Managing Directors Tomi Jo Lynch, CCIM and Thomas Y. Johnson, CCIM represented the seller, JohnNew LLC in the sale of 1375 & 1395 E Fremont Lane in Fernley, NV.

This transaction of 13.12 acres of land, located in the path of progress and surrounded by new retail development, closed on Tuesday, June 17 for $2,150,000. The land was acquired by a multi-family developer.

SVN |Gold Dust Commercial Associates is proud to announce Mike Gallegos, CCIM as sales manager.

In his new role, Gallegos will be responsible for training and onboarding new agents as well as coaching and elevating the success of the existing team. Gallegos will be creating and implementing accountable measurements for the brokerage team and analyzing and tracking sale statistics.

“We are thrilled to welcome Mike to our team,” said Tomi Jo Lynch, managing director of SVN |Gold Dust Commercial Associates. “His knowledge and expertise in commercial real estate and sales strategies will allow our company to provide a higher level of service to our clients as well as provide the best training platform for commercial real estate in the region. This addition to our team will equate to tremendous growth for our company and increased success for our brokerage team.”

Gallegos brings more than 14 years of experience in the commercial real estate industry. Gallegos earned his Certified Commercial Investment Member (CCIM) designation in 2010 and is active in the CCIM network. He has held leadership roles in both membership and education. Gallegos’ industry experience includes key market growth roles with firms ranging from publicly traded institutional format to boutique sized brokerage powerhouses. He received a Bachelor of Arts in international relations from the University of Southern California.

Nevada is experiencing major changes and is quickly becoming one of the first places that industry leaders think of when considering relocation or expansion of their companies. With an attractive business-friendly economy that offers companies abundant tax breaks, the state is gaining prominence as a gateway to western states for manufacturing and distribution, and as a hub for data centers. Major players like Tesla and Switch have already taken advantage of this pro-business environment that Nevada has to offer. Nevada’s industrial market benefits greatly from these companies choosing Nevada as their site for relocation and expansion.

Northern Nevada’s industrial market ends the first quarter of 2019 on a strong note. With over 880,000 square feet of positive net absorption and over 1 million square feet of gross absorption, due to many large lease transactions being signed. The outcome of this has caused a 9% increase in asking rents. As absorption remains strong, there is strong activity coming for both new construction and investment in the industrial market.

A wave of new construction is underway to meet the demand for industrial space in Nevada. More than 2.9 million square feet of new industrial is underway for the northern Nevada region. The most noteworthy of these projects include a 313,000 square foot building on the north side of Virginia Street, a 270,000 building at the Longley Commerce Center, along with a 405,000 square foot building in North Valleys by Dermody Properties, also a 610,000 square foot building at Tahoe-Reno Industrial Center by Tolles Development Company. These new additions continue to heat up the industrial market, creating an even more attractive market for large investors.

Investment sales in the region are reflective of the occupier’s interest in the area. One of the most notable investment activities to take place thus far in 2019, was Dermody Properties’ sale of a 54-building national portfolio to Colony Industrial. The portfolio traded for $1.16 billion. The sales volume in 2018 surpassed the long-term average because of transactions like this. With four large portfolios totaling over five million square feet on the market or currently in escrow, the opportunity to enter the Reno industrial market as an investor has never been greater.

The northern Nevada market shows no signs of slowing down, with thousands of new jobs being brought to the market. The demand for industrial space will continue to thrive with a healthy economy and business friendly environment. With economic expansion, the industrial market will continue to reap the benefits of all that Nevada has to offer for those who enter a growing and profitable region.

Northern Nevada is experiencing one of the largest periods of growth that it has had in a long time. The retail market in Reno is benefiting greatly from the growth and heading in a positive direction. The Reno retail market had a strong first quarter in 2019, ending with a current 6% vacancy rate. These low vacancy rates are attracting demand for new construction in the market. With a high demand for retail space, there are several large projects underway that will give the retail market the boost it needs.

Reno is feeling the benefits of heavy in-migration. Population growth is triple the national growth rate; coupled with a median household income that is outpacing the U.S average. The increase in population and income for households point to a strong future for retail in the area. Rent in Reno’s retail sector remains steady, the average asking rent in Reno is $1.48 per square foot monthly. The most notable submarket is South Reno, with an average rent that is approximately 25% above the average for Reno. This area is experiencing an increased demand for retail and housing as it becomes one of the most populated regions of northern Nevada.

