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Reno Office Market Report

2nd Quarter 2026

Posted In — Market Research | Market Report

The following reflects Reno office market conditions as of Q2 2026.

The Reno office market in Q2 2026 experienced declining vacancy, lower unemployment, rising average asking rents, and steady construction deliveries year-over-year. Explore our full Reno office market report for deeper insights into leasing activity, sale transactions, and submarket performance.

Frequently Asked Questions

What is the office vacancy rate in Reno as of Q2 2026?

Reno’s office vacancy rate was 7.3% in the second quarter of 2026, according to Kidder Mathews research. That’s down 40 basis points from 7.7% a year earlier in Q2 2025, though it edged up slightly from 7.1% in the first quarter of 2026.

What are average asking office rents in Reno in Q2 2026?

Average asking office rents in Reno reached $25.29 per square foot per month in Q2 2026 (Data source: CoStar), up 1.0% from $25.04 per square foot per month in Q2 2025. Rents also rose slightly from $24.89 per square foot per month in the prior quarter.

How much office leasing activity took place in Reno in Q2 2026?

Notable Q2 2026 lease transactions in Reno included a 12,000-square-foot lease at 690 E Plumb in the Central/Airport submarket signed by Great Basin Chiropractic, according to Kidder Mathews research. Other significant leases included an 8,500-square-foot deal at 800 Haskell St in Downtown with Reno Revival Church and a 6,000-square-foot lease at 50 S Virginia St with IBEW-1245.

What was net absorption for Reno office space in Q2 2026?

Reno’s office market posted net absorption of -25,891 square feet in Q2 2026, meaning more space was vacated than newly occupied during the quarter, according to Kidder Mathews research. Net absorption refers to the change in occupied space over a period; despite the negative quarter, year-to-date net absorption for 2026 totaled a positive 71,471 square feet, up 432.5% from 13,423 square feet over the same period in 2025.

How much office space is under construction in Reno?

Reno had 219,051 square feet of office space under construction as of Q2 2026, unchanged from the prior quarter but down 1.0% from 221,272 square feet a year earlier, according to Kidder Mathews research. The largest project underway is Reno City Center, a 191,251-square-foot development at 219 N Center St in Downtown from CAI Investments, LLC, slated for delivery in the fourth quarter of 2026. No new construction was delivered in Q2 2026.

What was the largest office sale in Reno in Q2 2026?

The largest office sale in Reno during Q2 2026 was 10395 Double R Blvd in the South Meadows submarket, a 7,172-square-foot building that sold for $2,800,000, or $390 per square foot, according to Kidder Mathews research. Cullpepper Psychiatric Assoc., PLCC purchased the property from Nevada Mallard Holding Co., LLC.

What was the largest office lease signed in Reno in Q2 2026?

The largest office lease signed in Reno in Q2 2026 was a 12,000-square-foot transaction at 690 E Plumb in the Central/Airport submarket, according to Kidder Mathews research. Great Basin Chiropractic signed the lease with landlord Lotus Communications in April 2026.

What are current cap rates for Reno office properties?

Cap rates for Reno office sales averaged 5.2% in Q2 2026, according to Kidder Mathews research. That’s down 130 basis points from 6.5% in Q2 2025 and down from 6.3% in the first quarter of 2026, coinciding with a 29.4% year-over-year rise in average sale price per square foot to $349.84.

What is the outlook for the Reno office market?

Reno’s office market showed signs of tightening in Q2 2026, with vacancy down year-over-year, asking rents modestly higher, and cap rates compressing alongside rising sale prices per square foot, according to Kidder Mathews research. Quarterly net absorption turned negative, but year-to-date absorption remains solidly positive and well ahead of the same period in 2025.

Last updated: Q2 2026. Data source: CoStar. Compiled by the Kidder Mathews Research Group.

Q2 2026 Reno Office Market: Key Data Points

Explore our full Reno office market review for deeper insights into leasing trends, sale activity, and submarket performance.

  • Vacancy Rate: Office vacancy in Reno was 7.3% in Q2 2026, down 40 basis points from 7.7% in Q2 2025.
  • Average Asking Rents: Average asking rents rose to $25.29 per square foot per month, up 1.0% year-over-year.
  • Net Absorption: Net absorption was -25,891 square feet in Q2 2026, though year-to-date absorption reached 71,471 square feet, up 432.5% from 13,423 square feet a year earlier.
  • Construction Pipeline: 219,051 square feet remained under construction as of Q2 2026, led by the 191,251-square-foot Reno City Center project; no new deliveries occurred during the quarter.
  • Cap Rates: Average cap rates compressed to 5.2%, down 130 basis points from 6.5% in Q2 2025.
  • Sale Pricing: The average office sale price rose to $349.84 per square foot, up 29.4% year-over-year.

Market Breakdown — Quarterly Comparison
Reno Office Market Breakdown Q2 2026 — Quarterly Comparison (2Q26, 1Q26, 2Q25, YOY Change)
Metric 2Q26 1Q26 2Q25 YOY Change
Under Construction (SF) 219,051 219,051 221,272 -1.0%
Vacancy Rate 7.3% 7.1% 7.7% -40 bps
Average Asking Rents/SF/Mo $25.29 $24.89 $25.04 1.0%
Average Sales Price/SF $349.84 $229.00 $270.40 29.4%
Cap Rates 5.2% 6.3% 6.5% -130 bps
Market Breakdown — Year-to-Date Comparison
Reno Office Market Breakdown Q2 2026 — Year-to-Date Comparison (2Q26, 2026 YTD, 2025 YTD, YOY Change)
Metric 2Q26 2026 YTD 2025 YTD YOY Change
Construction Deliveries (SF) 0 0 0 N/A
Total Net Absorption (SF) -25,891 71,471 13,423 432.5%
Significant Sale Transactions Q2 2026
Reno Office Significant Sale Transactions Q2 2026
Property Submarket SF Sale Price $/SF Buyer Seller
10395 Double R Blvd South Meadows 7,172 $2,800,000 $390 Cullpepper Psychiatric Assoc., PLCC Nevada Mallard Holding Co., LLC
5961 Los Altos Pky Sparks 5,503 $2,150,000 $391 5961 S Los Altos Mob LLC Kosinski James
480 E Prater Way Sparks 2,500 $1,500,000 $600 Nickolas Culpepper MD Mckenzie Jason
Significant Lease Transactions Q2 2026
Reno Office Significant Lease Transactions Q2 2026
Property Submarket SF Transaction Date Landlord Tenant
690 E Plumb Central/Airport 12,000 April 2026 Lotus Communications Great Basin Chiropractic
800 Haskell St Downtown 8,500 May 2026 948 Plumas, LLC Reno Revival Church
50 S Viginia St Downtown 6,000 April 2026 Dacole-Breitling IBEW-1245
Significant Under Construction
Reno Office Significant Under Construction Q2 2026
Property Address Submarket SF Owner Delivery Date
Reno City Center 219 N Center St Downtown 191,251 CAI Investments, LLC 4Q 2026
Reno Corporate Professional Center 5520 Reno Corporate Dr Meadowood 20,000 Vector Clinical Trials 3Q 2026
5450 Longley Ln 5450 Longley Ln Meadowood 7,800 Dennis Banks Construction 2Q 2027

Data as of Q2 2026. Source: CoStar. Prepared by the Kidder Mathews Research Group.

 


Contact

GARY BARAGONA
Vice President, Research
gary.baragona@kidder.com
View Bio

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