Vacancy Report shows Carson City's tight market, new apartment complexes coming soon
The 2019 Vacancy Study for Carson City has been released, showing a growing trend of low vacancies, especially in multi-family residential complexes and industrial space.
According to the study, however, there are several projects either underway or waiting for approval, including new apartment complexes, industrial buildings, school expansions, a dog boarding facility, and more.
The projects are as follows:
Residential
— 9-Building Apartment Complex with 143 Units, 4530 and 4580 Cochise Street
— 137 Single Family Units and 312 Multi Family Units, Airport Road
— 62-Unit Apartment Building, 680 Hot Springs Road
Commercial
— Extended Stay Resort with 277 RV Spaces, 1400 Old Hot Springs Road
— Dog Boarding Facility, 3101 South Carson Street
— Jacksons Convenience Store 1102 North Carson Street
— Nissan Dealership 2750 South Carson Street
— My Place Hotel with 64 Rooms 17 Hospitality Way
— Starbucks Coffee Shop, 680 Hot Springs Road
Educational/Medical
— Mark Twain Elementary School Expansion, 2111 Carriage Crest Drive
— Fremont Elementary Expansions, 1511 Firebox Road
— Carson Tahoe Regional Medical Center Expansion, 1400 and 1600 Medical Parkway
Industrial
— New Industrial Building, 5998 Morgan Mill Road
— New Industrial Building, 5700 Morgan Mill Road
As far as office vacancy goes, Carson City is fairly low for the first time in several years.
According to the report, “The office market in Carson City is thriving relative to recent years. The vacancy rate is 8.1 percent this year, compared to 14.7 percent in 2015, and peak vacancy of 17.8 percent in 2011.”
Medical office vacancy is low as well, at only 4.1 percent. Medical office space accounts for 10.6 percent of the overall office market, according to the report, and is showing signs of demand for additional space.
Retail vacancy in Carson City is the highest of the categories surveyed, at 16.9 percent; however, they made a note that the vacancy after excluding the old K-Mart is only at 9.9 percent.
This has remain unchanged since 2015.
“Many factors contribute to this stagnancy, including the former K-Mart space that remains largely unoccupied,” the report stated.
A vacancy rate of 10 percent is considered to be market equilibrium, with a lower rate indicating a landlord’s market and a higher rate indicating a tenant’s market, according to the report.
Industrial vacancy is quite low, according to the report, indicating more industrial space is needed in the Carson City market. At 5.2 percent, this falls below the 7 percent vacancy that is determined to be market equilibrium, according to the report.
A low vacancy rate isn’t always a good sign, however, as it indicates there’s not much room for growth.
“Deterred by a lack of appropriate space, companies are simply choosing not to relocate to or expand in Carson City,” the report stated.
The lowest vacancy rate by a landslide is multifamily residences, at only 1.5 percent, according to the report.
“This figure is minuscule compared to normal market conditions, which would present a rate closer to 5 percent on average,” said the report. “This vacancy is also substantially lower than the multifamily vacancy rate in Reno, which was last estimated to be 3.64 percent.”
These properties were built between 1973 and 2006. One bedroom, one bathroom units are renting for $880 to $1,435. Three bedroom, two bathroom units are between $1,250 to $1,710.
You can read the report in its entirety by clicking here.
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