CapRock Expands Las Vegas Industrial Pipeline

CapRock Partners has expanded its industrial pipeline in Las Vegas. The firm has acquired a five-acre permit-ready development site in North Las Vegas, and plans to make it available as a build-to-suit distribution or manufacturing developments ranging in size from 45,000 to 100,000-plus square feet with state-of-the-art features.

“This five-acre site provides a great opportunity to build a rare freestanding building with frontage on Cheyenne that is perfect for a single tenant user that wants a private yard and their own identity,” Taylor Arnett, first VP of acquisitions at CapRock Partners, tells GlobeSt.com. “The Las Vegas industrial market has experienced tremendous growth and transformation over the last five years, and we continue to foresee growth in that market due to local population growth, a pro-business regulatory environment, increasing e-commerce, last mile, and regional distribution demand.”

There have been some reports that spec industrial development activity is down since the start of the pandemic, and most developers are focusing on build-to-suit. However, CapRock says it has continued to see demand for both development segments. “We are seeing both demand for build-to-suit and spec projects and CapRock likes to stay flexible to accommodate both types,” says Arnett. “At our core we are a spec developer, but we can accommodate build to suit as well. I’d estimate that well over 50% of industrial development is on a speculative basis which is a result of extremely strong demand factors. There was a pause in the spring/summer in spec development in Las Vegas due to the coronavirus outbreak, and for a few months we were seeing more build to suit projects but the regional industrial demand drivers have shown to be very strong and spec development is back.”

Strategically, CapRock Partners will continue to focus on both build-to-suit and spec developments to remain nimble through the pandemic and best respond to demand. “CapRock Partners is entrepreneurial at its core and never makes decisions based on a one-size-fits-all approach. We’re nimble and adapt to the ever-changing needs of our tenants and investors and meet them where they need to be met,” says Arnett. “With that said, we’re still focusing our two distinct value-add and development platforms while giving ourselves flexibility to pivot when needed. For Cheyenne Land specifically, given that we own the business park next door and the site is 100% permit ready, we have the flexibility to market the site as a build-to-suit for the right tenant or to build our planned 100,000 square feet building on a speculative basis.”

The development site is currently entitled and permit ready for construction. It can accommodate a 101,332-square-foot, class-A industrial building, and it will be named CapRock Point @ Cheyenne. The property features will include13 9-foot by 10-foot dock high doors; 30-foot clear height and more than 100 parking spaces. CapRock acquired the property through its CapRock Partners’ Industrial Value-Add Fund III.