by Steve Lubetkin, Globest.com
Industrial submarkets throughout eastern Pennsylvania and southern New Jersey remain tight, with some vacancy rates at record lows and large pipelines of construction underway, panelists told attendees at the Philadelphia SIOR Chapter’s Industrial Property Summit at the Bear Mountain Creek Resort in this tiny rural town about 40 miles north of Philadelphia.
“We’re finally seeing some spec development in the Philadelphia suburbs which we haven’t seen in 10 years. The suburbs are full of old product with lower ceilings, and they’re getting leased up and there’s nowhere for these clients to go.”
It’s local companies driving the suburban demand, not e-commerce or big box retail, he says.
“We don’t have the land for it. So we’re seeing local companies just expanding because the economy is doing better.”
In central Pennsylvania’s I-78/I-81 corridor, the 2018 vacancy rate has been about 6.1%, and net absorption is nearly 12.5 million square feet. Central Pennsylvania’s overall vacancy is even lower, at 4.9%, with 6.438 million square feet of net absorption and about 3.5 million square feet of construction in the pipeline, he says.
Among the hottest industrial markets in the Northeast is the Lehigh Valley, which has added millions of square feet of distribution center space. Absorption in the third quarter was just under 286,000 square feet, and vacancy is about 6.7%. A solid 7.63 million square feet of industrial space are in the pipeline, he says.
“We went from a Class B market four years ago to a Class A market,” he says. “What we have is a lot of product that really presents itself well to the smaller operators. There’s a lot more of that product coming online.”
The Northeastern Pennsylvania submarket has a 3.6% vacancy rate and 4.7 million square feet under construction, according to Bob Gude, vice president of development with Kansas City, MO-based NorthPoint Development. Net absorption was low in the third quarter, just topping 129,000 square feet, he says.
In South Jersey, much of the construction has been released, says Dave Thomas of Matrix Development.
“I think the highlight is really the vacancy rate of three percent as we’re measuring it. A lot of the construction under 4 million feet has already released, so it’s a very good market for development going forward.”
Companies unable to find suitable space in the Exit 8A submarket in central New Jersey are increasingly looking further south near Exit 6 in the Bordentown/Burlington area, he says.
www.omegare.com
Wednesday, October 31, 2018
Tuesday, October 30, 2018
PREIT Strategy of Proactively Replacing Sears Stores Continuing
by Steve Lubekin Globest.com
PREIT is proactively replacing Sears stores and says the project has resulted in minimal exposure to the troubled department store, down from 27 stores in 2012 to just four active stores today, when factoring in locations at lease with replacement tenants, those with non-recourse mortgage loans and one location with a significant portion of the space sub-leased by Sears to others.
Since 2017, PREIT has proactively replaced five Sears locations and has reached agreement to recapture a sixth store. As part of its overall anchor repositioning and remerchandising strategy, PREIT has diversified the tenant roster with unique and experiential concepts to reflect the new mall model and drive traffic and sales while improving the underlying tenant credit within the portfolio.
“Just as we were proactive in disposing of lower-productivity malls, we have positioned ourselves well with minimal exposure to Sears in the event of potential material store closing event. As we look to redefine the mall experience, we are finding great success in replacing department stores with a variety of uses and experiences in line with the interests of today’s consumer,” says Joseph F. Coradino, CEO of PREIT. “Our tireless effort to improve our portfolio continues and has laid the foundation for continued growth in traffic, sales and value for our shareholders.”
PREIT provided a list of new anchor tenants throughout its portfolio, either signed or opened, across several in-demand retail segments:
Segment Brand Property
Off-Price Magnolia Mall
Burlington Plymouth Meeting Mall
HomeGoods Viewmont Mall
Magnolia Mall
Five Below Magnolia Mall
HomeSense Moorestown Mall
Sierra Trading Moorestown Mall
Entertainment Tilt Valley Mall
Studio Movie Grille Willow Grove Park
Fitness Edge Fitness Plymouth Meeting Mall
One Life Fitness Valley Mall
Sporting Goods DICK’s Sporting Goods Viewmont Mall
Capital City Mall
Plymouth Meeting Mall
Field & Stream Viewmont Mall
Department Store Belk Valley Mall
Von Maur Woodland Mall
Food and Dining Primanti Bros Capital City Mall
Fine Wine & Good Spirits Capital City Mall
Whole Foods Exton Square Mall
www.omegare.com
PREIT is proactively replacing Sears stores and says the project has resulted in minimal exposure to the troubled department store, down from 27 stores in 2012 to just four active stores today, when factoring in locations at lease with replacement tenants, those with non-recourse mortgage loans and one location with a significant portion of the space sub-leased by Sears to others.
Since 2017, PREIT has proactively replaced five Sears locations and has reached agreement to recapture a sixth store. As part of its overall anchor repositioning and remerchandising strategy, PREIT has diversified the tenant roster with unique and experiential concepts to reflect the new mall model and drive traffic and sales while improving the underlying tenant credit within the portfolio.
“Just as we were proactive in disposing of lower-productivity malls, we have positioned ourselves well with minimal exposure to Sears in the event of potential material store closing event. As we look to redefine the mall experience, we are finding great success in replacing department stores with a variety of uses and experiences in line with the interests of today’s consumer,” says Joseph F. Coradino, CEO of PREIT. “Our tireless effort to improve our portfolio continues and has laid the foundation for continued growth in traffic, sales and value for our shareholders.”
