Development, Construction and Property Management
McKenzie Properties acquires land located at 0 Double Diamond Pkwy and 0 Trademark Dr.
Read the full article from Nevada Business Magazine below.
Dickson Commercial Group is pleased to announce a recent industrial land sale in South Meadows. Joel Fountain, Nick Knecht, and Baker Krukow represented the buyer, McKenzie Properties Management, Inc., in the land sale acquisition of 0 Double Diamond Pkwy and 0 Trademark Dr. The 6.4-acres, consisting of two vacant land parcels were purchased from Lainer Development on July 31.
McKenzie Properties acquired the land with the intention to construct three new state of the art industrial buildings this fall.
McKenzie Properties develops, builds, and leases commercial space. Founded locally in 1953, the company has built more than $1 billion in projects in northern Nevada over six decades including many community landmarks. Currently, McKenzie owns and manages over 2 million square feet of office, industrial, and retail space. A full service, vertically integrated firm, the company offers general contracting, property management and development services.
McKenzie Properties was awarded Office Development of the Year for Mountain View Corporate Center at the 15th annual Summit Awards, hosted by Northern Nevada, NAIOP, CREW, CCIM, and Nevada Builders Alliance. Read the complete list of winners below.
The best in commercial real estate – 15th annual Summit Awards winners
The Summit Awards Committee is proud to announce this year’s winners for achievement and excellence in Northern Nevada commercial real estate.
We are disappointed that we aren’t able to celebrate with you all in person this year — our awards ceremony is known for lively entertainment and a relaxed social environment for industry professionals to network and celebrate their success.
This online and remote announcement of 2019’s winners is no replacement for the Summit Awards — but you can expect next year’s ceremony to be the best yet!
For the past two decades, the Summit Awards has been Northern Nevada’s premier commercial real estate achievement awards for contractors, brokers, developers, and other service providers in the Northern Nevada region.
The Summit Awards is hosted by the four leading commercial real estate and development organizations in Northern Nevada, NAIOP, CREW, CCIM, and Nevada Builders Alliance.
The Summit Awards are based on four categories including the Construction Awards for general contractor, subcontractor, and design professional, honoring their company/firm for their hard work and dedication in 2019.
Broker Awards are awarded to top-performing specialists in the industrial, office, retail, investment, land, and generalist categories, as well as a rising star award. The largest single lease, largest sale transaction, and total transactions by a single commercial real estate office are recognized, and top honors go to the Broker of the Year.
Developers and their 2019 completed projects are also recognized in several categories, including industrial, re-development, medical office, multifamily, office, and retail. These developments win high honors in the Development Awards category.
The Specialty Awards salute the individual accomplishments of NAIOP Developing Leaders, property managers, and the individual who has most actively supported the advancement of women in the highly competitive field of commercial real estate is awarded the Katie Morrison CREW award.
The Summit Awards Committee would like to thank all of those who sponsored this special announcement and congratulates the 2019 winners.
You have all helped to make the Summit Awards a fantastic event every year and we look forward to celebrating with everyone in 2021!
And the winners are…
The Northern Nevada Business Weekly, in partnership with NAIOP, CREW, CCIM and Nevada Builders Alliance, published a special section announcing the winners of the 15th annual Summit Awards on July 22.
Go here to view the full digital edition, which includes descriptions and details of each award.
The list of 2019 Summit Awards winners are listed below. Visit http://www.SummitAwards.org to learn more:
Development Awards
Construction Awards
Broker Awards
Specialty Awards
RENO, Nev. — “I feel like there’s a dam about to burst,” says Doug Erwin, spreading his arms wide. “We have a big pipeline and people are like, ‘As soon as it’s safe to travel, I’m coming.’”
In fact, Erwin, vice president of entrepreneurial development at EDAWN, told the NNBW in a video call that Northern Nevada’s pipeline for relocating startup companies — as well as larger established companies — is as big as it’s ever been.
After all, the coronavirus pandemic has driven many startup companies to rely on functioning remotely. This is especially true in dense tech hubs like the Bay Area, where COVID cases are spiking and restrictions are tightening.
