The decision by Trex Company Inc. to extend the lease of the property that houses its plant in Fernley further solidifies the industrial real estate market in the region, says an executive of the building’s owner.
Trex signed a 115-month lease on the 337,500-square-foot building, where it makes wood-alternative decking, railing and fencing products.
Doug Roberts, partner for the Nevada division of Panattoni Development Co., the owner of the building at 2375 E. Newlands Drive, said the total value of the lease over its nearly 10-year term is $15.1 million.
Michael Hoeck of NAI Alliance represented Panattoni Development in the renewal negotiations. Michael Nevis of NAI Alliance represented Trex.
The decision by Trex to stay in northern Nevada is good news both for the region’s economy as well as the industrial realty market, Robert said.
The Fernley plant, one of two U.S. facilities operated by the company headquartered at Winchester, Va., employs more than 100 people, state records show.
“The bigger box industrial market is becoming more and more healthy,” said Roberts, noting that vacancies in large, top-quality spaces are becoming scarce.
Panattoni built the Fernley building in 2007. Trex is the only tenant of the property.