The Calm Before the Storm Part II
Activity in the Reno Sparks Industrial Market has continued the historic trend for the first quarter for our region. Over the past five years, the first quarter of each year has been the weakest of the year. While it seems like there was a bit of a slowdown, the first quarter of 2017 was the strongest in terms of gross absorption compared to the first quarters over the past five years. While the numbers indicate a trend towards normalcy, the activity has been robust during the last 30 days of the quarter. We expect a very strong second quarter, with the caveat of there being very little product available. At the present time, there is only one Class A building available over 300,000 square feet. Historically, this puts our region in a less competitive position for larger users. Those larger users usually cannot wait for a building to be built and will look to other neighboring markets such as, Northern and Southern California, Phoenix, and Salt Lake City.
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