Nevada is booming with new businesses organically grown in the state, businesses migrating from other parts of the country, and new real estate developments to meet the needs of both buyers and tenants. Many businesses have already realized the untapped potential in the state and are currently fulfilling plans to grow into industrial sites in northern and southern Nevada. These areas have seen a massive expansion in the past several years due to their close proximity to neighboring states, low tax rates and a friendly business environment.
Panattoni Development is a seen as a prominent real estate developer throughout the world and has been doing business in Nevada for many years. Their specialty includes industrial, office and build-to-suit development, which is the perfect complement to the growth Nevada is currently experiencing. Among other development projects in the state, in early 2016, Panattoni Development announced two large unique acquisitions in Nevada. These purchases included the International Game Technology (IGT) operating headquarters and manufacturing campus in the highly desirable southwest submarket of Las Vegas, and two parcels of land totaling 20.27 acres located between Sandhill Road and Trademark Drive in Reno, also owned by IGT.
In August 2016, Alston Construction began work on a $7 million remodel of the Las Vegas property, in particular, the scope included a complete remodel of an occupied Class A, three-story office building which sat on the northeast corner of the campus. The building features high-tech capabilities and meets extensive security requirements. In October 2016, the Las Vegas property sold to Griffin Capital Corporation. Panattoni continues to upgrade the remaining portion of the property including more than 370,000 square feet of industrial and office product.
The ground up development, located in Reno, Nevada, has been named the South Valley Commerce Center. The project features two high-image industrial buildings (Building A and Building B) totaling approximately 390,000 square feet of industrial space once complete.
“Land constraints, proximity to executive housing and other amenities as well as the submarket’s low vacancy makes this a very desirable business park,” said Doug Roberts, local partner with Panattoni Development.
In January 2016, Alston Construction completed the construction of the first industrial building. The building totals 209,000 square feet and can be demised to accommodate smaller tenants if needed. Building B totals 180,792 square feet and has a clear height of 30 feet. Panattoni executed a lease in January 2017 for all 180,792 square feet of Building B. Zazzle will open a core operations and manufacturing facility there that will begin operations in northern Nevada by late Spring 2017 and will employ more than 250 people. Both buildings feature up-to-date amenities including LED lighting and higher level office finishes, and can be demised to accommodate smaller to mid-bay tenants. Construction of the total development is scheduled to be complete in early 2017.
“The business friendly tax environment Nevada offers has allowed us as a developer to attract tenants statewide,” said Roberts. “Generally companies that support the strip have driven the industrial market in Las Vegas while large manufacturing and distribution facilities have dominated the Reno/Sparks market.”
Nevada is thrilled to have an exceptional developer do business in the state as they are crucial in helping expanding and new businesses meet their business needs. Panattoni is off to a great start with its long-term lease strategy in Nevada and they are looking for ways to expand in the state.
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