A partnership between Mohr Capital and Standard Real Estate Investments recently announced plans to develop a speculative industrial facility in the Reno North Valleys. This will be Mohr’s second industrial project in the Reno market, but the first in collaboration with Standard REI.
Banking on Reno’s emergence as a key strategic distribution hub, the joint venture plans to construct a multi-tenant industrial building designed to accommodate future logistics and distribution tenants.
Located on an 11-acre site at 9865 N. Virginia St., the property will consist of a single-story building and deliver 180,000 square feet of new Reno industrial space. Slated for completion in the summer of 2025, the project features: motion-sensing LED light fixtures; 32-foot clear height; 14’ by 16’, grade-level, drive-in doors; 25 dock positions outfitted with 40,000-pound levelers and seals; an ESFR fire protection sprinkler system; and roof-mounted, gas-fired make-up air units.
Project partners also include Techtonics Design Group as the civil engineer and architect; FCL Construction as the general contractor; and Stearns Bank as the construction loan lender.
“Reno’s emergence as a key distribution hub has not only diversified the city’s industrial base, but has also created a robust economic environment,” said Tom Theobald, senior vice president of development at Mohr Capital. “This project capitalizes on Reno’s pivotal role and attractive position as a destination for forward-looking logistics and distribution partners.”
According to the June national industrial report published by CommercialEdge, the average sale price for industrial assets in the U.S. is continuing its decade-long upward trajectory. Despite a historic wave of new supply, higher capital costs and lower transaction volumes, industrial space traded at a national average of $142 per square foot — closer than ever to the per-square-foot average sale price of office space ($165).
Industrial vacancy rates have also been ticking up, largely due to an unprecedented volume of new industrial space being delivered to the national market. For instance, nearly 180 million square feet of new industrial space was completed during the first five months of 2024.
The report also noted that new industrial lease deals closed in the last year signed for $2.25 more than the average for all leases. The markets that saw the largest premiums were Miami; Los Angeles; Inland Empire, Calif.; Tampa, Fla.; and Nashville, Tenn.
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Reno NV Last modified: July 24, 2024
About the Author / Ioana Ginsac
Ioana Gînsac is a creative writer covering all-things-CRE for several Yardi product publications. Topics include industry news, U.S. office and industrial market reports, as well as features on development, architecture, urbanism, proptech, design, and more. Her work has appeared in AmericanInno, Bisnow, BusinessInsider, Commercial Property Executive, Curbed, Fast Company, Forbes, GlobeSt, Inc, Patch, The Real Deal.
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