Large cities once considered obvious contenders for “top deals” in logistics and distribution industries may be doing a double take as North Las Vegas inks some of the largest companies in the e-commerce marketplace, and attracts developers willing to speculate millions of square feet of industrial space that cannot be built fast enough.
The most significant evidence of this is the recent activity at Northgate Distribution Center, a 120-acre industrial park currently being developed in North Las Vegas by VanTrust Real Estate. Three nationally recognized companies, including a top Seattle-based e-commerce company, The Honest Company, a non-toxic infant and household goods supplier and Fanatics, the global leader for officially licensed sports merchandise and a top-50 internet retail company, have signed leases at Northgate Distribution Center, totaling nearly 1.8 million square feet of state-of-the-art distribution space.
The Honest Co., will occupy approximately 575,000 square feet of building eight, which will act as the company’s western regional distribution center. The large Seattle-based retailer has leased 813,120 square feet, which will act as their second North Las Vegas location. Fanatics was the first to sign 400,000 square feet in the first phase of the two million square foot, six-building industrial park which is the largest speculative industrial building ever constructed in Southern Nevada.
According to Keith Earnest, executive vice president of VanTrust, these companies are expected to move into their new facilities and begin operations between June and September of 2017. Together, these three leases are expected to create more than 2,000 jobs.
“We are pleased with the volume and velocity of the leasing activity we are experiencing at Northgate. These nationally recognized companies having a presence in the North Las Vegas market, further validating this region as an emerging e-commerce destination,” said Earnest.
Kevin J. Higgins, executive vice president of CBRE Las Vegas explained that as of quarter three 2016, North Las Vegas had a vacancy of 3.8 percent, 60 basis points lower than the overall market vacancy, and 66 percent of the total space under construction is in North Las Vegas.
“The greater Las Vegas area was selected as the most optimal location to best support our growing customer base. North Las Vegas offered the most attractive combination of lower real estate cost and greater labor availability. We really appreciate the work of the Economic Development Group who made the choice of selecting Nevada an easy one,” said William Ashton, Senior Vice President of Operations, The Honest Co.
“If anyone doubts that North Las Vegas has reinvented itself, this is proof positive that our turnaround town is doing business with the world,” said Mayor John Lee of the City of North Las Vegas. “Our business-friendly policies and tax structure, along with abundant space ideal for large project construction, have pushed North Las Vegas to the top of the list for economic development. Fortune 500 companies are coming here for good reason, and we welcome them with open arms.”
“The increase in construction activity has largely been fueled by a combination of a shortage of available large bulk distribution space, and a significant uptick in demand from e-commerce related users,” said Higgins. “Because of Las Vegas’ central location between Southern California, Arizona, and Utah—the Las Vegas market is increasingly identified as an ideal and highly strategic location for regional fulfillment centers.”
“This activity speaks volumes about the growth of e-commerce and the strength of the industrial market in North Las Vegas,” said Earnest. “Many of the region’s top e-commerce companies are locating to North Las Vegas because of its strong labor force and adjacency to several western cities.”
Leasing activity has been so brisk for the Phoenix-based developer that the company purchased an additional 60 acres across the street to accommodate an additional 1.3 million square feet of development.
About VanTrust Real Estate LLC
VanTrust Real Estate LLC is a full-service real estate development company with a regional focus and national scope. VanTrust is headquartered in Kansas City, Mo., with regional offices in Columbus, Ohio; Jacksonville, Fla.; Dallas and Phoenix. The company creates real estate assets for internal portfolio holdings as well as disposition opportunities. VanTrust offer a full spectrum of real estate services including acquisition, development, asset management and construction management. Product types include office, industrial, multifamily, retail, institutional, government, hospitality and recreational. Access www.vantrustre.com for more information.
