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PAST the neon lights of Reno and the cookie-cutter homes of neighbouring Sparks, the I highway winds through a thinly populated expanse of arid hills and lunar valleys in Storey County. On one side of the road flows the Truckee River; on the other bands of wild horses forage for parched grass. Signs of civilisation are restricted to electricity pylons and the odd rundown farmhouse. The Wild Horse Saloon, a dark and smoky room connected to a legal brothel, is the only sit-down restaurant for miles.
It is not an area that immediately seems conducive to hosting a business park. The park spans , acres in total—three times the size of San Francisco. A few months later, Google snapped up 1, acres of land—enough to fit nearly American football pitches. One executive whose company owns land in the park muses that no other bit of industrial America has a higher level of investment per square foot.
Demand for industrial property is rising nationally thanks to the strength of the economy and the boom in e-commerce. The proportion of industrial property in America that is vacant has plunged from Almost all new space is being built in parks that are pre-planned and pre-zoned, he says.
Companies can get up and running quickly—standalone sites are rare. Yet the park might have served a rather different purpose. The oil company had planned to stuff it with big game and use it as a luxury hunting reserve before the price of oil plummeted and such indulgences were judged inappropriate.
He recalls looking out at the park after the purchase, and thinking that it would take three generations to sell it all. He sold plots to small firms and some big ones, like Walmart, but during the Great Recession of sales dropped precipitously. Things turned around in Representatives from Tesla flew in for a meeting. They had been scouring the country for a site for their battery plant but had not found anywhere that would allow them to build fast enough.