1 MSF Underway at 4,300-Acre Nevada Industrial District

Victory Logistics District building. Image courtesy of Premier Design + Build Group

Victory Logistics District, a 4,300-acre master-planned industrial development in Fernley, Nev., continues to grow as Mark IV Capital Inc. breaks ground on a 1 million-square-foot project at the site. Premier Design + Build Group is serving as general contractor for the metropolitan Reno venture.

The new project gets underway three years after Mark IV acquired the sprawling Victory Logistics site in the Northern Nevada region. In 2019, Mark IV shelled out $45 million for the property, then known as Crossroads Commerce Center, in what was the second-largest industrial land sale in Nevada’s history.

Located roughly 30 miles east of Reno in an Opportunity Zone, Victory Logistics provides direct access to Interstate 80 and Highway 50. Mark IV is developing the park in phases, the first of which taking shape on a 400-acre area. At full build-out, Phase I will comprise up to 7.7 million square feet of industrial space. The project’s Building A, a 815,000-square-foot speculative facility, broke ground in 2021.

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Premier Design’s current undertaking is a three-facility development spanning 67 acres. Buildings B and C will consist of approximately 169,800 and 217,500 square feet, respectively, and feature 36-foot clear heights and numerous dock and drive-in doors, as well as ample auto and trailer parking. Building B will also feature speculative office space.

Building D-2 will deliver approximately 634,500 square feet with 40-foot clear heights to the market, and like the other two facilities, it will feature premier mechanical and electrical systems and provide substantial parking accommodations for autos and trailers. HPA Architects Inc. is behind the design of all three buildings, which are being constructed to qualify for LEED certification. Completion is expected in the fourth quarter of 2023.

The making of an industrial district

Mark IV is getting a helping hand in the development of Victory Logistics, which, within a seven- to 10-year build-out period, will yield infrastructure, rail facilities and a wide array of industrial buildings ranging from 170,000 to 1.5 million square feet. In August 2022, the U.S. Department of Transportation awarded the city of Fernley a $25 million grant for the Nevada Pacific Parkway, a $52.4 million road and bridge construction project that will help accommodate increased traffic to Victory Logistics by connecting to Interstate 80 and Highway 50. Mark IV and the city will serve as managers of the project, which is on schedule to break ground in 2023.

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Progress at Victory Logistics is vital to the Northern Nevada market given the exceptionally high demand for industrial product in the area, an issue plaguing markets across the country. The vacancy rate in the Greater Reno area was just 1.1 percent in the third quarter of 2022, according to a Colliers report. “A general lack of available supply is making it difficult for many tenants to secure their footprint,” Chris Fairchild, an executive vice president with Colliers, wrote in the report.

Victory Logistics’ Building A made its debut in the first quarter of 2022 and had already been pre-leased in its entirety to Redwood Materials. Market fundamentals suggest that early commitments are likely in store for the three-building project that Premier Design just commenced at the industrial destination. “Tenants in the market are still squinting to see options and are negotiating on new construction deliveries into June of next year,” the report shows.