As new businesses move to Southern Nevada, the demand for new industrial space has increased, especially in emerging development areas in the Las Vegas Valley. EJM Development Co. is helping to meet those needs by building new and advanced industrial and office space in Las Vegas.
To prepare for the future and maintain a reasonable inventory of new industrial space to meet the needs of Southern Nevada businesses, EJM has already acquired a great deal of raw land planned for industrial development. It is master-planning The Arroyo, which will feature 4.5 million square feet of new industrial, office and retail space on both sides of the I-215 Beltway between Rainbow Boulevard and Buffalo Drive. EJM broke ground in April on the first phase of The Arroyo North industrial development. Phase I of The Arroyo North will include three buildings totaling 308,824 square feet. They will be the only speculative industrial buildings in southwest Las Vegas with Beltway frontage.
“We feel these new projects will play a vital role in the future of Southern Nevada, as the demand for new industrial development continues to increase,” said Kirk Boylston, regional director of EJM Development Co.
With more than 30 years’ experience in the industry, and a familiarity with industry cycles, EJM specifically planned The Arroyo with a long-term goal in mind. While existing large industrial properties have focused on service to the Las Vegas Strip when acquiring land, EJM Development kept in mind those businesses that service Summerlin and Henderson, anticipating the southwest location will become an important business district for the Las Vegas Valley.
While the industrial real estate market is facing the same concerns as the rest of the industry – lack of raw land and increasing land prices – EJM has relied on its experience and longevity in the industry to continue growth and development in the Las Vegas Valley.
“Our issues are the same as everyone else in the industry,” said Boylston. “Like other industrial developers, a major concern for us is the lack of industrial land at a price that is feasible for development.” New development is not the only segment of the market that will be affected by the lack of developable industrial land. “Eventually the prices for existing industrial spaces will rise too,” Boylston said. “This cost issue needs to addressed because, as rates rise, Southern Nevada becomes less competitive and desirable for tenants, forcing businesses to look elsewhere.”
To avoid the potential of industrial clients leaving Las Vegas for more affordable real estate, area developers, including EJM, must consider the needs of the local market, while government entities must provide zoning for available land. BLM land sales are currently not helping to provide for future industrial development. “Homebuilders and commercial builders can pay more for land than industrial developers,” said Boylston. “With help from the municipalities, by providing pre-zoned industrial components in the BLM land sales, industrial builders will have a chance to see the same success in obtaining portions of the BLM land that the homebuilders have had in recent auctions. EJM is fortunate to already have land where we can build a significant amount of industrial product.”
Boylston hopes The Arroyo, along with Southern Nevada’s low cost of living, tax-friendly environment and expanding convention business, will help keep the area an attractive location for industrial users looking for a home.