The Reno Gazette-Journal Online
Real Estate
Reno € Sparks € Tahoe
The greater Reno/Sparks area has more than 46 million square feet of industrial, office and commercial space plus zoned properties ready for development. In planning for the future, the area continues to develop to satisfy increasing demand in space. Speculative space is available. Improved industrial and business parks offer sites at a wide range of prices, with easy access to existing freeways and close proximity to the Reno/tahoe International Airport.
Zoned, buildable industrial sites are available in Reno/Sparks ranging in price from $1.50 to $5.00 per square foot, for uses ranging from warehousing/distribution to manufacturing to research and development. Time required for permitting and construction is significantly shorter than in many western cities. The industrial market grew a healthy 5.6% in 1994, reaching a total of 34.8 million square feet, one of the highest per capita in the United States. Despite a 5.1 % vacancy at year end, industrial rental rates remain lower than many urban areas of the west. Planned speculative industrial development during 1995 of over 1 million square feet, compared with just over 600,000 during1994, should keep rates relatively stable.
Source: CB Commercial RE Group. Inc.
Comparative Industrial Rental & Land Price Ranges
Industrial Los Las San
(Price per SqFt) Reno Angeles Vegas Jose
Buildings (sales)
100,000+ $21-28 $40 $38.00 $38-52
40,000 60,000 24-32 45 22-42 38-64
5,000 20,000 26-49 55 30-59 38-65
Buildings (lease rate net)
100,000+ $2.40 3.12 $3.96 $4.80-7.20
40,000 60,000 2.64-3.60 4.80 4.80-7.20
5,000 20,000 3.24-5.64 5.88 4.80-7.80
Building Construction
100,000+ $15-20 $30 $16-18 $28
40,000-60,000 18-24 35 22.00 35
5,000- 20,000 28-40 39 26.00 40
Sites (improved)
10+ acres $1.50-3.25 $6.50 $2.25-4.00 $4.00
1.50-4.00 6.50 2.75-5.00 4.00
1.90-5.00 8.50 2.75-5.00 5.00
Source: SIOR Industrial Real Estate Market Survey. 1994
Office Market
Reno/Sparks has numerous available office buildings. There are 5 major metropolitan areas with 171 buildings available which offer almost 5 million square feet of net rentable space. This translates to over 600,000 square feet total available space and 12.7% vacancy rate. Rental rates for existing offices and for construction of owner owned buildings are competitive. Since the Reno/Sparks area is in high demand, vacancy rates are dropping, indicating a strong, healthy and active market. There is ample land for build-to-suit projects in the area.
Comparative Office Rental Ranges & Vacancy Rates
Area *Range - Class A & B Vacancy Rate
Downtown Suburban Metropolitan
Reno $7.20-24.00 $8.40-19.20 12.7%
Los Angeles 8.00-35.00 9.20-22.80 19.3%
Las Vegas 15.00-24.00 13.80-24.00 8.5%
San Jose 9.60-27.00 8.20-28.20 13.6%
Annual price per SqFt
Residential Housing
Housing
The median selling price for a new single family home in the Reno/Sparks area during 1994 was $121,620. The typical area home is of frame construction with 3 bedrooms, 2 baths, a 2 car garage, and consists of 1600 to 1800 square feet.
Residential Sales & Rental Ranges
Type Price Range
Single Family Homes $43,000 - 2,900,000
Condominiums $18,500 - 330,000
Apartment Rentals $440 - 950
(rent for 2-bedroom unit/month)
Source: Reno/Sparks Association of Realtors. 1994.
Nevada Builders Association, March 1995