These factors, Erwin feels, will only accelerate the growing trend of startups pulling stakes from cramped Silicon Valley and planting in vast Northern Nevada.
With a lower cost of living, higher chance of sticking out, easier access to the outdoors and friendlier tax climate, many Bay Area entrepreneurs were already leaning toward a Reno-Sparks move prior to the pandemic.
COVID’s impact may tip the scales.
“In some cases, we’re hearing this is the last straw for some companies,” Erwin said. “I think we’re going to actually be a net-beneficiary of company relocations as a result of COVID.”
Grace Chou, director of the University of Nevada, Reno Innevation Center, a pre-accelerator based in downtown Reno, has a similar perspective.
“Entrepreneurs are drawn to Reno due to our lower costs, laid-back lifestyle, and superb outdoor recreation,” she said in an email to the NNBW. “These factors have not changed.”
Building Blocks
What’s more, Erwin said Northern Nevada’s startup ecosystem has more infrastructure than ever before. He pointed to the fact that, in the last five years alone, the region has added a pre-accelerator (UNR Innevation Center), incubator (StartUpNV), a seed fund (Reno Seed Fund), and, most recently, an accelerator (RNOX).
“From a building-block perspective, we have all the building blocks,” Erwin said. “They can always get better and we can get more diversity, but we just don’t have those big gaping holes in the ecosystem anymore.”
Entrepreneurial support groups are another piece that is helping prop up Northern Nevada’s startup space. Groups such as Entrepreneurs Assembly, Entrepreneurs’ Organization Reno-Tahoe, 1 Million Cups and more are helping startup founders transform their idea into scalable and revenue-generating businesses.
In fact, Brian Gifford, president and co-founder of Reno-based BluePeak Technology Solutions, said joining EO Reno-Tahoe in 2017 was a game-changer for him.
Since, BluePeak has seen triple-digit revenue growth, making Inc.’s list of the 5,000 fastest-growing companies in the U.S. in 2018, he said.
“I gained a lot of perspective on how owners look at their business and how they approach their own life,” said Gifford, who launched his IT solutions business in Reno in 2008. “I went from struggling to find a way to run my business and grow it to having to figure out how to manage the growth because of the changes that I’ve put in place.”
Lacking Local Investment
One piece of the ecosystem that needs strengthening, however, is the bridge between Nevada investors and entrepreneurs, said Jeff Saling, co-founder and executive director of StartUpNV, a statewide incubator.
Case in point: In about two years, 16 companies that have been incubated by the StartUpNV program have raised a total of $40 million in capital. However, less than 1% of that money has come from Nevada investors, Saling noted.
“That’s not a good thing for a startup ecosystem,” he continued. “You need to have local money investing at the earliest stages of companies. The ecosystem’s healthier with local capital.”
Saling said having new funds in the market — FundNV, an early–stage venture fund for StartUpNV companies, and the Reno Seed Fund — is an encouraging sign, but there is still a lack of local investment in the market.
This, Saling said, is why StartUpNV created AngelNV, a program that provides mentorship and access to a network of capital partners to startup companies.
Furthering that effort, AngelNV in September is starting a free 12-week boot camp for startup founders that will teach them how to attract angel investing, create a pitch deck, and eventually apply for a $200,000 investment from a group of angels.
Moreover, in January, AngelNV is launching an intensive program for 40 accredited investors — from first-time angels to experienced investors — that focuses on strategies and tactics. After 11 weeks, the investor group makes a $200,000 investment together in at least one company.
“It’s taught by people who have done it for decades,” Saling said. “At the end of it, you’ve now got investment in local companies by local investors. And you’ve created 40 new angel investors who are more than likely going to go on to make more investments.”
Buyer’s Market
To that end, Saling said it’s a “buyer’s market” during this economic slowdown, pointing to valuations being in the investor’s advantage.
“You might have invested $100,000 in a company that in a more robust economy might be valued at $5 million,” he said. “Suddenly, it’s valued at $2 million or $1 million. So, for the same money, you’re buying a much bigger stake in the company.”
