Dermody Properties, a national private equity real estate investment, development and management company focused exclusively on the logistics real estate sector, is pleased to announce the acquisition of 26.89 acres of land in Northwest Reno, Nev. for a planned, two-building industrial development totaling 429,000 square feet. Located on Boomtown Garson Road, the development will be known as LogistiCenter at I-80 West Phase II, adjacent to the Phase I site which was completed in 2017. The land for the new development was acquired in late September 2021 and construction is expected to begin in Summer 2022.
“Leasing activity in the region remains resilient with multiple leases of more than 100,000 square feet over the last few quarters,” said John Ramous, Partner in Nevada at Dermody Properties. “Net absorption for the third quarter of 2021 was 1 million square feet, representing the ninth quarter in a row where net absorption totaled more than 800,000 square feet. The time is right to leverage this ever-growing market for the benefit of our customers.”
Building 1 of LogistiCenter at I-80 West Phase II will be 170,500 square feet and Building 2 will be 258,500 square feet. Planned building features include a 32-foot clear height, 85 dock high doors, more than 300 auto parking stalls and the latest ESFR sprinkler system. Dermody Properties will also be making on-site and off-site improvements including enhanced landscaping throughout the project as well as a publicly accessible walking/bike trail system around the perimeter of the business park.
“Demand for space within new-construction properties continues to increase as vacancy rates have dipped to approximately 3.6% and existing space is dissipating,” said Ramous. “Construction activity across developments continues to grow in the region to meet customer demand. In the third quarter of 2021, 4.6 million square feet of active construction was in play, while an additional 2.1 million square feet was slated for groundbreaking in the near term. Further, early tenant renewals have become more commonplace as occupiers look to ensure they can secure space in a growing market.”
The logistics park is located just four miles from the California border with immediate access to and highway frontage along Interstate-80, providing prospective customers the advantage of access to a major arterial component to managing today’s high-speed delivery expectations.
The land purchase was facilitated by Dickson Commercial Group (“DCG”) and all ongoing leasing efforts will be handled by DCG’s industrial team of Joel Fountain, Baker Krukow and Nick Knecht.
“As a Reno-based company, Dermody Properties is always looking for ways to contribute to the northern Nevada community – whether it be to its economy, to its people, or to its landscape, and we believe the addition of LogistiCenter at I-80 West Phase II will factor into all three,” said Tim Walsh, Partner and Chief Investment Officer for Dermody Properties. “We anticipate that this opportunity will bring several respected companies to the region, resulting in new jobs for the existing skilled workforce.”
LogistiCenter, a nationally trademarked brand owned and developed by Dermody Properties, represents the company’s business philosophy of developing Class A distribution and logistics facilities that meet the supply-chain requirements of the most innovative companies.