There has been a recent resurgence in construction of retail projects, with the most notable project being 60,000 square feet of retail at the Village at Rancharrah. This destination retail project is a part of a larger development that will serve the surrounding household with local, and regional retailers. Additional projects that are underway include, new retail at Park Lane, and a 48,000 square foot development at Double R and Damonte Ranch. These new retail projects are needed to produce goods and services throughout northern Nevada as it continues to grow.

With many of these new retail projects being pre-leased, the vacancy rates are expected to remain steady. With construction costs being higher, we can expect to see an increase in price per square foot. Many companies are investing their businesses in all that Nevada has to offer, and with that comes more jobs and need for commercial real estate space in all sectors. The overall retail market in northern Nevada is in an exciting growth period and will continue as Nevada as a whole experience this time of growth.

SVN Gold Dust Commercial Associates is pleased to present the inventory report for June 2019. New listings include:

Retail Space Available in Fernley

A build-to-suit is available for lease in Fernley, Nevada. Between 2,000 – 7,200 square feet is available, and the space can be used for retail, restaurant or office uses. It’s located at Chisholm Trail & Financial Way, in Fernley’s main retail area and is within two miles of I-80 and USA 95A.

The space also features a neighboring retailer that attracts 400 customers daily, an adjacent multi-family development and ample parking.

Professional Office Building in Carson City

A ±5,672 to ±12,672 square foot professional office building is available for lease for $1.35 sf/month. Located on the corner of Goni Road and College Parkway in Carson City, the property offers easy access to US 395 as well as surrounding amenities and restaurants.

Additionally, SVN Gold Dust Commercial Associates featured listings for June 2019 include:

Westridge Corners

A 50,696 square foot Neighborhood Shopping Center and Professional Office complex. 98% occupancy, with ample parking for both retail and office users. Ground level entry for both uses.

Long term tenants with the original Bully’s Sports Bar & Grill, Pizza Plus and other service providers. The tenants benefit from heavy day-time population due to the location in NW Reno. The retail tenants of the center are NNN leases where the office tenants are on a full-service basis excluding janitorial in their individual spaces.

The Twaddle Mansion

A 2,757 +/- sf office building situated on a prime corner of W 5th Street, and Ralston in Downtown Reno. This historical build is located in an opportunity zone, near the Fountain District and is within walking distance of Downtown Reno retail, restaurants and amenities.

The Mansion was constructed for Eben Twaddle who was a Reno Fire Marshall and a rancher in Washoe Valley. The building is perhaps the finest example of the Colonial Revival style in Reno. The ornamentation is outstanding in its variety and application.

The lower floor, in particular, expresses a flamboyance rarely seen in a vernacular building outside of a large city. The porch, arched facade window and pedimented porch are unmatched in Reno in dramatic elegance. The Twaddle Mansion has been listed on the National Register of Historic Places Since 1983.

Managing Director Tomi Jo Lynch, CCIM, recently contributed to Opportunity Nevada. Lynch discussed what is coming for the industrial, office and retail industries in northern Nevada.

Currently, Nevada is experiencing one of the largest periods of growth it has seen in a long time. In the article, Lynch examines the industrial, office and retail sectors along with a few notable transactions including Dermody Properties’ sale of a 54-building national portfolio to Colony Industrial, McKenzie Properties’ recent acquisition of 5250 S Virginia and Village at Rancharrah.

Read the complete article here: Northern Nevada Commercial Real Estate Forecast: What’s to Come for Industrial, Office and Retail

Opportunity Nevada is a collaborative marketing initiative created to promote Nevada and Nevada businesses. This publication is comprised of professionals throughout the state of Nevada focused on business attraction through strategic recruiting missions, attendance at targeted industry conferences, and comprehensive marketing efforts.

Tomi Jo Lynch is a Managing Director with SVN Gold Dust Commercial Associates, specializing in industrial properties with a focus on landlord representation. Lynch has been a party to more than $60M in sales volume and has completed over 500 lease transactions throughout her career. Lynch received her Certified Commercial Investment Member (CCIM) designation in April 2019 and was awarded the Achiever Award at the 2019 SVN Annual Conference, recently appointed to the local CREW Board, previously served on the NAIOP Northern Nevada Board, sits on the SVNIC Advisory Board and was named the SVN Trainer of the Year in 2015.

