Pyramid Pointe Commerce Center 195,000 SF Spec Development
Challenge
During the industrial warehouse expansion cycle of the early 2020s, developers were aggressively pursuing viable sites to keep pace with surging tenant demand. Yet, much of the Reno-Sparks core had already been built out, constrained by surrounding mountain ranges, challenging topography, and limited infrastructure.
The remaining flat, industrial-zoned parcels within close proximity had largely been picked through and claimed, and expansion into the outer I-80 East submarket, an area with more available land but higher risk due to its unproven tenant demand, did not fit the box for a group like Panattoni. For them, any potential site had to demonstrate a clear track record of industrial activity to justify the investment.
Action
DCG Industrial leveraged its strong network to create an opportunity when they were hired by a client whose changing business model required them to sell a prime 11-acre site originally intended for a processing facility. Recognizing the potential, DCG introduced the site to Panattoni, who ultimately acquired it.
Located within the fully entitled, 594-acre Spanish Springs Business Park - offering direct link to I-80 and a robust labor pool - the site presented a unique challenge due to its elongated shape. Through thoughtful design and evaluation of the market, the site was reimagined into a 195,000 square foot building able to accommodate flexible space sizes ranging from 9,000 to 141,000 square feet, meeting the diverse needs of tenants in this high-demand submarket.
Result
Through strategic leasing efforts and a proactive marketing campaign, DCG Industrial secured four tenants ranging from 9,000 to 78,000 square feet, even as market vacancy surged from 2% at groundbreaking in Q1 2023 to 11% by Q1 2025 when the final lease was signed just before a successful disposition at 92% occupancy.
DCG Industrial’s experience, commitment, and hands-on approach helped deliver a highly successful outcome for Panattoni, exemplifying the results we aim to achieve for all of our partners.
Testimonial
“DCG played a critical role with Pyramid Pointe Commerce Center from start to finish. After sourcing and presenting the unconventionally shaped 11-acre site to Panattoni, their team’s experience and market data helped us re-envision it as a 195,000 square foot building that could accommodate diverse tenants of varying sizes, creating an attractive opportunity for us within the dynamic Spanish Springs submarket. Despite a challenging market marked by softening demand and elevated vacancy, DCG’s strategic marketing and leasing initiatives drove occupancy to an impressive 92% ahead of sale, playing a critical role in the success of our full-cycle development. The focused attention DCG brings to our projects is something Panattoni truly values, and the results speak for themselves.”
-Tim Schaedler, Managing Partner, Western US, Panattoni Development Company