ITS Logistics is located in Building 16, which is owned by ProLogis, a Denver-based distribution REIT. A source with ProLogis says ITS made a "long-term" commitment but decline to provide additional detail, such as the negotiated lease rate. Lease rates on its expiring leases range from between $0.31- and $0.36 per square foot per month, according to SEC filings.

ProLogis owns six buildings totaling 615,000 square feet at West Spice and a total of 16.5 million square feet in the greater Reno area. Other ProLogis tenants at West Spice include Freeman Decorating Services, Schenker, Dayco Products and Watts Regulator Co. Additional ProLogis customers in the market include Honeywell, Nestle, Barnes & Noble, Sherwin-Williams and Kuehne + Nagel.

In its latest quarterly report, ProLogis reported that pressure on market rents led to negative rent growth of 12.6% for the quarter on turnover of 19.1 million square feet. "The industry is facing declining rents, and we expect the challenging leasing environment will persist," said CEO Walter Rakowich in the company's mid-year report. "Property fundamentals continue to mirror global economic weakness, characterized by reductions in market rental rates and an increase in leasing concessions. However, we are seeing some improvement, as the rate of decline in occupancies appears to be leveling off."