PREIT provided a list of new anchor tenants throughout its portfolio, either signed or opened, across several in-demand retail segments:
Segment Brand Property
Off-Price Magnolia Mall
Burlington Plymouth Meeting Mall
HomeGoods Viewmont Mall
Magnolia Mall
Five Below Magnolia Mall
HomeSense Moorestown Mall
Sierra Trading Moorestown Mall
Entertainment Tilt Valley Mall
Studio Movie Grille Willow Grove Park
Fitness Edge Fitness Plymouth Meeting Mall
One Life Fitness Valley Mall
Sporting Goods DICK’s Sporting Goods Viewmont Mall
Capital City Mall
Plymouth Meeting Mall
Field & Stream Viewmont Mall
Department Store Belk Valley Mall
Von Maur Woodland Mall
Food and Dining Primanti Bros Capital City Mall
Fine Wine & Good Spirits Capital City Mall
Whole Foods Exton Square Mall
www.omegare.com
Monday, October 29, 2018
Black Creek Group Announces Logistics Center in Lehigh Valley
by Steve Lubetkin Globest.com
Black Creek Group, a Denver-based real estate investment manager with a history of $18.2 billion in development and acquisitions, has begun construction on a 514,000-square-foot logistics facility in Bethlehem Township, PA. Black Creek Group chose the Brodhead Road site for the new logistics warehouse because of its strategic access to population centers up and down the Eastern Seaboard.
“The Lehigh Valley industrial market is a key logistics area within easy reach of the heavily populated Mid-Atlantic, New York Metro and New England regions,” says David Fazekas, managing director for the Eastern Region of Black Creek Group. “The Brodhead development not only offers an excellent location with visibility from Routes 22 and 191, it will also benefit from the area’s well-educated labor force.”
Brodhead Road will offer 36-foot clear height and 70-foot speed bays. This class A Industrial facility is in the heart of the Lehigh Valley, one of the largest Industrial hubs on the east coast. The property’s flexible design and multiple ingress/egress locations can easily accommodate single or multi-tenant lease-up, and project tenants will benefit from nearby access to two full interchanges of Route 22, offering speed to market and an easy commute for the Lehigh Valley’s abundant labor pool.
www.omegare.com
Black Creek Group, a Denver-based real estate investment manager with a history of $18.2 billion in development and acquisitions, has begun construction on a 514,000-square-foot logistics facility in Bethlehem Township, PA. Black Creek Group chose the Brodhead Road site for the new logistics warehouse because of its strategic access to population centers up and down the Eastern Seaboard.
“The Lehigh Valley industrial market is a key logistics area within easy reach of the heavily populated Mid-Atlantic, New York Metro and New England regions,” says David Fazekas, managing director for the Eastern Region of Black Creek Group. “The Brodhead development not only offers an excellent location with visibility from Routes 22 and 191, it will also benefit from the area’s well-educated labor force.”
Brodhead Road will offer 36-foot clear height and 70-foot speed bays. This class A Industrial facility is in the heart of the Lehigh Valley, one of the largest Industrial hubs on the east coast. The property’s flexible design and multiple ingress/egress locations can easily accommodate single or multi-tenant lease-up, and project tenants will benefit from nearby access to two full interchanges of Route 22, offering speed to market and an easy commute for the Lehigh Valley’s abundant labor pool.
www.omegare.com
Onyx/PCCP Joint Venture Acquires Lehigh Valley’s Westgate Mall
by Steve Lubetkin Globest.com
A joint venture between Onyx Equities and PCCP is acquiring Westgate Mall, a 270,000-square-foot enclosed mall at 2524 Schoenersville Road in the Lehigh Valley community of Bethlehem, PA.
The sale price was not disclosed, but according to the Allentown Morning Call newspaper, deeds recorded for the sale of two properties associated with the transaction totaled $30 million. The Morning Call said the former Bon-Ton store on the property sold for $20.5 million, and the 10.4-acre portion of the property that includes most of the shopping center sold for $9.5 million.
“The Lehigh Valley is one of the fastest-growing regions within the state of Pennsylvania, supported by significant job and resulting population growth. We have seen a considerable amount of both institutional and private, out-of-market capital targeting the region and retail shopping centers in particular.”
Situated on 22.6 acres adjacent to Lehigh Valley Hospital, Westgate Mall is adjacent to the intersection of Route 22 and Route 378, providing quick regional access to Lehigh Valley, Philadelphia and New York. Westgate Mall is anchored by Weis Markets, Rite Aid and Sky Zone.
“We are pleased to have finalized this acquisition and look forward to implementing Onyx’s signature, value-add strategy in partnership with PCCP,” says Stephen Sullivan, chief investment officer at Onyx Equities.
www.omegare.com
A joint venture between Onyx Equities and PCCP is acquiring Westgate Mall, a 270,000-square-foot enclosed mall at 2524 Schoenersville Road in the Lehigh Valley community of Bethlehem, PA.
The sale price was not disclosed, but according to the Allentown Morning Call newspaper, deeds recorded for the sale of two properties associated with the transaction totaled $30 million. The Morning Call said the former Bon-Ton store on the property sold for $20.5 million, and the 10.4-acre portion of the property that includes most of the shopping center sold for $9.5 million.
“The Lehigh Valley is one of the fastest-growing regions within the state of Pennsylvania, supported by significant job and resulting population growth. We have seen a considerable amount of both institutional and private, out-of-market capital targeting the region and retail shopping centers in particular.”
Situated on 22.6 acres adjacent to Lehigh Valley Hospital, Westgate Mall is adjacent to the intersection of Route 22 and Route 378, providing quick regional access to Lehigh Valley, Philadelphia and New York. Westgate Mall is anchored by Weis Markets, Rite Aid and Sky Zone.
“We are pleased to have finalized this acquisition and look forward to implementing Onyx’s signature, value-add strategy in partnership with PCCP,” says Stephen Sullivan, chief investment officer at Onyx Equities.
www.omegare.com
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