Fernley has made the list of top 25 U.S. locations for new distribution warehouse operations.
A recent report, compiled by The Boyd Group of Princeton, N.J., incorporated “major geographically variable factors” key to the corporate site selection process. Those elements include labor, real estate, construction, taxes, utilities and shipping.
The report also notes the significance of Tesla’s decision to locate its “gigafactory” in the area as a sign of the times that brings Fernley, a Lyon County city of almost 20,000 people, into focus for future warehouse development.
According to the report, “As the Reno market heats up, fueled in part by the mammoth Tesla project, alternate sites in the close-in region like Fernley will be viewed as attractive, cost-effective alternatives. Nevada’s tax climate, including absence of an inventory tax and close-in access to the rich Northern California market further distinguish Fernley as a top distribution warehousing location.”
Despite its distance from a major port, Fernley excels in other key factors, according to local commercial real estate expert Brian Armon, managing partner of the Reno Cushman & Wakefield office.
“This is one of the last great locations in the West,” said Armon. Major companies have already located here, such as Sherwin Williams, FRAM, Trex, Quad Graphics, Agru America, said Armon, who represents the Crossroads Commerce Center.
Logistic enhancements include easy access to the Union Pacific and BNSF rail lines, and the Reno/Tahoe International Airport, just 30 minutes away, where FedEx, UPS, DHL Worldwide and Capital Cargo International all provide cargo service. Additionally, the Fernley is unique in that it is served by major fiber optic lines, three power plants and sufficient water rights.
According to Armon, “The Boyd Report is proprietary, having been commissioned by one of their client corporations and it’s important. It tells us Fernley is really on the corporate radar nationally and that will translate into future development opportunity.”
Founded in 1975, The Boyd Co. provides independent location counsel to leading U.S. and overseas corporations.
“Current industry trends are also working in Fernley’s favor,” said Armon. “The report looks at sustainability and green goals and notes that our access to rail helps cut shippers’ costs and the carbon footprint of the supply chain.”
The report also notes that the recovering global economy, new U.S. trade agreements and growing U.S. exports are projected to cause a dramatic rise in international container shipments and that Fernley is “well positioned” to take advantage of these trends.
Most of the 25 cites are within a three- to four-hour truck drive of both rail and major deep-water container ports and all are on major interstate highways.