Meanwhile, for startups looking to raise capital, it may be a good time to build a network of investors, said Chou, adding: “Investors may be more willing to do an informal video call.
At the halfway point of 2020, Northern Nevada startups have raised $18.4 million in capital, according to EDAWN. Though the economic uncertainty may slow the pace, the investment amount is on track to surpass every year’s total except for 2019, an outlier year that saw $110.3 million raised, according to EDAWN. 
Expanded Talent Pool
Of course, startups that relocate to Reno-Sparks to grow their companies will need to hire local, skilled workers. Pre-COVID, the low unemployment rate (3.3% in January), made it difficult to recruit talent, Chou said.
“Now,” she continued, “the pool of available talent may have expanded; thus, creating opportunities for startups to hire great talent.”
According to EDAWN, regional startups have created 150 jobs so far in 2020, which is trending to be the highest one-year total since the organization started tracking that data in 2013. Two years ago, Reno-Sparks saw 210 new jobs spring from startups.
“If there continues to be this much unemployment in the labor market, I think it will be good for startups,” Erwin said. “They will be able to access more talent.”
Looking Forward
For Saling, the outlook for the startup space is bright. Though the incubator’s pitch count dipped from March to June, he said the organization is creeping back to its average of seeing seven to eight pitches every week, which he takes as an encouraging sign for the ecosystem.
“We are still seeing a good amount of startup activity,” he said. “It spells good things for us in our future. Because, as long as we don’t lose sight of our roots by being business-friendly, by being less interested in regulating people out of business and controlling how they live and do their work, and open to new ideas, I think we’re going to be the benefactor of all of the creativity and good ideas going forward.”
Click here to read the article
Reno, NV was named America’s best small city for 2020.
The 2020 ranking of America’s 100 best small cities is out, and Reno came out on top. 
Resonance Consultancy released the latest edition of its annual small city ranking Tuesday, which rates American cities with populations between 100,000 and 500,000.
Reno edged out other highly ranked cities including Naples, Florida; Santa Fe, New Mexico; and Savannah, Georgia in the study, which used factors such as natural environment, airport connectivity, sports teams, nightlife, educational attainment and online reviews to rank each city.
Reno ranked sixth in last year’s study.
‘Enviable location’
“By day, this sun-drenched town at the feet of the snow-capped Sierra Nevadas earns its #16 rank for Weather,” the report said of Reno. “By night, its neon-lit casinos help Reno to the top spot for Nightlife among our small cities.
“But it’s not just gamblers taking a chance on the ‘Biggest Little City in the World.; Increasingly, it’s tech companies and highly educated young workers, who come for the jobs and stay for the enviable location (Lake Tahoe is less than an hour away) and accompanying year-round outdoor lifestyle.”
Reno also scored well for Instagram hashtags (second overall), convention center (third) and attractions (third).
“The nation’s small cities face particularly pivotal months ahead,” Resonance President and CEO Chris Fair said in a press release. “Small-center urban growth was already rising before the pandemic. Now with millions of workers increasingly able to work remotely, many may choose to move to these smaller cities.
”At the same time, we expect travel to drive-to destinations to recover first. As American travelers hit the road, they’ll likely look to small cities to satisfy their travel desires.”
Top 10 cities
The top 10 cities, according to Resonance Consultancy’s methodology:
The Reno/Sparks office market is in a unique position: caught in the throes of a rapidly expanding commercial marketplace and aided by an ever-increasing population base. The most vibrant commercial real estate sectors in our area are industrial and multifamily, and they have been for decades. The office market is also seeing new companies, new developers and new buildings.
For the first time in many years, we will see a true speculative office development begin construction this summer. McKenzie Properties will be going vertical with its Skypointe development. Tolles Development Company is in the middle of completing its Rancharrah project, which contains 64,000 square feet of retail space and 36,000 square feet of office space. Last, but certainly not least, Reno Land Inc. and its partner Lyon Living have started the first phase of their Park Lane development, a 46-acre, master-planned development that will include office, retail and multifamily.
