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.

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