Developers of a sprawling industrial park in North Las Vegas broke ground for the newest building after winning tenants for the first space.
Trammell Crow Co. is carrying out construction work on a roughly 652,000 square meter building in the Golden Triangle Logistics Center. The new facility on the corner of Washburn and Pecos Streets, south of Shadow Creek Golf Course, is due to be completed in the first half of 2022, according to a press release.
It is the third of seven planned buildings in the 50-acre business park, said Tom Bak, senior managing director of the Trammell Crow office in Newport Beach, California.
The final round of construction also comes after an investment firm purchased the first phase of Golden Triangle, which spans more than 2 million square feet, for more than $ 335 million.
Driven by the rise of e-commerce, warehouse developers in southern Nevada, particularly northern Las Vegas, have been building for years. Large plots of land were available there at relatively low prices, and officials have expanded the city’s infrastructure so that more big box facilities could be built.
The online retail giant Amazon, the sportswear company Fanatics and the baby product manufacturer The Honest Co. have opened distribution centers in North Las Vegas in recent years.
Market is on fire
Overall, southern Nevada is experiencing a record amount of industrial development, and pre-letting was “pretty high,” said John Stater, Las Vegas research manager at Brokerage Colliers International.
Around 7.8 million square feet of industrial space was under construction in the valley in the second quarter, he said.
“The market is on fire,” said Stater. “It’s incredible.”
In his view, the industrial sector has been “the only bright spot” in commercial real estate since the outbreak of the pandemic.
People were already shopping more online before last year’s public health crisis turned daily life upside down. But after the virus outbreak left masses of people working from home or rarely venturing out for fear of infection, and stores temporarily closed, internet shopping only picked up.
Trammell Crow, tasked with developing the Golden Triangle, announced plans for the 2.7 million square foot industrial park in the fall of 2019.
Bak recently said the first building was leased to Whitebox, an e-commerce service company, and part of the second building was leased to Brothers Trading Co., a grocery store.
Rental negotiations are also underway for the third building.
Best in ‘Virtually Any Market’
Real estate investment firm Clarion Partners bought the first phase of the Golden Triangle for $ 335.6 million in April, according to real estate records.
Washington Capital Management President and CEO Cory Carlson, whose investment advisory firm sold the properties on behalf of the former owner, Operating Engineers Local 12 pension fund, confirmed the deal.
A Clarion representative was unavailable for comment this week.
Colliers announced Thursday that it had been hired as a stockbroker for the recently acquired portfolio.
Carlson, who said the pension fund also owns the 50-acre extension of the Golden Triangle, said the industrial sector in Las Vegas is “doing very well”.
According to Carlson, it’s the best type of commercial property “in virtually any market,” largely because of e-commerce.
Contact Eli Segall at esegall@reviewjournal.com or 702-383-0342. Follow @eli_segall on Twitter.
