12C — May 29 - June 11, 2015 — Industrial / Distribution Centers — M id A tlantic
Real Estate Journal
www.marejournal.com
NAI S ummit
By Mike Adams, NAI Summit With industrial buildings showing low availability, should you wait or build?
T he availability of in- dustrial buildings for sale in the Lehigh Val- ley is at an all time low. This is creat- ing challeng- ing times for i ndu s t r i a l real estate spec i a l i s t s in servicing their clients building requirements. Locating an available mod- ern class “A” industrial prop- erty for sale is like finding a “needle in the haystack”. Mike Adams
to consider building. The problem now is the time factor. Most likely the com-
need to be addressed include budget, location, expansion and access to public trans-
Once new construction be- comes an optionmy suggestion is to always move forward with the process and to con- tinue the search for existing buildings in parallel. The process begins with the land search. Industrial Parks will always be the best option to avoid any delays in the beginning. Now for the cost education. When I started in 1987 land prices were around $45,000 per acre. These days land prices are ranging from $150,000 - $200,000+ per acre. This is especially evi- dent along the Route 33 cor- ridor in Northampton County where larger developers are snatching up land for ma- jor distribution projects and a new interchange is being finished off. The next part of the process is developing the company’s specs so that build- ers and constructionmanagers could develop pricing. I have recently been working with several companies that have explored building. Two were distribution users and one was a manufacturer with building sizes of 40,000-100,000 s/f. Including land construction prices were ranging from $70 - $100 per square foot. Pricing will vary depending on the size of the building and scope of work including more or less office, heavy power and the amount of land that is needed for future expansion. Usually the expression is sticker shock. If existing building options are not available then what is the answer for a compa- ny’s growth? Buying a second building could be an option but logistically in the long run that usually is not the answer. Companies build new facili- ties to increase productivity, to reduce operating costs, and to service customers more efficiently. Although it is a more expensive option hiring the right broker and builder will lead to a well-designed building which will serve a company long into the future and become a companies most competitive asset. Mike Adams is the Senior Vice President at NAI Sum- mit. He has over 37 years of experience in commercial and industrial real estate. He previously served as a real estate agent for Cold- well Banker Commercial Feist & Feist Realty and managed their real estate office for over 8 years. n
Buildings with 20’+ ceilings and room for expansion are very difficult to find. Industrial brokers are hired by compa- nies to execute a search of the market and report back with their findings only to hear that inventory of available proper- ties is extremely weak. Com- pany officials then wonder if we are doing our job and ques- tion if they should talk with other brokers in the market to find out if we are missing any uncovered opportunities. After meeting with them and showing the market data our next suggestion is to ask them
“Once new construction becomes an option my suggestion is to always move forward with the process and to continue the search for existing buildings in parallel. The process begins with the land search.”
pany did not plan on having to wait up to two years to be in a new location. When inventory is low where else do you turn? Do you continue to wait for the right building to turn up or do you consider the construction process? The questions that
portation. When it comes to budget existing buildings in the past have traded in the range of $40 - $50 per square foot with the price tag for new construction possibly doubling based on the size and scope of the project.
Available Industrial Space
191 Industrial Park Dr, Mt Pocono Riverside Business Ctr, Whitehall
51 Hilton Street, Easton
FOR LEASE! 15,000-32,000 sf suites in a single story Class A office/flex bldg; Ample parking and flexible floor plans; Centrally located in the Lehigh Valley; Easy access to Routes 22, I-78, 33, 512 and 145 SALE OR LEASE! 1 ,350 sf fre tanding, one story Class A industrial building set on 1 acre, 8,850 sf wareh use, 1,500 sf office, excelle t visibility, dir ctly off I-78 & close t th PA/NJ border, 24’ ceiling heights, 1 dock & 1 drive in
FOR SALE OR LEASE! 103,905 sf industrial space with 2,442 sf office area, set on 10.29 acres, clear 24’ ceiling height, 15 dock doors with levelers, 1 drive-in door, convenient location just off Rt. 611 with easy access to I-380, I-80 & 476
FOR LEASE! AGGRESSIVE RATES! 17,000 up to 40,000 sf available, dry sprinkler fire protection system, drive in doors, dock doors, easily accessible from Routes 22, 33, I-78 & 476, LV International Airport less than 3 miles away
FOR SALE! 17,746 sf industrial building in excellent condition, 15,746 sf one story ind. bldg with 2,000 sf two story office space, set on 2.12 acres, 5 tailgate doors, 1 drive in door, minutes to 78, 22 & 222, Sale Price: $545,000 2045 Harvest Way, Allentown
FOR LEASE! MOVE IN READY OFFICE SPACE! Fully furnished 7,200 sf suite, 6,400 sf warehouse space, ample parking, convenient LVIP III location, easy access to local highway systems, Airport Rd, minutes to 78, Rt 22, 476 & LV Int’l Airport 941Marcon Boulevard, Allentown
FOR SALE! 157,943 sf one story ind. bldg with 3,000 sf office space, set on 13+ acres, 16’ ceiling height, 5 dock & doors, 3 drive in doors, located right off Route 145 with easy access to Route 22, Sale Price: $2,250,000 1002 MacArthur Road, Whitehall
FOR LEASE! MOVE IN READY! 8,400 sf single story standalone ind./flex bldg set on 4.7 acres, 1,400 sf office area, warehouse clear span, 10’ ceiling height, dock door, easy access to main roads & Rts 100, 222 & 78 8007QuarryRd,LowerMacungieTwp
FOR SALE! 94,026 sf ind. building with office area set on 7.3 acres, additional 1.6 acre parking lot included, B3 zoning, 10 drive in doors, 8 dock doors, 18’-20’ ceiling height, Sale Price: $3,350,000 2118&2124Hanover Ave, Allentown
759 Roble Road, Allentown
FOR LEASE! 15,000 sf with 3 dock doors & small office, 24’ ceiling height, professional industrial park location, located just off Airport Rd & Rt 22, easy access & just minutes to PA Turnpike 476 & I-78, Lease rate: $4.50/sf NNN
CONTACT NAI SUMMIT | 610.264.0200 | 3435 WINCHESTER RD., SUITE 300, ALLENTOWN, PA 18104 | WWW.NAISUMMIT.COM RETAIL • OFFICE • MEDICAL • INDUSTRIAL • MIXED USE • LAND • INVESTMENT
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