2018 CCIM President

Carole Brill, CCIM

2018 Commercial Real Estate Forecasts

Presented by Melissa Molyneaux

Melissa Molyneaux, SIOR, CCIM

Senior Vice President | Executive Managing Director

Office Services

Colliers International, Reno

Melissa.Molyneaux@colliers.com

775-823-4674

Colliers International

Key Takeaways

Owners improving their assets with lobby remodels

Improving statistics year over year

Positive absorption due to significant leases/sales

Colliers International

Absorption

(20,000)

(10,000)

-

10,000

20,000

30,000

40,000

50,000

60,000

4Q2014

1Q2015

2Q2015

3Q2015

4Q2015

1Q2016

2Q2016

3Q2016

4Q2016

1Q2017

2Q2017

3Q2017

Net Absorption

Colliers International

Vacancy Rate

16.1% 15.9%

15.2%

14.5% 14.7%

13.1%

12.3%11.8%

10.0%

11.0%

12.0%

13.0%

14.0%

15.0%

16.0%

17.0%

18.0%

19.0%

20.0%

4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017

Colliers International

Significant Leases

Address SF Tenant Type

885 Trademark Drive, 1st & 2nd Floor

(partial)29,490 PODS Enterprises New

885 Trademark Drive, Suite 200 16,697 Elemental LED New

9480 Double Diamond Parkway 16,611 Spine Nevada New

50 South Virginia Street 14,000 SWITCH New

10345 Professional Circle, 2nd Floor 12,823 Guild Mortgage New

2195 S Virginia Street, 1st Floor 12,500 Park Lane Sales Office New

6160 Plumas Street, Suite 200 10,721 R&R Holdings New

9850 Double R Boulevard, Suite 100 10,719 Cisco Systems Renewal

604 W Moana Lane 10,484Nevada System of

Higher EducationNew

5390 Kietzke Lane, Suite 102 10,421Nevada State

Contractors BoardNew

Colliers International

Rental Rates

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

$2.00

Downtown South Meadows Meadowood Central/Airport Sparks West Reno

Colliers International

2018 Planned & Potential Construction

Planned

McKenzie Properties is building a 40,000 sf spec building off Kietzke

and Neil @ Mountain View Corporate Center

Charles Schwab is breaking ground on a BTS/Spec building in

Rancharrah.

Two buildings are under construction: Urology Group on Kietzke and

an Oncology Group on Longley

Potential

Tanamera Construction may be constructing medical space in Reno

Corporate Center (Longley Lane)

Colliers International

Significant Sales

Address SF Sale Price PSF

645 N Arlington Avenue 189,828 $66,200,000.00 $348.74

1 East Liberty Street 84,151 $18,300,000.00 $217.47

6005 Plumas Street 37,410 $6,900,000.00 $184.44

1 California Avenue 23,266 $3,075,000.00 $132.17

6140 Plumas Street 21,866 $2,906,000.00 $132.90

175 Salomon Circle 16,467 $2,900,000.00 $176.11

5595 Kietzke Lane 10,752 $3,194,000.00 $297.06

241 Ridge Street* 34,407 $5,781,247.00 $168.03

201 West Liberty Street* 28,557 $5,647,698.00 $197.77

100 & 140 Washington Street* 24,464 $4,564,935.00 $186.60

275 Hill Street* 23,441 $4,156,120.00 $177.30

1301 Cordone Avenue* 25,543 $2,200,000.00 $86.13

*Part of Portfolio Sale

Colliers International

2018 Office Forecast

Rents

Vacancy

Absorption

Construction

CCIM 2018

Vacancy

Forecast =

8.8%

Melissa Molyneaux, SIOR, CCIM

Senior Vice President | Executive Managing Director

Office Services

Colliers International, Reno

Melissa.Molyneaux@colliers.com

775-823-4674

2018 Commercial Real Estate Forecasts

Presented byMatt Harris

Presented by:Matthew Harris

Contributers:David Schuster

Ronald SheehanData Provided by Costar

Percentage Leased 93%

Market Direct Vacancy Rate

7.0%

Occupancy Rate

Current MarketVacancy Rate

8.1%

US VacancyRate5.1%

Boise Vacancy Rate3.5%

Sacramento VacancyRate6.1%

FUN FACT!

In 2017, Northern Nevada's Industrial market had more sublet space available than any other market in the United States

Costar reported available sublet space to be 2.5 MSF.

Next closest market Dallas Ft Worth 2.2 MSF with a total market size 869 MSF, over 8 times larger than ours.

