With an enviable post-pandemic “business boom” happening throughout Nevada, the Northern Nevada business region is already benefiting from an influx of recently transplanted investors and businesses seeking relief from tax and regulatory pressures in California and other states.
Booming Opportunities in Nevada Draw Investors & Businesses Staking Their Claims
2020 closed remarkably strong in resilient Northern Nevada after surges in e-commerce revived and ultimately blasted the industrial sector of the Greater Reno-Sparks CRE market to near record levels. That momentum continued in Q1 2021 as overall industrial vacancies dipped to a new historic low of 4.04% and occupancy gains reached their highest level since Q4 2019.
2021 CRE indicators show “…a steady increase in leasing opportunities in the CRE market that owners and investors should take advantage of… specifically the industrial sectors (and) particularly in warehouse operations, life sciences and network infrastructures.”
In March 2021, a FORBES magazine article about national CRE opportunities, emerging trends and predictions presented an optimistic outlook for movement toward economic recovery. An emerging trend suggests continued growth in the industrial sector as retailers and third-party logistical partners shift to keeping fulfillment centers and warehouses stocked to prevent product shortages. This is expected to create additional demands for industrial and warehouse space in 2021 and FORBES foresees “a steady increase in leasing opportunities in the CRE market that owners and investors should take advantage of… specifically the industrial sectors… particularly in warehouse operations, life sciences and network infrastructures.” [*1]
Northern Nevada was months ahead of the curve… by December 2020, 30 businesses moved to or expanded operations in the area. Eleven new corporate headquarters and over 2,200 jobs that pay an average of $28 per hour were created.
Northern Nevada CRE teams worked throughout 2020 to save deals initiated before the pandemic’s onset. The Economic Development Authority of Western Nevada (EDAWN) recruiters pursued advanced manufacturing and technology companies that would complement and strengthen the existing market. Their collaborative efforts were rewarded and in December 2020, EDAWN saluted 30 businesses that moved to or expanded operations in the Greater Reno-Sparks market during the year. Eleven new corporate headquarters were added and over 2,200 jobs that pay an average of $28 per hour were created. [*2]
The majority of these new-to-Nevada companies came from California, attracted by Nevada’s business-friendly tax and regulatory climate that offers relief to investors and company owners turned off by the high costs of living and doing business in California.
Exponential Growth: Biotech and Fintech Companies Move to Northern Nevada
In March 2021, EDAWN announced two more fast-growing California tech companies were setting up Reno business operations. StemExpress, a biotech company, and PayCertify, a fintech company, are expected to create over 200 new jobs over the next several years, another indication of the advantages of doing business in Northern Nevada’s expanding tech business community. [*3]
The choice for StemExpress to open a center of excellence, training center, and warehouse in Reno, stemmed from Nevada’s established reputation as a business-friendly state—offering a multitude of incentives for growing companies,” said StemExpress CEO Cate Dyer.
Chase Harmer, founder and CEO of PayCertify, said moving the company from the Bay Area to Reno has always been part of his plan.
California taxes are extremely high and the state has become extremely crowded,” said Harmer. “We want to be where the action is; and Reno is now becoming the new Silicon Valley.”
Nevada Means Business: Generous Tax Breaks & Rewarding Business Incentives
Why does Nevada continue to attract innovative tech, advanced manufacturing, energy, biomed/health, distribution, logistics & E-Comm companies from California and beyond?
Nevada has no corporate or personal income tax
The state of Nevada does not participate in the administration of Federal Income Tax nor does it levy a State personal, business or corporate income tax. [*4]
- No Corporate Income Tax
- No Individual/Personal Income Tax
- No Taxes on Corporate Shares
- No Franchise Tax & No Franchise Tax on Income
- No Inheritance or Gift Tax
Nevada has Lucrative Business Incentives
The Nevada Governor’s Office of Economic Development offers Nevada-based businesses lucrative incentives, tax credits and abatements plus more rewards that drew iconic companies like Amazon, Apple, Google, Microsoft, Panasonic, Switch and Tesla to Northern Nevada in the recent past.
Some of the California businesses that relocated to Nevada in 2020 and 2021 (including PayCertify, which was mentioned near the start of this story) are among the businesses listed that received business incentives described here:
- December 02, 2020, the Nevada Governor’s Office of Economic Development (GOED) approved over $29.5 million in tax breaks for 11 Nevada companies—including eight Northern Nevada businesses that will receive $28.3 million of that total. The combined businesses are expected to generate about $90 million in tax revenue and create nearly 2,000 jobs over the next 10 years. [*5]
- In March 2021, the GOED approved over $4.75 million in tax breaks for nine Nevada companies—including four Northern Nevada businesses that will receive nearly $2.6 million of the total. Combined, the businesses will increase Nevada’s skilled workforce with average hourly pay over $29 per hour. [*6]
BREAKING NEWS: a new wave of incoming residents is descending on the Silver State and many are bringing their businesses with them
“…now a different kind of business boom all across Nevada. Thousands of people… have been coming from different states to move and live here; and state and local business leaders say they’re now bringing companies with them.”
As this blog story was being written, Fox5 TV News of Las Vegas reported a new post-pandemic phenomenon: a new wave of incoming entrepreneurial residents has hit the Silver State from California to New York and many are bringing their businesses with them.
Fox5 News reported “the trend follows the migration of people relocating from California and other nearby states during the pandemic, seeking more affordable real estate, fewer pandemic restrictions and quality of life factors.”
Fox5 also reported that state officials have noticed the surge in interest in doing business in Nevada, but can’t state exactly how many businesses have already moved to Nevada without seeking state help.
Watch Fox5 News of Las Vegas report on the Nevada business boom [*7]
About RM&D
RM&D is a one-stop, full-service boutique company with the expertise and network that’s in position and ready to make things happen when you’re ready to move or expand your Northern Nevada business presence. [ About RM&D ]
We have guided many California businesses through moves from California to Northern Nevada. RM&D’s representative, Ryan Alter, is based in San Jose to ensure the Northern Nevada welcome mat is unrolled for California businesses considering a move to Northern Nevada.
FOR MORE INFORMATION CONTACT
Call Carole Brill: 775.338.3844
Email: Carole@RMDNevada.com
Sources:
*1 Ventura-Rozen, G., “What 2021 Looks Like For The Commercial Real Estate Market,” March 19, 2021, Forbes magazine tinyurl.com/3baenbc9
*2 “Despite the Pandemic, Northern Nevada Brings Diverse Industries to Fuel Economic Recovery in 2020,” Dec. 15, 2020, Reno-Sparks-Tahoe Economic Development Authority
*3 “Biotech and Fintech Companies Make the Move to Northern Nevada,” March 31, 2021, Reno-Sparks-Tahoe Economic Development Authority
*4 Information About Nevada’s Taxes and The Department, Nevada Department of Taxation
*5 “GOED BOARD APPROVES 11 NEW COMPANIES,” Dec. 02, 2020, Nevada Governor’s Office of Economic Development
*6 “GOED BOARD APPROVES NINE COMPANIES THAT WILL GROW SKILLED LABOR FORCE” March 31, 2021, Nevada Governor’s Office of Economic Development
*7 Schultz, Jaclyn, “Business boom: Companies choosing to move to Nevada as pandemic winds down,” May 04, 2021, Fox5 Vegas News