• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer

Nevada Business Magazine

The Decision Maker's Magazine

Subscribe Now!

  • Subscriptions
    • Print
    • Mobile App
    • Email
    • Nevada News & PR Wire
  • Features
    • New This Month
    • View Issues
    • Cover Stories
    • Feature Stories
    • Industry Focus
    • Building Nevada
    • Special Reports
    • Meet the Decision Maker
    • Press Release Wire
    • Nevada Industries
  • Departments
    • A Matter of Opinion
    • Around the State
    • Business Indicators
    • Commentary
    • Commercial RE Report
    • Crossfire
    • Expert Advice
    • Face to Face
    • Free Market Watch
    • Inside Politics
    • Power of Attorney
    • Profit & Loss
    • Speaking for Nevada
    • Tech.knowledge.me
    • The Last Word
    • Vital Signs
  • Planning Calendar
  • Advertising
    • Advertising Info
    • Advertising Staff
    • Submission Requirements
    • Online Advertising
  • Events
    • NBM Events
  • About
    • About the Magazine
    • Contact the Staff
  • Connect
    • Business Directory
    • Press Release Wire
    • Business Calendar
    • Submit Listing
    • Post Press Release
    • Add Your Event
    • Sign Up
    • Log In
You are here: Home / Features / Building Nevada / A Developing State: Growing Economy Encourages New Projects

A Developing State: Growing Economy Encourages New Projects

February 1, 2015 By Jennifer Rachel Baumer Leave a Comment

Business is growing across the state. Those who survived the recession are going back to work developing.As Nevada’s economy picks up the pace, businesses are returning to Nevada and Nevada is returning to business – mostly. In Southern Nevada there’s no real wage growth, gaming revenues are down, home sales are slowing. At the same time, industrial property vacancies are dropping, flex space rents are low but flex spaces themselves are filling, and big box industrial space is almost completely filled. In the north, Tesla is headed into the Tahoe-Reno Industrial Center, developers are finishing out stalled projects and new developments are breaking ground.

Doug Roberts, a partner with Panattoni Development which works in both Northern and Southern Nevada, said the north end of the state actually started to recover six to 12 months before the South. He attests that recovery is, in part, because e-commerce started in the north in late 2012, early 2013, and didn’t start in Southern Nevada until some time in 2014.

“I think Southern Nevada is a more dynamic market, more people and more conventions, etc.,” said Roberts. “But Northern Nevada had the e-commerce component.”

With Reno serving as an active ground transportation distribution hub for the 11 Western states, it makes sense geographically for e-commerce to choose it. Dermody Properties brought Urban Outfitters into Reno in 2010, while the recession still gripped Nevada, and the fulfillment and distribution center trend should continue.

“About 30 percent of national leasing activity last year was related to e-commerce,” said Michael Dermody, chairman and CEO. “In 2014, about 6 percent of U.S. retail sales were through the e-commerce channel. We expect that to grow significantly, up into the 20 percent range over the next three to five years, and that means a lot more customers will need to source new buildings in markets like Reno.”

Reno offers more than just geographic advantages. “One very telling statistic: there’s 75 million square feet of industrial space in Reno with a population base of 350,000. That’s the highest population per capita in America for the industry,” said Dermody. “That’s a pretty compelling statistic, and why a company like Tesla took a look here. It’s a good place to do business.”

Gaining Momentum

Business is growing across the state. Developers who survived the recession are going back to work. Flex industrial space is in demand in Southern Nevada, the kind of light industrial space that might serve a smaller-space user. Big box industrial space, 100,000 square feet and above, is breaking ground in Northern Nevada and nearly filled in Southern Nevada.

“Right now we are aware of some larger big box space planned for the [Southern Nevada] marketplace over the next 12 to 18 months,” said John Ramous, regional manager Las Vegas, Harsch Investment Properties. “What I’m hearing is maybe 3 to 4 million square feet of larger bay product on speculative basis is being planned, and we haven’t seen that in seven or eight years. This would count as one of our strongest times if we see all that construction happening.”

