Northern Nevada
By Stephen Delgado, CBRE | Reno
The Reno industrial market was comprised of approximately 118 million sq. ft. at the close of Q3 2025. There were three new industrial buildings delivered to the market in Q3 2025, totaling 976,480 sq. ft. The construction pipeline has 1.6 million sq. ft. underway with another 15.8 million sq. ft. in various planning stages. The overall average asking lease rate at the end of the quarter was $0.80 NNN. During Q3 2025, the overall vacancy rate Increased to 11.7 percent, while the availability rate increased to 14.4 percent. Sublease space continued to flow into the market, which represented 2.1 million sq. ft. of the total available space in Q3 2025.
While fundamentals are stabilizing, users and occupiers are cautiously moving forward with operational initiatives and updating forecasts. There is heightened demand for shorter-term leases (12-24 months) to maximize flexibility and renewal activity remains strong. Sector-wise, 3PL, high-tech manufacturing, and service-related construction/trades are expanding. Data center expansion in the East Valley is driving new industrial demand at the Tahoe Reno Industrial Center. Conversely, development momentum has significantly stalled, with major construction effectively halted until 2026. However, the investment outlook remains strong, with increased institutional portfolio sales and building purchases anticipated in Q4 2025 and Q1 2026.
Southern Nevada
By Laura Wilhelm and Garrett Toft, CBRE | Las Vegas
The Las Vegas industrial market continued its strong performance in Q3 2025, posting 1.3 million sq. ft. of positive net absorption. This marked the strongest quarterly performance of the year and marked a continuation of the upward trend observed earlier in the year, driven by healthy leasing activity. Year-to-date net absorption now totals 2.6 million sq. ft. and Q4 is expected to carry on the positive trend.
Despite solid absorption, the market’s direct vacancy rate edged up to 10.2%—a 30 basis-point increase from Q2 2025. This rise reflects a temporary imbalance between supply and demand, with another 1.8 million sq. ft having come online in Q3 2025. However, continued leasing momentum and active tenant interest suggest that much of the market’s vacant space could be absorbed in the coming quarters, especially as economic conditions stabilize. Several large lease transactions are currently nearing completion, reflecting ongoing confidence in the market despite elevated vacancy levels.
In Q3 2025, approximately 1.8 million sq. ft. of industrial space was completed with a prelease rate of roughly 43.0%. This pushed year-to-date deliveries to 5.0 million sq. ft. The construction pipeline now stands at 6.2 million sq. ft., with preleasing at 51.1%. New groundbreakings were once again limited this quarter.
