10C — May 29 - June 11, 2015 — Industrial / Distribution Centers — M id A tlantic
Real Estate Journal
www.marejournal.com
NAI M ertz
By Scott Mertz, SIOR, NAI Mertz Speculative industrial construction is on the rise in Southern New Jersey
familiar, and s ome t i me s d r e a d e d , ‘Construction Ahead’ signs are appear- ing on roads throughout the Nor th- e a s t . B u t W
a veritable big box boomtown. Upper Burlington County has long been an industrial destination due to its incredible highway access—both I-295 and the New Jersey Turnpike traverse the area—and Exit 6 offers direct access to the Pennsylvania Turnpike. With the extreme popularity of on- line shopping and consumers looking for immediate delivery, the ability to efficiently cover a broad distribution area has grown in importance to dis- tribution and manufacturing companies, resulting in a surge of groundbreakings, and new leasing activity, from Burling-
ton to Bordentown. The wave of new construc- tion began with several high- profile firms opting to relocate or expand in Burlington Coun- ty. In 2014, Subaru of North America completed a 526,000 s/f parts distribution facility in NFI Park, and Destination Maternity broke ground on a 406,375 s/f distribution and fulfillment center in Haines Industrial Center. Burlington Coat Factory reaffirmed its commitment to the county by embarking on construction of a new 200,000 s/f corporate headquarters on Route 130. Recently, Grainger announced
it would relocate to Borden- town’s Central Crossings. At 1.3 million s/f, Grainger’s new facility will become the larg- est commercial warehouse in the state of New Jersey when completed in 2016 – surpassing Amazon’s newly opened Rob- binsville facility. Incentives have been another factor in tipping the scales in New Jersey’s favor when at- tempting to attract or retain companies with high employee counts. Several of the recent construction projects were fos- tered by GROW NJ incentive packages. Florence Township also offers a PILOT (Payments In Lieu Of Taxes) incentive that been successful in attracting companies, including Subaru. With clear demand for logis- tics centers, institutional own- ers have responded by specu- latively developing massive distribution warehouses that can serve as regional hubs or corporate headquarters. These new state-of-the-art facilities typically feature30+ foot ceiling heights and the potential for 100+ loading docks. Cedar Lane, which is just off Exit 6 of the New Jersey Turn- pike and Route 130 in Florence, is a particular hot spot for new construction. Here, the Coving- ton Group has plans to build a 577,000 s/f cross-docked facility, and across the street, Liberty Property Trust plans to deliver a 633,600 s/f cross-docked facil- ity. At NFI Park at Florence Crossing, a second phase of con- struction is set to begin. There will be a 315,000 s/f expansion of one of the existing buildings and a new building of 336,000 s/f will be delivered. In Burlington, Clarion Part- ners is set to begin Phase I of Burlington Industrial Park, a four-building park totaling 1,600,000 s/f. The first two buildings – 478,000 s/f and 172,000 s/f – are set to be de- livered in Fall 2015. Just off Route 130 on Campus Drive, Exeter Property Group is con- structing a 180,000 s/f class ‘A’ warehouse. Boasting an ideal location close to some of New Jersey’s major highways, competitive incentive packages, and brand new first rate facilities coming available, the ‘Under Con- struction’ signs at Exits 6 and 7 in upper Burlington County should witness a steady stream of traffic. Scott Mertz, SIOR is presi- dent of NAI Mertz. n
ith the onset of warmer tempera- tures, the all too
New Jersey, to the point where new construction has returned in a big way. Much of this new construc- tion is occurring in Burlington County around Exits 6 and 7 of the New Jersey Turnpike. Be- cause these Exits off the Turn- pike offer proximity to bothNew York City and Philadelphia, and central locations in the densely populated Northeast corridor, the cities of Burling- ton, Florence and Bordentown have become magnets for firms looking to establish new dis- tribution and manufacturing centers. With over 5,000,000 s/f currently proposed, the area is
Scott Mertz
in southern New Jersey, the ‘Construction Ahead’ signs are welcome signs of construction. The “Construction Ahead’ signs indicate the rebound of the industrial market in southern
Redevelopment Site | Hamilton, NJ • 1,050,000± SF industrial facility on 65.70± acres • Site is adjacent to NJ Transit station and I-295 • Zoned for Redevelopment
Build to Suit Industrial | Florence, NJ • 577,200± SF industrial / warehouse building • Divisible; Potential 30 Year Tax Abatement! • Easy access to the NJ & PA Turnpikes & I-295
Warehouse & Showroom | Barrington, NJ • 141,470 SF warehouse with office & showroom • Frontage on New Jersey Turnpike
Captains of Industrial. NAI Mertz has served the industrial and commercial real estate needs of Greater Philadelphia, Southern New Jersey and Northeastern PA and beyond for over 30 years.
naimertz.com Mount Laurel, NJ +856 234 9600 Philadelphia, PA +215 221 1100 Southampton, PA +215 396 2900 Wilkes-Barre, PA +570 820 7700
Sunshine Market Complex | Wilkes-Barre, PA • 185,984 SF warehouse for lease (divisible) • Pad sites avail; Rt 315 frontage; I-81 visibility
Made with FlippingBook - Online magazine maker