Foreclosures and Interest Rates Key to Real Estate Slowdown in Reno, Nevada

According to Par Tolles, CEO of Tolles Development in Reno, Nevada, the real estate development sectors are experiencing a significant slowdown. Many assume this is due to the upcoming elections, but Tolles believes otherwise, as he sees other factors at play, such as interest rates. The Federal Reserve recently reduced its federal funds rate to a range of 4.75% to 5%, marking the first cut since the COVID-19 pandemic in 2020. Reports suggest that two more cuts could occur before the end of the year. Tolles continues his remarks by saying, “Businesses are waiting and thinking, ‘When should we take on debt to grow?’ knowing that more rate cuts are likely.”

Par Tolles also questioned the historical impact of elections on the real estate sector, saying, “People blame elections for the slowdown, but in the last 20 years, they haven’t significantly affected the real estate sector.” However, he also believes that some companies could be influenced by election outcomes, especially if legislation affecting their sector is anticipated. “For some companies, there may be an election factor, but I think economic reasons are more significant,” Tolles added.

Despite this slowdown, Tolles Development is moving forward with four projects: three in Reno and one in southern Nevada. These projects are strategically located to take advantage of logistical and locational benefits. They are as follows:

HYATT SOUTH RENO: The Hyatt Place South Reno is a 132-room hotel that opened near the Summit Mall on Mt. Rose Highway. “It’s the southernmost hotel in Reno, close to Carson City and Lake Tahoe. It offers business travelers amenities like the Summit Mall and is a more affordable option for those visiting Lake Tahoe.”

AIRWAYS COMMERCE CENTER: This is a 900,000-square-foot center for offices, storage, and light manufacturing that is currently for lease. Tolles notes that this is the best-located industrial park in the city, very close to the airport, and offers logistical advantages despite slow leasing nationwide.

UNIVERSITY CROSSING: This is an 8,000-square-foot building in downtown Reno, next to The Row, which was quickly leased to four restaurants catering to the growing student market. Tolles says of this project, “There is demand for downtown as the university expands.”

JEAN WAREHOUSE: This is a 1.9 million-square-foot warehouse being constructed near Jean, in southern Nevada, just 34 miles from Las Vegas and 13 miles from California. Mr. Tolles sees this last project as a way to diversify Las Vegas’s economy, which is heavily dependent on tourism and gaming, highlighting the increase in manufacturing jobs.

Available Foreclosures:

Reno: 15 homes available.

Southern Nevada: 22 homes available.

By Elías DaSilva | 22 de octubre de 2024.