Northern Nevada
By Stephen Delgado, CBRE | RENO
The Reno industrial market was comprised of approximately 120 million sq. ft. at the close of Q4 2025. There were four new industrial buildings delivered to the market in Q4 2025, totaling 1.7 million sq. ft. The construction pipeline has halted with nothing underway while 15.8 million sq. ft. sits in various planning stages. The overall average asking lease rate at the end of the quarter was $0.82 NNN. The Central/Airport and South Reno posted the highest average asking rates at $0.94 NNN and $1.02 NNN, respectively.
During Q4 2025, the overall vacancy rate decreased to 10.9%, while the availability rate increased to 15.1%. Sublease space continued to flow into the market, which represented 2.3 million sq. ft. of the total available space in Q4 2025. These sublease spaces were primarily smaller footprints, with most listings under 50,000 sq. ft. Availability of Class A and B spaces under 20,000 sq. ft. continued to tighten, with dock-high and grade-level options becoming scarce.
The Reno industrial market continued to see renewed momentum, driven by expanding data center-related requirements as contractors and suppliers sought term lease transactions to support storage, assembly, and fabrication purposes totaling approx. 750,000 sq. ft. of leasing activity for the year. 3PL operators were also re-engaging space options, contributing to rising activity levels.
Southern Nevada
By Laura Wilhelm and Garrett Toft, CBRE | Las Vegas
In Q4 2025, the Las Vegas industrial market posted its strongest quarterly net absorption since Q4 2023, reaching nearly 2.5 million sq. ft. This single quarter represented almost half of the year’s total net absorption of 5.1 million sq. ft., underscoring a significant rebound in tenant demand after several quarters of more moderate activity.
The direct vacancy rate fell to 9.5% in Q4 2025, down from 10.2% in Q3—the first decline in over three years. After reaching a historic low of 0.9% in Q2 2022, the vacancy rate climbed steadily amid an oversupply of new space. This quarter’s drop indicates a potential turning point, as recently delivered properties are now securing leases—particularly in the Apex and North Las Vegas submarkets—signaling a trend toward stabilization. Additionally, the future supply of speculative industrial projects has fallen rapidly.
In Q4 2025, nearly 1.2 million sq. ft. of industrial space was delivered, bringing the year’s total to 6.2 million sq. ft. Although deliveries have slowed from prior record highs, landlords and developers remain focused on leasing available space to reduce vacancies. 5.7 million sq. ft. remains under construction, all scheduled for completion in 2026, but it’s important to note that 59% of this under construction pipeline is already preleased.
