Industrial Real Estate in Northern Nevada Strong Going into Fourth Quarter
third-quarter Market Advisor in last week’s post, and today we’re sharing a recent article about third quarter performance from the Northern Nevada Business View that references specifics provided by Tom Miller of Miller Industrial Properties.
From the article, written by Rob Sabo:
“Tom Miller, president of Miller Industrial Properties, says that most new industrial buildings in Northern Nevada in excess of 200,000 square feet are taken off the market before or simultaneously as they are added to regional inventory.
‘The big box expansions continue to be swallowed up reasonably quickly,’ Miller says. ‘Companies are actively touring them, and there are offerings before the properties are even close to being available.’
With a booming national economy, companies such as S&S Activewear want to ramp up their West Coast presence, and Northern Nevada represents the ideal location for distribution, warehousing and Internet fulfillment operations. Despite local increases in construction and labor costs, Nevada continues to trump neighboring California — S&S will shutter its California distribution center in 2019 and shift its Western operations headquarters to Reno, with California call center operations moving to Tempe, Arizona.
With ground-up build times at 14 or more months, companies with western region expansion plans are snapping up new Class A speculative space while it’s still under construction to expedite that timeframe. Still, Miller notes, companies with serious intentions about being in Northern Nevada are finding space.
‘We are not having that many market inquiries where we can’t find an opening somewhere,’ he says. ‘I don’t think we are turning too many prospects away in the big box category because they can’t find an adequate location. There seems to be a relative balance between supply and demand.’
Demand is a bit softer in middle-sized industrial properties ranging from 150,000 square feet to 50,000 square feet, Miller notes, with smaller industrial spaces 40,000-square feet and below leasing briskly.
‘The fringes, the smaller end and the mega end, is where activity is right now,’ Miller says, ‘and it has been for several quarters.’ “
Read the article in full here.