Reno is rising to the top of investment lists for 2020. The market is a cheaper alternative in Nevada for investment, and it is showing significant growth potential. The Lear Industrial Center in Reno recently traded hands for $117 million, illustrating the activity and growth in the market. Clarion Partners purchased of the property, a 1.4 million-square-foot four-building class-A business park, from Panattoni Development Co.

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

The market is showing tremendous growth and has become a popular investment market as of late. "The market is robust from a stabilized or ground up basis," Detmer says. "On the former, we are seeing rents year-over-year increase by 7-10% depending upon the class and size so there is a value add component.  On the latter the spread between initial yield and exit is 100-150 basis points. Nevada is also an attractive alternative to less stable regulatory environments for investors chasing yield."