6C — August 11 - 24, 2017 — Pennsylvania — M id A tlAntic

Real Estate Journal


P ennsylvania

AYNE, PA — New- m a r k K n i g h t Frank (NKF) an- 2Q17 greater Philadelphia industrial market report: Warehouse rents rise with increased demand shupak & Bell of Newmark Knight Frank’s suburban 3hiladelphia office complete sale of ,000 sf building W

throughout the entire process. We have worked with them previously and have always been impressed with their guidance and knowledge of the market.” In other news, Newmark Knight Frank released its second-quarter 2017 reports for the Greater Philadelphia region and the I-81/78 Cor- ridor industrial markets this week. Greater Philadelphia’s industrial market closed the second quarter of the year with 540,000 s/f in positive absorption. While the vacancy rate sta\ed level from the first quarter of 2017, it has dropped 110 basis points from one year ago to 6.8%. Several warehouse buildings also delivered, while the I/81-78 Corridor continued to capture the majority of the construction pipeline. Southeastern Pennsylva- nia’s vacancy rate, at 6.9%, remained flat for the fourth consecutive quarter. Accord- ing to Eustace Wolfington, NKF senior managing director, “The market remains strong, and product is in sparse sup- ply. Transactions as a whole are still difficult to complete however, rents are climbing as competition for space drives vacancy down. Available user product for sale is also in short supply, which is running to the benefit of the Sellers. Class A product has a short shelf life which is moving the price points on the B & C product.” The second quarter closed with 87,344 s/f in positive ab- sorption for the market. Bucks County posted the largest posi- tive absorption with 516,224 s/f of occupancy gains, fol- lowed by Philadelphia County with 110,416 s/f. Absorption in Bucks County was driven by Almo occupying 299,192 s/f at 16 E. Cabot Blvd., and Amazon occupying 104,074 s/f at 2251 W Cabot Blvd. In Philadelphia County, absorption can be at- tributed to Certified 0oving and Storage occupying 39,400, and Menasha Packing occupy- ing 53,000 at 700 E. Erie Ave.. Rents for warehouse prod- uct fell $0.05 per square foot to $4.39 per square foot. Over- all, the Central Pennsylvania submarket recorded 1.6 mil- lion s/f in positive quarterly absorption, while the Lehigh Valley and Northeastern Pennsylvania submarkets posted just over 700,000 s/f and just over 400,000 s/f in positive absorption. n

nounced that Neil shupak and Justin Bell , of NKF’s suburban Philadelphia of- fice, represented the seller, Patriarch VIII, LP, a part of Patriarch Management, LP in the sale of 212 Church Rd. for $3.7 million. The 94,000 s/f one-story building is situated on 8.5 acres adjacent to the Pennbrook Business Center. Gorman & Company, the new owner, has plans to convert the building into a high-end, climate controlled self-storage

Neil Shupak Justin Bell facility. The building’s at- tractive exterior façade, large parking field, ceiling height and proximity to a densely populated residential market make it ideal for a conversion to self-storage. Patriarch Management, the seller, owns several other

212 Church Rd.

buildings in and around the Pennbrook Business Center, including the building next door that the previous tenant of 212 Church Rd., ICON Clinical Research, now occupies. In ad- dition, Patriarch owns high-end office, warehouse, a neighbor-

hood convenience center and multifamily communities in Pennsylvania. Tony Imbesi a partner at Patriarch said, “We purchased this building at auction a little over a year ago and Neil and Justin were extremely helpful



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