By Paul Schwedelson – Reporter, Philadelphia Business Journal
Logistics firm Performance Team has signed a lease to occupy the entire 1.2 million-square-foot Box Park Logistics Center in Cinnaminson, according to industry sources, marking the largest industrial lease in the Philadelphia region this year.
The deal — two years after developer Logistics Property Co. completed the building — takes a big chunk of vacant space off the market.
California-based Performance Team was acquired by Denmark-based ocean shipping giant Maersk in 2020 for $545 million.
Box Park Logistics Center is at 995 Taylors Lane in Cinnaminson off of Route 130 and nine miles from the Port of Philadelphia. The South Jersey building has 40-foot clear height, 216 dock doors, four drive-in doors, 549 car parking spots and 216 trailer parking spots.
At 1.2 million square feet, the building ranks among the largest warehouse distribution centers in the Philadelphia region. The property also has room for the building to potentially expand up to an additional 300,000 square feet.
“This project, in size alone, was a tremendous undertaking,” Logistics Property Co. Northeast Region Senior Vice President Mark Glagola said in a statement.
Performance Team did not immediately provide comment on Tuesday.
Chicago-based Logistics Property Co. has been active in the Philadelphia region and has nearly completed the South Penn Logistics Center, a 973,000-square-foot development in Bucks County’s Morrisville, approximately 20 miles over the Delaware River from Box Park Logistics Center.
In 2023, Logistics Property Co. signed chemical giant DuPont as a tenant at the 385,000-square-foot First State Logistics Park in Newark, Delaware.
The 1.2 million-square-foot lease bucks the emerging trend in Philadelphia’s industrial market that tenants are typically looking for smaller spaces often less than 200,000 square feet in a post-pandemic world.
After Philadelphia’s industrial market reached record-low vacancy around 2% to 3% in 2022, the vacancy rate has been steadily rising since then. To respond to the e-commerce boom and address the need for warehouse distribution space, developers rushed to build more supply.
With that new supply being completed around the same time, industry insiders are closely monitoring how that space is absorbed before they consider moving ahead with future projects.
Full story: http://tiny.cc/wz9l001
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