Low Vacancy, Robust Demand, and Rising Rents Spur Development Pipeline
In a year marked by intense tenant demand, incredibly low available inventory, and astronomical rent growth, Reno’s industrial market posted a record year of growth despite glaring logistical hurdles relating to labor, land, and steel. Fourth quarter net absorption of nearly 888,000 square feet pushed annual net absorption to roughly 5.7 MSF in 2021, the highest the market has seen in five years. Vacancy continued its dramatic downward plunge as the market ended the year at a new low point of 1.1 percent. With the ongoing swell of households into Northern Nevada signaling a bolstered labor market, further signs of relief are in the future as construction costs begin to moderate and material delays begin to improve.
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