Reno has seen a lot of business interest lately.
Just last week, downtown Reno developer Bernie Carter released a letter of intent to lease the former Main U.S. Post Office’s first floor to an undisclosed national retail company.
Apple also announced last week it plans to double the size of its data centers in the Reno area.
A couple of weeks ago, Macy’s announced a restructuring, including layoffs or relocations for 3,000 associates. However, the Macy’s store in Reno’s Meadowood Mall was spared from the company’s closing list.
And that’s just in the past few weeks!
Since the arrival of a certain company in the city, Reno has become significantly more attractive to tech and manufacturing companies.
In fact, this phenomenon even has a pretty widely used nickname: The “Tesla Effect.”
Dr. Mehmet Tosun, head of the economics program at the University of Nevada Reno, says a combination of factors are affecting the increase in new businesses, such as the national and state economic climates.
"Obviously, we had this big announcement from Tesla... it looks like Tesla is playing a role," Tosun said. "We are indeed seeing an influx of business."
Dr. Tosun cited the economics term "agglomeration," which refers to several businesses clustering in one area to benefit themselves and each other.
Tosun says these changes reflect the evolution of the state's economy is evolving to diversify.
Gaming and hospitality used to be the state's primary sources of jobs and revenue. Now, with the arrival of companies like Tesla, Switch and Apple, more emphasis is being placed on technology and manufacturing.
Dr. Tosun says while college enrollment appears to be on the rise in Nevada, the state's recent dead-last ranking in state public K-12 education could be a stumbling block to maintaining this diversification.
Dr. Mehmet Tosun, economics department chair, University of Nevada Reno