Reno is rising to the top ofinvestment lists for 2020. The market is a cheaper alternative inNevada for investment, and it is showing significant growthpotential. The Lear Industrial Center in Reno recently traded handsfor $117 million, illustrating the activity and growth in themarket. Clarion Partners purchased of theproperty, a 1.4 million-square-foot four-building class-A businesspark, from Panattoni Development Co.

"This deal shows the continuing trend of compression in caprates and increase in dollars per square foot," MarkDetmer, senior managing director at JLL,tells GlobeSt.com. "Also the buyer of Lear is looking to add valueby further demising the vacant unit and pushing rents 23% in thenear term." Detmer represented the seller in the deal along withJLL's Bo Mills.

The market is showing tremendous growth and has become a popularinvestment market as of late. "The market is robust from astabilized or ground up basis," Detmer says. "On the former, we areseeing rents year-over-year increase by 7-10% depending upon theclass and size so there is a value add component.  On thelatter the spread between initial yield and exit is 100-150 basispoints. Nevada is also an attractive alternative to less stableregulatory environments for investors chasing yield."