Northern Nevada’s office market is doing considerably well in comparison to where it has been in the past. The growth has been steady over the years, with all-time low vacancies occurring in the third quarter of 2018. The office market is continuing to see vacancy rates decreasing and rental rates increasing. New office construction remains low, keeping vacancy rates low as well.

Reno office vacancies have been in the single digits since 2017. This is atypical for the region, and in part could be due to the influx of businesses moving to Nevada along with a lack of new office construction.  The vacancy rate is currently 8.4 percent, sitting just below the national average of 9.7%. Taking low construction rates into consideration the vacancy rates are unlikely to change.

Northern Nevada’s low vacancy has allowed for healthy rent growth while remaining cost effective for tenants. Rental rates peaked in 2015 and since then have declined significantly. The demand for office in Reno is in the Downtown and The Meadowood submarket. These high demand areas feature the highest rents in Reno, primarily due to the area’s abundance of mid to high end inventory. Only about 10 percent of the current overall inventory is upper-tier product, making it very desired when it can be found.

Office inventory is unlikely to change drastically in the coming years. Only 10,271 square feet of new office space is under construction with a majority of that being made up of smaller scale projects; however, there are several large-scale projects on the horizon that may tip the scales. These projects include 300,000 SF on McCarran and Virginia by Mckenzie Properties, 39,000 SF at the Rancharrah development site, and 54,000 SF for the development of the Airport Office Campus on Terminal Way.

Office investments reached an all-time high in 2018, with several large transactions taking place. These transactions include the sale of the Employers building in South Meadows for $25.3 million, and the sale of 855 Trademark for $20.4 million. The most noteworthy sale of 2019 was the recent acquisition of 5250 S Virginia by Mckenzie Properties. While local investors continue to make moves into the office sector, there continues to be a steady stream of outside investors primarily from California markets.

In northern Nevada the office market is predicted to keep vacancy rates low and could possibly drop further with the factor of low construction rates playing a part. As more companies choose northern Nevada for relocation, growth could extend to the office market.  For now, the market remains steady with no major highs or lows.

Introducing our June Featured Advisor, Senior Advisor Casey Prostinak. Casey has worked in the commercial real estate industry for 4.5 years and focuses on the sale of office and industrial properties. Read more about Casey’s experience and his most memorable transaction at SVN.

Managing Director Tomi Jo Lynch was featured in the Northern Nevada Business View May Briefs for earning her Certified Commercial Investment Member designation.

Tomi Jo earned the CCIM designation during the CCIM Institute’s 2019 Midyear Governance Meetings March 30 – April 3 in San Antonio. This designation is the global standard for professional achievement.

Tomi Jo is a managing director at SVN Gold Dust Commercial Associates and specializes in the sale and leasing of industrial, and office properties. Lynch has been a party to more than $60M in sales volume and has completed over 500 lease transactions throughout her career. Lynch was recently appointed to the local CREW Board, previously served on the NAIOP Northern Nevada Board, sits on the SVNIC Advisory Board and was named the SVN Trainer of the Year in 2015.

To earn the CCIM designation, commercial real estate professionals must complete more than 160 hours of case-study driven education covering topics such as interest-based negotiation, financial analysis, market analysis, user decision analysis, investment analysis, and ethics in commercial investment real estate, among other qualifications.

Congratulations Tomi Jo!

Read the complete announcement here: https://www.nnbusinessview.com/news/henry-sotelo-new-city-of-reno-hearing-officer-nnbv-people-briefs-may-2019/

A build to suit is available for lease in Fernley, Nevada. Between 2,000 – 7,200 square feet is available and the space can be used for retail, restaurant or office uses. It’s located at Chisholm Trail & Financial Way, in Fernley’s main retail area and is within two miles of I-80 and USA 95A.

The space also features a neighboring retailer that attracts 400 customers daily, an adjacent multi-family development and ample parking.

Please view the complete listing here: https://www.svngdca.com/properties/?propertyId=486041-lease