Economy
In Q3 2026, the Reno area recorded 287,200 jobs, with unemployment declining 20 basis points year-over-year to 4.0%. The region continued to exhibit steady growth, with households increasing 170 bps YOY to 239,300. Wage growth remained a key driver of labor force expansion, as median household income reached $95,300, up 390 bps YOY.
Supply
Reno's industrial vacancy rate declined 60 bps quarter-over-quarter but increased 50 bps YOY to 11.8% in Q3 2026, reflecting healthy demand. Direct vacancy compressed 90 bps QOQ to 10.8%, while sublease vacancy rose from 0.70% to 1.0% as occupiers marketed additional space. The market recorded just 40,331 square feet (sf) of completions during the quarter, bringing the year-to-date (YTD) deliveries to just over 1.0 million square feet (msf). Large space availabilities added in Q3 included 223,323 sf at 1055 E Greg Street and 180,792 sf at 811 Sandhill Road. The moderation in development activity and active tenant demand is expected to support continued stabilization as the market works through existing available inventory.
Demand
Reno’s industrial market posted 842,119 sf of positive net absorption in Q3 2026, bringing the YTD total to more than 2.2 msf. Leasing activity totaled nearly 1.5 msf during the quarter and 6.4 msf YTD, surpassing the five year quarterly average of 1.8 msf by 13.9%. Activity was concentrated in Sparks, which accounted for 672,104 sf, or 45.2% of quarterly leasing volume. The largest lease transaction was Tire Rack’s 454,480 sf commitment at 3300 Waltham Way. Sparks and Storey County led absorption with gains of 393,720 sf and 389,473 sf, respectively, while South Reno returned the most space to the market at 195,957 sf. By size segment, buildings exceeding 250,000 sf continued to drive market performance and accounted for the majority of occupancy gains during the quarter. Supported by sustained occupier demand, strong leasing fundamentals, and continued activity in large warehouse and distribution facilities, Reno remains a strategic and cost competitive Western U.S. industrial hub.
Pricing
Reno’s average monthly triple net (NNN) asking rent increased $0.01 per square foot (psf) QOQ and $0.02 psf YOY to $0.84 psf in Q3 2026. Continued leasing momentum, declining vacancy, and a slowdown in new construction have helped support rent stability despite availability remaining above historical norms.
