Doug Roberts: 25 Years in Nevada

1. You have been named President, National Development

Group for Panattoni. What will your new role look like?

There are many initiatives as a company we are looking at in the

coming few months and my role will focus on several of those

initiatives including continuing to lead one of our main national

accounts with a major e-commerce company, expand our national

build-to-suit platform and, in general, pursue Panattoni’s entry into

growing sectors of the industrial market.

2. Of the projects you have built in Northern Nevada, which are

you most proud of and why?

I think the culmination of actively developing in northern Nevada

was the North Valleys Commerce Center in Stead. With over

4,000,000 square feet and 300 acres, the project had so many

complexities and challenges but through local relationships, hard

work, great market conditions and a little luck, the project was a

phenomenal success.

3. What does Panattoni Development have planned in northern

Nevada over the next 12-24 months?

Panattoni Development Company continues to be very bullish on

the northern Nevada industrial market. We have approximately

425 acres of owned land and expect to be under construction on

new projects by the end of the year. Although there continues to

be challenges in the economy and the debt and equity markets, we

see great opportunity in the area given the low vacancy rates and

continued tenant interest.

4. In a rapidly changing market conditions, what do you expect

to see in the coming year for industrial development?

Like most industrial developers, we pay very close attention to the

needs of our customers, as they are the best indicators of how we

need to design our buildings to be both accommodating to their

needs but also give our buildings the best chance of being leased

as soon as possible. Examples would be adding trailer parking

near our truck courts. This historically hasn’t been a big need for

area tenants but trends have shown that more tenants are storing

trailers on site as opposed to the trailers being unloaded quickly and

leaving the property. In addition, power needs continue to escalate,

as our buildings are more fulfillment-oriented than simple storage

and distribution. Fulfillment equipment requires more power as well

as more employees to fulfill customer order leading to more car

parking needs.

5. What product type or asset does northern Nevada need

most?

Northern Nevada continues to be a mecca for tenants and users

seeking a strategic location in the middle of the eleven western

states that is frankly, not in California. Even with rising vacancies

in the west coast markets and diminishing tenant activity, both

northern and southern Nevada are bucking these trends and are

continuing to see good leasing activity, tenant tours and relatively

low vacancy rates.

Of course, coupled with a vibrant industrial market, is the need

for housing for employees of these companies and obviously, that

strains the local housing market. Developing affordable housing will

continue to be an issue for the area.

6. What do you see as the biggest challenge and opportunity

for your industry in the coming year?

By far the biggest challenge for the industrial sector, and frankly all

of the real estate industry, is access to debt and equity at interest

rates that would allow developments to proceed. Mortgage rates

for home buyers remain relatively high which has stifled buyer

interest in the housing sector but the interest rate issues have also

materially impacted the home builders and land developers from

starting projects in the first place. This applies to industrial, office

and retail development so the rental rates and tenant activity have

to be high to justify going vertical.

7. How long have you been involved in NAIOP and what made

you choose to get involved?

I personally have been involved in NAIOP for the last 25 years.

The organization serves as the preeminent organization serving

the industrial market throughout the country. Membership in this

organization allows developers like ourselves to both network with

other members but also voice concerns among our colleagues and

competitors, which enables NAIOP to address issues at a local,

state and federal level.

DOUG ROBERTS

President, National Development Group for Panattoni

Doug Roberts is president of National Development Group of Panattoni

Development Co. He brings over 34 years of knowledge and experience

to Panattoni Development Company, Inc. His expertise is in

overseeing development managers, during preliminary and ongoing

stages of the budget and throughout the construction process.