PA-based fulfillment, logistics company expands to Reno; 50-70 jobs on tap
RENO, Nev. — For three years, Jay Group, an order fulfillment and logistic company headquartered in Pennsylvania, has been working on expanding to the West Coast.
Throughout the process, one city kept moving higher and higher on the list — a city situated in a corner of the country capable of next-day delivery service to nearly 70 million people across the west. A city, despite the pandemic, that has been reeling in companies of all sizes and sectors from both coasts.
“We worked with our customers and carrier partners to determine the best location for expansion,” Blake Dudek, chief operating officer of Jay Group, said in an email to the NNBW, “and while we looked at several options, Reno had several key advantages, including location, labor and space markets, and falling in a business-friendly state and county.”
Jay Group, a provider of warehouse inventory management, ecommerce fulfillment and specialty packaging services for more than 50 years, recently secured a lease for 126,916 square feet of industrial/warehouse space in the Biggest Little City.
Real estate services firm Cushman & Wakefield, which represented the company, announced Jay Group’s westward migration to Northern Nevada in a July 21 press release.
The facility, owned by logistics real estate company Prologis Inc., is located at 1381 Capital Blvd., just east of the Reno-Tahoe International Airport. It will serve as a distribution and fulfillment center for Jay Group’s West Coast clients.
“This was a great collaborative effort all-around between Jay Group, Prologis and our Cushman & Wakefield team, and we couldn’t be more pleased with the results,” Brian Armon, managing partner of Cushman & Wakefield’s Reno office, said in a statement. “We were able to structure a deal that was beneficial to all parties and in a great facility that suited Jay Group’s needs. The transaction also backfills a sizable industrial vacancy before the space actually hit the market.”
Financial terms of the transaction are not being disclosed, Dudek said.
The company will occupy just over half of a two-tenant building totaling roughly 232,000 square feet, according to Cushman & Wakefield. The other tenant is Lawson Products, an industrial distributor of maintenance and repair supplies.
Dudek said Jay Group is currently occupying the space and has “lined up customer onboardings” over the next two months. The company’s first outbound shipments were scheduled for the week of Aug. 10, he added.
Staffing-wise, Jay Group expects to have 35 employees in Reno by Dec. 1, 2020, said Dudek. He added that the number of employees should grow to 50-70 over the next year.
Since launching its new pediatric products two years ago, Neo Medical has seen a 35% growth in sales; moreover, the company has seen revenue grow 15% year-over-year since relocating to Sparks in late 2012.