Monday, January 25, 2010

Why DCs are good for Northern Nevada

Posted by: Paul Perkins, CCIM, SIOR
Senior Vice President
Industrial Properties Group

A graduate of California State University, Northridge, Paul has more than 40 years of experience as a real estate broker. He relocated to Reno in 1978, and since 1986 has specialized in the leasing and sale of industrial properties. In May of 2005, Paul joined 26 of his former Colliers colleagues in founding Alliance Commercial Real Estate Services.

“It's a fact. Communities would rather have manufacturers and corporate headquarters than distribution centers. Economic development incentive packages rarely target DCs, residents frown at truck traffic, and community leaders fret about damage to roads.”

“The importance of the logistics industry is frequently lost on the general public.”

Thus begins a recent article forwarded to us by a valued client, who, in her transmittal said, “Reno is probably more DSC friendly than other areas.” She said that because her company, a household name, has both manufacturing and distribution facilities in Northern Nevada and because she, like other corporate real estate executives, recognizes that our central location, great transportation infrastructure and low cost of doing business has resulted in Reno/Sparks becoming acknowledged as THE primary distribution hub for the eleven western states.

However, we question her assertion that Reno is “more DSC friendly” than other areas. Often we hear people in local government and in economic development circles express the belief that DCs are not the most productive use of land and other resources. The article to which we refer, will hopefully help persuade naysayers that distribution centers shouldn’t be dismissed as the bottom rung of the economic ladder.

Tuesday, January 19, 2010

As companies tighen their belts.....

Posted by: Dominic Brunetti, CCIM
Office Properties Specialist
775 336 4674

During his career, Dominic has worked with clients such as: Centex Homes, CTX Mortgage, Landmark Homes, 1st Premiere Mortgage, AG Edwards, Alere Medical, CHSI Nevada, The CFO Group, Ameriwest Financial, North American Title, Andregg Geomatics, Manhard Consulting, HDR Engineering, State Farm, Gizmo Wireless, The Corner Doc, First American Title Company, Stewart Title Company, GI Consultants, The Hilton Foundation, Hartford, PC Doctor and more.

As companies tighten their budget belts, efficient office space becomes more important. In the evident trend of Nevada office users, companies are realizing two things:

  1. Bullpens are back. Bullpens allow office tenants to maximize employee occupancy and the availability of 2nd hand and refurbished office furniture may beat tenant improvement costs. Also, for the right type of office user, bullpens breed creativity, energy and production.

  2. It is a great time to upgrade office image. Depressed market lease rates have allowed typical Class C office users to upgrade to Class B office properties, Class B office users to Class A office properties.