When you’re in the business of moving goods—whether you’re distributing products across the West or manufacturing Nevada components for just-in-time delivery—reliability isn’t a luxury. It’s a necessity. That’s why more companies are looking to Northern Nevada, and specifically the I-80 corridor, as a strong base for operations.
Interstate 80 is one of the most vital freight routes in the country, connecting the ports of Northern California to the rest of the U.S. It’s a key artery for logistics—and for companies operating in or around Reno—it’s the backbone of regional and national distribution.
But what about winter? After all, I-80 crosses the Sierra Nevada, one of the snowiest mountain ranges in the West. That’s a fair concern for business owners and managers—but the data tells a reassuring story.
Over the past 15 years, snowfall at Castle Peak—a key monitoring point along I-80 that sits at ~9,000 ft elevation—has ranged from 148 inches to over 800 inches in a single season. Despite these extremes, I-80 has remained open more than 99% of the time. On average, westbound closures occur about 10 times per year, and eastbound closures about 9 times. Most of these are short-lived, with nearly half lasting less than 30 minutes.
Even during the record-breaking 2010–2011 winter, when Castle Peak received 818 inches of snow, I-80 experienced just 9 westbound and 11 eastbound closures. That’s a testament to the region’s infrastructure and the agencies that keep it running.
If your operations depend on timely deliveries and minimal disruption, this level of reliability is a game-changer. Northern Nevada offers direct access to California’s ports and consumer base—without the congestion, regulatory complexity, or high costs often found on the other side of the border.
For distributors, this means fewer delays and more predictable delivery schedules. For companies focused on manufacturing Nevada goods, it means a smoother supply chain and better control over inventory and production timelines. And for both, it means peace of mind.
Beyond I-80’s performance, Northern Nevada offers a compelling package for businesses. There’s no corporate income tax, industrial real estate is more affordable than in neighboring states, and the region is actively investing in infrastructure to support growth.
Reno, in particular, has become a magnet for logistics firms and manufacturing Nevada companies. Its central location allows for next-day delivery to nearly every major market in the Western U.S., and its workforce is growing alongside its economy.
At Street Commercial Real Estate, we work with companies every day that are looking for dependable, no-nonsense solutions for their industrial real estate needs. The numbers speak for themselves: I-80 is a proven corridor, and Northern Nevada is a reliable place to do business.
If you're considering expanding or relocating your operations—whether in logistics or manufacturing Nevada products—we’d be happy to help you explore the opportunities available in the Reno-Sparks area. Let’s talk about how your business can benefit from the kind of reliability that only Northern Nevada can offer.
Nevada’s industrial real estate market continues to thrive, bolstered by an advantageous balance of affordability, accessibility, and operational stability. This growth is driven in part by labor cost trends that significantly influence business decisions in the manufacturing, logistics, and distribution sectors, where labor can account for up to 65 percent of total operating costs (F. Curtis Barry & Co., 2024, “Managing Your Warehouse Labor to Reduce Overall Expenses”.)
Labor costs have steadily risen across the Western U.S. over the past decade, becoming a crucial factor in determining where businesses establish or expand operations. Nevada’s measured labor cost growth provides a competitive advantage, especially compared to neighboring states like California, where companies struggling with price increases are looking to reduce expenses wherever they can.
Nevada Manufacturing Labor Cost Trends: 2014 to 2024
Between 2014 and 2024, labor costs for warehouse workers in Nevada rose from $18.90/hour to $23.81/hour, marking a 26% increase. While this growth is notable, it is moderate compared to California, where labor costs surged by 32%, increasing from $21.90/hour to $28.88/hour.
Below is a comparison of labor costs in key Western states over the same period:
| State | 2014 Cost ($/hr) | 2024 Cost ($/hr) | % Increase |
|---|---|---|---|
| Washington | $20.80 | $25.27 | 21% |
| Oregon | $19.40 | $24.65 | 27% |
| California | $21.90 | $28.88 | 32% |
| Nevada | $18.90 | $23.81 | 26% |
| Arizona | $17.50 | $22.43 | 28% |
| Utah | $17.20 | $21.50 | 25% |
| Colorado | $19.70 | $24.54 | 24% |
| Idaho | $17.50 | $22.17 | 27% |
| Montana | $17.00 | $21.68 | 22% |
Nevada’s steady increase in labor costs has enabled businesses to adapt over time, offering predictability that fosters long-term planning and operational stability.