Vacancies vary across the Valley. In Henderson there’s a very limited supply of both large and small product in the marketplace which is the highest occupied submarket, having grown 6 or 7 percent in recent years. But head across the Valley and there are higher vacancies in North Las Vegas. “We do see some opportunities happening there in the next six to 12 months,” said Ramous. “And we’ll probably see some speculative development happening there in the near term.”

Principals at Harsch Investment Properties have seen occupancy go up drastically in the last 12 months, on average about 6 to 10 percent. Of their 8.5 million square feet of space, some 90 percent is filled for the first time since 2007. Now the company is looking at land holdings in Henderson, planning to start new developments and finish out phases of others.

“In the past couple years we’ve seen a lot of strong demand from existing tenants and existing businesses that needed more space, so those 2,000- and 3,000-square-foot tenants are going to 4,000 and 5,000 square feet,” said Ramous. Companies that left the state during the downturn, like flooring and furniture companies, are finally returning.

“New businesses are coming in from out of state,” Ramous added. “That part of the business has started to rebound quite a bit even on the smaller side, businesses starting with 6,000 to 10,000 square feet. There are certainly some large companies coming into the area as well, so it’s a good cross section.”

Office space is still a fairly soft market, and there probably won’t be much built in the near future. Industrial is the healthiest of the commercial real estate markets and investment has tripled in the last few years, said Roberts.

“It’s (industrial market) been the first to recover, and I think you’ll see smaller regional buildings get built in the next 12 to 18 months with more mom and pop, local companies who want to lease more space.’

Survivors of the Downturn

So did development companies that survived the downturn survive within Nevada’s borders? Or did they find work outside the state? And if so, have they returned?

Panattoni made it through by finding niche opportunities at both ends of the state, Roberts said. “We found existing buildings or distressed properties, did a couple build-to-suit projects, and it got us through the hard times. It was tough, but we were able to work with local brokerage firms and keep our eye on the business and make sure we had projects to get us through.” Panattoni has projects around the country and around the world, but the company isn’t seeing more of its projects out of state than usual, and in terms of total dollars, will likely do $150 million worth of development in Nevada over the next 12 months.

Keeping developer business healthy and in Nevada is vital to the state’s economy. In the September 2014 special session, Nevada’s Legislature gave developers a package of economic development and diversification tools, including the economic diversification district. Senate Bill No. 1 (SB1) allows a company that plans to invest at least $3.5 billion in Nevada over a 10-year period to apply to the Governor’s Office of Economic Development for abatements of up to 100 percent of sales, real property and personal property taxes as well as a specified number of transferable tax credits. The abatements are for a specified period of time, 10 or 20 years, and because Nevada law doesn’t allow legislation to extend to only one company – say, Tesla – the City of North Las Vegas was able to create an 800-acre economic diversification district within its 7,000-acre Apex Industrial Park.

Apex is a new, not-so-new industrial park in North Las Vegas that went into private ownership in 2000. One tract, Mountain View, had sold to Kerr McGee back in the early 90s. The vast majority of the land sold to Apex Holding Company, a group of 20 investors. By 2005 they’d sold 4,000 or 5,000 acres of the property, retaining 4,000 acres which sold to a developer out of Utah, which then fell victim to the recession. Two or three years after the sale the property was foreclosed on and returned to the Apex investors, according to Lisa Cole, vice president, Land Development Associates.

Apex and Mountain View, with their 7,000 acres of developable land, could be a financial boon for North Las Vegas. But one of the tricky aspects is the semi-rural location north of Las Vegas, which makes getting utilities in place difficult and expensive. The Love’s Truck Stop located on the property at U.S. 93 and I-15, the second busiest Love’s in the country, has provided some answers to the water, power and access issues of the area, said Cole. In addition, with medical marijuana facilities locating at the park, partnering with other businesses like Delta Liquid Energy, a propane distributor locating at Apex, development is picking up.

