2M+ SF Industrial Park Planned for Central Pennsylvania

 By Margaret Sutherland

After acquiring a 182-acre development site earlier this year near Mechanicsburg in Silver Spring Township, Pennsylvania, for its first development project in Central Pennsylvania, New York-based developer Rockefeller Group has commenced construction on the first two buildings in the Silver Spring Logistics Park, a three-building, two-million-square-foot logistics development. Rockefeller is developing the project in a joint venture with MBK Real Estate LLC, a subsidiary of Mitsui & Co. Ltd.

The development site, part of the former 451-acre Hempt Farm, is located off Carlisle Pike, also known as U.S. Route 11, approximately three miles from Interstate 81. Silver Spring is also five miles from Interstate 76 and 10 miles from Interstate 83 at its southbound ramp.

The development team is proceeding to build the first two logistics buildings at 261 Hempt Road on a speculative basis, without tenant commitments in place. A third building at 281 Hempt Road is also planned.

"Due to continued demand for industrial space in the region, we will develop the 803,520-square-foot building and the 318,060-square-foot building immediately. These buildings will be completed by spring 2026,” said Jacqueline Schwartz, associate for Rockefeller Group’s North Central region, in a statement announcing the new project. “The third building, a 892,620-square-foot distribution center, will follow thereafter."

All three buildings will include 40-foot clear heights, 54-foot x 50-foot column spacing and 185 truck courts. The larger two buildings, each measuring more than 800,000 square feet, will be cross-docked facilities.

The project architect is Margulies Hoelzli Architecture, PLLC, the civil engineer is Alpha Consulting, and the general contractor is Penntex Construction.

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Will Positive Office Demand Carry Into 2026? (Video)

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Medical office building in downtown Philadelphia hits market for potential redevelopment

 By Jonathan Lehrfeld CoStar News

A 10-story medical office building in downtown Philadelphia has hit the market as a potential redevelopment opportunity, joining other workplace properties in the city that have been pitched for or undergone a transformation to another commercial use.

The 135,825-square-foot property at 919–921 Walnut St. in Center City is available for $13.5 million, according to a listing on CoStar Group’s LoopNet platform. The property, built in the early 20th century, is known as the Neville Building.

The site “supports a broad range of potential uses, including residential, office, hospitality, retail, or institutional redevelopment,” according to the listing. The building is a "High Vacancy Property," the listing says.

The office property could become the next to transform to another purpose, as CoStar data shows demand contracting in the office market in the final stretch of the year.

“Looking ahead, Philadelphia will find it difficult to sustain the rent growth seen prior to 2020. With tenants continuing to downsize as leases expire, rents are expected to remain soft.”

Owners of other Philly office buildings intend to pursue plans to convert them or have completed projects to transform them.

The four-story office building at 1232 Chancellor St. sold this fall for $1.75 million, CoStar data shows. The new owner plans to convert the upper floors to boutique apartments, Philadelphia Business Journal reported. Alterra Property Group this year turned the 18-story office building at 1701 Market St. into a 299-unit luxury apartment complex.

The Neville Building, three blocks west of the historic Washington Square park, is owned by Thomas Jefferson University and has been used by Jefferson Health. The university bought the building for $13 million in 2013, CoStar data shows. The university did not immediately respond to an email request for comment.

The property’s commercial history includes a stint as the home of Associated Services for the Blind and Visually Impaired, the marketing material notes.

“Its incorporation into Jefferson’s expanding urban campus supported the institution’s broader strategy of integrating nearby properties to support clinical, administrative, and academic functions," according to the marketing materials. "This latest chapter underscores the building’s continued adaptability and enduring relevance within Center City’s evolving institutional corridor."

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