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2020 Q3 Eastern Pennsylvania Industrial Big Box Report

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I-78/I-81 Submarkets | Lehigh Valley, Central PA & Northeast PA I-95 Corridor | Greater Philadelphia

Highlights

  • Industrial big-box demand has only accelerated since the onset of the pandemic. Occupiers have signed 16.9 MSF of new deals year-to-date, the largest Q3 total in the market’s history. Year-to-date net absorption, 11 MSF, is also at an all-time high for the third quarter.

  • There is less square footage under construction in 2020 than in 2019, 12.6 MSF vs. 21.2 MSF. Last year, construction activity reached a cycle peak due to many 750K+ SF projects throughout the market. Construction has returned to the historic norm.

  • Though Pennsylvania temporarily halted non-essential construction in March/April in response to the pandemic, there was little impact on the supply pipeline beyond some brief delays. The YOY decrease in construction volume was expected pre-pandemic, particularly among large-format projects in Central & Northeast PA. Construction starts rebounded in Q3 though the supply of large-format, spec construction remains tight.

  • Market-wide, vacancy is expected to decrease in the fourth quarter as there are many large, pending deals and relatively few speculative deliveries in the pipeline.

 

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2020 Q3 Eastern Pennsylvania Industrial Big Box Report

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Related Experts

Kirsten Kurz

Market Analyst

Conshohocken

Kirsten joined Colliers International in 2016 as a dedicated market analyst for the Eastern Pennsylvania Logistics Team. She specializes in market research, spatial analysis,  and data management , focusing exclusively on industrial big-box product. Kirsten is the primary author of the team's published research reports, produces labor and demographic studies,  and provides custom analytical services to the team's institutional client base. She enhances the Logistics group’s ability to provide exemplary service and works in conjunction with the Colliers in-house marketing and research departments to provide clients with greater access to our full suite of services.

Kirsten holds a Professional Science Master's in Geographic Information Systems from Temple University, giving her a strong foundation in data management and analysis.  She is an adept user of a variety of geospatial and database programs. Her role at Colliers builds on prior experience conducting market and due diligence research for Peaceable Street Capital, a financing platform of commercial real estate properties. 

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As an Executive Vice President with Colliers International, Michael specializes in major industrial projects and properties within the Greater Philadelphia region.Through the course of his career, he has developed expertise in acquisitions, dispositions, lease negotiations, ground-up development and redevelopment of both greenfield and brownfield sites, and many other aspects of industrial real estate.  This skillset, along with a deep understanding of the markets, allow him to be a trusted advisor to his clients.

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Since 2017, Tom Golarz has focused on Class A and last-mile industrial opportunities within Greater Philadelphia and Southern New Jersey. His core focus is on the sale of land for development and/or redevelopment to Class A industrial logistics space as well as Landlord/Tenant representation both within the region and nationally. During his time at Colliers, he has been involved in over $500MM in transactions of various types including land, brownfields, sale leasebacks, and Landlord/Tenant representation assignments.

With experience in a range of transactions regionally and nationally, Tom’s core focus is complex transactions involving land and surplus real estate. He routinely works with both private individuals and corporate entities to evaluate their owned real estate holdings as well as with Landlords and their capital partners to evaluate/underwrite acquisition opportunities.

He has had transactions nominated for Philadelphia Business Journal’s Best Real Estate Deals in 2018, 2019, 2020, and 2021 and was a 2022 Rising Star nominee. Tom is a 2020 Colliers Everest Club Member which is awarded to the top 10% of Colliers brokerage professionals in the U. S. based on revenue production.

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