This new development shows the Reno/Sparks area is on the move, and fast. The area provides for a quality of life that is difficult to find when combining Lake Tahoe, the Sierra Nevada mountains and the Truckee River, which bifurcates the city. In comparison to the more populated cities of California, Reno is more affordable while still maintaining easy access to the many attractions California provides. Reno also works with the many companies that relocate from or maintain their existence in California. All companies that relocate to Reno expect a quality work environment that meets or exceeds their previous location. Reno/Sparks has invested in the resources to improve its downtown, roadways and UNR to facilitate this growth, now and well into the future.
This growth has led to an overall reduction in the office vacancy rate, going from 10.56 percent in 2018 to 9.93 percent at year-end 2019. We’ve also seen rent growth gain 4.4 percent year-over-year, ranging from $2.20 to $3.25 per square foot (full-service gross) for Class A office product. On the negative side, owners and developers are being impacted by the cost of construction. Whether it’s ground-up development, a rehab project or tenant improvement, all are impacted by construction costs and how they impact returns.
Looking into the future, we expect a very solid growth pattern to continue for years to come. Obviously, there will be challenges and, like every other community, we could see that impacted by the national and local political climate, geopolitical issues or, as we’re dealing with now, a significant health occurrence like the coronavirus. This strong and vibrant community was looking very bleak during the last recession, but now the promise of a vibrant community has been realized and should continue.
By Scott Shanks, principal, Dickson Commercial Group
One of the busiest intersections in all of Northern Nevada has been literally nothing more than a huge hole in the ground for decades. That’s set to change this summer, though.
The southeast corner of McCarran Boulevard and South Virginia Street, which sees more than 43,000 vehicles pass by daily, will become the home of a new multi-story office and retail project by McKenzie Properties.
Todd McKenzie says Skypointe Reno will benefit residents of the Truckee Meadows for decades. 
“It’s a property that I have always loved — it’s the best office and retail property in town,” McKenzie said in a March interview. “For me, this is a dream project, and it’s definitely a legacy project.”
Skypointe Reno will feature a six-story office tower of 180,000 square feet, as well as 35,000 square feet of retail split among three buildings and a five- to six-story parking garage that includes one level of below-ground parking. The garage will hold roughly 1,000 vehicles.
McKenzie expects to break ground this summer and bring the project online after an 18- to 24-month construction schedule. It will be just the second speculative office building taller than three stories built in Reno-Sparks in the last three decades, McKenzie says.
The last two were the five-story brick building anchored by U.S. Bank on Neil Road by Meadowood Mall and the Museum Tower downtown.
McKenzie Properties’ speculative office building at 5520 Kietzke Lane was the first spec office building greater than three stories constructed in the region since 1987. That building came online in January 2019 and is fully leased. 
“In 32 years we have not built an office building over three stories,” McKenzie says. “The city has a lack of Class A office supply, and we need more to accommodate the growth that Reno is enjoying. There are zero Class A spaces 20,000 square feet and above, so we are meeting the demand for that absolute lack of supply for larger quality Class A office space in this market.
“Companies looking at tertiary markets like Reno, Boise, Phoenix or Salt Lake simply move on from Northern Nevada because there’s no availability in 30,000, 50,000 or 100,000 square-foot Class A office spaces. We are losing companies to other cities that have this type of product.”
McKenzie Properties will work with CBRE to lease the new office space, while Colliers International will handle retail leasing.
“Reno lacks large contiguous blocks of space, especially in the Class A office category,” Matt Grimes, first vice president with the office team at CBRE, says.“Skypointe, with onsite retail amenities, will provide Reno a true Class A office environment in a mixed-use setting, which is something that simply does not exist in Reno today.
“When tenants outside the market are considering a relocation to our area, they are often looking for an environment that will be the right fit for their corporate culture and will serve in attracting and retaining employees who often have to make a move to the region. The Skypointe project will appeal to a broader range of companies outside of this market.”
Despite its prime location, the prize piece of land sat dormant for decades. The project brings about several development challenges primarily associated with the parking garage since the first level of parking will be underground.
