JANUARY 2023

The beginning of the year showed promising signs for CRE sales volume after a fluctuating 2022, with January recording $136,053,213 in sales volume. This figure exceeds the 12-month average of $128 million. However, it's worth noting that the Summit at Sierra Mall transaction made up almost half of the monthly sales volume. The Industrial and Multifamily sectors experienced a slower month, with only one notable sale in each category.

A multi-tenant office building at 1055 West Moana Lane sold for $1,550,000 ($192.02 per sq. ft.). The Class C building is located in Central Reno and tenants include Byoko Skincare, Reno Men’s Health, and Mei Li Massage. 

An office building in the Sparks Submarket at 979 Pyramid Way sold for $1,850,000 ($312.29 per sq. ft.) with a reported cap rate of 5.75%. Tenants of the property have included Tax Plus, Edward Jones, and Lend-A-Check. 

In the mixed-use Plumgate Development, a 3,124-square-foot dental office building at 548 West Plumb Lane sold for $1,510,000 ($483.35 per sq. ft.). The building was acquired by the dental practice who was previously leasing the building. 

In Sparks, an industrial warehouse building at 156 Coney Island Drive totaling 20,000 sq. ft. sold for $1,300,000 ($65 per sq. ft.) to a local investor. The discounted sales price reflected future maintenance items needing to be addressed. The lone tenant of the property is Camelot Party Rentals. 

In South Meadows, the Summit at Sierra shopping mall sold for $75,875,000, with a reported cap rate of 7.8% at the time of sale. Tenants included Dillards, Lululemon, Apple, Century Theaters, Starbucks, Sunglass Hut, Williams Sonoma, and Pottery Barn. 

In Midtown Reno, the 6,818-square-foot former Silver Peak Restaurant and Brewery sold to a Carson City based food and beverage operator for $1,540,000 ($225.87 per sq. ft.). DCG represented the seller in the business and real estate transaction. 

Industrial Developer Dermody Properties acquired 23.5 acres for $8.85 per sq. ft. in Kiley Ranch with plans for a speculative industrial project. The parcel is located within Kiley Ranch near the Wingfield Hills Road and Pyramid Highway intersection. 

DR Horton closed on 62 lots in the Mountain View development, just west of Downtown Reno. The future development is planned to be a mix of duplex and triplex-style homes, ranging from 1,310 to 1,409 square feet. The public builder paid $7,861,068 ($126,791.42 per lot). 

The Kirman Garden apartment complex was sold in the Wells Avenue District a few blocks from Renown Medical Center. Located at 444 Kirman Avenue, the 84-unit complex includes 72 one-bed and 12 two-bed units priced at $169,642.86 per unit. 

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This week, Tesla announced plans to build a new $3.5 billion advanced manufacturing facility east of Sparks to build the company's all-electric semi trucks. The facility will be built at the Tahoe-Reno Industrial Center and is expected to create 3,000 jobs.

Local economic experts said although a national recession is likely in 2023, northern Nevada will weather the storm better than other regions because of its more diversified economy. "We (won't) see many job losses associated with this recession, unlike prior recessions, because our manufacturing workforce will be working, our technology workforce will be working," said EDAWN CEO and President Mike Kazmierski.

Fueled by a single-month record for the Strip in December, Nevada finished off 2022 with more than $14.8 billion in gaming revenue, blowing past 2021’s $13.4 billion by 10.5 percent, the state’s Gaming Control Board announced earlier this week. “The Strip accounted for the majority of the statewide increase in December,” said control board senior economic analyst Michael Lawton. “The state’s combined markets outside of the Strip only increased by 0.2 percent, or $914,000 compared to December 2021.”

U.S. Senator Catherine Cortez Masto (D-Nev.) announced that Southern Nevada will receive $3,539,000 through the Safe Streets and Roads for All program to support projects that will improve road safety and prevent roadway deaths across the Las Vegas valley. Senator Cortez Masto funded this program through the Bipartisan Infrastructure Law.