Then enter SB1, designed for Tesla, applicable statewide to encourage business. Using the SB1-created tax abatement package, it was possible to create an economic diversification district on 800 acres. Reducing economic barriers to entry helps encourage businesses to locate at Apex and lowered costs in the economic diversification zone enables businesses to locate in the industrial park, and bring out utilities.

“These companies will spend over $3.5 billion in capital investment in our city within the next 10 years,” said North Las Vegas Mayor John Lee. “An economic analysis of two companies that are planning to open at Apex shows the projects could create more than 7,500 jobs and have approximately $13.7 billion in economic impact over 20 years.” An economic impact analysis done by Brookings Mountain West indicates Apex Industrial Park could create 116,000 direct and indirect jobs and have an approximate $192 billion economic impact.

Challenges

As developers ramp up in the recovering economy, the challenge of working with governmental agencies for permits and utilities remains. Many agencies cut staff during the recession.

In some cases it’s business as usual, said Roberts, and in others it’s harder because there’s just not enough manpower. “It varies from city to county, etc., but I think it’s pretty much the same as it was back in 2006, 2007.”

“I’ve noticed in the last few months that a lot of organizations like SIOR and NAIOP are aware and concerned [about permitting and utilities agencies], because we’re only as good as long as the timing is good on these projects,” said Ramous. “A lot of the municipalities are using third-party agencies, and they’re planning on ramping their staff up in the foreseeable future. So it’s a concern, but so far so good as long as everybody stays on top of it.”

Going forward, developers hope for continued improved economic weather.

“You want the economy to stay stable. We’d like to see logistical growth of e-commerce distribution. That would enable our business to grow,” said Dermody. “We’d like interest rates to remain at predictable levels. Maybe not the lowest level ever, but predictable levels that we can understand.”

“We only build when there’s tenant demand, there’s only tenant demand if the economy is recovering. So, I think we have all the ingredients for a great year,” said Roberts.”

Filed Under: Building Nevada Tagged With: Apex Holding Company, Apex Industrial Park, Brookings Mountain West, Delta Liquid Energy, Dermody Properties, Doug Roberts, Governor's Office of Economic Development, Harsch Investment Properties, John Ramous, Kerr McGee, Land Development Associates, Las Vegas business, Las Vegas economy, Lisa Cole, Love’s Truck Stop, Mayor John Lee, Michael Dermody, Mountain View, Nevada business, Nevada economy, One tract, Panattoni Development, Reno business, Reno economy, Tesla, Urban Outfitters

Paul Krakovitz: Intermountain Healthcare

Edward Vance: EV&A Architects

Scott Arkills: Silver State Schools Credit Union

Tonya Ruby: Cox Media Las Vegas

Online Advertorials

Online Advertorials

Roseman’s College of MedicineAddressing the Physician Workforce Shortage while Being a Positive Economic Driver

Groundbreaking LawRequires Businesses Replace Decorative Grass

The Southern NevadaEvaporative Cooling Issue

New Law Targets Turf in Southern NevadaWill Save 10 Percent of Water Supply

Advertise With Us

Advertise With Us. more details ►

Primary Sidebar

Get important updates from Nevada Business Magazine, directly to your inbox.
Subscribe

Keep WatchFinancing in Nevada

Industry FocusProperty Management

Transportation in NevadaChallenges and Opportunities

Nevada Business Awards2022

Nevada News & PR Wire

  • Trosper Public Relations in Nevada Promotes From Within

  • Nathan Adelson Hospice’s Annual “A Flair for Care” Fashion Show & Luncheon Raised More than $500,000 for the Hospice’s Uncompensated Care Program

  • Optum Care to Hold On-Site Hiring Event May 17

  • The Discovery Introduces New Exhibition: Energy/Energía

  • Grand Sierra Resort and Casino Makes Major Contribution to the Children’s Cabinet