That level requires extensive mechanical, ventilation, fire suppression and electrical work, and it also must be engineered to support the platform for the retail and office structures above.
“That has not been done in this city, and it’s a major challenge,” McKenzie says.
McKenzie is working with world-renowned architectural firm Gensler of San Francisco on primary design and engineering for Skypointe, as well as Miyamoto, Glumac and Wood Rodgers for structural, mechanical and other work.
McKenzie says there are a limited number of companies that specialize in underground structural concrete work, so availability isn’t a concern. The project has not yet been let to bid for construction. As of this story’s writing in late March, plans should be complete in the next few weeks, and the bidding process should commence soon after.
Fortuitously, though, there’s not a lot of excavation that needs to take place once work does commence since site grade dips about 8 feet from the existing sidewalk. 
“Because it’s a hole, we have a little bit of a head start,” McKenzie says. “The grade of the project starts about a foot from the corner of the sidewalk — that’s the high-water mark.”
McKenzie says Skypointe Reno will elevate the consciousness of the entire city and potentially spur similar types of infill development.
“You get one shot to get this right,” he says. “We have spent a lot of time thinking about the best and highest use, what’s best for the community, and the most needed product. All the ingredients that make a great project, we have been really thoughtful and careful about approaching because we want to do it right.
“It’s an honor and a privilege to develop this corner for the benefit of our entire community. We are providing a product that’s timely and that Reno really needs if we are going to attract the companies and high-paying jobs we want to attract. That’s why we are doing this project.”
RENO, Nev. — This year, the city of Reno celebrates its 150th anniversary. With that in mind, the Northern Nevada Business Weekly spoke with a few long-standing companies that have been doing business for decades in and around the Reno area.
One such company is McKenzie Properties, which is celebrating its 65th anniversary in Reno. A family-owned company, McKenzie Properties has built multiple schools, downtown buildings like Circus Circus Reno, buildings at the University of Nevada, Reno, and much more. In all, McKenzie Properties has built over $1 billion in projects.
The NNBW recently sat down with Todd McKenzie, principal of McKenzie Properties, to talk about the past, present and future of business in and around the Biggest Little City.
NNBW: How long have you guys been doing business in Reno?
Todd McKenzie: Sixty-five years this year. We started in 1953. My grandpa started it as a construction company — McKenzie Construction. He just built for other folks. And then in the ’70s and ’80s, we kind of started morphing to just building for ourselves, and that’s what we do today. We buy land or buy a building, and build something; lease it out, manage it and own it for the long term.
NNBW: How long have you been with the company?
McKenzie: I’ve been here 13 years.
NNBW: How have you seen the city of Reno evolve?
McKenzie: It’s way more balanced. When I started in 2005, we were still kind of on an upward trajectory, but the economy was still declining from gaming. That decline had started, but at the time, I think 25 percent of our workforce was construction-related. And if you get a hiccup in the economy, which we did, and that goes away, which it did, that’s a huge hit to the economy. So I think now as we’re coming back, it’s just more balanced. Coming out of the recession, we’re seeing a lot more of the three major sectors coming: technology, healthcare and finance. More and more of those jobs are coming into the area, whereas 40 years ago, 80 percent of the economy was gaming-related.
So it’s just more balanced and more of an entrepreneurial town. And obviously with all the big companies — Tesla, and Google, and all of those folks coming — it’s just a more broad, balanced economy. And more sustainable, too.
NNBW: What’s the biggest change you’ve seen in the building industry the last few decades?
McKenzie: The biggest change is probably the prices. The more challenging aspect of building is land prices are way up and building costs are way up right now, so it’s more difficult. I think probably the biggest change from when I started to now is the availability of the lending environment. Banks are a lot more restrictive; it’s harder to get construction financing. We used to be able to just get a loan and build a building with no tenants, no big deal — we’ll just fill it up and worry about it later. And banks would lend on that. Now, not so much.
NNBW: What are some of the biggest challenges the building industry faces right now?
