Real Estate Market Review Reno Office -...
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Real Estate Market Review Reno Office 2 nd Quarter 2018 2nd Quarter 2018 Reno Office Market Review | 1 Top Sale Transactions for 2Q18 Property Submarket Square Feet Sale Price Price/SF Buyer Seller U.S. Bank Centre Meadowood 106,463 $14,875,000 $139.72 Lansing Companies LBA Realty St. Mary’s Medical Plaza Downtown 38,456 $5,500,000 $143.02 Okuno Associates Inc. Ronald L. Smith Aspen Meadows Office Complex Meadowood 14,078 $2,150,000 $152.72 Thomas Goetz Cort Christie Highlands Point Sparks 5,503 $1,846,000 $335.45 James & Judi Kosinski Leon Jaferian 5443 Kietzke Lane Meadowood 8,495 $1,742,500 $205.12 CIC Reno-Tahoe Holdings LLC Jessie Rich-Greer Top Lease Transactions for 2Q18 Property Submarket Square Feet Date Landlord Tenant 5250 S Virginia Meadowood 16,559 April 2018 Resource Management & Development AT&T 5301 Kietzke Lane, Suite 100 Meadowood 10,000 May 2018 CS Kinross Lake Pkwy., LLC Schwab Brokerage 245 E Liberty Street, Suite 300 Downtown 9,871 April 2018 McKenzie Properties - 820 Kuenzli Street Downtown 6,750 June 2018 Kenneth Zeal - 5690 Riggins Court, Suite 200-B Meadowood 6,615 June 2018 Moreno 2001 Desi Trust - Top Under Construction Property Address Submarket Square Feet Owner Delivery Date Mountain View Corporate Center 5520 Kietzke Lane Meadowood 40,826 McKenzie Properties October 2018 0 Kietzke Lane Meadowood 20,000 Reno Land Development Company, LLC April 2020 Charles Schwab 5301 Kietzke Lane Meadowood 20,000 CS Kinross Lake Parkway, LLC August 2018 5365 Reno Corporate Drive Meadowood 6,018 RPC Business Park, LLC April 2019 Building 18 4808 Sparks Boulevard Sparks 6,018 Brendan Keating July 2018 Market Forecast Trends Market Snapshot 2Q 2018 1Q 2018 2Q 2017 Annual % Change New Construction 14,513 0 0 N/A Under Construction 132,868 127,381 20,186 5.58% Vacancy Rate 8.60% 9.00% 9.50% -9.47% Average Asking Rents $1.57 $1.53 $1.50 4.66% Average Sales Price / SF $137.91 $202.21 $191.67 -28.05% Cap Rates 7.29% 6.35% 6.72% 8.48% Net Absorption 25,561 -36,199 -39,227 N/A VACANCY RENTAL RATE CONSTRUCTION DELIVERIES UNEMPLOYMENT YEAR-TO-YEAR BASIS
Transcript of Real Estate Market Review Reno Office -...
