Reno Retail Market Report

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

The Reno retail market in 2Q 2026 remained fundamentally healthy, with vacancy tightening year-over-year and asking rents continuing to increase. Construction activity slowed significantly, with no new deliveries during the quarter and the development pipeline nearly 50% smaller than a year ago. While quarterly net absorption turned negative, overall market fundamentals remain supported by limited new supply and steady tenant demand. Explore our full Reno Retail Market Report for in-depth analysis and trends.

Frequently Asked Questions

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

Reno’s retail vacancy rate was 3.9% in the second quarter of 2026, according to Kidder Mathews research. That is down 40 basis points from 4.3% in the second quarter of 2025, though it ticked up from 3.5% in the first quarter of 2026. Vacancy has remained tight overall despite the quarter-over-quarter increase.

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

Average retail asking rents in Reno reached $1.57 per square foot per month in the second quarter of 2026 (Data source: CoStar). That represents a 4.5% increase from $1.50 PSF/month a year earlier and is also up from $1.52 PSF/month in the prior quarter. Rents have trended upward consistently over the past year.

What was net absorption in the Reno retail market in Q2 2026?

Reno retail net absorption was negative 125,465 square feet in the second quarter of 2026, meaning tenants vacated more space than they occupied during the quarter, according to Kidder Mathews research. Despite the negative quarter, year-to-date net absorption for 2026 remained positive at 1,974 SF, an improvement over the negative 207,105 SF recorded over the same period in 2025.

How much retail space is under construction in Reno in Q2 2026?

There was 55,847 SF of retail space under construction in Reno as of the second quarter of 2026 (Data source: CoStar). That is a 49.67% decrease from 110,958 SF under construction a year earlier, reflecting a significantly smaller development pipeline. The under-construction total held steady from the first quarter of 2026.

Were there any new retail construction deliveries in Reno in Q2 2026?

No new retail space was delivered in Reno during the second quarter of 2026, according to Kidder Mathews research. Year-to-date deliveries for 2026 totaled 6,912 SF, well below the 51,697 SF delivered over the same period in 2025.

What was the largest retail sale transaction in Reno in Q2 2026?

The largest retail sale in Reno in the second quarter of 2026 was Shoppers Square in the Park Lane submarket, a 132,000-square-foot property that sold for $17,024,306, or $128.97 per square foot. Aaa West Reno Public Market, LLC purchased the property from Reno Public Market, LLC (Data source: CoStar).

What was the largest retail lease transaction in Reno in Q2 2026?

The largest retail lease signed in Reno in the second quarter of 2026 was Pacific Dental Services at D’Andrea Marketplace in the Northeast Sparks submarket, covering 5,300 square feet and signed in April 2026, according to Kidder Mathews research. Other notable leases included Tai Lotus Restaurant at South Virginia Plaza and Bricks & Minifigs at Sparks Crossing.

What are average cap rates and sale prices for Reno retail properties in Q2 2026?

The average retail cap rate in Reno was 6.3% in the second quarter of 2026, down 40 basis points from 6.7% a year earlier (Data source: CoStar). Average sale prices declined to $137 per square foot, a 56.88% decrease from $317 PSF in the second quarter of 2025, reflecting a broader repricing in the investment market.

What is the outlook for the Reno retail market heading into the second half of 2026?

The Reno retail market enters the second half of 2026 with tight vacancy, rising rents, and a shrinking construction pipeline, all of which point to continued landlord-favorable conditions, according to Kidder Mathews research. Limited new supply and steady tenant demand are expected to support fundamentals even as quarterly net absorption fluctuates.

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

2Q 2026 Reno Retail Market: Key Data Points

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

• Vacancy Rate Improves Year-Over-Year: Reno’s retail vacancy rate decreased to 3.9%, down 40 basis points from 4.3% one year ago.
• Asking Rents Continue to Rise: Average retail asking rents reached $1.57 PSF/month, representing a 4.5% increase year-over-year.
• Development Pipeline Contracts: Retail space under construction totaled 55,847 SF, a 49.7% decrease from the prior year, reflecting a more limited supply outlook.
• No New Deliveries in 2Q 2026: Developers delivered 0 SF during the quarter, while year-to-date deliveries totaled just 6,912 SF, well below the 51,697 SF delivered during the same period last year.
• Net Absorption Returns to Positive YTD: Despite -125,465 SF of net absorption in 2Q 2026, the market remained slightly positive year-to-date with 1,974 SF of net absorption.
• Investment Pricing Resets: Average retail sale prices declined to $137 PSF, down 56.9% year-over-year, while average cap rates compressed to 6.3%.

Market Breakdown — Quarterly Comparison

Market Breakdown — Year-to-Date

Significant Sale Transactions 2Q 2026

Significant Lease Transactions 2Q 2026

Significant Under Construction

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