NOTE: An earlier version of this article incorrectly identified the location of Faraday Future's new facility.
- Northern Nevada's commercial real estate market is rallying, and experts, the Reno Gazette-Journal reported, have given much of the credit to the arrival of big players like electric car manufacturer Tesla and data giant Switch.
- The industrial, office and retail sectors, all shattered during the recession, have shown decreased vacancies and, in retail's case, posted job gains, which has helped lower Nevada's unemployment rate to 5.8% in March, the Gazette-Journal reported.
- The real winner, experts say is industrial, driven by projects like Tesla's gigafactory and the distribution centers that Colliers International said made up 70% of all area commercial real estate transactions in the last quarter of 2015.
Retail vacancies, at a 17.3% high as recently as 2013, according to real estate company CBRE, fell to 12% this year, with the exception of airport-area properties, which were stuck at 24.2%. CBRE also said that the area has clocked five consecutive quarters of positive absorption for retail space, which typically means increasing demand and less space available.
Retail construction, however, has not bounced back because of the idle supply that has yet to be utilized, along with low leasing rates and climbing construction costs, but the Journal-Gazette reported that there is still a call for renovations. If vacancy rates continue to fall, the sector's accompanying rate hike could mean more construction in the future.
Manufacturing has also helped out industrial with California companies fleeing the new minimum wage law.
Electric car manufacturer Faraday Future also recently announced it would build its new $1 billion manufacturing facility in Southern Nevada. Despite a little touch and go with the state tax break deal, the company broke ground on its 3-million-square-foot, 900-acre factory last week.