Greek Real Estate Invests $80 Million in Redevelopment Project for Industrial Property in Northeast Philadelphia

Greek Real Estate makes $80M bet on redevelopment of Northeast Philadelphia industrial property

Two years after the acquisition of a 305,706-square-foot industrial building in Northeast Philadelphia for $31.5 million, Greek Real Estate Partners has initiated a significant redevelopment. The original structure has been demolished to make way for a new 287,000-square-foot warehouse at 2121 Wheatsheaf Lane, with an estimated construction cost of around $50 million, according to David Greek, Managing Partner of Greek Real Estate Partners. The East Brunswick, New Jersey-based developer has secured a $44 million construction loan from First Citizens Bank.

This ambitious project represents an $80 million investment, combining land and construction expenses, signaling Greek Real Estate Partners’ confidence in the potential for substantial returns from a modern industrial facility in the densely populated Northeast Philadelphia area.

*Article courtesy of Philadelphia Business Journal

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers. Please visit our website for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Industrial Construction Commences in Philadelphia with a Significant Decline

Industrial Construction Starts in Philadelphia Stage Precipitous Drop-Off

In response to a confluence of factors, including increased borrowing and construction expenses, coupled with diminishing demand for warehouse space, Philadelphia’s industrial development is beginning to exhibit early indications of a slowdown. Over the last two quarters, the Philadelphia industrial sector has witnessed an average of just 665,000 square feet in construction starts, a stark contrast to the robust quarterly average of 4.7 million square feet observed between 2020 and 2022. To put this in perspective, the quarterly construction starts between 2017 and 2019 stood at a more moderate 1.5 million square feet.

*Article courtesy of Costar

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers. Please visit our website for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Developer Proposes Construction of Two Warehouses on the Former Inquirer Printing Plant Site

New York Developer Proposes Construction of Two Warehouses on the Former Inquirer Printing Plant Site in Upper Merion

A New York real estate firm, DH Property Holdings, has put forth a plan to transform the former Philadelphia Inquirer printing plant in Upper Merion Township into a 746,240-square-foot warehouse complex. Their proposal envisions the demolition of the existing facility and the construction of two industrial buildings on the 46.3-acre site. One of these buildings will span 488,240 square feet, while the other will encompass 258,000 square feet.

Property records indicate that the developer acquired the site at 800 River Road from Radnor-based MLP Ventures in July 2022, with an officially listed sale price of just $1. During the recent Upper Merion Township Planning Commission meeting held on Wednesday, the proposal was deferred to a future meeting. After DH Property Holdings presented their plan, the planning commission decided that it was not yet prepared to provide a recommendation for either approval or denial to the township’s board of supervisors, who have the authority to greenlight or reject the proposal.

*Article courtesy of Philadelphia Business Journal

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers. Please visit our website for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Philadelphia’s Industrial Property Sector Faces Challenges Amid Influx of Available Space

Industrial Property Sector Grapples With Slower Lease-Up as More Space Floods the Philadelphia Market

The recent construction boom of industrial space across the Philadelphia region has posed lease-up challenges as supply continues to outpace demand for the fifth consecutive quarter. 

In the past year, greater Philadelphia’s industrial real estate market has experienced an unprecedented surge in new inventory, with developers adding more than 20 million square feet of industrial space. Subsequently, the region’s availability rate has expanded to 9.5% in the fourth quarter, a significant increase from the low of 6.6% observed in mid-2022.

A total of 1,055 industrial properties totaling 56 million square feet of space are available and searching for tenants. This increase in availability is a notable shift from the tighter market conditions seen in mid-2022 when approximately 40 million square feet of space were available for lease.

*Article courtesy of Costar

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers. Please visit our website for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Boston Firm Purchases Industrial Warehouse in Harleysville

Harleysville industrial warehouse sells to Boston firm for $14.8M

Stag Industrial, a Boston-based investment trust, bought a 152,625-square-foot industrial building in Harleysville for $14.8 million, according to property records.

The property at 1510 Gehman Road is just east of I-476 and south of Detwiler Road. It was previously owned by Platinum Owner PA LLC, which bought the building for $15 million in December 2020. Less than three years later, the value dropped by $173,000.