  • What’s New for the 2022 Reno Rodeo

  • CALVPresident Angelina Scarcelli Honored by GlobeSt.com Women of Influence

  • Henderson Professional Fire Fighters, Henderson Hospital and City of Henderson Kick off “Safe Pools Rule!” Campaign

  • Applied Analysis Announces Management Promotions and Returning Team Member

  • May 26 NAIOP Southern Nevada Breakfast Presents “Nevada Elections and Politics: Midterm Update”

  • Henderson Chamber of Commerce Promotes Events Manager

  • Tee Off for a Great Cause at United Way of Southern Nevada’s 65TH Anniversary Golf United Tournament

  • Attorney General Ford Cautions Nevadans to Be on the Lookout for Credit Union, Bank Imposter Scams

  • Cox Donates Laptops to Intermountain Healthcare’s Medical Assistant Training Program

  • Nathan Adelson Hospice Announces Staff Promotions

  • Las Vegas-Based Social Issues Theatre Hosts Fundraiser to Support Mental Wellness and Community Unity

  • State Child and Family Services Issues Discount Cards in Honor of Foster Care Month

  • CSN Celebrates Its 50th Commencement Ceremony

  • More Prizes Added to Golden Ticket Raffle for Junior Achievement of Southern Nevada — Six Fabulous Packages, May 31 Drawing —

  • Local Businesses Partner with Project 150 to Launch After School Program, ‘A Fighting Chance,’ for Homeless, Displaced and Disadvantaged High School Students

  • Helix Electric of Nevada to Host Charity Spring Golf Tournament

  • Camp Rhino Trainers And Members To Transport Heavy Equipment Manually To New Location

  • LP Insurance Names Marsh HR Director

  • Crovetti Orthopaedics Welcomes Board Certified Jennifer D’Andrea, APRN to Medical Team

  • Nevada Donor Network &Latin Chamber of Commerce of Nevada Launch ‘Corazon de Esperanza’ Latino Donor Outreach Campaign

  • Local Diver to Appear on the Problem Solver Show to Discuss the Search for Human Remains in Lake Mead

  • Calv Presents June 2 Class on Land Sales

  • Ira Gostin to Lead Creative Innovation Workshop at PRSA Counselors Academy in Scottsdale, Ariz.

  • Touchstone Living Breaks Ground On Independence Offering Attainable Homes For First-Time Homebuyers

  • aha! On Course to Complete 1,500 Flights

  • FirstMed Health and Wellness Center Partners with Transit Centers to Combat Human Trafficking in Southern Nevada

  • Rudy Ruettiger to Speak at Northern Nevada Italian Association Annual Fundraising Dinner May 19

  • Southwest Medical Adds Two New Health Care Providers

  • Optum Care Cancer Care Adds a New Provider

  • Elko REALTOR® Greg Martin Appointed to Key 2023 Position With National Association Of REALTORS®

  • Local Dentists Provide Free Care to Uninsured Children at Give Kids a Smile Event

  • Laine Blackmon Joins Blackmon Home Loans and NV Capital Corporation as Loan Officer

  • Cross Creek, a 197-Home Community at the Historic Lompa Ranch, Opens in Carson City

  • Dr. Catherine Prato Introduces NuseMuse a New Web-Based Study Platform Is Built for Nursing Students by Nurses!

  • UNLV Engineering Students Showcased Inventions With Commercial Potential at Senior Design Competition on May 5

  • Tom Clark Solutions Chosen as Reno + Sparks Chamber of Commerce Lobbyist of Record

  • Southern Nevada Home Prices Keep Climbing While Sales Start to Slide

  • Lipson Neilson Partner Jessica A. Green Appointed Interim Hearing Master for the Las Vegas Municipal Court

  • The National Council of Juvenile and Family Court Judges To Hold 85th Annual Conference in Northern Nevada

  • United Way of Southern Nevada Welcomes New Director of Fund Development and Donor Relationships

  • Henderson Chamber of Commerce President and CEO Wins U.S. Small Business Administration Award Recognition

