| Now’s the time to look for industrial assets in metro Philadelphia, Bentall Kennedy SVP Marty Standiford tells us. Philadelphia’s industrial availability rate remains high compared to its historical average, but the market demonstrated encouraging signs during the previous 12 months. For example: activity increased for leases in the 100k SF to 250k SF range. Also, vacancy is expected to decline since deliveries between 2012 to 2014 will be among the lowest on record for the area. (So don't wait until Dec. 24 to buy your kid that warehouse.) Recently Marty advised Multi-Employer Property Trust (MEPT) in its acquisition of the 600k SF 1150 Commerce Blvd in Logan Township, NJ, a bulk warehouse facility fully leased to Kimberly-Clark Corp. MEPT paid $36.1M, all cash. |
| Marty adds that industrial fundamentals in Logan Township (Gloucester County) are also expected to improve. A growing economy will drive strong demand for warehouse space as tenants return to the submarket to take advantage of affordable rents—while they last; there'll probably be strong rent growth from 2013 to 2016. Bulk distribution facilities larger than 200k SF, less than 20 years old, and with at least 28-foot clear heights have the edge, and have strongly outperformed the broader Philadelphia market and Gloucester County submarket industrial properties. (What can we say, America has a type.) |
| Mesa West Capital’s Daniel Tanner agrees with that positive assessment of the metro Philly industrial market. Demand is high for large, high-quality blocks of warehouse/distribution space, while supply is short, and investors have taken note. Recently Mesa West provided Hillwood Investment Properties and partner Brookfield Asset Management with $14M in first mortgage debt to recapitalize 200 Birch Creek Rd, a vacant 597k SF warehouse/distribution center in Bridgeport, NJ. |
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