Rising Demand for Spec and Built-to-Suit Developments in Northern Nevada (TRIC) and Las Vegas
by: Michael Marchese
In recent years, the demand for speculative (spec) and build-to-suit developments has witnessed a significant surge in both northern Nevada, particularly the Tahoe Reno Industrial Center (TRIC), and the vibrant city of Las Vegas. The growth can be seen in the increase in professional sports teams moving and creating a franchise in the city of Las Vegas like the Las Vegas Raiders, Golden Knights, Aces, and soon to be the A’s. This growing trend can be attributed to various factors that make these regions highly attractive to businesses and investors. From a favorable business environment to strategic locations and the diversification of industries, the appeal of these areas is attracting companies seeking to establish a strong presence and capitalize on their potential for growth.
Nevada’s strategic location in the western United States makes it a prime hub for logistics, distribution, and manufacturing operations. The state’s proximity to major markets such as California, the Pacific Northwest, and the Southwest enables businesses to efficiently serve a wide customer base. This advantageous location reduces transportation costs and allows for faster and more convenient supply chain management. A key component to Nevada industrial is the Tahoe Reno Industrial Center (TRIC), located in northern Nevada. The TRIC is one of the largest industrial parks in the world. Ample land availability, and supportive business environment make it an attractive destination for businesses. TRIC’s expansion is expected to continue, attracting more companies and driving further economic growth in the region. The rapid growth of e-commerce will continue to drive the demand for industrial spaces in Nevada. As online shopping continues to become more prevalent, companies will require strategically located distribution centers and fulfillment facilities to ensure efficient last-mile delivery.
Before the recent growth and development in Nevada’s industrial sector, capital availability was relatively limited compared to the present situation. Historically, Nevada’s economy heavily relied on sectors such as gaming, tourism, and mining, with less emphasis on industrial development. As a result, industrial capital investment was not as prevalent or substantial as it is today. Unlike the past, lenders and investors see the potential for attractive returns on investment, increasingly allocating capital to support the growth and development of Nevada’s industrial landscape. Traditional banks will likely continue to be a significant source of capital for industrial projects. As the industrial sector in Nevada continues to grow, banks may become more familiar with the unique needs and potential of this market, making it easier for businesses to secure financing. Institutional investors and REITs may show greater interest in acquiring and developing industrial properties. These entities can provide substantial capital for large-scale industrial projects and offer investors opportunities to participate in the industrial market’s growth through real estate investments.
Our team at Lever has cultivated strong relationships with a diverse network of lenders, allowing us to provide access to a wide range of debt and equity partners. One of our offices is located in Las Vegas, Nevada, giving us the knowledge and experience to understand the specific financing requirements associated with these projects in the state of Nevada. Our founder, Adam Horowitz, is on the Nevada Mortgage Advisory Council, a state appointed commission advising on mortgage related issues. Whether you are seeking debt financing, equity investment, or a combination of both, we will work closely with you to identify the optimal capital terms and secure the necessary funding for your industrial project. We are ready to leverage our knowledge, experience, and network to help you secure the best financing options and support your success in the Nevada industrial market.