  • Taurean Consulting Group Promotes Brianda Barrett to Technical Recruiter

  • Sunset Montessori Community Announces 2022 Summer Camps

  • OurFamilyWizard Joins National Council of Juvenile and Family Court Judges With Corporate Sponsorship

  • Natalie Gulbis Golf Classic to Benefit Boys & Girls Clubs of Southern Nevada — Foursome and Sponsor Opportunities Still Available for May 16 Event —

  • Celebrate Mother’s Day at Emerald Island and Rainbow Club Casinos

  • aha! Announces New Non-stop Service Between Reno and Santa Rosa

  • Henderson Chamber of Commerce Announces Two-Year Rate Lock for Association Health Plans During 2022 Open Enrollment

  • Pro Football Hall of Fame & SilverSummit Healthplan Focus on Student Mental Health & Suicide Prevention at ‘Strong Youth Strong Communities’ Youth Summits

  • Siena Italian Now Taking Reservations For Mother’s Day Brunch and Dinner

  • Mariposa Cocina And Cocktails Launches Cinco De Mayo Celebration!

  • Is Your Business Prepared for Cyber Attacks? iTernal Networks’ Free Upcoming Webinar “Why Your Company Needs a Cyber Security Risk Assessment” – May 12th 1 pm PDT

  • Cox and Manheim Nevada Help Launch Cox “34 by 2034” Social Initiative

  • Southern Nevada Senior Law Program Spreads Awareness of Older Americans Month

  • Asset Tracking Maker, SeeID Wins $200,000 Investment From AngelNV

  • Broadbent & Associates, Inc. Awarded 2022 Nevada Wastewater Circuit Rider Contract

  • CAMCO Promotes Tabitha Gerken to Division Director of Its Southern Nevada Portfolio Division

  • LVGEA President & CEO Tina Quigley Joins the Workforce Connections Board

  • Six Nevada-Based Startups to Vie for $200,000 AngelNV Investment This Saturday Afternoon at Las Vegas City Hall

  • Coral Academy of Science Las Vegas’ Sandy Ridge Campus Ranked in the Top 5 of Best High Schools in Nevada by U.S. News & World Report

  • Nevada State Bank Branches Collecting Feminine Hygiene Products and Gently Used Purses for Local Nonprofit

  • Celebrate Older Americans Month ‘The Reno Way’ Throughout May

  • Pro Football Hall of Famers & SilverSummit Healthplan Visit Metro Police Officers

  • Nevada Donor Network and Clark County Commission: Welcome to Las Vegas Sign Turns Blue and Green to Celebrate National Donate Life Month ‘Blue and Green Day’

  • Tonopah High School Students in J4NG Discover Career Paths at Kinross Nevada

  • Chicanos Por La Causa Celebrates Grand Opening of New Las Vegas Office and Minority Business Development Agency Center with Local Leaders

  • SafeNest Spring Soiree Will Celebrate Kentucky Derby Day, Raise Funds for Critical Survivor Services and Programs

  • Dunkin’® Debuts Vibrant Flavors, Delicious New Ingredients & the Return of Fan Favorites to Make the Most of Sunnier Days Ahead

  • Thrive Wellness Expands Specialized Mental Health Treatment Centers

  • Kara Harris Joins Business Banking Team at First Independent Bank

  • SR Construction Named Design-Build General Contractor For The Hyde Park Commercial Redevelopment Project

  • Angels of Las Vegas Receives $7,000 Grant From Walmart!

