Northern Nevada
By Gary Tremaine, Dickson Commercial
The retail market in Washoe County has remained strong throughout 2024. Although transaction volume reached only $36.7 million, showing a slight decline from Q2, retail vacancies continue at historic lows, with the overall vacancy rate dropping to 3.4 percent. Demand remains high among owner-users and investors despite limited supply. Looking toward year-end, the retail sector is expected to stay stable and competitive, with demand and supply factors anticipated to remain steady despite ongoing economic conditions.
Single-tenant sales in Washoe County were strong in the third quarter of 2024.Despite continued higher interest rates and current economic conditions, the retail market is performing well, with a low vacancy rate and growing competition for limited available space. Two notable lease transactions in the third quarter of 2024 highlight the ongoing demand for retail space. 3rd Shot Pickleball secured 28,000 SF in the Sierra Town Center, and Electric Pickle leased 11,000 SF in the Reno Experience District. These transactions highlight the growing desire for high-quality indoor recreational spaces. The biggest retail project to move forward in 2024 so far, is Double R Market Place. The development is now underway and will be approximately 135,000 SF of retail and office space.
Southern Nevada
By Hillary Steinberg, Avison Young – Las Vegas Office
The Las Vegas retail property market remained highly competitive, with historically low vacancy rates of 5.7% in the third quarter of 2024. That vacancy was the same as Q2 2024 and is well below the national average. With all the activity over the past couple of years, it is not a surprise that the vacancy has consistently remained below 6% and has improved since Q3 2020 when it was 7.5%. New leasing activity remains low, with just 450,000 SF leased in Q3 2024 and approximately 1.3 million SF leased year-to-date. This low level of activity is primarily due to the limited supply of available space. Despite limited availability, the market remained competitive with retailers seeking space and outperforming national trends, with a year-over-year increase of 5.6% in rental rates compared to 3.1% nationally. In Q3 2024 rents reached $34.19, up $0.56 from the previous quarter.
When it comes to retail property sales, the region is seeing growing numbers of local shopping center owners working to fortify their rent rolls to maximize overall value for their assets with the goal of selling in 2025. This is largely due to the gradual interest rate cuts by the Fed this year that are anticipated to continue in 2025. Owners and investors alike have been waiting on the sidelines for rates to decrease so transaction activity can once again pick up.
