California lifestyle still a draw for companies

Even though northern Nevada continues to woo companies in California, economic development officials shouldn't underestimate the attractions of the Golden State.

One of the nation's biggest industrial developers, Sacramento-based Carl Panattoni, says California's quality of life continues to be a powerful draw, especially for companies looking to attract a highly skilled workforce.

"You have to match your talent with the living experience.

That's not going to change," he says.

Panattoni was in Reno last week as his company introduced plans for a 400,000-square-foot industrial building in Stead.

A longtime investor in Reno he's a major partner in Arrowcreek and owns retail property along with industrial holdings in the area Panattoni believes the merits of Reno have been undersold to companies looking for new locations.

The costs of doing business and the costs of living in Nevada are among the region's biggest competitive advantages, he said, and Reno has fared better than regional competitors such as Boise and Salt Lake City during the past two years.

On the other hand, Panattoni said, the markets that compete against Reno for new facilities question the quality of the northern Nevada workforce.

Justified or not, he said the region has a reputation for a highly transient workforce.

He said the potential for higher businesses taxes in Nevada is unlikely to make much difference in the state's competitive position because nearly every state faces a fiscal crunch and higher state taxes are ahead across the country.

Panattoni, who manages 150 partnerships working in 85 markets across the United States, said his firm has seen signs of an industrial recovery since about May.

But he was cautious, noting that similar indications of recovery flickered then fell dark right before the Sept.

11 attacks, late in 2001 and again in late 2002.

Panattoni said he expects interest rates to remain at historic lows, and he said the development business continues to be powered by relatively small users looking to purchase their own facilities.

"This is the time for a small company to own its own building and fix its occupancy costs," he said.