The Northern Nevada Industrial market experienced its highest absorption rate since Q1 2025.
Colliers recently released its Q2 2026 Reno Industrial Market Report, which found the region’s net absorption totaled 2.04MSF. The report credits strong leasing activity over the past two quarters as the primary reason for the high absorption.
Q1 2026 only saw 494.3KSF absorbed. The final quarter of 2025, however, was a completely different story, with negative 417.1KSF absorbed.
Vacancy rates fell 100 basis points this quarter to 11.5%. The previous quarter sat at 12.5%, while Q4 2025 hovered at 12.4%. This is the first time vacancies have declined in several years. Despite that, vacancies are only 1.1% higher than what was reported in 2021.
The total inventory currently sits at 123.9MSF, up from 123.3MSF from the previous quarter. This is down from Q4 2025, which had a total inventory of 128.1MSF.
Average industrial rents remained mostly flat at $0.80/SF. This is a slight increase from Q1 2026 and Q4 2025 levels which were $0.78/SF and $0.79/SF, respectively. Rents peaked at $0.90/SF in 2023. Rents, however, are still above pre-pandemic levels.
There is currently 735.9KSF of industrial space under construction, an improvement from both Q1 2026 and Q4 2025, which sat at 0SF.
