by Jennifer Robison, Las Vegas Review-Journal
A big furniture designer and manufacturer will open a nationwide distribution center in North Las Vegas this fall.
Southern Enterprises of Dallas has agreed to take nearly 150,000 square feet inside Dermody Properties' LogistiCenterSM at Cheyenne, Dermody officials announced Thursday.
But the deal is more than a simple lease. Local brokers say it could also be a small but first step in building up an important, local sector. And it shows that demand for speculative industrial space is as strong as developers have advertised, at least for now.
For Dallas-based Southern Enterprises, which sells through Target, Wal-Mart, Home Depot, Kohl's and Amazon, demand came from a need to supplement its lone distribution facility in Carlisle, Pa. The company will fill 25 percent of orders from the local plant, which will employ at least 10 workers. The center will put the company closer to West Coast markets in particular, said Chief Financial Officer Gary Horowitz.
Though the building will serve as a distribution center, having Southern Enterprise here is "a tiny peg in the slot toward bringing manufacturing here," said Dan Doherty, senior vice president of Colliers International's local office and a broker for Dermody.
"Anytime we deal with a furniture retailer or wholesaler, it maybe helps us build that bridge to someday bringing manufacturing here," he said. "Maybe a few more furniture companies look at the market, and we do end up with some manufacturing, because that's the missing link in the Southern Nevada economy. We make almost nothing and consume massive amounts of everything."
Southern Enterprises inked its lease in July, just as LogistiCenterSM's walls were going up. Among spec buildings, which often don't sign tenants before completion, it was an unusually early agreement, said Brendan Egan, Dermody's West Region development director.
Read the full article here.