Sam Stahnke, Vice President for ARCO National Construction’s Las Vegas division, recently joined fellow industry experts as a speaker at Bisnow’s Southern Nevada & Las Vegas Industrial & Logistics Conference. His panel discussed the current market outlook, emerging industrial trends, and evolving tenant demands. Below are some key takeaways from the event.
Market Outlook
As 2025 unfolds, confidence in the market continues to grow, driven by less uncertainty following the administration transition. This renewed optimism has already translated into increased leasing activity and development discussions throughout the first quarter. While overall activity remains below peak COVID-era levels, the demand for build-to-suit projects is rising, reflecting a shift toward more customized and strategic development. At the same time, persistently high interest rates are driving developers and owners to focus on cost-effective solutions. By partnering with contractors early in the process, they are leveraging value engineering strategies to optimize budgets and enhance project feasibility.
Attracting Industrial Users
The Las Vegas and Southern Nevada market is becoming well primed to attract large industrial users. Fortune 500 companies that once prioritized key markets in California are now looking to the region, drawn by its pro-business environment, fewer regulatory constraints, and strategic location.
Manufacturing remains a significant driver of industrial space demand nationwide, and continued investment in infrastructure will be key to positioning Las Vegas as a top-tier manufacturing hub. With a strong labor force, expanding industrial footprint, and increasing interest from national tenants, the region is well-equipped to support manufacturing operations and build-to-suit developments.
Power Requirements & Upfront Planning
As power demands continue to rise across the industrial sector, nearly all users are prioritizing electrical capacity as a critical factor in site selection. Even smaller users are now requiring significant power loads, with some facilities needing 4,000 amps for just 100,000 square feet of space. In response, North Las Vegas has taken a proactive approach to infrastructure improvements to better support this growing demand.
To mitigate potential delays, early coordination between the design and construction teams, local municipalities, and utility providers is essential. By incorporating incremental power upgrades during initial construction, speculative developments can attract a broader range of tenants while minimizing the need for costly and time-consuming retrofits in the future.
Development Strategies Focused on Tenant Demands
As the market becomes increasingly tenant-driven, speculative developments are adapting to meet the growing demand for move-in-ready facilities. In addition to power requirements, industrial users are placing greater emphasis on efficient site designs and well-planned office spaces, with smaller tenants requiring larger office buildouts.
To remain competitive, speculative projects are incorporating features such as optimized site layouts, full lighting packages, and pre-designed office spaces, all aimed at reducing the need for extensive retrofits and accelerating occupancy timelines. By proactively addressing these evolving tenant expectations, developers can enhance the marketability and the long-term value of their industrial properties.
The ARCO Advantage
As the nation’s largest builder of warehouses and distribution space, ARCO National Construction brings unparalleled experience and expertise to help Las Vegas and Nevada developers and tenants succeed in today’s evolving market. ARCO’s best-in-class design-build project delivery provides turnkey solutions with a streamlined, single-source responsibility, integrating design and construction to accelerate schedules. This approach ensures cost efficiency, exceptional quality, and tailored outcomes that consistently exceed client expectations. By engaging in projects from the earliest stages, ARCO can help clients navigate strategic design and construction decisions, address market challenges early on, and offer cost-saving value engineered solutions.
ABOUT ARCO NATIONAL CONSTRUCTION | LAS VEGAS
ARCO National Construction | Las Vegas is a premier, full-service design-build general contractor with more than 30 years of experience providing clients with complete project delivery throughout the United States. Our professional, qualified team of engineers, project managers, superintendents, and architects is capable of designing and building the most demanding construction projects anywhere in the country. We pride ourselves in offering the best, most cost-effective, single-source, turnkey solutions and adding value to every project.
