Posted Oct 12, 2021, 12:22 AM
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Join Date: Oct 2011
Location: Philadelphia
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Northeast Philadelphia industrial market booming with 15M square feet of new development
Quote:
Over the next five years, a total of 35 new buildings with a combined 15.4 million square feet is expected to be added to the Northeast Philadelphia industrial market, swelling its size to more than 90 million square feet, according to Avison Young research.
At the moment, that submarket is experiencing upwards of $600 million in the development of roughly half of that space with 14 new buildings totaling 6 million square feet under construction, according to Colliers data. Those buildings are expected to be completed over the next two years.
The industrial market across the region is undergoing rapid growth. From Bucks County to Berks County to Delaware and South Jersey, developers are undertaking massive projects that could potentially infuse the market with the addition of more than 60 million square feet if all of the projects planned come to fruition over the next decade or so. Colliers data have 11.4 million square feet being completed over the next two years among Philadelphia, Bucks and Delaware counties.
In Northeast Philadelphia, the addition of so much space in such a short amount of time makes the transformation underway even more pronounced. The pandemic has boosted the demand for near instant delivery of products and accelerated the need for distribution centers to be located in densely populated areas. To that end, Northeast Philadelphia is ideal for new, last-mile distribution centers.
What makes Northeast Philadelphia and adjacent Lower Bucks County, where Northpoint Development Inc. is building upwards of 15 million square feet of industrial space at the former U.S. Steel site, so attractive for this new development is the access to Interstate 95, the Pennsylvania and New Jersey Turnpike and Route 1.
Northeast Philadelphia also has large parcels of developable land and real estate companies don’t hesitate to knock down an older, obsolete building to make way for a new, more modern one.
The activity is having an affect on the local economy. In the short-term, the development is supporting an abundance of real estate and construction work as well as providing good paying, lower skilled jobs both in warehouses and for those making deliveries, said Steve Wray, a principal with Econsult Solutions Inc.
“These jobs are paying relatively well and are likely contributing to some of the labor shortages we see in other sectors such as restaurants and retail,” he said.
Here are some of projects in the works in Northeast Philadelphia, according to Colliers. If a tenant has been secured, it is noted, otherwise the building is being developed on speculation.
-Crow Holdings is developing 400,408 square feet at 2900 Grant Ave. Amazon is the tenant;
-DHPH is developing 282,000 square feet at 9801 Blue Grass Road. TJX Cos. is the tenant;
-NorthPoint Development Inc. is developing 200,000 square feet at 5000 Summerdale Ave.
-Link Logistics is developing 248,400 square feet at 7101 Milnor St.
-Commercial Development Co. is developing 1 million square feet at One Red Lion Road. UPS is the tenant;
-DHPH is developing 733,000 square feet at 5000 Richmond St.;
-Crow Holdings is developing 150,000 square feet at 14515 McNulty St.; and
-Brandywine Realty Trust is developing 659,000 square feet at 15000 Roosevelt Blvd.
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Article behind paywall here:
https://www.bizjournals.com/philadelphia...ladelphia-industrial-market-booming.html
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