The fourth quarter industrial market saw a few larger transactions, including Marmot Mountain relocating from Sparks to North Reno taking down 271,832 square feet in Dermody Properties new Logisticenter. Better World Books leased 128,000 square feet and Allstate Warehousing leased 84,000 square feet. There were 9 transactions in the mid-size range totaling 380,000 square feet, which is affirmation that even the small to mid-size businesses are showing signs of recovery, not just the big box national tenants.
Looking forward, the market should expect to see a continuation of expansion with approximately 1.5 million square feet currently under construction with delivery dates in the first half of 2016. Developer Avenue 55 has a 410,000 square foot project. Panattoni is building a 707,000 square foot project and Dermody Properties has 704,000 square feet under construction. Other owner-user companies such as AquaMetals and AZZ Galvanizing have buildings near completion in the Tahoe-Reno Industrial Center that will add to the total market size.
One notable purchase transaction in the fourth quarter of 2015 was the rapidly expanding Cascade Designs, a manufacturer of outdoor adventure gear, who bought an 86,800 sf. building located at 11500 Production Drive for $5,678,000, or $65/sf. This was an expansion to their other current 87,500 square foot facility in North Valleys on Lear Blvd, which they had leased Q1, 2015. Fourth quarter absorption totaled 985,610 square feet, putting vacancy at 9.7% to finish off the year.
View the full report from the Northern Nevada Business Weekly here.]]>
February 1, 2016February 1, 2016
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