Finally, A New Spec Industrial Building Is Coming To The Philadelphia Suburbs

Developers might finally be responding to the unceasing demand for industrial space in the Greater Philadelphia region.

Tamora Building Systems will soon break ground on a 63K SF speculative industrial building in the borough of Marcus Hook at the southeastern edge of Delaware County, Pennsylvania, the Philadelphia Business Journal reports. Tamora has retained SSH Real Estate to find tenants for the building.

The West Chester-based Tamora will build on a 5.5-acre plot just off Interstate 95, spending an estimated $5M for a modern, smaller distribution center to serve the Northeast and mid-Atlantic corridors. Although the vacancy rate for all of Philadelphia sits at just below 6%, reflecting a market where the vast majority of available space is obsolete or low-quality, Delaware County has the most vacancy of any in the area at over 10%, according to a CBRE report.

To the north, Bucks County has the least vacancy of any county surrounding Philadelphia (including the city itself), likely due to its closer proximity to the white-hot Lehigh Valley market. Industrial Investments Inc. owns millions of square footage in the county, which President Jay Bown told the PBJ often leases for a staggering (for industrial) $10/SF or more.

Industrial Investments has purchased a 169K SF distribution center in the town of Limerick in Montgomery County for $7.25M, the PBJ reports, which will become vacant by the end of the year. Bown expects the building to fill quickly once made available, like the rest of his holdings.

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