— By Sam Meredith of Colliers —
After a slow and uncertain start to 2025, the retail market in Reno and Sparks is finally finding its stride. The first half of the year saw many tenants hit pause on leasing decisions as economic jitters made retailers cautious. By the third quarter, however, the mood had shifted. Leasing activity picked up noticeably, and tenants are now back in the market, actively looking for space. That momentum is expected to carry through the fourth quarter and into 2026, with healthy absorption on the horizon.
This turnaround is backed by solid market indicators. Net absorption turned positive in the second quarter, while asking rents rose quarter over quarter. Vacancies nudged upward due to big-box closures, including three Big Lots and a Joann store early in the year, but the overall retail vacancy still sits at a manageable 5.4 percent. In fact, several submarkets, including North Valleys, Northwest Reno, South Reno and Southwest Reno, are reporting vacancy rates below 2 percent, showing strong demand in key areas.
Retailers are clearly taking notice. Trader Joe’s, which once considered Northern Nevada a one-store market, has now opened two additional locations in Spanish Springs and South Reno. Both stores are reportedly performing well, suggesting that the region’s consumer base is not only growing but eager for more options. Costco is expanding too, with permits pulled for a third Reno/Sparks location in South Reno, bringing its total to four in Northern Nevada. Sierra, part of the TJX Companies family, is opening a second store in Spanish Springs, while WinCo has added a third location to its footprint.
These moves reflect a broader shift that Northern Nevada has reached a tipping point in terms of population and economic growth. Retailers that previously passed over the market are now actively scouting for sites. While many of these new entrants remain confidential, the increased activity speaks volumes about the region’s rising appeal.
It’s not just traditional retail that’s thriving. Experiential concepts are gaining traction, adding a fresh layer to the local scene. Third Shot Pickleball recently opened in Reno, offering a mix of recreation and social engagement. Electric Pickle, another pickleball-focused venue, signed a lease at the Reno Experience District, while Dave & Buster’s just opened at Shayden Summit. These additions reflect a growing appetite for entertainment-driven retail experiences.
Spanish Springs is emerging as a major growth hub, thanks, in large part, to its booming housing market. According to recent data, 66 percent of new single-family homes sold in the region are in Spanish Springs. Developers like Lennar and DR Horton are building aggressively, drawn by the area’s affordability and demand. This residential surge is fueling retail expansion, making Spanish Springs a magnet for new development.
One of the most significant projects in the pipeline is the Kiley Ranch Marketplace, a 400,000-square-foot power center planned by the Barclay Group. It will be the first new power center in Sparks since 2005. This project is expected to attract big-box anchors and shift leasing momentum toward the Spanish Springs and Wingfield Hills corridor. Additional retail activity in the area includes new locations for Panera Bread, Wendy’s, Les Schwab and Jiffy Lube.
South Reno is also seeing strong growth, with new retail developments complementing its expanding residential base. The combination of population influx and strategic location makes it a prime target for retailers looking to tap into emerging opportunities.
There are also several brands active in the region. Five Below has added a fifth location at Northtowne Marketplace. Planet Fitness is expanding with new sites in North Valleys Shopping Center and North Carson Crossing. Sprouts Farmers Market is also opening in North Carson Crossing, while Panera Bread continues its growth with two new stores. Sourdough & Co. and West Coast Sourdough are expanding in Sparks Crossing and Firecreek Crossing, respectively, and Fitness Connection and Cal Ranch are expected to open soon.
On the ownership side, new players are entering the market. There’s the previously mentioned Kiley Ranch development by the Barclay Group, in addition to Bridge 33 Capital’s acquisition of the Firecreek Crossing regional power center. Bridge 33 is actively renovating the property and working to backfill vacancies, signaling a commitment to revitalizing existing assets.
Investment activity has remained steady, with second-quarter sales volume holding at around $70 million. Buyers are being selective, focusing on stabilized, well-located centers or land, as well as targeting older value-add assets for redevelopment. Still, capital is flowing again and confidence in the market’s long-term potential is growing.
As for market dynamics, it’s a mixed bag. Smaller shop space is in high demand, making it a landlord’s market. Big-box space, on the other hand, leans more toward a tenant’s market. Concessions and tenant improvement allowances are substantial, driven by high construction costs and long timelines. Rent abatements can range up to a year, and tenant improvement allowances are on the rise. Contractors remain in high demand, which continues to slow project delivery.
All signs point to a retail market that’s not just recovering but evolving. With the third quarter showing strong lease activity and tenants back in the game, Northern Nevada is poised for a solid finish to 2025 and a promising start to 2026.
— By Sam Meredith, Vice President, Colliers. This article was originally published in the October 2025 issue of Western Real Estate Business.