Wednesday, April 5, 2017
Tuesday, April 4, 2017
TCC Breaks Ground on 455,000-SF Distribution Center in Scranton
Trammell Crow Company began construction in March on its Humboldt East Trade Center, a 455,000-square-foot distribution center being built on spec at a 31-acre site at 105 Commerce Dr. in Hazleton, PA.
Expected to deliver by year-end, the 5-Star industrial building will feature 60 loading docks and two drive-ins, rail spurs on Norfolk Southern, 36-foot clear heights, 50-foot column spacing, seven-inch floors, 2,400-amp heavy power, metal halide lighting, ESFR sprinklers and reinforced concrete construction.
Located within the Humboldt Industrial Park, one of the area's largest parks with rail service, the property also falls within a Keystone Opportunity Zone (KOZ) which offers certain tax abatement incentives to qualified occupants.
Originally marketed as a build-to-suit opportunity, the project is moving forward in a submarket teeming with demand. According to CoStar data, vacancies in the I-81 Corridor submarket of Luzerne County are hovering around all-time lows with next to no vacancy in distribution centers built in 2000 or later. Whether that demand can stand up to all the speculative building in the submarket remains to be seen; as of the end of the first quarter 2017, nearly 2 million square feet of warehouse and distribution space was under construction in the submarket.
The rampant building in the area is the result of how important the I-81 Corridor has become in terms of a North American distribution hub. A future tenant would join the likes of OfficeMax, Auto Zone, Penske Logistics and Hershey Foods within the park and scores of multi-national corporations that have zeroed in on Scranton, Lehigh Valley and Harrisburg over the last several years. Quick access to interstate highways, rail yards and ports are some of the benefits to locating within the area, which allows for overnight shipping access to more than one-third of the U.S. population and parts of Canada.
"Construction has not been as strong in Scranton as it has been in neighboring Lehigh Valley, but demand remains strong because of the ideal location and is unlikely to taper off in the near future," said Ben Atwood, an analyst with CoStar Market Analytics covering both Scranton and the Lehigh Valley. "Developers have over 90 pad sites built-out and are optimistic they'll be filled over the next few years."
While an asking rate for the new building is being withheld at this time, institutional-grade distribution centers in the submarket are at or above $4 per square foot. The building is also available for sale, and while an asking price is also undetermined, recent comps in the area would suggest that $65-$70 per square foot is possible. Of note, the Northeast Distribution Center on Green Mountain Road, a 400,000-square-foot asset built in 2006, sold for $28.5 million ($71 pSF) in 2015 to the Abu Dhabi Investment Authority.
www.omegare.com
Phillips & Cohen Subleases 34,000 SF at The Shipyard
Phillips & Cohen Associates, a law firm founded in 1997, has subleased 34,000 square feet of office space at The Shipyard office building at 1000-1072 Justison St. in Wilmington, DE.
The 94,691-square-foot office building was developed, owned and managed by Pettinaro.
www.omegare.com
The 94,691-square-foot office building was developed, owned and managed by Pettinaro.
www.omegare.com
Target expands central Philly footprint with new store planned for NoLibs
by Jacob Adelman Staff Writer, Philadelphia Inquirer
Target Corp. is opening its biggest central Philadelphia store yet at the former Destination Maternity warehouse headquarters at Fifth and Spring Garden Streets, a heavily trafficked area for commuters to Center City and the growing neighborhoods that surround it.
The Minneapolis-based retailer said in a release Monday that it had signed a lease for an approximately 47,000-square-foot space at the building, with plans to open in July 2018.
The store will feature a grocery section, with fresh produce and grab-and-go items, as well as clothing, sporting goods, and beauty products, a pharmacy operated by CVS Health, and other offerings, Target said.
“We think guests in the Northern Liberties and Fishtown communities will enjoy the quick-trip shopping experience that only Target can provide,” senior vice president Mark Schindele said in the release.
The retailer will occupy the southern part of the structure, facing a parking lot with 100 designated spots, Matt Handel, leasing director for the building’s owner, Alliance HSP, said in an interview.
The building also will be home to Yards Brewing Co., which aims to complete its move into a 70,000-square-foot space by the end of this year, as well as the Philadelphia Department of Records and Archives, which is to occupy a 68,000-square-foot section of the property.
