To start 2006, industrial vacancy rate is ‘healthy’
Appeal Staff Writer
Carson City’s industrial sector is walking the line between a buyer’s or seller’s market, a property adviser said Monday.
Kris Holt, a regional adviser with Grubb & Ellis, said Carson City has an 11 percent vacancy rate for industrial space, which is healthy for the area.
“We’d like to see more buildings for lease or sale right now. There’s not enough product out there right now for investors or users in the way of manufacturing or warehouses.”
Holt, who specializes in industrial manufacturing, said four industrial buildings are under construction. Another three industrial complexes are scheduled to begin construction this year: one on Deer Run Road, another at Goni Road and Arrowhead Drive, and one on Mouton Drive.
He said this compensates for the four industrial companies leaving Carson City and another four that are downsizing. He declined to name the companies.
“Carson City is the manufacturing center of the state. By the numbers we get from the state, 14 percent of our employment base is in manufacturing. That makes it one of the top five employment sectors in Carson City,” he said.
In comparison, 6 percent of the employment base in the Reno/Sparks area is in the industrial sector. In Las Vegas it’s 3 percent, he said.
The top reasons industrial companies locate in Carson City:
• Land is priced lower than Reno/Sparks
• Carson City has an established manufacturing base, and the sector prefers to group together
• Environmental regulations are not as stringent as in the metro areas
• Lower property taxes and labor wages
• Contact reporter Becky Bosshart at email@example.com or 881-1212.
By the numbers
Carson City’s industrial sector:
Total space zoned for industrial: 5.6 million square feet
Vacant: 613,000 square feet
Number of buildings: 160
How many are vacant: 23
– Source: Grubb & Ellis