Dermody’s LogistiCenter at Kiley Ranch.
Courtesy Dermody
Real estate is all about location, and Dermody’s latest industrial projects in Spanish Springs and Stead are strategically located to keep Northern Nevada residents from hour-long commutes.
LogistiCenter at Kiley Ranch and Reno AirLogistics Park are both infill projects located in close proximity to potential employees, said John Ramous, Dermody’s Nevada region partner. Buildings at both projects are nearing completion and have seen strong interest from potential tenants, Ramous said.
“Depending on where your project is, what stage it is in and who you cater to, leasing can be slow, but at Kiley we definitely are seeing really strong activity prior to completion,” Ramous told NNBW. “The Spanish Springs area has very limited land available for logistics, but it has a large labor base.
“It’s similar in North Valleys,” he added. “Reno AirLogistics Park is a different submarket, but what we find is that infill projects are highly desirable.
Dermody has two buildings totaling more than 385,000 square feet nearing completion at LogistiCenter at Kiley Ranch. The first building is just under 198,000 square feet and is weeks away from completion, while the second is between 60 and 90 days from being finished, Ramous said.
Phase 1 of Reno AirLogistics Park, meanwhile, is also a two-building project. The first building of 468,740 square feet is basically complete, Ramous said. Pokrajac Corp., of Monrovia, Calif., has started the groundwork to get a pad ready for the second building of 654,500 square feet. The second phase of the project calls for a 750,000-square-foot building that is expandable up to more than 1 million square feet, if necessary.
United Construction is the general contractor on Dermody’s Northern Nevada tilt-up projects.
“If a customer comes in and needs 1 million square feet, we can put them under one roof,” Ramous said. “We don’t ultimately know what the (potential) customer will want, but we want to have and plan for that flexibility. If we find a customer early on, we can almost double that size if needed.”
Although Dermody does not have additional land holdings for additional phases in Kiley Ranch, the 3,000-acre Reno AirLogistics Park could eventually have millions of square feet of new Class A industrial space under roof.
“If you have a good location, which Reno AirLogistics Park and Kiley Ranch have, you will attract a diversified industrial base,” Ramous said. “(Those locations) offer a great work-live environment, and those are the projects that are going to be sought after. You have a lot of amenities nearby, so people don’t have to travel. If you can offer those types of opportunities for customers and their employees, you will have a successful project. That is the expectation for the projects we are developing right now.”
Reno AirLogistics Park also calls for an extension of Moya Boulevard to open the park’s entrance. The project includes construction of a new half-mile, four-lane section extending on to airport property, as well as reconfiguring the intersection of Industry Circle and Moya Boulevard.
Ramous said the extension is the culmination of 10 years of planning with the Reno Tahoe Airport Authority and additional stakeholders.
“It’s taken many years to come to fruition,” Ramous said. “This project will be a community development that reduces cars on the road so people will get to spend more time with their families. They will be closer to childcare and other local area amenities as the development’s employee base increases.”
The Regional Transportation Commission also has plans to add an additional lane in each direction on Moya Boulevard. The $24 million project is currently in the design phase, with construction expected to begin in spring 2027.
At the south end of Reno, Panattoni Development is erecting buildings at its 580 South industrial project. The four-building development will encompass 840,560 square feet on 88 acres. Panattoni has sold off a few recently completed industrial assets in 2025.
The company divested a newly constructed 136,777-square-foot building at 9195 Moya Blvd. to LBA Logistics, and Panattoni also sold off a 195,000-square-foot building at 420 Ingenuity Ave. at Pyramid Pointe Commerce Center in Spanish Springs.
Tim Schaedler, Panattoni Development partner for Northern Nevada and Northern California, said the company often sells its assets when buildings are leased up. Tenants at the Spanish Springs facility include Millbank Manufacturing, Cleaner’s Supply, CH Spencer and Casio. The Moya Boulevard building is leased to Tool Source Warehouse.
“Once buildings are stabilized, we typically sell and recycle that capital into new development,” Schaedler said.
Despite some regional successes, vacancy remains stubbornly high across the Northern Nevada industrial market. According to CBRE, vacancy at the end of the first quarter was north of 11 percent despite seeing positive net absorption in the quarter for the first time since 2023. Sublease space from companies downsizing or leaving the market continues to flood the market.
Eric Bennet, executive vice president of industrial properties with the Reno office of CBRE, said 2025 started off with nearly 1 million square feet of positive net absorption, but uncertainty from tariff-related policies cooled the market.
“Tariffs hit in the second quarter, which increased uncertainty for institutional investors,” Bennett said. “Uncertainty brings a slowdown in decision making. There was momentum in Q1, but things flattened in Q2. We have leases in the pipeline, but it’s going to go from positive net absorption to a flat outlook as we see more 3PLs giving back space. Companies are going to stay the course until there is more clarity on the tariff situation.”