Real Estate Market Review
Reno Office
2nd Quarter
2018
2nd Quarter 2018 Reno Office Market Review | 1
Top Sale Transactions for 2Q18
Property SubmarketSquare
Feet Sale Price Price/SF Buyer Seller
U.S. Bank Centre Meadowood 106,463 $14,875,000 $139.72 Lansing Companies LBA Realty
St. Mary’s Medical Plaza Downtown 38,456 $5,500,000 $143.02 Okuno Associates Inc. Ronald L. Smith
Aspen Meadows Office Complex Meadowood 14,078 $2,150,000 $152.72 Thomas Goetz Cort Christie
Highlands Point Sparks 5,503 $1,846,000 $335.45 James & Judi Kosinski Leon Jaferian
5443 Kietzke Lane Meadowood 8,495 $1,742,500 $205.12 CIC Reno-Tahoe Holdings LLC Jessie Rich-Greer
Top Lease Transactions for 2Q18
Property Submarket Square Feet Date Landlord Tenant
5250 S Virginia Meadowood 16,559 April 2018 Resource Management & Development AT&T
5301 Kietzke Lane, Suite 100 Meadowood 10,000 May 2018 CS Kinross Lake Pkwy., LLC Schwab Brokerage
245 E Liberty Street, Suite 300 Downtown 9,871 April 2018 McKenzie Properties -
820 Kuenzli Street Downtown 6,750 June 2018 Kenneth Zeal -
5690 Riggins Court, Suite 200-B Meadowood 6,615 June 2018 Moreno 2001 Desi Trust -
Top Under Construction
Property Address Submarket Square Feet Owner Delivery Date
Mountain View Corporate Center 5520 Kietzke Lane Meadowood 40,826 McKenzie Properties October 2018
0 Kietzke Lane Meadowood 20,000 Reno Land Development Company, LLC April 2020
Charles Schwab 5301 Kietzke Lane Meadowood 20,000 CS Kinross Lake Parkway, LLC August 2018
5365 Reno Corporate Drive Meadowood 6,018 RPC Business Park, LLC April 2019
Building 18 4808 Sparks Boulevard Sparks 6,018 Brendan Keating July 2018
Market Forecast Trends Market Snapshot
2Q 2018 1Q 2018 2Q 2017Annual % Change
New Construction 14,513 0 0 N/A
Under Construction 132,868 127,381 20,186 5.58%
Vacancy Rate 8.60% 9.00% 9.50% -9.47%
Average Asking Rents $1.57 $1.53 $1.50 4.66%
Average Sales Price / SF $137.91 $202.21 $191.67 -28.05%
Cap Rates 7.29% 6.35% 6.72% 8.48%
Net Absorption 25,561 -36,199 -39,227 N/A
VACANCY
RENTAL RATE
CONSTRUCTION DELIVERIES
UNEMPLOYMENT
YEAR-TO-YEAR BASIS
Kidder Mathews is the largest, independent commercial real estate firm on the West Coast, with more than 700 real estate professionals and staff in 21 offices in Washington, Oregon, California, Nevada, and Arizona. We offer a complete range of brokerage, appraisal, property management, consulting, project and construction management, and debt equity finance services for all property types.
ASSIGNMENTS ANNUALLY
TOTAL # APPRAISERS/MAI’S
MANAGEMENT PORTFOLIO
50M+ 1,500
PROPERTY MANAGEMENT VALUATION ADVISORY
36/21
ANNUAL TRANSACTION
VOLUME
$7B
ANNUAL LEASING SF
34.6M
ANNUAL SALES SF
16.5M
COMMERCIAL BROKERAGE
# BROKERS
360+
This information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to be material, including, but not limited to, statements of income and expenses. CONSULT YOUR ATTORNEY, ACCOUNTANT, OR OTHER PROFESSIONAL ADVISOR.
NEW OFFICE CONSTRUCTION & ABSORPTION
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD-200K
-150K
-100K
-50K
0
50K
100K
150K
200K
250K
300K
3500K
400K
AVERAGE ASKING RENT/SF & VACANCY RATE
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD$0
$0.50
$1.00
$1.50
$2.00
8%
11%
14%
17%
20%
SF SOLD & NUMBER OF SALE TRANSACTIONS
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD0
200K
400K
600K
800K
1.0M
1.2M
30
45
60
75
90
105
120
AVERAGE SALES PRICE/SF & CAP RATES
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD$0
$50
$100
$150
$200
$250
5%
6%
7%
8%
9%
10%
2nd Quarter 2018 Reno Office Market Review | 2Data Source: CoStar
SF Sold # of Transactions Sale Price Cap Rate
Asking Rent/SF Vacancy RateNew Construction Absorption
Contact
Jerry Holdner
Director of Research 949.557.5050 [email protected]
Brian Hatcher
Executive VP, Brokerage 775.301.1300 [email protected]
kiddermathews.com