Advantages of Nevada’s Labor Market
Nevada’s business-friendly environment extends beyond its labor costs. The state maintains capped workers’ compensation rates and offers pro-business regulatory policies that both invite new companies and sustain existing ones in the region. These advantages allow businesses relocating from California to save up to $5/hour per worker, preserving proximity to the same key markets while reducing overhead expenses.
For industries such as manufacturing and logistics, these savings can lead to significant cost reductions. Nevada’s position as a cost-effective alternative is further bolstered by its growing industrial infrastructure, particularly in Reno and Las Vegas, which have become major logistics hubs.
Demand for Industrial and Logistics Space
E-commerce and third-party logistics (3PL) growth have tightened industrial real estate markets across Nevada. With vacancy rates shrinking, businesses are willing to pay higher leasing rates in exchange for access to cost-efficient labor markets.
Enter Reno, whose convenient location near major transportation corridors makes it an attractive option for businesses aiming to streamline supply chains, and/or make a seamless transition out of state while maintaining access to existing markets and routes already in place. Las Vegas similarly benefits from its proximity to the Southern California market.
The rising demand for industrial and logistics spaces underscores the need for businesses to act quickly to secure favorable leases, as competition intensifies. Therefore, it’s imperative that businesses looking to relocate find the right broker to swiftly advise, guide, and help navigate the local region to best accommodate business operations.
Nevada’s Strategic Positioning vs. Western States
Compared to other Western states, Nevada offers a unique combination of affordability and accessibility. Its labor cost growth aligns closely with states like Oregon and Idaho but remains lower than the national average in some key areas.
Nevada’s ability to balance operational stability with competitive labor costs makes it a prime destination for businesses aiming to optimize expenses. This advantage has allowed the state to attract manufacturing and logistics operations seeking to reduce costs while maintaining proximity to major markets.
What This Means for Investors and Owners
For owners and investors, Nevada’s industrial real estate market presents significant opportunities. The steady influx of tenants from neighboring states, combined with rising demand for logistics space, ensures a robust pipeline of potential clients. Properties near Reno and Las Vegas, in particular, stand out as high-value investments due to their strong demand and proximity to growing labor pools.
Why Choose Street Commercial Real Estate in Reno
Street Commercial Real Estate offers a deep understanding of Nevada’s industrial market through years of experience- not just as industrial brokers, but as Northern Nevada natives. Whether you're a business owner seeking a cost-effective location or an investor exploring high-demand properties, Street CRE provides the expertise to make informed decisions and move clients towards their commercial real estate goals.
With insights into labor cost trends and market dynamics, Street CRE ensures its clients stay ahead in Nevada’s thriving industrial real estate market. Contact our team today to learn more about available properties and market research tailored to your goals.
The wave of globalization started back in the 1960s and 1970s, as businesses found that moving certain aspects of their operations overseas allowed them lower production and operational costs. For manufacturing companies especially, it became overwhelmingly popular to outsource jobs to outside countries as a cost-saving measure, officially referred to as ‘offshoring’. This trend was driven by the substantially lower wage rates available in countries outside of the United States, coupled with the advancements in transportation and communication technologies which made managing overseas operations more feasible.
However, recent trends indicate that we’ve begun moving the opposite direction- many companies are beginning to bring their operations back to the United States, or ‘reshoring’. This change is motivated by various challenges and strategic needs that have emerged in international business operations.
Factors Driving the Reshoring Movement
Several critical factors are influencing the decision for companies to reshore manufacturing and other services. Firstly, global supply chain inefficiencies have become more pronounced, exacerbated by international crises such as the COVID-19 pandemic. Companies have experienced delays, increased logistics costs, and difficulties in quality control, all of which have encouraged looking closer to home for production.
Inflationary pressures and rising wages in traditionally low-cost countries have also diminished the cost advantages of offshoring. As the economic landscapes in these countries evolve, the gap in operating costs between offshore and domestic options has narrowed, making reshoring a financially viable option.
Geopolitical tensions and economic policies, including tariffs and trade wars, have further influenced reshoring. Companies are increasingly wary of the risks associated with geopolitical instability and are seeking to mitigate these by investing in domestic operations.
Finally, consumer preferences have shifted towards supporting local businesses and sustainable practices. A 'Made in the USA' label tends to attract consumers interested in supporting domestic economy and jobs, as well as those concerned about the environmental impact of long-distance shipping involved in offshoring.
