Sales: The True Winner of the Office Market
The Northern Nevada office market pulled ahead this quarter and is setting up 2018 to be a very productive year. The market posted an increase in positive absorption to 63,786 square feet and the vacancy rate decreased to 11.7 percent from the 12.3 percent recorded in the first quarter of 2018. Office activity has been strong in the Reno market with sales dominating the quarter, including many large sales to owner-users and investors. Leasing has remained stable, yet the demand for big blocks of Class A space with few viable space options, has made expansions for existing tenants difficult and even more so for tenants looking to enter the Reno market. However, this phenomenon is causing rumors of new construction to serve the growing demand of office space.
Rents are unquestionably on the rise as the average asking rental rate at the close of 2017 was $1.67 per square foot per month full service and this quarter posted $1.70 per square foot.
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