Development of new industrial parks is continuing across Nevada in cities, suburbs and rural areas. Las Vegas and Reno need more industrial space for the expansion of local businesses, as well the steady interest from California companies seeking relief from high costs of land, living and utilities. Here is an overview of some of the new developments breaking ground or being planned across the state.
Lance Gillman, the developer who started the South Meadows Planned Unit Development, is developing a 105,000-acre parcel of land into the Tahoe/Reno Industrial Park. The property runs from the Truckee River on the north almost to Dayton on the south, and from Truckee Meadows east to the Lyon County line. “It’s a huge chunk of property,” said Dave Shuster of Grubb and Ellis/Nevada Commercial Group. “But there’s a fair amount of topography to it,” he adds. The area immediately east of Reno and also the southern portion of the parcel are quite mountainous.
Dermody Properties has purchased about 250 acres at the north end of the property and is developing Patrick Business Park, located east of Reno along Interstate 80. It has already leased a 420,000-square-foot facility to a distribution tenant called San-Mar. It has also sold a parcel to Royal Sierra Extrusion, which just finished a 300,000-square-foot extrusion plant and has plans to expand it, according to Shuster. Dermody has also built a 330,000-square-foot, rail-served speculative building, which Shuster said is “up and ready to go.” Rail service for Patrick Business Park has been in place since last year.
The Tahoe/Reno Industrial Park will be composed mostly of manufacturing and distribution, along with some big-box distribution. Given the mountainous terrain, it is not expected to reach the same level of density as other parks in the area. However, Shuster estimates an eventual build-out of between 70 and 85 million square feet over 20 years. Prices will range from $1.60 to $1.95 per square foot, and may exceed $2 if the facility is rail-served, said Shuster.
The Nevada Pacific Industrial Park was started in 1995 by Wade Development of Reno. The park is located in the newly incorporated city of Fernley at the intersection of Interstate 80 and Highway 50. It already has several large tenants, including Quebecor Printing, MSC Industrial Supply and amazon.com. The park today contains about 1.5 million square feet, and 5,000 acres are in development. “They have the potential to build 98 million square feet,” said Shuster. Location is critical for this park — not only is it a day’s drive from several major markets, but it is built directly on the Union Pacific east-west rail line. “There are parcels there that could be served with a switch and spur right now,” said Shuster. Rail-served parcels go for $1.85 to $1.95 per square foot.
The Airway Business Park is a 280-acre plot fronting Longley Lane and backing up to the Huffacre Hills. Thirty-four acres have been sold to Northwestern Mutual, with buildings already up and pre-leased. Armada Lagerquest, a Seattle-based company, is developing this project. Pricing on the front acreage along Longley Lane should be between $5.50 and $6.00 a foot. Airway is zoned industrial/commercial. Property to the east will be bulk distribution and light industrial, and the frontage property on Longley Lane will be office/warehouse and office. The Ribiero Company is working on properties there and aiming for a higher-end look with smaller spaces.
MagnuM Opus broke ground in January for the largest industrial building currently under construction in Southern Nevada. The 346,500-square-foot MagnuM Distribution Center is located at Lamb and Cecile, near Cheyenne Road adjacent to the Dermody Center. The $14 million multi-tenant distribution facility features a typical bay size of approximately 24,000 square feet, with 30-foot clear ceilings and an individual storefront entrance for each tenant. In Henderson, the company is developing Phase I of the $12 million MagnuM Corporate Center at Warm Springs and Commercial Way in the Black Mountain Industrial Center. The two-phase project will eventually comprise seven industrial buildings ranging from 17,000 to 28,000 square feet apiece.
Panattoni Development is starting an infill project in North Las Vegas at Craig and Flossmore, off the Craig Road and I-15 interchange. The project for distribution and light manufacturing space will be breaking ground within the next three months. The structures will be dock height tilt-up concrete with 30-foot ceilings and all of the latest communication capabilities. Dan Doherty, senior vice president of Colliers International, said since distribution space is running at a vacancy rate less than 5 percent, “there’s a ton of pent-up demand for this type of product.” Doherty said Colliers expects to see the space occupied primarily by local firms wanting to expand, but he continued, “We’re actually seeing an increase in users from northern California due to their power problems.”
Harsch Investment Properties has a 238,000-square-foot project under construction in Henderson. It will be a combination of flex, light industrial and distribution buildings in what will be a multi-use park at the corner of Warm Springs and Interstate 95. Ralph Murphy, vice president of Harsch Investment Properties, said the park will handle call centers and other high-density-employment offices. “We can also do distribution and light manufacturing deals as well,” he said. There will be five different buildings for each type of use. Harsch does not plan to sell any of the land or buildings at this site, but lease rates will be about 45 cents for warehouse and $1.15 for office and flex space. They expect to have the project 25 percent pre-leased.
The city of Caliente is planning the development of a unique project. Continuing with its rich railroad history, the city is developing the rail-served Meadow Valley Industrial Park. The developer is the Lincoln County Redevelopment Corporation, a non-profit entity made up of the city of Caliente, the Nevada Test Site Redevelopment Corporation and the Lincoln County Commission. “This is prime industrial park land because it’s sitting right next to the railroad,” said Brian Elkins of the city of Caliente. The city has a $1.2 million grant from the federal Economic Development Administration to build the park. In addition, it has received a $225,000 grant to cover final design and infrastructure. Already interested in locating in Caliente are Extrudex, a company that uses municipal waste to create recycled plastic products, and Environmental Technologies Associates, a company that turns used tires into new products. Its technology could actually utilize its own byproducts to generate electricity, both to power its own operations and also to sell to other users.
Reno-based Robert L. Nelson Development Company has announced plans to build a mixed-use business park on approximately 160 acres north of the Elko Regional Airport and south of Interstate 80. Gateway Commerce Center will include retail, commercial and light industrial facilities. Some buildings will be accessible directly from the airport runway, allowing light planes to taxi to their doors. Though phasing has not been worked out yet, Nelson said the project will be “primarily aviation-oriented.” The park may be used for the car rental facilities for Avis, Hertz and Enterprise at the airport.