Reno Market Report

Yield Range

5.2-5.6%

Active Deals

Outlook

Positive

Reno has transformed from a gaming-centric economy into a regional hub for advanced manufacturing, technology, and logistics over the past decade. Anchored by Tesla's Gigafactory and a growing roster of major employers including Google, Panasonic, Amazon, and Walmart, the metro's industrial and multifamily sectors remain supported by strong employment and in-migration from higher-cost California markets. The multifamily market is tightening again after a new supply cycle in 2023-2024: Q4 2025 occupancy rose to 91.2% (up from 87.8% a year prior) and average asking rents increased 5.8% year-over-year to $1,727 per month, per the Nevada State Apartment Association. Industrial vacancy spiked to 14.6% in Q4 2025 as speculative deliveries outpaced absorption, but the construction pipeline has contracted sharply and vacancy is forecast to fall meaningfully in H2 2026. Nevada State Apartment Association via KRNV, Cushman and Wakefield

Yields & Returns

Multifamily cap rates for communities 50+ units averaged 5.6% in Q3 2025 (listing cap rates averaged 5.39%), down from 6.2% in Q1 2024, reflecting compression as occupancy tightened. Average price per unit on closed transactions was approximately $190K-$219K. Office cap rates averaged 7.5% in Q3 2025, up 60 bps year-over-year, per Kidder Mathews. Industrial cap rates have expanded from sub-4% 2021 lows to the mid-6% range. Nevada's absence of personal and corporate income tax enhances effective returns for investors relative to comparable California or Colorado markets. Kidder Mathews Reno Multifamily Q3 2025, Kidder Mathews Reno Office Q3 2025

Vacancy & Supply

Vacancy Rates

Multifamily (50+ units): 2.40% in Q3 2025, up 38 bps from Q2 but down 13% year-over-year. Average rent of $1,751/month, up 5% year-over-year. Stabilized-only properties showed 95.5% occupancy in Q4 2025. South Reno and North Valleys submarkets report vacancy below 2% for industrial. Industrial overall: 14.6% (Q4 2025) due to 2023-2024 spec supply wave. Office: 9.2% (Q4 2025), down from 10.3% the prior year, with Class A demand driving positive absorption. Retail: approximately 3-4%, essentially at historic lows. Kidder Mathews, Cushman and Wakefield

Supply Pipeline

Multifamily: fewer than 700 market-rate units under construction as of Q3 2025, a 71% year-over-year decline. Constrained pipeline is forecast to push vacancy lower in H2 2026. Industrial: speculative starts have sharply decelerated after the 2023-2024 delivery wave; limited new groundbreakings in 2025. Office: 229K SF under construction in Q3 2025, down 37% year-over-year. REBusinessOnline Reno Multifamily 2025, Kidder Mathews

Competitor Activity

APW Avenue Group's $96 million acquisition of the 401-unit Village at Iron Blossom in South Reno's South Meadows submarket is the headline deal for Q2 2026. The property benefits from proximity to major employers in the industrial corridor. Prior notable transactions included the Roselake Apartments (80 units) at $11.8 million ($147,500 per unit) at a 5.69% cap rate in Q1 2025. Investor interest in the Reno multifamily market is recovering as the new supply cycle absorbs and the pipeline thins sharply. Industrial investment has been more selective given elevated vacancy, but well-located, fully leased assets continue to attract buyer interest. Brevitas Reno CRE Overview

Firm	Activity	Asset	Detail	Value
APW Avenue Group	Acquisition	Multifamily	APW Avenue Group acquired the 401-unit Village at Iron Blossom in South Reno's South Meadows submarket for $96 million ($239,400 per unit).	$96M
Various	Transaction	Multifamily	Roselake Apartments (80 units) sold in Q1 2025 for $11.8M ($147,500 per unit) at 5.69% cap rate.	$11.8M