Nevada has seen tremendous growth in the past two years with more than 150,000 people becoming Nevadans. As more and more people move into the state it has caused industrial developers to see increased opportunity. More than half of Nevada’s land belongs to the state and is managed by the Bureau of Land Management (BLM). But, in the last decade that amount has gone from 87 percent to about 63 percent. When asked who is using the majority of this land, Sean Zaher, senior vice president of CBRE, said on the commercial side it was primarily industrial developers.
“For example, we were a base of 100 million square feet in 2015, and by the end of this year we will probably be close to 170 million square feet,” Zaher said.
Two of the largest areas of growth have been the Apex Industrial Park in North Las Vegas and Eldorado Valley in Henderson. Combined these two areas boast an impressive total of 25,000 acres of land. Zaher agreed that these two areas are the growth centers of industrial development, but the cost of developing this land is tied to infrastructure. “When you look at the cost associated with commercial development it becomes the infrastructure equation: water, sewer and gas,” he said.
“Infrastructure is the most risky and highest cost, but has a good return on investment,” said Dave Brown, president of Land Development Associates (LDA). It would seem the future of commercial development in Nevada is closely linked to the infrastructure puzzle. One of the solutions will be pursuing more of the public/private partnerships which have been instrumental to the Apex Industrial Park’s success.
North Las Vegas
The Apex Industrial Park is located in North Las Vegas and comprises a total of 18,000 acres of land, 7,000 of which is developable.
“So far there are 2,000 acres which would equate to 25 million square feet of building and seven developed projects,” said Mayor Pamela Goynes-Brown. Miner’s Mesa in southern Apex (330 acres) is one of these projects and has almost completely sold out with only 20 acres of space remaining. Air Liquide is using 15 acres to build the world’s first large-scale liquid hydrogen plant. This plant produces 30 tons of liquid hydrogen per day to fuel hydrogen fuel cell vehicles. Part of what made Miner’s Mesa such a success was a public/private partnership which saw the city of North Las Vegas invest $59 million towards pulling water and sewer to the first 300 acres of developable land.
Three new industrial parks are planned and in development in Central Apex that consists of 530 acres. H&R REIT, a Canadian real estate investment trust, is teaming up with the developer of Miner’s Mesa to improve infrastructure for the 913 acres purchased by Faraday Future in Upper Apex. The city of North Las Vegas has also created what they call the “Apex overlay” which is a set of standards for these industrial parks that are different than those found within Las Vegas’ city proper. Developers are given an easier task in the building phase because sidewalks, streets and curbs are not required in Apex. The appearance of the building is also not required to match the design of other buildings, and Mayor Goynes-Brown’s team believes this has eased part of the burden on developers looking to make use of the land in Apex.
“I see Las Vegas growing more towards the north because we are such a business-friendly city,” said Mayor Goynes-Brown. Evidence of this can be seen in the development of two major projects: The Agora Realty master-planned development and the Helios medical campus. “We engaged Agora Realty to bring our vision to life because we didn’t have a clearly defined downtown area,” the mayor said. This master-planned development will encompass 19 acres and promises a plethora of different new projects. According to the mayor, not only will this development include much needed housing for North Las Vegas, but it will also include 200,000 square feet of retail space and an additional 125,000 square feet of healthcare space.
Agora began their partnership with North Las Vegas in 2016 by purchasing a 200,000 square foot shopping center that sat on 23 acres of land. At the time that shopping center had slightly over half of its space available, and today that space is fully leased out. Agora’s new development has an anticipated completion date of quarter three or four of 2024.
Another project the mayor is excited about is the Helios Medical Campus. “We know our state as a whole is lacking in medical facilities,” said the mayor. This campus will encompass an impressive 135 acres of land in North Las Vegas across from the VA Medical Center. Not only will this medical campus include a new hospital, but it will also include over 2 million square feet dedicated to research, a laboratory and additional medical office space. Combined with a new hotel, this project is expected to create over 10,000 jobs to bolster the community of North Las Vegas.
South Las Vegas and Henderson
Recently the city of Henderson annexed 8,000 acres in Eldorado Valley and their aim is to make it as successful as Apex in the near future.
“Eight hundred, plus, acres of that land is under master-planned process right now for industrial growth,” said Jared Smith, director of economic development and tourism for the city of Henderson. These master-planned processes have investors joining forces to combat the entry price of infrastructure.
“Weston Adams purchased 300 acres of Eldorado Valley as part of a joint venture and is also part of a $50-$100 million investment group spread through 1,000 acres,” Brown said. DIV Industrial acquired a 94-acre lot in Eldorado Valley and has plans to place a 1.7 million square foot industrial campus and logistics center on that land. The Valley Health System is slated to open their seventh acute care hospital in West Henderson in 2024. Sitting on 40 acres of land this 150-bed hospital will be located on the corner of Raiders Parkway and St. Rose Parkway.
“We know that southern Nevada has land and infrastructure constraints, and while the process will be slow and arduous, we are bullish that the BLM will release more land over time,” Smith said.
One way the city of Henderson is attempting to overcome land constraints is to be purposeful in using the land as strategically as possible. By filling in the gaps inside of the city of Henderson the goal is to match available land with high growth industries. “If we have 10 acres of land available, we will match that up with an advanced manufacturer looking to make their move to Nevada,” said Smith.
Tahoe Reno Industrial Center
Southern Nevada is not the only area that is seeing extreme growth, northern Nevada has been developing available land and has a strong history of outward industrial growth.
The Tahoe Reno Industrial Center (TRIC) is the largest industrial park in the entire world and it’s located just a short drive from Reno. This titanic 107,000-acre park boasts 30,000 developable acres. Companies located in TRIC are numerous, but a few keynote tenants are Tesla, Blockchains, Google and Switch. Tesla’s Gigafactory 1 chose TRIC as its home due to Nevada having no state taxes and the speed of establishing the factory.
One reason investors and developers are drawn to TRIC is the public private partnership formed with the local governments. This partnership allows a company to grade, build and open their business within 180 days of closing escrow. Expediency is boosted by each site already having infrastructure in place. Those in the distribution and manufacturing industries flock to TRIC because they can achieve one day shipping to 11 western states. With such a large industrial park it is hard to imagine, but TRIC only has 170 acres of available property. Thirteen acres can be found on Electric Avenue marketed for retail, 110 acres sit as a ready-to-build residential project and Peru Drive is the last of the large sites remaining.
The Future Of Nevada
Nevada stakeholders have made one thing clear: land constraints and infrastructure difficulties will not stifle the state’s explosive growth. Clever tactics, and strategic partnerships, are employed to ensure that Nevada continues to be one of the fastest growing states in America.
“You can see clear growth north of the 215 and the 95, as well as growth south of Las Vegas towards Jean,” Zaher said. Many can drive through Nevada and contemplate what the Silver State’s open land can be used for, but industrial developers are beginning to see these vast stretches as opportunities ripe for the taking. As the metropolises of Nevada continue to partner with private companies there are no boundaries on how far Nevada will grow.
