by Steve Lubetkin, Globest.com
Led by the professional and business services sector and the burgeoning medical community, Philadelphia added nearly 62,000 positions in the last 12 months ending in the second quarter, according to research.
The commercial real estate services firm says hiring in these typically well-paying employment sectors facilitated a lift to the metro’s median household income, which rose faster than the national average in the second quarter to more than $67,500 annually and boosted annualized retail sales.
The hiring “will bode well for retail spending, further intensifying tenant demand. Rising demand for space has prompted builders to move forward with a number of projects, including several in suburban locations, that are slated for delivery in 2016. While the majority of these developments are smaller in scale, a number of projects with more than 100,000 square feet are underway with completion scheduled next year. With minimal large-scale deliveries lined up for this year and strong absorption, vacancy will fall below 6 percent, encouraging the average asking rent to rise to an eight-year high.”
Improving market conditions will remain a draw to Philadelphia as investors scour the area for retail assets. As the average cap rate for retail assets recently dipped by 50 basis points and the amount of value-add opportunities on the market is limited. Investors will have to rearrange their standards to obtain desired returns.
“Whether this means targeting space in tertiary submarkets, acquiring centers requiring aggressive lease up, or bidding on centers with any size of undeveloped parcels, buyers can expect increased competition for both class B and C properties,” the research report concludes. “Assets priced between $1 million and $10 million should garner the most local and regional buyer interest, with prices rising alongside competition. Cap rates in the multi-tenant space will range widely from six percent for grocery-anchored centers to nine percent for suburban-located strip centers. Recent transaction figures suggest neighborhood centers should represent the most sought after multi-tenant type, as these properties often present buyers with the most creative flexibility.”
www.omegare.com
Monday, September 12, 2016
Friday, September 9, 2016
Skanska USA Will Build Inspira Hospital In Mullica Hill, NJ
by Steve Lubetkin, Globest.com
The Philadelphia regional office of Skanska USA will be building Inspira Health Network’s new hospital building in Mullica Hill, Salem County, about 15 miles from Philadelphia, PA.
“Skanska’s extensive regional national healthcare experience and innovative construction and delivery models enable clients like Inspira to focus on providing a superior service to the community,” says Skanska USA executive vice president and general manager Ed Szwarc. “At Skanska, we build for a better society – and we are committed to enhancing and expanding the Philadelphia region’s capacity for quality healthcare through these world-class facilities.”
It’s Skanska USA’s second major hospital contract in the Delaware Valley in the third quarter. In August, Skanska USA announced it would build the Women and Children’s Health Building for Christiana Care Health System in Newark, DE.
The new Inspira Health Network Medical Center will be built under the Integrated Project Delivery (IPD) approach, which brings together the client, designer and the builder to align stakeholders and streamline the execution of the project. The new medical center will be Skanska USA’s largest IPD project to date in North America.
With its partners Array Architects and Leach Wallace Associates, Skanska USA will construct a five story hospital building with 204 beds. The main tower consists of operating rooms, an emergency department, imaging suites, as well as administrative, dining and support services. The project also includes constructing a new central utility plant, which will provide electrical power, heating/hot water and chilled water to the new hospital.
“A new medical center conveniently located in the heart of Gloucester County will be a great asset to the entire region,” says John DiAngelo, president and CEO of Inspira Health Network. “This modern facility will allow our physicians and staff to offer our neighbors easy access to an even higher level of quality health care.”
Construction will begin in the first quarter of 2017 and is scheduled to be complete by December 2019.
Skanska has extensive healthcare experience in the Delaware Valley including the Capital Health Replacement Hospital, Christiana Care’s Women and Children’s Health Building, Wilmington Hospital Expansion, and the Nemours/A.I. duPont Hospital for Children. Other major regional projects include SugarHouse Casino, Nicholas and Athena Karabots Pavilion Addition at the Franklin Institute, Terminal F Baggage Claim Addition and Ticketing Renovation at the Philadelphia International Airport, and University of Delaware East Campus Residence Hall.
www.omegare.com
The Philadelphia regional office of Skanska USA will be building Inspira Health Network’s new hospital building in Mullica Hill, Salem County, about 15 miles from Philadelphia, PA.
“Skanska’s extensive regional national healthcare experience and innovative construction and delivery models enable clients like Inspira to focus on providing a superior service to the community,” says Skanska USA executive vice president and general manager Ed Szwarc. “At Skanska, we build for a better society – and we are committed to enhancing and expanding the Philadelphia region’s capacity for quality healthcare through these world-class facilities.”
