Robust Demand with New Construction in Pre-lease
Reno’s industrial market continued to experience abundant leasing activity in the third quarter of 2021, pushing year-to-date net absorption above 4.8 MSF. Strong tenant demand for warehouse and distribution space this quarter placed significant downward pressure on vacancy, pushing it to an all-time low of 1.8 percent. Sales volume returned to more typical levels after a large spike in industrial investment last quarter. Year-to-date net absorption continues to overshadow newly delivered product, as the supply deficit grows larger. Steady regional investment and massive demand, resulting in an unprecedented low market vacancy rate, should encourage further construction starts in future quarters.
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