— By Rick Nelson of Mark IV Capital —
The Northern Nevada industrial market continues to stabilize following several years of rapid expansion and then a recalibration driven by broader economic uncertainty. Current conditions have presented challenges, particularly in the logistics and distribution sectors where tariffs and shifting trade policies have created a more cautious investment climate. Fortunately, there are signs of resilience and forward momentum.
The region’s vacancy rate stands at 11.7 percent, down from its peak in fourth-quarter 2024, per CBRE. The market also recorded its third consecutive quarter of positive net absorption, with 130,433 square feet absorbed that quarter, bringing the year-to-date total to 1.9 million square feet. Although current construction activity has moderated to 1.6 million square feet currently underway, the development pipeline remains robust, with an additional 15.8 million square feet in planning stages. This underscores sustained investor interest despite elevated vacancy and measured tenant activity.
Advanced manufacturing and data centers are poised to be the vanguard of industrial development in the greater Reno area going forward. Cushman & Wakefield recently named Reno No. 5 among emerging data center markets worldwide in its 2025 Global Data Center Market Comparison Report.
This recognition reflects the growing interest from major industry players exploring data center and advanced manufacturing projects. With access to well-trained talent, available land and a development-friendly regulatory environment, the roadmap for Northern Nevada’s development is aligning around these high-growth industries.
As the Reno-Sparks and the Tahoe-Reno industrial areas become increasingly built out, Fernley, Nev., is emerging as the next frontier for logistics and advanced manufacturing investment. Located east of Reno, Fernley offers entitled land, strategic interstate and rail access, as well as a robust labor pool with competitive wage advantages. A recent labor force study found that Fernley’s average hourly wage across logistics and production roles is 7 percent to 10 percent below that of Southern California’s Inland Empire. This provides a meaningful cost savings for employers without sacrificing talent quality.
Fernley is particularly well positioned to meet rising demand for data center and advanced manufacturing needs, especially as global trade dynamics continue to reshape logistics strategies.
To support this growth, Mark IV’s Victory Logistics District is actively investing in developing a new Center of Excellence, designed to equip Northern Nevada residents with the skills demanded by advanced manufacturing, data centers and logistics operations. In partnership with Western Nevada College, the initiative will deliver tailored training programs and establish a reliable talent pipeline for the region.
As market fundamentals continue to normalize, long-term competitiveness will hinge on aligning workforce readiness with industrial demand. Fernley’s combination of available land, cost-effective labor and proactive education partnerships positions it as a critical growth corridor for Northern Nevada’s next phase of industrial evolution. One where development and workforce investment go hand in hand.
— By Rick Nelson, Senior Vice President, Mark IV Capital. This article was originally published in the October 2025 issue of Western Real Estate Business.