A recently completed speculative distribution facility at Tahoe Reno Industrial Center has yet to draw any tenants, but the owners can afford to be patient, says Shannon Wiseman, vice president of Development Arts LLC, the building's developer.
Trammell Crow Construction completed the 632,130-square-foot building on 34 acres at 700 Milan Drive for Development Arts in November. Named West America Commerce Center, the building can accommodate up to eight tenants, but Development Arts ideally would like to lease the space to one to four tenants, Wiseman says. Space is divisible to 75,000 square feet at approximately $33.5 cents a square foot.
So far, interest in leasing space has soured along with the national and regional economy, but Wiseman says West America Commerce Center will be one of the first buildings leased once business picks back up.
"We have had a lot of people looking, but nothing has stuck," Wiseman says. "We thought we would be at least partly pre-leased when we opened, but that hasn't come to fruition. But we are not behind budget yet.
We believe we have the best building out there, and we have patient capital partners and don't have any construction loans, so we are not panicking."
Development Arts has a total of 103 acres to develop at Milan Drive. It will add two more buildings of approximately 600,000 and 700,000 square feet but won't proceed with further construction until its initial project is at least partially leased.
Dan Burhmann and Dave Schuster of the Grubb and Ellis industrial team are the leasing agents for the building.
