Office construction activity in Reno saw a steep decline in momentum during Q4 2025.
Kidder Mathews recently released its Q4 2025 Reno Office Market Report. The report found that there was no change in construction activity quarter-over-quarter; both Q3 and Q4 remained at 229.8KSF.
That means Q4 experienced zero construction starts and zero deliveries. The amount of square footage under construction has fallen significantly over the course of 2025. In Q4, 2024, there was 364.4KSF of office space under construction. This reflects a year-over-year dip of 36.9%.
The change in total square footage under construction is due to a combination of fewer construction starts and an increase in deliveries. While Q4 2025 did not see any deliveries, the overall year saw 153.2KSF. This is a stark contrast from 2024, which did not have any deliveries.
Vacancy rates rose from 7.1% to 7.3% QoQ. The market has slightly fewer vacancies YoY, as the end of 2024 saw a vacancy rate of 7.5%. This reflects a decrease of 20 basis points.
Average asking rents remained relatively elevated at $25.05/SF/month. This is a slight decline QoQ, as Q3 had an average asking rent of $25.14. YoY, the average asking rent increased 6% from $23.44.
The average sales price fell significantly QoQ from $265.59/SF to $200.76. Average prices have also decreased YoY, with the average price being $215.98/SF in Q4, 2024. This reflects a change of negative 7%.
Cap rates increased both over the quarter and the year. Q3 had a cap rate of 6.3%, while Q4 had a cap rate of 6.5%. A year ago, the cap rate was 5.5%. This reflects a YoY change of 100 bps.
Q4 saw a negative absorption of 58.4KSF. The year as a whole saw 169.8KSF of absorption. This is starting to slow after a healthy 2024, which had 262.9KSF of absorption. YoY, absorption has dropped 35.4%. To read the whole report, click here.
