Vacancy is one of those numbers that gets brought up all the time when people talk about the industrial market, but I think it is easy to look at it the wrong way. If vacancy goes up, it does not automatically mean every industrial owner is in trouble. If it goes down, it also does not mean every building is suddenly easier to lease. Vacancy is a good way to understand the direction of the overall market, but owners still need to look at what is happening with properties that actually compete with theirs.
Northern Nevada is a good example of this right now. CBRE reported Reno industrial vacancy at 9.3% at the end of the third quarter of 2026, down from 10.9% in the first quarter, with approximately 701,000 square feet of positive net absorption during Q3. CBRE That is a positive direction for the overall market. At the same time, the number does not tell you everything because vacancy can be very different depending on the location, building size, and type of industrial space.
For an owner, the more important question is how much competing space is available around your property. A 5,000-square-foot flex building in Reno is not really competing with a 500,000-square-foot distribution center along I-80. The tenants looking at those buildings are different, and so are the reasons they choose one property over another. This is why I think owners should pay attention to overall vacancy, but spend even more time understanding vacancy within their specific part of the market.
Vacancy can also have an impact on how aggressive an owner can be with rent and lease terms. If tenants have a lot of comparable buildings to choose from, owners may have to compete more on rent, improvements, or other lease terms. When options become limited, a well-located and functional building can have more leverage. Knowing what else is available before a lease expires can help an owner prepare instead of finding out after their tenant is already looking around.
I think the biggest takeaway is that vacancy should be used as one piece of the picture, not the entire picture. Northern Nevada’s overall industrial market has been improving, but each property still has to be looked at individually. If you own industrial property in Northern Nevada and want to know what vacancy and available competition look like around your building, reach out and I would be happy to take a look.
https://www.cbre.com/insights/figures/reno-industrial-figures-q3-2026
https://www.colliers.com/en/research/reno/2025-q2-reno-industrial-market-research-report
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