  • Great Chef Run Adds Attractions for April 30 Las Vegas Event

  • Rockefeller Group Acquires 6-Acre Parcel In Clark County, Nev. For $4.26 Million; Will Develop 134,100 SF Distribution Center

  • REMSA Health Announces Promotion of Six Leaders Within the Organization

  • BPL Supplies Announces New Customer Service Manager and In-House Art Director

  • LUXUS Design Build Appoints Project Manager

  • Jarrett Seegmiller Joins Ascent Multifamily Accounting

  • KPS3 Announces Michael Lindsey as Art Director

  • Southwest Medical Adds New Health Care Provider

  • Google Announces Plans to Invest Over $30 Million in Nevada This Year

  • KPS3 Announces Julie Ardito as Vice President, Public Relations

  • Nevada Women’s Fund Announces Event Chair, Keynote Speaker for 2022 Salute to Women of Achievement Luncheon

  • Chris Lacey Designs 2022 Reno Rodeo Limited Edition Commemorative Print

  • KPS3 Adds Liz Seang to Search and Digital Media Team

  • Celtic Celebration Ceilidh and Concert To Be Held on May 21st

  • Celebrate the Mother in Your Life With One of Reno’s Most Decadent Brunches!

  • Broadway Tour CATS Will Come to Reno From June 14th to June 19th

  • Design on Edge Recognized as NCET’s Creative Services Organization of The Year.

  • BPL Supplies Welcomes GM and Director of Sales

  • Dunkin’ Celebrates Grand Re-Openings with Ribbon-Cutting Ceremonies, Donations to Andre Agassi Boys & Girls Clubs of Southern Nevada & Kathy’s Angels Foundation

  • Southwest Medical Adds New Health Care Provider

  • Helix Electric Awarded Top Workplaces 2022 Honor

  • Over $5.8 Million Awarded to Support Southern Nevadans as Inflation Rises

  • Dueling Axes at AREA15 to Celebrate Earth Day by Donating to One Tree Planted



 
Submit Your News & PR | Subscribe
Submit Your News & PR

Business Connection

Business Connection Portal

Log In Sign Up

Business Connection Portal

Log In Sign Up

Nevada Business Calendar

  • Natalie Gulbis Golf Classic
    May 16, 2022 7:30 am

    Location: 3000 Joe W. Brown Drive, Las Vegas, NV 89109

    More details...
  • TEDxReno
    May 21, 2022 8:00 am

    More details...
View Full Calendar ►

Nevada Business Directory

Featured Businesses
Find a Nevada-Based Business Submit Your Business Subscribe to the Nevada News & PR Wire

Nevada Industries

Architects & Engineers
Arts & Culture
Banking
Commercial Real Estate
Construction
Credit Unions
Economic Development
Education
Financial Management
Healthcare
Human Resources
Insurance
Law
Manufacturing
Marketing
Media
Mining
Philanthropy
Residential Real Estate
Rural Nevada
Sports
Tax Planning and Accounting
Technology
Telecom
Tourism
Transportation
Utilities

Footer

Subscriptions

  • Print Subscription
  • Mobile App
  • E-mail Subscription

Editorial

  • Features
  • Departments
  • Events

Advertising

  • Advertise
  • Submission Requirements

Connect

  • Contact
  • LinkedIn
  • Facebook
  • Twitter

Copyright © 2022, Business Link LLC dba Nevada Business Magazine and Nevada Business Journal. Privacy Policy | Terms & Conditions
Nevada Web Design services by Nevada Central Media using Genesis Framework by StudioPress

    *Your Name

    *Your Email

    Phone Number

    Company

    *Subject

    *Your Message

      *Your Name

      *Your Email

      Phone Number

      Company

      *Subject

      *Your Message

        *Your Name

        *Your Email

        Phone Number

        Company

        *Subject

        *Your Message

          *Your Name

          *Your Email

          Phone Number

          Company

          *Subject

          *Your Message

            *Your Name

            *Your Email

            Phone Number

            Company

            *Subject

            *Your Message

              *Your Name

              *Your Email

              Phone Number

              Company

              *Subject

              *Your Message

                *Your Name

                *Your Email

                Phone Number

                Company

                *Subject

                *Your Message

                  *Your Name

                  *Your Email

                  Phone Number

                  Company

                  *Subject

                  *Your Message

                    *Your Name

                    *Your Email

                    Phone Number

                    Company

                    *Subject

                    *Your Message