Shortage of Industrial Buildings in SNV, New Development Needed
(Las Vegas) – The Las Vegas Global Economic Alliance released details from a new report, the “Industrial Building Study & Comparative Market Analysis.” During a discussion entitled, “Build It & They Will Come,” Jonas Peterson, chief operating officer of the Las Vegas Global Economic Alliance, and John Restrepo, principal of RCG Economics, presented RCG’s recent findings. The LVGEA Industrial Market Survey can be obtained by clicking here
With demand for large industrial sites rising in Southern Nevada, manufacturing companies are looking to locate their facilities here but aren’t finding what they need. As a result, other locales such as the Inland Empire and Phoenix, instead are receiving their business. This means that Southern Nevada lost out on as many as 18,850 jobs in 2013, the study shows.
For their part, developers say they’re having problems securing land and financing needed to construct large-scale industrial buildings.
“Depending on the financial strength and size of developers, some are not having any problems regarding financing, while smaller, less financially strong developers may be having problems lining up funding,” Restrepo said. “At this point, land availability issues are largely relegated to contiguous pieces of 25 acres or with direct rail and freeway access.”
The study released today also shows that competitor regions have available large-scale industrial sites and continue to build more. If no action is taken in Southern Nevada, the region may experience an ongoing competitive disadvantage due to its continued site deficiency.
“The results of the study are surprising and show a significant gap between the supply and demand for large industrial buildings,” said Jonas Peterson, chief operating officer of the Las Vegas Global Economic Alliance. “Overcoming development obstacles will require a community-wide effort. However, if we are successful, we have the opportunity to capture thousands of new, high-paying jobs for Southern Nevada.”
Restrepo added: “Siting of large-scale distribution centers by companies is driven by a variety of issues beyond land price and funding. In fact, the more important issues are related to the strength of regional and national demand, a region’s proximity to the national transportation network and to a large population center and the quality of its labor force. Most of these factors are out of the control of a region’s business and political leadership.”
The discussion between Peterson and Restrepo took place at the Stage 2 Conference Room inside The Rob Roy InNEVation Center Powered by Switch, 6795 Edmond Street, Third Floor, in Las Vegas.
About Las Vegas Global Economic Alliance
The Las Vegas Global Economic Alliance is a 501(c)6 membership organization dedicated to growing the economy in Southern Nevada through connectivity, community development, and strong business recruitment, retention and outreach. LVGEA’s vision is to help Southern Nevada residents thrive in a global economy by fostering a more prosperous, diverse and connected regional economy. For more information, call 702.791.0000 or visit www.www.lvgea.org.