Northern Nevada
The Reno industrial market was comprised of approximately 116 million SF at the close of Q2 2025. There were three new industrial buildings delivered to the market in Q2 2025, totaling 557,785 SF The construction pipeline had 1.9 million SF underway with another 15.8 million SF in various planning stages. The overall average asking lease rate at the end of the quarter was $0.83 NNN. The Central/Airport and South Reno posted the highest average asking rates at $0.94 NNN and $1.22 NNN, respectively.
During Q2 2025, the overall vacancy rate decreased to 11.2 percent, while the availability rate increased to 13.3 percent. Sublease space continued to flow into the market, which represented 2.2 million SF of the total available space in Q2 2025.
Looking ahead, the Reno industrial market is expected to gradually stabilize as policy clarity and economic visibility improve. Elevated vacancy and returning sublease space will continue to offer tenants strategic flexibility, while demand for high-quality and flex space—especially with grade-level and dock-high access—remains strong. With over 1.9 million square feet of new construction underway and notable activity in submarkets like Airway, the market is positioned for a potential rebound in leasing and investment activity through the remainder of 2025.
Southern Nevada
By Laura Wilhelm and the Higgins, Toft, Zaher Team at CBRE
In Q2 2025, the Las Vegas industrial market achieved its 50th consecutive quarter of positive net absorption. Nearly 930,000 SF was absorbed during the quarter, bringing year-to-date net absorption to approximately 1.5 million SF Q2’s total represents the highest single-quarter total since Q1 2024, signaling a potential rebound in market activity. The market also saw a noticeable rise in overall vacancy in Q2 2025, increasing by 40 basis points from the previous quarter and edging closer to the 10 percent threshold. This upward shift was largely anticipated, driven by the continued influx of newly delivered space. The volume of new inventory has outpaced absorption, contributing to a temporary surplus of available space. However, the amount of product currently under construction has slowed significantly—down 65 percent year-over-year—signaling a shift toward a balanced market dynamic.
The Las Vegas industrial market saw an additional 1.6 million SF of new space delivered in Q2 2025, bringing total deliveries for the year to 3.1 million SF, representing a 63 percent decrease year-over-year. Notably, nearly 75 percent of the new inventory delivered in Q2—approximately 1.2 million SF—was concentrated in the North Las Vegas submarket. The North Las Vegas, Apex, and Henderson submarkets contributed the largest vacancies—roughly 84 percent—of the total vacant space.