It’s Skanska USA’s second major hospital contract in the Delaware Valley in the third quarter. In August, Skanska USA announced it would build the Women and Children’s Health Building for Christiana Care Health System in Newark, DE.
The new Inspira Health Network Medical Center will be built under the Integrated Project Delivery (IPD) approach, which brings together the client, designer and the builder to align stakeholders and streamline the execution of the project. The new medical center will be Skanska USA’s largest IPD project to date in North America.
With its partners Array Architects and Leach Wallace Associates, Skanska USA will construct a five story hospital building with 204 beds. The main tower consists of operating rooms, an emergency department, imaging suites, as well as administrative, dining and support services. The project also includes constructing a new central utility plant, which will provide electrical power, heating/hot water and chilled water to the new hospital.
“A new medical center conveniently located in the heart of Gloucester County will be a great asset to the entire region,” says John DiAngelo, president and CEO of Inspira Health Network. “This modern facility will allow our physicians and staff to offer our neighbors easy access to an even higher level of quality health care.”
Construction will begin in the first quarter of 2017 and is scheduled to be complete by December 2019.
Skanska has extensive healthcare experience in the Delaware Valley including the Capital Health Replacement Hospital, Christiana Care’s Women and Children’s Health Building, Wilmington Hospital Expansion, and the Nemours/A.I. duPont Hospital for Children. Other major regional projects include SugarHouse Casino, Nicholas and Athena Karabots Pavilion Addition at the Franklin Institute, Terminal F Baggage Claim Addition and Ticketing Renovation at the Philadelphia International Airport, and University of Delaware East Campus Residence Hall.
www.omegare.com
Thursday, September 8, 2016
Zenith Products Sells Riveredge Park Lot I in New Castle
STAG Industrial Management LLC has acquired the industrial building at 400 Lukens Dr. in New Castle, DE from Zenith Products for $27.5 million, or about $57 per square foot.
The 485,987-square-foot industrial building delivered in 2002 on Lot 1 in Riveredge Park.
www.omegare.com
The 485,987-square-foot industrial building delivered in 2002 on Lot 1 in Riveredge Park.
Is the Lehigh Valley the next 'Inland Empire'?
By Matt AssadContact Reporter Of The Morning Call
If you're a frustrated Lehigh Valley driver hoping that the next giant, truck-attracting warehouse is the region's last, you will almost certainly be disappointed.
With its proximity to the ports of New York, robust interstate system and rapid growth in distribution centers, the Lehigh Valley could be poised to become the nation's second "Inland Empire" for freight, joining the one just east of Los Angeles, according to an expert panel that gathered Wednesday in Bethlehem for the Lehigh Valley Planning Commission's annual Build LV development summit at SteelStacks.
As the region's warehouse market footprint bulges and grows together with a neighboring market in the Harrisburg area, it is poised to create one large pipeline of warehouse and logistics centers serving the entire Northeast.
While planners touted the increased tax base and thousands of jobs it could create, drivers who have to share the road with all that new truck traffic may be less excited.
"We have the infrastructure, we have the population base and we have the available space to be on that level to California's Inland Empire. We have the capacity and when you consider that we're just scratching the surface on e-commerce, we're going to need a lot more inventory. Growth is almost inevitable."
That kind of growth and the truck traffic that comes with it won't come as a surprise to Planning Commission officials, who released their annual development report during the three-hour event that was co-hosted by the Urban Land Institute of Philadelphia.
Noting that 90 percent of all freight though the Valley is moved by truck, Planning Commission Executive Director Becky Bradley has already forecast that the 40 million tons of freight that passes through the Valley each year will double by 2040.
That kind of growth has planners comparing this region to what's known as the Inland Empire, a two-county region just east of the Port of Los Angeles. It was once known for its citrus crops, but with the port receiving 176 million tons of cargo a year, it's now more prominent for the 360 million square feet of warehouse, distribution and industrial facilities that dot its interstates.
The Lehigh Valley and neighboring Harrisburg regions are positioned to grow into an "Inland Empire East."
All those warehouse owners will be paying millions of dollars in taxes and likely creating thousands of jobs, but is that worth adding traffic to the highways and chewing up hundreds — and maybe thousands — of acres of green space to do it?
The answer is an emphatic no for Scott Slingerland, director of the Coalition for Alternative Transportation, which promotes pedestrian and bicycle safety and the reduction of congestion through mass transit and ride-sharing.
