Thursday, March 3, 2022

Prologis Buys New Jersey Office Site To Redevelop as Industrial Property

By Linda Moss CoStar News

Giant industrial landlord Prologis has acquired an office property in southern New Jersey, a site that it plans to redevelop into a logistics facility as the demand in that sector continues to soar.

Prologis, which is based in San Francisco, purchased a 114,676-square-foot Class A office building at 112 W. Park Drive in Mount Laurel from Veritas Real Estate, whose headquarters is in Marlton, New Jersey.

Terms of the transaction weren’t disclosed. But Prologis plans to develop a 184,500-square-foot, state-of-the-art logistics facility at the 17-acre site, which is in Burlington County.

In the Garden State as well as across the country, real estate firms are buying office sites — even former corporate headquarters — to redevelop as distribution centers. That’s because the growth of e-commerce, accelerated by the pandemic, is driving demand for warehouses and logistics facilities, without enough supply. In contrast, in the wake of the peak of the outbreak, demand for office space has softened as employees work from home on a full-time or part-time basis.

“The acquisition of a Class A office property for repositioning and developing a warehouse reinforces the strength of the industrial market in New Jersey and the need for more modern logistics facilities. Across the region, several office buildings are being purchased with the intent to convert to industrial use. Towns throughout New Jersey are supportive to this type of redevelopment as it helps alleviate supply chain pain points and meets the insatiable demand by companies for industrial space.”

The Mount Laurel site is adjacent to the New Jersey Turnpike and is roughly 20 minutes from Philadelphia International Airport and PhilaPort, the Port of Philadelphia.

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