Reno-Sparks continues to grow as a Dallas-based developer breaks ground on a large industrial project at nearby Storey County. Mohr Capital kicked off construction last month in July on a 569,400-sqft. industrial facility within the Tahoe-Reno Industrial Center (TRIC). The new $40-million project marks the firm’s first industrial development in Nevada.
The project is being built on nearly 40 acres of land and represents not only a very large chunk of the area’s construction starts, but also reflects the strong confidence in the Northern Nevada economy. A speculative build, the project is slightly more risky than a build-to-suit project with an already established tenant. However, due to Reno’s strong logistics sector and proximity to California plus other key markets there should be no issue securing tenants for the facility.
“We selected Reno and the Tahoe-Reno Industrial Center because they are particularly attractive to tenants in need of affordable distribution space in a location that allows them to serve the Western U.S.,” Tom Theobald, Mohr Capital senior vice president of development, told the Reno Gazette Journal.
There has been an increased demand for industrial space as e-commerce activities gain more traction across the nation since the COVID-19 pandemic. Northern California submarkets and Southern California’s Inland Empire are suffering from high asking rents, low vacancies, and have pushed companies eastward in search of less costly real estate.
“These factors … leave us confident we’ll secure a credit tenant quickly,” Theobald said.
Reno is a popular destination for companies looking for alternative locations, especially to California, thanks to its central location and extremely business-friendly environment (especially the low taxes).
Mohr’s facility is expected to be ready for occupancy by April 2022 and has already received interest from several prospective tenants. Of the most notable is a third-party logistics provider headquartered in the easter United States that has recently sent a request for proposal. The pandemic has made a huge impact in the logistics and warehousing sector as it fueled a significant increase in online retail due to increased demand for goods amidst initial lockdown mandates. Because of these factors, industrial development has accelerated.
“The pandemic unexpectedly accelerated the need for warehouse space globally. In terms of development opportunities, this demand has been good for Mohr Capital,” Theobald said.
“However, construction material costs have spiked as a result of supply shortages also created by the pandemic. This has led to significantly higher costs to build.”
The coming Northern Nevada facility will be one of the largest developments for the Mohr Capital portfolio, as the company works on a wide-range of projects. The cross-dock facility at TRIC will feature a clear ceiling height of 36 feet as well as three access points, 96 dock doors, four drive-in doors, and 374 auto and 100 trailer parking spaces.
“We’re pleased to expand our development footprint into the Nevada market with a facility that will help meet the increasing demand for industrial product in the Reno-Sparks metro area,” said Bob Mohr, Mohr Capital chairman, in a statement. “The region’s cost of living, growing workforce and location along Interstate 80 is ideal for companies throughout the country seeking to quickly distribute their products to 11 western states.
“We’re excited to add this facility to our portfolio and invest in this rapidly growing industrial market,” Mohr added.
Written by Jackie Latragna
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