Stag (NYSE: STAG) owns about two dozen assets in the Philadelphia market totaling 5.5 million square feet of warehouse distribution and manufacturing space. As of March, the company owned 561 properties totaling 111.6 million square feet and that are collectively worth around $6 billion.

*Article courtesy of Philadelphia Business Journal

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers. Please visit our website for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Philly’s Industrial Rent Remains Elevated

Industrial Rents in Philadelphia Remain Elevated

Rent growth across Philadelphia’s commercial properties has exhibited a roller-coaster-like trajectory since the onset of the pandemic, which saw numerous new rent records in recent years. While the region’s overall rent performance has since normalized toward pre-pandemic levels in recent quarters, the industrial sector in Philadelphia stands out as an exception with its annual rent gains remaining stubbornly elevated.

Industrial rent growth in Philadelphia has been impressive, exceeding the rates of increase for the multifamily, retail and office sectors, even in the years before the pandemic. Industrial properties averaged an annual growth rate of 5% between 2015 and 2019, well above the growth rates for multifamily at 2.6%, retail at 2% and office at 3.3% annual average increases.

*Article courtesy of Costar

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers. Please visit our website for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Alliance HP Sells Southwest Philly Industrial Portfolio

Alliance HP sells Southwest Philadelphia industrial portfolio for nearly double 2021 purchase price

Alliance HP has sold three industrial buildings in Eastwick near the Philadelphia International Airport for a combined $24.7 million, or 86% more than it paid two years ago. The buildings total 122,373 square feet.

A buyer could not be determined and the sale has not yet been recorded in public records.

The three Philadelphia buildings — at 3201 S. 76th St., 3250 78th St. and 3440 Bartram Ave. — are fully leased to three tenants, including tool wholesaler Medco and Dickinson Fleet Services. The portfolio includes clear heights between 17 and 22 feet, 14 loading doors, five drive-in doors and 163 parking spaces. The three buildings are within 2.5 miles of the airport.

*Article courtesy of Philadelphia Business Journal

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers. Please visit our website for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

DH Property Secures $175M for Philly Industrial Project

DH Property secures $175M for 760,000-SF Northeast Philadelphia industrial project

New York-based DH Property Holdings has secured $135 million in construction financing for a two-building, 760,000-square-foot warehouse distribution complex in Northeast Philadelphia at 5000 Richmond St.

Barings, a subsidiary of MassMutual, provided the construction loan. The developer also secured $40 million in limited partner equity.

*Article courtesy of Philadelphia Business Journal

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers. Please visit our website for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Wharton and Walton Sold a 1.3M SF Portfolio Outside of Philadelphia

Wharton, Walton Sell 37-Property Industrial Portfolio in New Jersey for $194.5 Million

Wharton Industrial and Walton Street Capital have sold a 1.3 million-square-foot portfolio in New Jersey outside of Philadelphia for $194.5 million to DRA Advisors.

Twinbridge Industrial Park, which has 37 properties and is in Pennsauken, traded hands, divested by Wharton and its joint venture partner, Walton, the sellers said in a press release. PGIM Real Estate, based in Newark, New Jersey, provided $103 million in fixed-rate financing to DRA Advisors, headquartered in New York, for the transaction.

*Article courtesy of Costar

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers. Please visit our website for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

No New Large Industrial Leases Across Philly Region

The Philadelphia region’s industrial market has experienced a significant shift in leasing trends

The Philadelphia region’s industrial market has experienced a significant shift in leasing trends. Historically, about five industrial leases exceeding 500,000 square feet were signed each year since 2015. But halfway into 2023, no industrial leases of that size cohort have been recorded.

Over the past six years, top retailers such as Amazon, Walmart and Burlington were responsible for the largest industrial leases in the region, with several lease deals surpassing 1 million square feet. In the past six months, however, retailers have applied the brakes on their leasing activity. Third-party logistics companies have become the primary renters of the largest spaces. Nevertheless, these leases have not reached the scale of the mega-warehouses seen in recent years.

*Article courtesy of Costar

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers. Please visit our website for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.