With industrial vacancy shrinking in Las Vegas, Dermody Properties, a national industrial development firm headquartered in Reno, Nev., has committed to filling the gap.
On May 12, Nevada Governor Brian Sandoval joined Dermody Properties, United Construction Company and Hillwood Investment Properties to celebrate the start of construction on LogistiCenter Cheyenne, a 381,804-square-foot distribution facility occupying 20 acres at 4025 East Cheyenne Ave. in Las Vegas. The facility is scheduled to be completed in October 2015.
The new facility is part of a long history of development in southern Nevada by Dermody Properties, which has developed more than 4 million square feet in the market since its first Las Vegas facility was constructed in 1974.
Meanwhile, shrinking industrial property vacancy rates suggest more companies are looking for space, and LogistiCenter Cheyenne will help fulfill that demand. Colliers International’s most recent Research and Forecast Report for Las Vegas showed southern Nevada’s industrial vacancy decreased to 8 percent in the first quarter of 2015.
“As its economy has recovered, the Las Vegas market has seen a burst of industrial and commercial activity,” said Pat Gallagher, a partner in Dermody Properties’ West Region Office. “Vacancy rates continue to decrease quarter-by-quarter, as many companies have been expanding and relocating their distribution and warehouse operations here. We’re confident that now is the right time to build in this market.”
Construction on LogistiCenter Cheyenne, which is located in the North Las Vegas industrial submarket, is expected to finish in October. The facility will feature a 32-foot clear height, 80 trailer stalls and 248 car parking stalls. LogistiCenter Cheyenne’s location and building design make it ideal for national, regional and local logistics operations as well as light assembly operations.
Recent Nevada Department of Employment, Training and Rehabilitation data indicates that building trade employment increased 14.8 percent year over year in March, gaining 6,400 jobs to reach 49,600 positions. LogistiCenter Cheyenne’s general contactor, United Construction Company, estimates that the project will employ approximately 160 workers at various times throughout the project.
LogistiCenter Cheyenne is located on Cheyenne Avenue at Lincoln Road in the Las Vegas Valley’s highest concentration of warehouse-distribution buildings. The facility is two miles east of Interstate 15, and within a single-day’s drive of Los Angeles, Phoenix and Utah.
“We have a long history of development in southern Nevada,” Dermody Properties CEO Michael Dermody said. “We are pleased to continue our investment in this thriving region of Nevada and are excited that there are many companies sharing our view of its value and strategic location.”
Hillwood Investment Properties is the strategic financial partner on the project. The company was created in 1998 as a way to expand, develop and acquire properties outside of its flagship property, AllianceTexas in north Fort Worth. With more than 50 million square feet of development to date, Hillwood Investment Properties is committed to bringing long-term value to its customers and partners through real estate development, investments and public-private partnerships.
“We have high expectations for LogistiCenter Cheyenne given the strong market fundamentals for industrial development in Las Vegas. We are also very excited to begin a long-term relationship with Dermody Properties, one of the premier industrial developers in the United States,” said Chris Brown, senior vice president with Hillwood Investment Properties.
Gallagher and West Region Development Director Brendan Egan, managed the project for Dermody Properties. Nevada-based United Construction Company is the general contractor.
“United Construction Company is honored to continuously partner with Dermody Properties to help build their vision of creating Class-A industrial facilities that meet the supply chain requirements of today’s most innovative companies,” said Craig Willcut, president and partner, United Construction Company. “As the Design-Build contractor for LogistiCenter Cheyenne, United Construction Company is pleased to help bring such an impactful project to fruition in Las Vegas.”
Colliers International Las Vegas Vice President Susan Borst and Executive Vice President Dan Doherty are marketing the property.