Alliance acquired the building, in a mostly industrial and commercial corner of Northern Liberties, in 2014 from Destination Maternity Corp., which has relocated to Moorestown. The Target deal leaves the property 100 percent leased, Bryn Mawr-based Alliance said in its own release.
“We pieced together a blend of tenants with different needs, allowing us to allocate the existing building’s strongest physical attributes accordingly,” Max Ryan, Alliance’s director of development, said in the release. “Target will have visibility from Spring Garden Street and [I-]676, as well as prominent surface parking directly in front of their premises.”
The Target store will be the retailer’s fifth in Philadelphia to deploy its "flexible format" approach involving smaller, urban-oriented alternatives to its big-box stores. Two such stores are currently operating in Center City, with an additional two under development in Fairmount and Roxborough.
Target also has been looking to open a store at the planned Lincoln Square mixed-use complex in South Philadelphia at Broad Street and Washington Avenue, according to a legal filing concerning a nearby property.
The space at Fifth and Spring Garden will be Target’s largest in what is sometimes called Greater Center City, bounded by Tasker and Girard Avenues between the Schuylkill and the Delaware River.
The site is different from Target’s other central Philadelphia locations in that it lacks their population density and easy walkability.
Though some recent real estate activity points to more residential uses around the newly announced site, its selection seems based on its ability to draw from the heavy vehicular traffic along Spring Garden and Callowhill Street and other busy arteries nearby, said Steinberg, who was not involved in the deal.
"They like the existing fundamentals," he said. "The fact that density could improve here is just a bonus for them."
Full story: http://tinyurl.com/kwosrue
www.omegare.com
Target Corp. is opening its biggest central Philadelphia store yet at the former Destination Maternity warehouse headquarters at Fifth and Spring Garden Streets, a heavily trafficked area for commuters to Center City and the growing neighborhoods that surround it.
The Minneapolis-based retailer said in a release Monday that it had signed a lease for an approximately 47,000-square-foot space at the building, with plans to open in July 2018.
The store will feature a grocery section, with fresh produce and grab-and-go items, as well as clothing, sporting goods, and beauty products, a pharmacy operated by CVS Health, and other offerings, Target said.
“We think guests in the Northern Liberties and Fishtown communities will enjoy the quick-trip shopping experience that only Target can provide,” senior vice president Mark Schindele said in the release.
The retailer will occupy the southern part of the structure, facing a parking lot with 100 designated spots, Matt Handel, leasing director for the building’s owner, Alliance HSP, said in an interview.
The building also will be home to Yards Brewing Co., which aims to complete its move into a 70,000-square-foot space by the end of this year, as well as the Philadelphia Department of Records and Archives, which is to occupy a 68,000-square-foot section of the property.
Alliance acquired the building, in a mostly industrial and commercial corner of Northern Liberties, in 2014 from Destination Maternity Corp., which has relocated to Moorestown. The Target deal leaves the property 100 percent leased, Bryn Mawr-based Alliance said in its own release.
“We pieced together a blend of tenants with different needs, allowing us to allocate the existing building’s strongest physical attributes accordingly,” Max Ryan, Alliance’s director of development, said in the release. “Target will have visibility from Spring Garden Street and [I-]676, as well as prominent surface parking directly in front of their premises.”
The Target store will be the retailer’s fifth in Philadelphia to deploy its "flexible format" approach involving smaller, urban-oriented alternatives to its big-box stores. Two such stores are currently operating in Center City, with an additional two under development in Fairmount and Roxborough.
Target also has been looking to open a store at the planned Lincoln Square mixed-use complex in South Philadelphia at Broad Street and Washington Avenue, according to a legal filing concerning a nearby property.
The space at Fifth and Spring Garden will be Target’s largest in what is sometimes called Greater Center City, bounded by Tasker and Girard Avenues between the Schuylkill and the Delaware River.
The site is different from Target’s other central Philadelphia locations in that it lacks their population density and easy walkability.
Though some recent real estate activity points to more residential uses around the newly announced site, its selection seems based on its ability to draw from the heavy vehicular traffic along Spring Garden and Callowhill Street and other busy arteries nearby, said Steinberg, who was not involved in the deal.
"They like the existing fundamentals," he said. "The fact that density could improve here is just a bonus for them."
Full story: http://tinyurl.com/kwosrue
www.omegare.com
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