Retail had its best quarter of the year in the fourth quarter of 2020 with $84.05 million in total sales volume and 19 total sales. For comparison, the total volume in Q3 was $10.3 million and the total volume in Q2 was $9.6 million. The average price per square foot in the fourth quarter was the lowest average this year at $250.21. That was due to multiple large sales that traditionally sell on a cheaper price per square foot basis.
The largest retail lease transaction of 2020 was C-A-L Ranch for 67,769 square feet. C-A-L Ranch executed a lease in December at the Kietzke Center, whose current tenants include Sportsman’s Warehouse, Ashley Furniture & Furniture Discounters.
Reno & Sparks has not had a new retail lease over 40,000 square feet in almost five years. The last two leases over 40,000 SF were Marshalls and Round1 in 2017. Marshalls executed a lease in the Sparks Galleria at 40,233 square feet, and Round1 leased 59,075 square feet within Meadowood Mall.
Q4 2020 stayed steady, as predicted. The Reno-Sparks market ended the year on a good note and further improvements in 2021 are anticipated.
Retail vacancy, including sublease, decreased 30 basis points from last quarter to 7.5 percent in the fourth quarter of 2020 yet remained unchanged year-over-year (YOY). The current vacancy rate is 250 basis points below the 10-year quarterly average of 10.0 percent. Occupancy grew this quarter by 239,600 square feet thanks to positive net absorption of 106,000 square feet in the Central West and 70,500 square feet in the Southwest submarkets.
Occupancy increased by 118,900 square feet across the market in 2020, thanks to the last three consecutive quarters of positive absorption. The average asking rent of $1.57 per square foot on a monthly triple net basis decreased 0.6 percent from last quarter yet grew 4.7 percent YOY across all centers. Despite no completions in Q4 2020, the market delivered 346,000 square feet since the beginning of 2020. Additionally, there is over 110,900 square feet under construction valley-wide, with 93 percent of it currently under construction properties in the Southwest submarket (103,400 square feet).
The retail market recorded $355 million in sales volume across 53 centers and 1.7 million square feet in 2020, a 79 percent decrease in volume compared to 2019. The average price was $255 per square foot in 2020 compared to $245 in 2019 (+4.1 percent YOY).