Leasing Activity

9.2 MillionSquare Feet

Net Absorption

3 Million Square Feet

Average Asking Rental Rate$4.86 PSF

Warehouse Average

$4.36 PSF

Flex SpaceAverage

$9.25 PSF

Average Sales Price $64.00PSF

Total Sales Volume

121MillionIn

cre

ase

d

Total Square Feet For Sale

1.7 Million Square Feet

FOR SALE

Construction Starts

5 year low!

Sub-Market MapsFernley Tahoe Reno Industrial Center

2018 Expectations

Gross Absorption Sales Volume

Construction Deliveries

Rental Rate + Sales Price

Overall Market Vacancy6.8%

2018 Commercial Real Estate Forecasts

Presented by Trevor Richardson

Reno Multifamily

ReportPrepared By:

Trevor Richardson

Dickson Commercial Group

Prepared for CCIM 2018 Forcast Event DCG Multifamily 2018

2017

Multifamily

Overview

Tenants

| Higher rents

| Less options

RentsDramatic Gains

Owners

| High income

| Sales prices

| Demand

Reno 2017 Rent

Growth

14% rate increase

Reno 2016 Rent Growth

11.8% rate increase Re

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14%

5%

Apartment

Rental Rate

Growth

01

Q316 Q416 Q117 Q217 Q317

$1,054$1,066

$1,111

$1,194

$1,202

$1,202Q3’17 Reno Multifamily

Average Rental Rate

2017 RENT GROWTH

DCG Multifamily 2018

Apartment Occupancy

2.24%Represents around 2 weeks of

market turn time

Apartment

Vacancy

01

Q316 Q416 Q117 Q217 Q317

2.24%

2.93%

2.30%

1.17%

2.24%

$129KAverage $/Unit

2,020Units Sold

80+ Units

$87KAverage $/Unit

1,098Units Sold

2-79 Units

Large Multi Small Multi2017

Multifamily

Sales

02

10%Average $/Unit

21%Percentage Decrease

80+ Units

12%Average $/Unit

64%Percentage Increase

2-79 Units

2016 to 2017 Sales Trends2017

Multifamily

Sales

02

2017

Multifamily

Sales

02

1

2

2016 &2017 Large Multifamily

Sales Scatter Chart

1| Downtown

| Urban

| 5.5% Cap

2| South Reno

| Garden

| 5% Cap

1 | $198k/UNIT

2 | $158k/UNIT

3rd St Flats The Verge

Reno/Sparks

Multifamily

Construction

03

Q416 Q117 Q217 Q317

8368

10071

11185 10599

Q315 Q316Q415 Q116 Q216

3729

65917360

87848466

10,599Q3’17 Reno multifamily

total units planned and

under construction

Under

Construction

Reno/Sparks

Multifamily

Construction

03 3,762

Planned

Construction 6,837

2.5%

$1,275Vacancy

Average Rent

2018

Multifamily

Forecast

Thank you.

DCG Multifamily 2018

2018 Commercial Real Estate Forecasts

Presented byIan Cochrane

2018 Retail ForecastIan Cochran, CCIM

Retail Leasing, Sales, & Investment Specialist

WWW.SVN.COM

2017… Where did it go!

The market velocity nearly doubled in 2017, creating what seemed like a mad dash to secure properties for investment and leasing alike.

SVN INTERNATIONAL CORP.

WWW.SVN.COM

2017 was a great year for leasing and investment sales

SVN INTERNATIONAL CORP.

WWW.SVN.COM

2017 Notable Investment Sales

SVN INTERNATIONAL CORP.

RCG Ventures $40 Million ($120/SF)

Tolles Development$16.5 Million ($221/SF)

Kimco Realty$24.1 Million ($291/SF)

Land Cap $18.6 Million ($125/SF)

WWW.SVN.COM

2017 Notable Lease Transactions

23,500 SF at Del Monte Plaza

30,000 SF at South Meadows Promenade30,000 SF at Sparks Galleria

40,000 SF at Sparks Galleria

25,000 SF at Northtowne Marketplace

20,000 SF at Spanish Springs Center

WWW.SVN.COM

Development in Reno-Sparks AreaSouth Meadows Promenade The Outlets at Legends

80,160 SF New Construction

40,000 SF Build to Suit

20,000 SF Spec Build

WWW.SVN.COM

The Reno Market By The Numbers

Absorption

Vacancy Rate New Construction

Lease Rates & Sales Prices

WWW.SVN.COM

Looking Ahead to 2018

Absorption

Vacancy Rate New Construction

Lease Rates & Sales Prices

WWW.SVN.COM

2018 Vacancy & Rent Prediction

Vacancy Rate

Lease Rate

8%

$1.55/SF

2018 Commercial Real Estate Forecasts

Presented by CCIM