Westmount Deepens Western Roots with Major Reno Industrial Acquisition

SPARKS, NV – January 15, 2026 – Dallas-based Westmount Realty Capital has made a significant move to expand its industrial footprint, acquiring a three-building, Class A industrial portfolio totaling 809,138 square feet in Sparks, Nevada. The purchase of the Lillard Drive Industrial portfolio solidifies the firm's presence in one of the nation’s most vital logistics and distribution corridors and signals strong confidence in the region's enduring economic fundamentals.

The portfolio, located at 350, 360, and 450 Lillard Drive, consists of institutional-quality buildings that are currently 90% leased to a variety of international and regional tenants. This acquisition is more than just a simple transaction; it represents a strategic bet on the continued growth of the Reno-Sparks metropolitan area as the logistics engine of the American West.

Reno's Ascent as a Critical Logistics Hub

The Reno-Sparks industrial market has become a linchpin for companies looking to serve the vast West Coast population centers. With over 117 million square feet of inventory, the region leverages its strategic geography and robust infrastructure to its advantage. The Lillard Drive portfolio sits in a prime position with superior access to Interstate 80, Interstate 580, U.S. Highway 395, and the Reno-Tahoe International Airport. Furthermore, the inclusion of a Union Pacific rail spur provides tenants with multimodal transportation options, a critical asset for modern supply chains.

Recent market data illustrates a dynamic, albeit stabilizing, environment. After a period of rapid construction that led to an uptick in vacancy rates, the market is showing signs of recalibration. The area has posted three consecutive quarters of positive net absorption, totaling 1.9 million square feet year-to-date, a strong indicator of renewed tenant demand. This absorption has been partly driven by major projects, including the completion and occupancy of the new Tesla Semi factory. While overall vacancy hovers around 12.3%, certain segments like shallow-bay properties (under 50,000 sq ft) exhibit much tighter vacancy at 6.3%, demonstrating persistent demand for specific types of industrial space.

“This acquisition reflects Westmount’s continued conviction in infill industrial markets that benefit from durable demand drivers and long-term logistics relevance,” said Cliff Booth, founder and chairman of Westmount Realty Capital, in a statement. “The Reno-Sparks region checks all the boxes we look for: strong fundamentals, strategic connectivity, and opportunities to create value through hands-on asset management.”

A Key Piece in a Broader Western Strategy

For Westmount, a private real estate investment firm with a 40-year history, the Lillard Drive acquisition is not an isolated event but a deliberate step in a broader strategy to bolster its industrial platform across the Western United States. The firm has been actively acquiring and developing assets in key logistics nodes, indicating a clear thesis focused on the ongoing evolution of e-commerce and supply chain networks.

This strategy is evident in the company's recent activities. In the past year, Westmount has acquired a nine-property light industrial portfolio in the Chicago area and secured a 24.4-acre development site in West Dallas aimed at cold storage and last-mile tenants. These moves, coupled with the Sparks acquisition, highlight a focus on infill locations that are critical for reducing delivery times and enhancing supply chain efficiency.

Brian Scruggs, managing director of industrial acquisitions at Westmount, emphasized the strategic fit. “The Sparks submarket continues to be one of the most dynamic industrial markets in the country, offering exceptional access to West Coast population centers like San Francisco, Sacramento, and Los Angeles,” he stated. “The Lillard Drive portfolio provides immediate scale in this high demand logistics corridor and aligns perfectly with our strategy to acquire well located, infill, multi-tenant functional industrial assets with strong tenant demand and room for operational upside.”

The Value-Add Playbook in a Hot Market

Westmount's investment thesis for the Lillard Drive portfolio hinges on a classic “value-add” strategy. With the property already 90% occupied, the firm has an immediate opportunity to generate revenue by leasing the remaining 10% of vacant space. Perhaps more significantly, the acquisition provides the chance for “mark-to-market income growth.” This involves renewing leases for existing tenants as they expire, adjusting rents from older contract rates to current, higher market rates. While rent growth has moderated from the peaks of 2023, year-to-date asking rates in the region are still up 3.2% over the prior year, providing a clear path to increased net operating income.

The firm is entering a competitive arena. The Reno-Sparks market has attracted a host of major national and regional investors. CapRock Partners, for instance, has aggressively expanded its local portfolio to over one million square feet in the last two years. Other formidable players like Prologis, Seagate Properties, and Link Logistics are also highly active, developing new properties and acquiring existing assets. Westmount's substantial investment demonstrates its confidence in its ability to execute its asset management plan and create value amidst stiff competition.

The Unmistakable Nevada Advantage

Underpinning the entire investment landscape is Nevada’s famously pro-business climate, which acts as a powerful magnet for companies, especially those fleeing the higher costs and regulatory burdens of neighboring California. The state’s tax structure is a primary draw, featuring no corporate income tax, no personal state income tax, no franchise tax, and, crucially for logistics operators, no inventory tax. This allows companies to warehouse vast quantities of goods without incurring a tax penalty, a significant competitive advantage.

This favorable environment has attracted a who's who of corporate America, with companies like Amazon, Walmart, PetSmart, and Tesla establishing massive distribution and manufacturing footprints in Northern Nevada. The state's economic development office further sweetens the deal with various tax abatement programs tied to job creation and capital investment.

This convergence of geographic advantage, robust infrastructure, and a friendly business climate makes the Reno-Sparks area a nexus for the powerful macro trends reshaping the economy. The relentless growth of e-commerce, which requires roughly three times the logistics space of traditional retail, and a post-pandemic emphasis on supply chain resilience are forcing companies to hold more inventory in strategically located, modern facilities. Westmount's acquisition of the Lillard Drive portfolio is a direct response to these fundamental shifts, positioning the firm to capitalize on the sustained demand for industrial real estate in one of the nation's most indispensable logistics hubs.