Northern Nevada office market sees record low vacancy, steady rates

View profile for Reed Backstrom

Research Analyst at Colliers | Reno, Nevada

Northern Nevada’s office market fundamentals showed resilience at the close of Q3. - Vacancy dropped to 8.7%, a record low - Net absorption of 34.7k SF marked a second consecutive quarter of positive occupancy gains - Overall availability rate increased 50 basis points during the quarter to 9.1% but was still 200 basis points below a year ago - Overall asking lease rates held steady at $1.79/SF (FSG) At the end of Q3, the office asset class experienced a sales volume of $91.7 million, surpassing the total annual sales volume recorded at the conclusion of the previous two years. Regional cap rates hovered around $6.50%. During its most recent meeting on September 17, the Federal Reserve reduced the federal funds rate by 25 basis points, with additional reductions expected at future meetings.

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