Mid Atlantic Real Estate Journal — Spring Preview — April 27 - May 10, 2012 — 23A
www.marejournal.com
EPA/I ndustrial
By Sidney Gable, CRE, SIOR, Sidney E. Gable Associates SPRING 2012
T
he Greater Phila- delphia Commercial Real Estate Market
of Boston to build the King of Prussia Industrial Park (approx. 20 medium and large size facilities). I sold adjacent in King of Prussia ground to Philadelphia Gear where they built a new large facility moving from G & Erie Streets in Philadelphia. Their employees had to drive to work. Prior to that, public transportation was utilized. When Route 309 was con- structed to Fort Washington and the PA Turnpike. A de- veloper built the Fort Wash- ington Industrial Park. We sold ground in New Jersey
to the Korman Corporation and they built the Bellmawr Business Park at Rt. 676 and the New Jersey Turnpike. Multi-floor buildings were out of date and not cost ef- ficient. New buildings have multiple loading facilities, thereby reducing operating costs. Today’s developers are thinking GREEN with high ceilings, solar electric, and consider locations using pub- lic transportation. There is a new concept that many cities are backing called Smart Growth which emphasizes
walkability, higher density areas, and transportation access as ways to more ef- fectively use land. I am confident that chang- es in real estate will be to everyone’s advantage. There are industries that continue to expand such as metal salvage facilities. We just signed a lease for an additional 42,000 s/f with ARCA which doubles their space to 95,000 s/f, and in- creasing employee count to 100 people. Companies are changing the way they op- erate with new techniques
and equipment. Hopefully, these changes will also mean new facilities and location changes in real estate. For example we leased 135,000 s/f to MPC of Minnesota at 10551 Decatur Rd., Phila- delphia for their operation of rebuilding/recycling of com- puters and appliances. Sidney E Gable, CRE, SIOR has over 50 years of experience in commer- cial real estate. He holds degrees from The Whar- ton School, University of Penna. and an MBA from Drexel University. n
has not fully awakened. Wh i l e we continue to see several large trans- actions com- pleted, over- all activity is very quiet.
Sidney Gable
The closing of three oil refin- eries with the loss of 20,000 jobs creates a cloud over our economic environment. Many commercial brokers to whom I have spoken are not optimistic about the future. They believe the commercial market activity is very weak and 2012 will not be a good year, but better than 2011. Only two brokers believe that 2012 will be a good year. I agree with them. Commercial Real Estate is cyclical. It’s just a matter of time when the real estate activities will return to a normal number of transac- tions. I believe the downturn has ended. Overall, companies are looking to the suburbs for new facilities. The exceptions are smaller companies that can- not afford higher suburban rents. However, Philadelphia has completed some very large transactions. TEVA Pharmaceuticals obtained fi- nancial assistance and zoning approvals that were denied in the suburbs. The Naval Yard continues to attract tenants. Some large transactions were: 1. Teva Pharmaceutical pur- chased 140 acres to construct a 1,200,000 s/f facility. 2. PhilaNaval Yard, IROKAwill build $15 million building. 3. Penn Jersey, new facility PIDC Northeast Develop- ment, approx. 800,000 s/f 4. 150,000 s/f renewal on Erie Ave. 5. 1,000,000 s/f rental in Le- high Valley 6. 172,000 s/f lease in Warm- inster, PA 7. 94,000 s/f new construction in NewCastle, DE - MAGCO, Inc. of Canada. Commercial real estate is ever changing.. When I started in the business over 50 years ago, new high- ways were being built. The Schuylkill Expressway in- duced Cabot, Cabot &Forbes,
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