Thought Leaders: Business Solutions From the Experts

PAR TOLLES
Chief Executive Officer, Tolles

An industry veteran with decades of experience and hundreds of successful developments to his name, Par Tolles has long served as a pioneer in changing the face of Northern Nevada and beyond.

Par is owner, founder, and CEO of Tolles, a multi-disciplinary development firm that believes thoughtful development creates stronger communities. Founded in 2016, the Tolles portfolio features a diverse range of office, retail, industrial, and multi-family properties across Nevada.

From 2011-2017, Par acted as CFO/COO and President of Basin Street Properties, the largest owner of office properties in Reno, Nevada, and the largest property manager in Sonoma, Marin, and Napa Counties.

Prior to BSP, he served in various leadership roles for some of the West’s largest names in real estate development, including President of Dermody Properties, Principal of Northern Nevada for Trammell Crow Company, and Managing Director of Northern Nevada for CBRE.

Of the projects you have built in Northern Nevada, which are you most proud of and why?

One of the projects that stands out is the Village at Rancharrah. This development holds a special place in my heart due to its impact on the way we feel about our community. The project represents more than just brick and mortar; it's a blend of innovation in design and community engagement.

The Village at Rancharrah has been a groundbreaking venture that has redefined the possibilities in Reno's commercial landscape. The lifestyle shopping center goes beyond conventional designs, introducing a level of sophistication and elegance previously unseen in our region. The meticulous tenant mix has been curated to enrich the local shopping and leisure experience, catering to a diverse array of preferences. Our emphasis on a new standard of finish cements its unique identity.

In essence, the Village at Rancharrah embodies the realization of pushing boundaries, not just in terms of architectural aesthetics, but in enhancing the overall lifestyle and shopping options for the community.

What projects do you have planned in the next 12-24 months?

In the past months, our focus has been on delivering nearly 1,000,000 square feet of warehouse space at the Tahoe Reno Industrial Center. Looking ahead into the next 12-24 months, our project pipeline remains robust and promising.

Our flagship hospitality endeavor, the Hyatt Place at the Summit Mall, will be a defining offering to the south end of town. This 134-room select service hotel, situated adjacent to the Century Theater, is poised to offer an unparalleled blend of comfort and convenience to visitors.

We’re also excited to introduce University Crossing, a 5-unit retail shopping center with notable brands like Jimmy John's. This project brings greater diversity of food and beverage to university students and downtown Reno.

We will also deliver 900,000 square feet of versatile flex, distribution, and manufacturing spaces at our Airport Commerce Center project, situated to the south of the Reno Tahoe Airport.

In a rapidly changing market conditions, what do you expect to see in the coming year? Can you address all product types you build?

In the face of ever-evolving market conditions, the upcoming year holds several anticipated trends across the various product types we specialize in.

Starting with construction costs, we anticipate a stabilization trend, and there is even a possibility of a modest decrease. This scenario would provide a welcome relief to developers and investors alike, fostering a more conducive environment for project execution.

When it comes to industrial and retail spaces, we foresee a consistent demand from tenants. This demand is attributed to the limited number of projected deliveries expected in the coming year. Such conditions underscore the continued attractiveness of well-positioned and thoughtfully designed industrial and retail properties.

Conversely, the office sector is expected to experience ongoing softening. However, it's worth noting that strategically located and carefully planned office projects will remain in high demand. These projects, characterized by their efficiency and suitability for modern working dynamics, are poised to maintain lower vacancy rates, showcasing their resilience in the evolving market.

Our outlook for the coming year reflects the nuanced dynamics of each product type. We remain committed to adapting to these trends, ensuring that our projects align with market demands and contribute to the overall growth and vitality of the region.

What product type or asset does northern Nevada need most?

Undoubtedly, the most pressing need in Northern Nevada's landscape is affordable and attainable housing. The issue remains a pivotal factor in the region's ability to attract and retain significant employers.

The scarcity of housing options that are both affordable and within reach for a diverse range of workers poses challenges for the overall economic development of the area. Large employers keen on establishing a presence here often consider the availability of housing for their workforce as a crucial criterion.

Addressing this need would not only facilitate the growth of the local job market but also enhance the overall quality of life for residents. By focusing on developing affordable and attainable housing solutions, Northern Nevada can strengthen its appeal to employers, foster sustainable growth, and create a more inclusive and vibrant community.

What do you see as the biggest challenge and opportunity for your industry in the coming year?

Looking ahead to the upcoming year, the real estate industry is presented with a dual scenario of challenge and opportunity.

The most significant opportunity lies in the continuous attraction of skilled and talented professionals to our field. This encompasses both individuals nurtured within our local community and those drawn from external markets. A robust talent pool is the cornerstone of sustained industry growth, innovation, and adaptation. To this end, active involvement in trade groups like NAIOP becomes not just advisable, but paramount. These platforms foster networking, knowledge exchange, and collaborative endeavors that are essential for the industry's advancement.

Conversely, the challenge emerges from the dynamic nature of the real estate landscape itself. Market fluctuations, regulatory shifts, and evolving consumer preferences necessitate an agile approach. Navigating these uncertainties while maintaining high standards of innovation, sustainability, and community integration will be a formidable task.

By capitalizing on the opportunity to nurture a skilled workforce and collaborating within industry networks, we are poised to tackle challenges head-on, ensuring that our industry continues to thrive, contribute to economic development, and shape vibrant communities.

How long have you been involved in NAIOP and what made you choose to get involved?

My association with NAIOP spans more than a decade, a testament to the enduring value I place on this organization. Moreover, our firm's commitment to NAIOP is reflected through the active participation of our partners and employees, who have volunteered in leadership capacities.

My initial decision to join NAIOP was rooted in its reputation as a premier platform for industry professionals. When I moved to Reno, NAIOP allowed me to connect with like-minded individuals in the industry. It offered a fertile ground for networking, knowledge sharing, and collaborative ventures.

Over time, NAIOP has evolved into a cornerstone of our accomplishments within the market. The relationships nurtured, insights gained, and industry trends discussed have all contributed significantly to our firm's success. The symbiotic relationship between our involvement and the organization's offerings has been instrumental in shaping our trajectory in the industry and reinforcing our commitment to excellence.