Dermody Properties continues to deliver premier industrial assets under its trademarked LogistiCenter brand to hungry markets across the U.S., with the completion of LogistiCenter at Speedway in North Las Vegas. The 251,800-square-foot distribution center, constructed under the guidance of general contractor United Construction Co., is already 30 percent leased.
Carrying the address 6565 Nascar St., LogistiCenter occupies a 14-acre site in the center of the Interstate 15 corridor. Qualfon Inc.’s Dialog Direct, a full-service marketing solutions provider, committed to the state-of-the-art property, inking a lease with Dermody for approximately 76,800 square feet for its new West Coast fulfillment center. CBRE is spearheading leasing activity at LogistiCenter, where 176,000 square feet are now available for occupancy. Market fundamentals bode well for the lease-up of the remaining space. According to a first quarter 2020 report by CBRE, the Las Vegas industrial market recorded a 72 percent quarter-over-quarter increase in overall net absorption to 1.6 million square feet, with transactions in the North Las Vegas submarket accounting for 1.4 million square feet of the total. The strong numbers follow a year when metropolitan Las Vegas saw its top five industrial projects deliver in North Las Vegas.
“For Las Vegas—like many other markets, even with the recent economic fallout and spike in unemployment claims from the coronavirus pandemic—industry analysts and brokers believe demand for industrial space will remain consistent during the outbreak as users take a ‘wait and see’ attitude about where demand is once we return to normal,” John Ramous, partner with Dermody Properties, told Commercial Property Executive. “As a company, we are optimistic that the industrial real estate market will come out of this well and likely stronger than most other product types.”
Dermody’s confidence in the metropolitan Las Vegas market is evidenced by its current plans. In addition to having several area projects in the early stages, the company plans to break ground on LogistiCenter at Sunset, a 150,000-square-foot industrial building near McCarran Airport, within the next 60 days. “We expect the project to attract e-commerce and last-mile logistic tenants in the 25,000 to 150,000 square-foot range,” said Ramous.
Getting back to normal
Ramous anticipates that given current conditions, the U.S. industrial sector will not return to “business as usual” for the foreseeable future. He expects it will take 12 to 24 months minimum to navigate through the recovery period. According to Ramous, “Once we move past that phase, we will likely see a large acceleration in the e-commerce evolution. In the long term, the fundamentals will come back and there will be a potential increase in the need for onshoring and nearshoring, which bodes well for the industrial real estate industry.”
Dermody’s delivery of LogistiCenter at Speedway and news of the upcoming groundbreaking on LogistiCenter at Sunset come on the heels of the company’s completion of LogistiCenter at Louisville Airport, a 352,800-square-foot facility that opened in the Louisville, Ky., market in April 2020, fully leased to a global services company. And the company closed 2019 with the December completion of the 304,000-square-foot LogistiCenter at Midway South in Bethel Township, Pa., roughly 25 miles east of Philadelphia.