Home > Blogs > Joshua Talayka > Joshua Talayka's (talayka) Blog

Commercial Statistics: High vacancy rates in Reno/Sparks equals declining values

By Joshua Talayka

Real Estate Agent with Chase Internatinonal

September 26, 2010 02:41 PM

It’s impossible to drive around town without noticing the increasing number for lease signs going up on commercial office space. Over the last 3 years, office vacancies have gone up and avg. of 22%. One of the biggest factors affecting the value of commercial office space is the revenue they produce. These high vacancy rates have forced landlords to compete for the shrinking number of available tenants. In some parts of town, it is now possible to find office space leasing for as little as $1.15/ft. As a result, we have seen building values decline as much as 50% in some areas of Reno / Sparks since 2007.

Although this data may seem like bleak news to many commercial owners, this drop in value has created some great opportunities for the commercial investors that are currently looking for great deals.

Should you have any questions or need further information,
please don't hesitate to contact me, (775) 220-1630
Or visit my website: www.SellingHomesinReno.com

Joshua Talayka
NAR designated: Short Sale & Foreclosure Resource
Chase International
Office: 775 850 5900
Toll Free: 877 922 5900
Cell: 775 220 1630
Fax: 775 850 5901
985 Damonte Ranch Pkwy, Ste. 110
Reno, Nevada (NV) 89521

Re-Blog

Comments(2)

Comment

Show All Comments

Sort:

Richard L. Sanderson

Richard L. Sanderson Consulting - Kalama, WA

helping improve local property tax systems

Joshua:

First let me say how refreshing it is to read a good blog posting about commercial real estate. ActiveRain is so dominated by residential information that commercial and industrial information is scarce. Next, on to your comments about the commercial real estate market. Rental rates as low as $1.15/ft.! How are they surviving? Our vacancy rate in the Washington DC area is high and rent concessions are expected (several months free rent, fits ups, etc.) and rents are lower but not this low. I agree that it is better to have someone in the space than vacant space. We have had a few commercial property foreclosures, but not many.

Oct 02, 2010 01:20 AM

Joshua Talayka

Chase Internatinonal - Reno, NV

Hi Richard,

Thank you for the comment.

At least in my region, commercial and industrial is all but dead in regards to activity and we've started to see a large increase in commercial short sales and foreclosure.

I also agree ActiveRain does need more information in regards to Commercial and Industrial. If anything, I'd at least like to see more content relating to multi-family. Over the last 6 months I've notice that a large percentage of multi-family units in my market have dipped low enough in price where buyer's are capable of picking them up and seeing an annual RTI of 15% or greater.

Dec 31, 2010 09:29 AM

Comments(2)

Joshua Talayka

Recent Posts