A Cooling Market: What the Industrial Slowdown Means for Reno-Sparks Tenants

The Reno-Sparks industrial market is slowing down.

After years of double-digit rent growth and historically tight inventory, 2025 is shaping up to be a turning point. Activity has slowed. Concessions are creeping back in. And for the first time in a long time, tenants are seeing a little more room to breathe.

If you’re an industrial user in Northern Nevada, here’s what this means for you.

As the Reno-Sparks industrial market cools, tenants are gaining leverage—learn what this shift means for lease negotiations, renewals, and relocation strategies at renoindustrial.com.

1. The Shift Is Subtle - but Real

We’re not in a full-on tenant’s market yet, but there’s a noticeable cooling across the board. Buildings that would have leased in a month last year are sitting longer. Landlords are starting to come off their asking rates, if only slightly. And while we're not seeing panic, we are seeing reality set in.

If you’ve been waiting for the right moment to expand, relocate or negotiate a renewal, this might be it.

2. Rates Are Still High - But They're No Longer Climbing

Asking rents are still elevated and most landlords aren't slashing prices just yet but they are no longer climbing almost weekly. We are also no longer seeing the aggressive year-over-year increases that defined our market from 2020–2023.

Landlords are more open to longer free rent periods, improvement allowances or flexible deal structures—especially if you're a qualified tenant and can move quickly.

3. Vacancy Is Creeping Up

A wave of speculative development hit the market over the last 24 months, much of it planned during peak demand. Now, as those buildings deliver, vacancy rates are ticking upward—particularly in the bigger box spaces (50,000 SF and up). That creates leverage for larger users, but smaller tenants can benefit too as landlords look to backfill or divide.

4. Don’t Wait for 2019

While it's tempting to hold out for pre-pandemic pricing, it's unlikely we’ll get all the way back there. Construction costs, financing and supply chain shifts have fundamentally changed the math. The goal now isn't to "time the bottom" but to make smart decisions in a more balanced market.

5. Strategy Matters More Than Ever

This is the moment to revisit your lease, reassess your space needs and consider your long-term plan. Whether you're up for renewal or looking at growth, the best deals are going to tenants who are clear, ready and working with brokers who know how to navigate a shifting landscape.

Need help reviewing your lease or exploring options?
Let’s talk. Whether you’re looking to stay, grow or downsize, I can help you build a strategy that makes sense in today’s market - and keeps your business flexible for tomorrow.