Reno-Sparks area retail market expansions on fast track in 2018
This story is publishing in the January, 29, 2018, edition of the Northern Nevada Real Estate Journal, a quarterly publication of the Northern Nevada Business Weekly.
RENO, Nev. — With an improved economy and ongoing development across the region, the Reno-Sparks market continued its yearlong success in the retail sector
As 2017 came to a close, and with current trends, 2018 looks like a promising year for further expansion for retailers in Northern Nevada.
Grocery chain Sprouts Farmers Market opened its first store in the area at the South Meadows Promenade in south Reno last September. The company also recently announced plans to expand its footprint in the region with a second location in Sparks, scheduled to open in the second quarter of 2018.
There is also major development underway at the Outlets at Legends mall in Sparks, which will add to the more than 40 major retailers and restaurants already operating.
Burlington Coat Factory is scheduled to open another store adjacent to the Galaxy Sparks IMAX Luxury Theater later this year, adding up to 40,000 square feet of new retail space.
Chick-fil-A will open a second location at Legends at the end of January, while chains Jersey Mike’s Subs, Blaze Pizza and Habit Burger will also join the lineup of food offerings at the mall in the coming months.
Also under construction at the Outlet at Legends site are the 70,000-square-foot Legends Bay Casino and two other hotel chains. The 102-room, 49,000-square-foot Hampton Inn & Suites by Hilton is set to open in April, while the 104-room. 64,000-square-foot Residence Inn by Marriott is scheduled to begin operations in September.
“We had a solid 2017, and we’re very optimistic about 2018 with some of these potentials coming into the market,” said Claire Petrie, general manager at the Outlets at Legends. “We have a number of mixed-use opportunities, which include fine dining and multifamily hospitality, all in the works — if not committed to the project — so it’s a very exciting time for us.”
Petrie said that though ecommerce has affected sales of brick-and-mortar retail, tenant sales were strong and on par with 2016 figures.
She said that ecommerce cannot replace the experience of shopping, and the Outlets at Legends is a destination for shoppers to do more than just shopping, with the other activities offered. She added that there is a lot of leasing activity going on with four signed deals, and there are plans to bring even more retailers in 2018.
‘Positive outlook for the region’
Elsewhere in town, Raising Cane’s expanded by opening another location on Virginia Street near the University of Nevada, Reno, and will open another location in Sparks near Lincoln Way and McCarran Boulevard.
Mexican food chain Roberto’s Taco Shop also expanded its operation by adding another location on South Virginia Street near the Reno-Sparks Convention Center.
Dutch Bros. Coffee opened its first Reno location at 7250 South Virginia St. on Jan. 17. It marks the second location to open recently in the area, joining Carson City’s second location that opened early last year.
“There is a positive outlook for the region looking ahead to 2018,” said Patrick Riggs, commercial real estate agent for Dickson Commercial Group. “2017 was a great year for the market. And even though we have seen a lot of inventory tighten up, there were big transactions in 2017, and we continue to see growth with more companies coming here and others already here expanding their operations.”
In December, there were a total of 56 sales and no foreclosures across the board for all sectors in commercial real estate. There were also some flashy transactions for retail properties toward the end of the year.
Seven multi-tenant commercial properties located in Reno’s Midtown district sold for $16.5 million by Marmot Properties and Tolles Development Co. The properties include 677 South, Saint Lawrence Commons, Cheney Place, Martin Crossing, Sticks, 777 Center and a vacant lot at 800 South Virginia St. between Recycled Records and Midtown Eats.
Other notable transactions include the sale of Whole Foods, Sierra Trading Post and Pier 1 buildings in the Del Monte Plaza to Kimco for approximately $24.1 million. The other sale was the Kohl’s building in northwest Reno that sold for $9.35 million.
The Subway restaurant on Virginia Street near the University of Nevada, Reno combined with two adjacent residential parcels sold for $3.1 million.
Demolition will be completed in three phases: asbestos abatement, interior demolition and exterior demolition. The first two phases have already begun inside the 150,000-square-foot retail location formerly known as Shoppers Square; the first visual of outside demolition will be in early October on the northwest corner of the project.