-construction