Massive Spec Distribution Facility Outside of Scranton Leases Quickly

The Scranton, Pennsylvania, industrial market received more good news last week when a 1 million-square-foot industrial lease closed at a recently built mega-warehouse within the Valley View Trade Center, a blossoming business park in Jessup.

Located right off of Interstate 81, Valley View offers access to nearly 100 million consumers within a single day’s truck drive. The Greater Scranton Chamber of Commerce is behind the 1,300-acre business park, which currently includes a mix of industrial and office.

"We buy the land, do the site work, connect the utilities and then sell the land to developers to build their projects," said Amy Luyster, vice president of the Scranton Chamber. "It helps keep costs low and facilitates business development."

The park itself is designated as both a Keystone Opportunity Zone and a federal opportunity zone, further reducing costs and risks. Some other notable companies are here, including online pet supplies retailer Chewy, which also distributes out of a large warehouse within the park.

Dallas-based developer Trammel Crow Co., in a joint venture with Diamond Realty Investments, was behind the massive distribution facility, which is now the park's largest. The property arrived in mid-2020 and features 160 loading docks, a 40-foot ceiling height and instant access to the Pennsylvania Turnpike.

Both the leasing representatives involved in the lease deal and the owner declined to identify the tenant as anything other than an "e-commerce" company, but whoever that firm happens to be, its arrival is yet another positive sign for the Scranton area's booming industrial sector.

The fact that this property filled within half a year speaks to the levels of demand for shipping centers, and data shows Scranton's logistics space is some of the most sought after in the state. This growth is being fueled by the ongoing pandemic and the region's prime location on the supply chain.

The coronavirus has caused e-commerce levels to surge, as stay-at-home orders and fear of infection accelerated consumer preference for shopping online. This has been a boon for the industrial sector, and across the country, 2020 saw some of the highest levels of industrial leasing ever recorded.

For logistics tenants looking to keep pace, Scranton is an ideal spot. The market is about two hours from Philadelphia and New York City and can reach 60% of the nation's population within a single day’s drive.

Scranton posted some of the state’s strongest levels of net absorption last year, filling just over 4 million square feet of industrial space. These are some of the highest levels of absorption the market's ever recorded in a single year, and the logistics capabilities are also bringing in some international manufacturers such as Nexii and Canpack.

"Our main goal at the end of the day is to attract, grow and sustain community investments," the Scranton Chamber's Luyster said.

International firms such as Nexii and Canpack indicate that the chamber is having some success, and the activity at the Valley View Trade Center indicates that Scranton’s momentum is carrying over into the new year. 

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