Vegas Desert Turns into Distribution Hub

Northgate Distribution Center

Originally posted on NV Energy Economic Development.

Las Vegas’ bright lights, talented entertainers and luxury resorts are renowned throughout the world, attracting more than 45 million tourists annually. Now, the entertainment mecca is also attracting top e-commerce companies.

Developer VanTrust Real Estate, LLC (VanTrust) saw more than the flashing lights, and in 2015 recognized Las Vegas as a strategic location between Arizona, California and Utah for fulfillment and distribution centers. This foresight led to the first phase of development on 180-acres with a vision to construct eight buildings totaling over 3.2 million square feet of state-of-the-art industrial distribution space. The buildings already built or under construction are in the table below.

Northgate Buildings Project Size Construction
Start Date
End Date
Building 1 248,040 sq. ft. February 2016 January 2017
Building 2 558,000 sq. ft. February 2016 January 2017
Building 3 813,110 sq. ft. November 2016 July 2017
Building 8 570,960 sq. ft. July 2016 May 2017

Northgate Distribution Center, located near I-15 in North Las Vegas, is now a hub for large e-commerce retail companies such as The Honest Company, Fanatics, a top Seattle-based retail company and more. In addition to the strategic location of the site, this center has attracted powerhouse brands because of the low transportation and operating costs, the availability of labor and great access to local transportation.

VanTrust was pleased to discover how accommodating the various utilities were during their planning and development stages. After ground on Northgate was broken and the project began attracting large distributors, VanTrust realized that they had underestimated the initial wattage request, and needed to reevaluate how much power would be needed. NV Energy, Nevada’s primary energy provider, quickly adjusted the load to meet the project’s needs.

“NV Energy was there from the beginning,” said Steve Backman, vice president of development for VanTrust. “In addition to adjusting the amount of energy that Northgate Distribution Center received, they adjusted to the tenant-driven changes in the project schedule.”

NV Energy’s Economic Development team plays an instrumental role in helping new developments establish power, and works closely with the various economic development agencies throughout the state during the recruiting phase.

“As Nevada’s economy is growing, NV Energy is proud to support these new and expanding businesses,” said Jeff Brigger, economic development manager at NV Energy. “Our priority is not only to provide power, but to help connect these businesses to other resources and leaders in the state.”

Beyond the low energy rates and ease of doing business provided by NV Energy and the economical transportation cost, Nevada is also known for its impressive labor pool and friendly business environment, including low tax rates and incentives for businesses. These factors have been a major reason so many businesses have chosen Nevada as a place do business in recent years. VanTrust recognized the benefits of doing business in Nevada and they are continually looking to expand their industrial real estate portfolio in northern and southern regions of the state.

“The Northgate site is a legacy project for VanTrust,” said Backman. “Nevada is a great place to do business and this is the first of many projects we hope to create in Nevada.”

As Nevada’s economy continues to diversify and attract new businesses and industries, one thing remains the same: Nevada is a state committed to helping businesses succeed.