Trammell Crow Breaks Ground on Las Vegas Spec Project

Golden Triangle Logistics Center. Image courtesy of Trammell Crow Co.

Phase II of Golden Triangle Logistics Center, a 127-acre industrial development just off Interstate 15 in North Las Vegas, has gotten underway. Trammell Crow Co. and Washington Capital Management, the latter acting on behalf of a client, broke ground on the second stage of the project, which will yield an approximately 652,000-square-foot speculative building. This is set to bring the park to roughly 1.7 million square feet.

TCC and Washington Capital have picked the right time to embark upon another project at Golden Triangle with nary a tenant commitment in place. “Simply put, the industrial market is hot in North Las Vegas!”, Terri Sheridan, economic development specialist with the City of North Las Vegas, told Commercial Property Executive. “We constantly hear from developers who are building out spec projects and before they are able to go vertical on the job sites, they have leased out the entire development.”

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The second phase of Golden Triangle will consist of Building 3, which will carry the address of 3375 East Washburn Road. The cross-dock facility will occupy roughly 30 acres and offer such features as concrete tilt-up walls, 37-foot clear height and 185-foot-deep concrete exterior truck courts. The property will also be highly sustainable, with energy-efficient lighting and insulation, as well as water-reducing drought-tolerant landscaping.

The park’s first phase, completed during 2020’s last quarter, includes a 350,500-square-foot building at 3325 E. Washburn Road, as well as a 652,000-square-foot property at 3195 E. Washburn Road. Whitebox Technologies already preleased Building 1 in its entirety, and Brothers Trading Co. signed for 258,700 square feet of Building II earlier this year, leaving only 393,300 available of the first phase.

Monitoring North Las Vegas

Metropolitan Las Vegas’ industrial market is faring quite well, and North Las Vegas’ performance is particularly favorable. Las Vegas recorded roughly 418,000 square feet of positive net absorption in the first quarter, with North Las Vegas, which is the largest submarket by inventory, accounting for the bulk of the occupancy growth in terms of absorption and leasing activity, according to a first quarter 2021 report by Cushman & Wakefield.

The 12-month outlook for the Greater Las Vegas area entails a continuation of rising absorption, declining vacancy rates and increasing rental rates. Cushman & Wakefield attributes the call for industrial space in the area to e-commerce, technology and manufacturing tenants who need space due to shifting consumer demands.

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“It’s really a perfect storm of factors that are coming together right now,” Sheridan said. “We have many companies that are expanding to North Las Vegas to establish a larger West Coast presence, some that are relocating here from states with higher taxes, and some are adding operations here as they keep up with demand in growing sectors, like logistics. There are no signs of this slowing down—we have the available land, we have the infrastructure, and we are very business-friendly.” 

TCC and Washington Capital are relying on Kevin Higgins of CBRE and Donna Alderson of Cushman & Wakefield to oversee marketing and leasing at Golden Triangle. Phase II is on schedule to deliver in the first half of 2022. The industrial park also offers the potential for tenant expansion, with additional parcels adjacent to the first two phases.