McKenzie: Costs. It’s just the simple equation of land costs and building costs equals what it costs to build. Whatever it is — industrial, office, retail — those are all skyrocketing. Lumber is absolutely going off the charts, I think steel is up 30 percent in the last couple of years, and land prices are really high, which affects everything. So that is the biggest challenge because rents are just not quite where they need to be on the commercial side for office development.
We need more office development here. If you take a look at the existing Class A inventory, I think there’s roughly 350,000 square feet of Class A inventory. If we had roughly 1,200 new jobs that would all be wiped out. Our total inventory—so A, B and C — is 800,000 square feet, I think. That’s a little over 3,000 new jobs, and it’s all wiped out. So the need for Class A office product is coming. But the rents aren’t quite there to motivate people to build on the scale that we need to be building because there’s a disconnect on rental rates and costs.
NNBW: What’s the biggest challenge facing Reno and Northern Nevada as a whole when it comes to the economy?
McKenzie: Infrastructure, for sure. Just keeping up with schools and healthcare and the roads and just everything needed to sustain and support population growth.
NNBW: How do you think city officials and community players should tackle the housing issue to set up the region for success decades down the road?
McKenzie: Well, if there’s a demand, the supply is going to meet it. I think right now homebuilders and multi-family builders are finding a way to address the housing needs the best they can. I think from a planning perspective, they have been doing a lot with the (City of Reno) master plan and working with developers in opening up new areas to build.
I think just the continuation of working as a partnership to address the needs is how we need to go going forward. No one person can wave a magic wand. It’s such a complex beast, and there’s so many different areas, we’ve just all got to be smart about it in planning and what we build, and focusing on some more density, as well. And I’d love to see more building downtown, which isn’t happening, but that’d be nice.
NNBW: What makes Reno-Sparks, Northern Nevada such a great area to do business?
McKenzie: Obviously the tax-advantages, the business-friendly climate, the can-do attitude … there are just amazing talented people here that want to work together and want to collaborate on great new ideas. The spirit of the community here is just phenomenal.
Editor’s Note: This interview has been edited and condensed for clarity.
See article by clicking here.
In September 2016, McKenzie Properties broke ground on two speculative industrial buildings located at 925 and 945 North Hills Boulevard in the Golden Valley Industrial Complex. The new buildings are 85,000 square feet and 62,000 square feet. Both buildings will feature modern upgrades and finishes. The structures are Class A tilt up construction. The projects are on pace for the spring 2017 completion date and are ready for the tilt portion of the construction process.
Tilt-up construction is a method often used because it can be more cost effective and offers a shorter completion time. Tilt-up construction method involves pouring and forming all the concrete elements of the building on the project site. This can include everything from walls to columns. Once the concrete has cured, the walls are tilted up vertically into position using cranes. The walls are braced in place until the rest of the building elements are manufactured.
For tilt up construction to be efficient, a lot of planning is required. First the pad or foundation must be poured and cured. Once that is completed, the walls are poured one by one, on top of each other. Each wall is formed in casts or forms. The forms are often made of plywood, but can also be made from aluminum or steel. The form is specific to each wall, including doors, windows and any other architectural components that are needed for the design of the building. A chemically reactive bondbreaker is sprayed between each layer to keep the layers from clinging together. This step is crucial to the success of the building. If the layers bond together, they must be dismantled and poured again. This can not only be a costly mistake financially, but also can greatly affect the completion date of the project. After the walls have been tilted into position, they are secured onto the foundation and braces are used to hold them in place. The braces are removed after the structural steel and roof are in place.
The new buildings at Golden Valley Industrial Complex are in a prime location, only .7 miles from Highway 395. The buildings both have a thirty-foot clear height, making them ideal for manufacturing and distribution centers. Both buildings will be outfitted with metal roofing, consistent with food grade facilities. For more information please call McKenzie Properties at 775-329-5181.
As industries continue to grow, we continue to accommodate those needs. Read more here about our newest construction scheduled to be complete spring of 2017. http://www.nnbw.com/news/news-briefs/week-of-september-30/