Implications and Opportunities in the Nevada Market
In light of these factors, business owners and operational managers are critically reevaluating their international operations. The move towards reshoring is not only seen as a strategy to reduce risk and potential costs but also as an opportunity to boost brand image and customer loyalty by aligning more closely with consumer preferences and values. As this trend continues to develop, it signifies a notable shift in how companies strategize their manufacturing and production approaches to cater to an evolving market landscape.
The implications for commercial real estate are substantial, particularly in the manufacturing sector, where demand for specialized facilities is on the rise.
As companies increasingly opt to localize production, Nevada is emerging as a hotspot for manufacturing growth. The state, recognized for its robust job growth, finds itself at the forefront of this industrial resurgence. Manufacturing facilities, once outsourced to other countries, are now being constructed at an unprecedented rate within the U.S., leading to a burgeoning demand for industrial spaces that can accommodate modern manufacturing processes.
What does this demand look like? According to the US Census Bureau, construction spending on manufacturing facilities rose to $114.7 billion dollars annually in 2022- a 40% YoY increase and 63% increase over the past five years. As of July 2023, manufacturing spending was 74% higher than July of 2022. The rate of construction of manufacturing facilities across the United States is now outpacing all other types of commercial properties, and indicates a deeper economic shift towards revitalizing the manufacturing industry within the nation's borders. (McLaughlin & Peterson, 2023, MIT Sloan Management Review)
As industries expand and the manufacturing sector receives more spotlight, the implications are substantial not just for the real estate market but also for the job market. The increasing construction of manufacturing facilities is anticipated to generate approximately 350,000 new jobs, significantly impacting local economies (Reshoring Initiative Data Report, 2022). Remarkably, Nevada has emerged as a leader in this aspect, currently ranked #1 in the nation for job growth (World Population Review, 2024).
Manufacturing companies stand at a critical juncture where they can leverage this upward trend. By actively engaging in the expansion and construction of new facilities, they can capitalize on the growing market demand. Moreover, this strategic expansion is not solely about scaling up operations but also about contributing positively to economic growth and employment in the local community.
Strategic Considerations for Nevada Manufacturing Companies
Companies in the manufacturing sector should consider several strategic factors to maximize the benefits of the current market dynamics. First, the selection of location is paramount. Regions like Nevada offer considerable advantages due to their favorable economic policies, infrastructure readiness, and burgeoning workforce. Companies should conduct comprehensive analyses through thorough regional research and consultations with local CRE experts to evaluate the potential of different locations before committing to construction projects.
Moreover, with the rise in job creation, there is a pressing need for these companies to invest in workforce development and training programs. This will not only help in filling the newly created jobs but will also ensure that the workforce is skilled enough to meet the demands of modern manufacturing processes. Partnerships with local educational institutions and the implementation of apprenticeship programs can be effective strategies in this regard.
In conclusion, the construction of manufacturing facilities is a robust indicator of economic vitality and presents numerous opportunities for real estate developers and manufacturing entities alike. By understanding and strategically navigating this landscape, companies can not only expand their operational capacity but also play a pivotal role in shaping the economic future.
Navigating the Future of Commercial Real Estate with Street CRE
In the constantly evolving world of commercial real estate, staying ahead of market trends is imperative for success. For commercial real estate brokers, this isn’t just about being informed; it’s about being proactive in a landscape that’s as dynamic as the clientele they serve. It is crucial that brokers are aware of how these trends can impact market demand and supply to navigate effectively through the complexities of real estate transactions. As the market continues to develop, professional advisors like those at Street CRE remain essential to both seasoned investors and newcomers.
Street Brokers are not only observers, but active participants in the real estate market. This deep involvement provides us with firsthand knowledge of what drives the market, from shifts in economic policies to changes in consumer behavior and technological advancements. Our expertise allows us to foresee potential challenges and opportunities, providing our clients with strategic advice that aligns with current market conditions. Our brokers make it their mission to guide clients through the intricacies of commercial real estate with up-to-date, accurate, and relevant information.
We invite potential clients to reach out for a free consultation to discuss their commercial real estate aspirations. Whether you’re exploring options for investment, looking for a new location for your business, or need insights on the latest market trends, our team at Street CRE is here to assist. We pride ourselves on our strategic insights and client-centered service, ensuring that every client receives a detailed, hands-on experience tailored to their specific needs.
