Las Vegas is known worldwide as a major tourist destination and gambling mecca. However, there is much more to Sin City than the Strip and casinos. Las Vegas has become a central logistics and distribution hub in recent years. The city’s location, transportation infrastructure, business-friendly environment, and large workforce have made it ideal for companies to locate distribution centers. In this blog post, we’ll take a closer look at the primary distribution centers in Las Vegas and examine why this city has become such a popular spot for warehousing and logistics operations.
The Booming Warehouse Sector in Vegas
Las Vegas is experiencing a boom in industrial construction and warehousing operations. According to a recent report from CBRE, the Las Vegas industrial market saw more than 15 million square feet of new construction. Much of this new development is to accommodate the needs of distribution centers and fulfillment facilities. Major retailers like Amazon, Sephora, Bath & Body Works, Levi’s, and others have all opened large distribution hubs in the Las Vegas area in recent years.
The proximity to California and the large population base in the Southwest region make Las Vegas a strategic location. Warehousing and distribution center jobs are increasing in the area. As more companies utilize Las Vegas distribution centers to serve their logistics needs, this sector will continue to expand.
Accessibility and Transportation Infrastructure
One of the main reasons companies are flocking to open distribution centers in Las Vegas is the city’s prime location and transportation access. Las Vegas is within a day’s drive of major metro areas like Los Angeles, Phoenix, Salt Lake City, and beyond. It is strategically located at the crossroads of major interstate highways like I-15 and US 95.
McCarran International Airport also makes it easy to quickly move cargo in and out of the city. The airport handles over 100,000 tons of air cargo annually. With overnight service to major cities nationwide, Las Vegas distribution centers can efficiently distribute products nationwide.
Las Vegas also has extensive railroad infrastructure, with Union Pacific and BNSF rail lines running through the city. The proximity to the Port of Long Beach and the Port of Los Angeles also makes it easy to receive ocean freight shipments. This multimodal transportation access makes the city a beautiful logistics hub.
Business Friendly Environment
In addition to its prime location, Nevada offers a business-friendly environment that entices companies to set up distribution operations here. The state has low corporate taxes, favorable real estate costs, and a right-to-work labor environment. Streamlined regulations and permitting processes also make it simpler for firms to get up and running quickly.
The state provides a variety of tax incentives and discounts to attract distribution center development. These business-friendly policies make the region’s warehousing and logistics facilities very cost-effective. The low costs and the strategic location and transportation infrastructure make Las Vegas very appealing for companies needing distribution center space.
Abundant Real Estate Options
Las Vegas offers many industrial real estate options for distribution centers and warehouses. There are several large industrial parks located along key highway corridors that provide shove-ready site options. These business parks offer modern Class A warehouse buildings with features like ample power, dock doors, and trailer storage space.
Developers have responded to the surge in demand from e-commerce companies, retailers, and third-party logistics firms by ramping up speculative construction. Over 5 million square feet of speculative warehouse space were under construction in late 2021 to meet projected demand. These new speculative buildings provide tenants with readily available space.
Companies can also find vacant land to construct build-to-suit warehouse buildings tailored to their specific requirements. The availability of shovel-ready sites, existing buildings, and land for build-to-suit makes it smooth for firms to establish distribution presences in Las Vegas quickly.
Abundant Workforce
Operating distribution centers requires a lot of workers to handle roles like warehouse associates, forklift drivers, inventory managers, and more. With a metro population of over 2.2 million, Las Vegas provides an abundant workforce to staff these facilities. The region has a workforce well-suited for logistics and warehouse work.
Las Vegas also benefits from its tourism industry when hiring for distribution centers. The hospitality industry workforce has transferable skills that are an excellent fit for distribution jobs. These workers know how to operate on shifts, work weekends and holidays, adhere to strict schedules, and provide excellent customer service.
Back office functions like HR, finance, IT, and other support roles can also quickly be staffed from the large white-collar workforce in Las Vegas. The solid local labor pool significantly attracts companies to expand their distribution presence here.
Conclusion
Las Vegas may be best known for entertainment, but it has quickly emerged as a significant distribution and logistics hub. The city’s prime location, transportation access, business environment, real estate options, and strong workforce make it the ideal place for distribution center operations. As e-commerce and supply chain operations grow, Las Vegas is poised for more warehouse and distribution expansion.
What are your thoughts on the growth of the distribution center in Las Vegas? Feel free to leave a comment below sharing your perspectives.
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