Trump and Tesla Effects on Northern Nevada Industrial Real Estate
At the end of 2016, Trump and Tesla remained in the forefront. From the report:
“The fourth quarter of this year also showcases a more tangible, indirect effect from the Tesla gigafactory. Tesla quietly leased a large warehouse in the Tahoe Reno Industrial Center to receive product for several years. Another Tesla vendor, Daehan Solutions America, LLC (an international company supplying the automotive industry and headquartered in Incheon South Korea), leased a large space in the vacant ex-Amazon space in Fernley. These two transactions alone comprise about 60% of the total quarterly absorption. Additionally, Tesla vendors and subcontractors have leased several other spaces while the plant is being built. Tesla’s positive indirect impact is becoming far more quantifiable.”
This issue of the Market Advisor reviews lease rates, vacancy, construction, market velocity and an outlook for the first part of 2017. It also compares absorption and vacancy rates to the third quarter of 2016, the fourth quarter of 2015 and the five-year average.
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