Colliers: Reno-Sparks office vacancy dips to 10.1 percent at end of 2019
RENO, Nev. — Office vacancy decreased slightly in Reno/Sparks to 10.1 percent in the fourth quarter of 2019, according to a Feb. 3 press release from Colliers International, down from 11.8 percent in the fourth quarter of 2018.
“After a sharp increase in vacancy in the first quarter of 2019, when it reached 13.1 percent, vacancy fell in every quarter thereafter,” according to the release detailing Colliers’ 2019 Q4 market report. “There were no new completions of office space in the fourth quarter of 2019, and for 2019 as a whole, office inventory only increased by 40,026 square feet in the new office building at 5520 Kietzke Lane.”
Net absorption in 2019 totaled 137,134 square feet, according to the company, which noted that the average asking rate for office space decreased to $1.72 per square foot on a full-service gross basis from last year’s $1.74 per square foot.
For Colliers, Reno/Sparks investment sales totaled 248,210 square feet in 2019, with a sales volume of $40,750,000 — meaning an average price per square foot of $164.18. Investment properties sold in 2019 had an average cap rate of 6.9 percent.
Investment sales for Colliers were largest for Class A properties, with $26,400,000 of sales volume, followed by $10,150,000 of sales volume in Class B properties and $4,200,000 of sales volume in Class C properties.
Sales volume was highest in the Meadowood submarket ($22,350,000), followed by Central/Airport ($14,200,000), Downtown ($3,300,000) and Sparks ($900,000).
On April 1, Nevada Gov. Steve Sisolak formally issued a “Stay at Home” directive for Nevadans and extended closures of nonessential businesses, gambling and school closures to April 30.