A large industrial real estate project is being built in in south Reno. Panattoni Development Company broke ground in February on a new industrial project called 580 South.

The project, which encompasses 88 acres, is located in the corner of South Virginia Street and Mount Rose Highway. The $155 million project is being constructed in partnership with New York-based real estate investment manager Clarion Partners.

In current times, they call these buildings Fulfillment Centers. In the good old days we called them Warehouses.

For 580 South’s first phase, the project will perform mass grading for four Class A industrial buildings that will be LEED-certified.

Class A is a term typically used to denote the newest, highest-quality structures in commercial real estate. LEED certification is a green building rating system overseen by the U.S. Green Building Council for environmentally sustainable design, construction and operation.

The first phase will also include super pads that can be used for commercial retail, office and multifamily developments along Mount Rose Highway in the future.

The first industrial building will start construction this year with other site work completed by early 2025.

One potential concern about the 580 South project is its impact on Steamboat buckwheat, which is listed by the U.S. Fish and Wildlife Service as endangered. The State of Nevada also considers the plant to be critically endangered.

Panattoni is fencing off the habitat for the Steamboat buckwheat permanently, according to the company. It is also coordinating closely with the Nevada Division of Forestry to ensure that the habitat remains protected.

Lindy Deller, development manager, said utilities like water and sewer will be brought into the site from across Mount Rose Highway. Additional improvements include extending Herz Boulevard south into the project, realignment of the southbound freeway connection, and pavement restriping on Virginia Street.

Though the project will take quite a bit of work to prepare for vertical construction, 580 South is expected to generate quite a bit of tenant and developer interest based on its location, Deller added.

“Many unknowns have been introduced in the market over the last couple of years, but there is one thing that remains true – there is simply not a lot of land left in south Reno for industrial product,” she said. “South Reno is a desirable submarket for a lot of tenants, as shown by its consistently low vacancy rate. Based on the tenant interest we are seeing to date in the site, we think the location justifies the timing and that the project will perform well.”

“The project plans take into account the needs of the area as it grows to accommodate more businesses and residents,” Deller said.

Founded in 1986 by Carl Panattoni, Panattoni Development Company, Inc. (“PDC”) is one of the largest privately held, full-service real estate development companies in the world.

They operate from 59 offices in the United States, Canada and Europe. Since inception, they have developed more than 610 million square feet of space including more than 211 million square feet of build-to-suit projects.

Their US operations are headquartered in Irvine, CA and they operate from 21 locations in the United States covering all major industrial hubs.