"With a growing number of warehouses, we lose our sense of place. They're so huge, it almost makes an area seem less habitable," Slingerland said. "There has to be a better way to use this land."
Matthew Tuerk, a vice president at Lehigh Valley Economic Development Corp., stressed that not all new facilities that park along Interstate 78, Interstate 81 or Route 22 will be giant distribution facilities. Many will follow in the mold of Ocean Spray in Breinigsville or industrial pump maker Curtiss-Wright in Bethlehem to make products, creating jobs that pay more than the $12 to $14 an hour warehouse facilities pay.
"I'd say that 60 percent of the companies that come to us are looking to make something here," Tuerk said. "We will not become some wasteland of warehouse and distribution centers."
But the task of the panel was not to debate whether this transformation should happen, but rather to discuss whether all the signs suggest that it will.
Being close to the ports of New York and New Jersey — connected by a robust interstate system — gives the Valley an inherent advantage when attracting new e-commerce businesses.
From there, forecasting where development will happen is based on a complex matrix of factors, but the three key factors suggesting a continued warehouse and distribution boom in the Lehigh Valley are fairly simple, Knowles said.
For one, the combined big box industrial inventory — defined by Knowles as buildings of more than 100,000 square feet — of the Lehigh Valley and Harrisburg region has already topped 200 million square feet, thanks to rapid building in the last five years.
That's well short of the nearly 370 million square feet in California. However, industrial land in the Valley and Harrisburg regions that has already been proposed for big box industrial development would support additional 47 million square feet in just the next few years.
But the biggest factor is probably population, the panel agreed. While that bulging western Inland Empire sits within 300 miles of 28 million people, the burgeoning one in the East has 68 million people in that same 300-mile radius.
With the growth of e-commerce and one-day delivery prompting more companies looking to get products to their customers, they're going to need more distribution centers in that population zone.
"The density, capacity and velocity of truck traffic on Interstates 78 and 81 is going to keep coming. You might as well get ready for it."
It's possible that municipal planners that oppose the warehouses could choose not to approve the projects, but with nearly 50 million square feet of projects already proposed for land zoned industrial, that's unlikely.
As director of a tiny Bethlehem-based organization, Slingerland has grown used to losing these kinds of battles, but he tried to find a nugget of hope to cling onto in this one.
"These are monster facilities," Slingerland said. "Maybe at the very least they can put solar panels on the roof."
www.omegare.com
If you're a frustrated Lehigh Valley driver hoping that the next giant, truck-attracting warehouse is the region's last, you will almost certainly be disappointed.
With its proximity to the ports of New York, robust interstate system and rapid growth in distribution centers, the Lehigh Valley could be poised to become the nation's second "Inland Empire" for freight, joining the one just east of Los Angeles, according to an expert panel that gathered Wednesday in Bethlehem for the Lehigh Valley Planning Commission's annual Build LV development summit at SteelStacks.
As the region's warehouse market footprint bulges and grows together with a neighboring market in the Harrisburg area, it is poised to create one large pipeline of warehouse and logistics centers serving the entire Northeast.
While planners touted the increased tax base and thousands of jobs it could create, drivers who have to share the road with all that new truck traffic may be less excited.
"We have the infrastructure, we have the population base and we have the available space to be on that level to California's Inland Empire. We have the capacity and when you consider that we're just scratching the surface on e-commerce, we're going to need a lot more inventory. Growth is almost inevitable."
That kind of growth and the truck traffic that comes with it won't come as a surprise to Planning Commission officials, who released their annual development report during the three-hour event that was co-hosted by the Urban Land Institute of Philadelphia.
Noting that 90 percent of all freight though the Valley is moved by truck, Planning Commission Executive Director Becky Bradley has already forecast that the 40 million tons of freight that passes through the Valley each year will double by 2040.
That kind of growth has planners comparing this region to what's known as the Inland Empire, a two-county region just east of the Port of Los Angeles. It was once known for its citrus crops, but with the port receiving 176 million tons of cargo a year, it's now more prominent for the 360 million square feet of warehouse, distribution and industrial facilities that dot its interstates.
The Lehigh Valley and neighboring Harrisburg regions are positioned to grow into an "Inland Empire East."
All those warehouse owners will be paying millions of dollars in taxes and likely creating thousands of jobs, but is that worth adding traffic to the highways and chewing up hundreds — and maybe thousands — of acres of green space to do it?
The answer is an emphatic no for Scott Slingerland, director of the Coalition for Alternative Transportation, which promotes pedestrian and bicycle safety and the reduction of congestion through mass transit and ride-sharing.
"With a growing number of warehouses, we lose our sense of place. They're so huge, it almost makes an area seem less habitable," Slingerland said. "There has to be a better way to use this land."
Matthew Tuerk, a vice president at Lehigh Valley Economic Development Corp., stressed that not all new facilities that park along Interstate 78, Interstate 81 or Route 22 will be giant distribution facilities. Many will follow in the mold of Ocean Spray in Breinigsville or industrial pump maker Curtiss-Wright in Bethlehem to make products, creating jobs that pay more than the $12 to $14 an hour warehouse facilities pay.
"I'd say that 60 percent of the companies that come to us are looking to make something here," Tuerk said. "We will not become some wasteland of warehouse and distribution centers."
But the task of the panel was not to debate whether this transformation should happen, but rather to discuss whether all the signs suggest that it will.
Being close to the ports of New York and New Jersey — connected by a robust interstate system — gives the Valley an inherent advantage when attracting new e-commerce businesses.
From there, forecasting where development will happen is based on a complex matrix of factors, but the three key factors suggesting a continued warehouse and distribution boom in the Lehigh Valley are fairly simple, Knowles said.
For one, the combined big box industrial inventory — defined by Knowles as buildings of more than 100,000 square feet — of the Lehigh Valley and Harrisburg region has already topped 200 million square feet, thanks to rapid building in the last five years.
That's well short of the nearly 370 million square feet in California. However, industrial land in the Valley and Harrisburg regions that has already been proposed for big box industrial development would support additional 47 million square feet in just the next few years.
But the biggest factor is probably population, the panel agreed. While that bulging western Inland Empire sits within 300 miles of 28 million people, the burgeoning one in the East has 68 million people in that same 300-mile radius.
With the growth of e-commerce and one-day delivery prompting more companies looking to get products to their customers, they're going to need more distribution centers in that population zone.
"The density, capacity and velocity of truck traffic on Interstates 78 and 81 is going to keep coming. You might as well get ready for it."
It's possible that municipal planners that oppose the warehouses could choose not to approve the projects, but with nearly 50 million square feet of projects already proposed for land zoned industrial, that's unlikely.
As director of a tiny Bethlehem-based organization, Slingerland has grown used to losing these kinds of battles, but he tried to find a nugget of hope to cling onto in this one.
"These are monster facilities," Slingerland said. "Maybe at the very least they can put solar panels on the roof."
www.omegare.com
Slice Communications Takes Space At 234 Market Street
by Steve Lubetkin, Globest.com
Slice Communications, which specializes in the creation and delivery of strategic messaging through public relations, social media, and various other methods, is subleasing 6,000 square feet of office space from Dorado Systems at 234 Market Street, Philadelphia, PA.
Dorado Systems designs healthcare eligibility verification, EDI tools and applications for rapidly processing complex transactions, making more accurate decisions, and reducing costs.
234 Market Street is in the Independence Mall submarket. This location is convenient to I-95 and the Ben Franklin Bridge.
www.omegare.com
Slice Communications, which specializes in the creation and delivery of strategic messaging through public relations, social media, and various other methods, is subleasing 6,000 square feet of office space from Dorado Systems at 234 Market Street, Philadelphia, PA.
Dorado Systems designs healthcare eligibility verification, EDI tools and applications for rapidly processing complex transactions, making more accurate decisions, and reducing costs.
234 Market Street is in the Independence Mall submarket. This location is convenient to I-95 and the Ben Franklin Bridge.
www.omegare.com
Wednesday, September 7, 2016
iGPS Logistics Renews 109,000-SF Industrial Lease
iGPS Logistics LLC, a shipping solutions and third-party logistics company, has renewed its current lease for 108,665 square feet at 301 Railroad Ave. in Shiremanstown, PA.
The single-story industrial building totals 245,549 square feet and was delivered in 1963 in the Harrisburg Area West Industrial submarket. It features 19 loading docks and one drive-in, 24-foot clear heights, 1,200-amp heavy power, 40-foot column spacing and a 130-foot truck court. The balance of the building remains available for lease.
www.omegare.com
The single-story industrial building totals 245,549 square feet and was delivered in 1963 in the Harrisburg Area West Industrial submarket. It features 19 loading docks and one drive-in, 24-foot clear heights, 1,200-amp heavy power, 40-foot column spacing and a 130-foot truck court. The balance of the building remains available for lease.
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