18A — December 2025 — Northeastern Pennsylvania — M id A tlantic Real Estate Journal
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N ortheastern PA
ortheastern Pennsyl- vania entered 2025 with more volatility By Heather M. Kreiger, CCIM, Lee & Associates of Eastern & Western Pennsylvania Northeastern PA Bulk Warehouse Market: Stable in 2025 and Well-Positioned for 2026 N
Through the first three quar - ters, activity felt slower across the board. Fewer large leases closed and the average deal size pulled back from the unusually large requirements that dominated between 2021 and 2023. Even so, the num- ber of new leases this year is consistent with historical patterns. Tenants continue to choose NEPA, although their space needs reflect a more typical distribution environ- ment rather than the outsized requirements of the peak pandemic era. The pace may be more measured, but the tenant base remains engaged and diverse. A defining theme in 2025 was the adjustment in supply. After several years of heavy construction across Eastern Pennsylvania, developers paused and allowed the mar-
ket to recalibrate. With only a small amount of new product delivering this year, NEPA gradually worked vacancy down throughout 2025. By the fourth quarter, the return of positive absorption helped relieve some of the pressure created early in the year. Con - struction starts also gained momentum again, bringing the amount of space under construction to levels more in line with the pre-pandemic pe- riod around 2019. This reflects a healthier, more sustainable pace of development compared to the surge of 2021 and 2022, when the pipeline expanded at an unprecedented rate. Another trend worth not- ing is the rapid rise in data center interest across the region. NEPA offers a mix of available land, utility capac- ity, and proximity to major
population centers that aligns with the needs of large-scale operators. More than a dozen proposals are currently mov- ing through early planning or entitlement stages. These projects are still in formation, but their presence signals that NEPA is being evaluated for a wider range of industrial and infrastructure uses than in earlier cycles. Looking to 2026, the fun - damentals appear steady. The first half of the year will be shaped by a manageable delivery schedule and avail- ability levels that have been trending downward since the start of 2025. The second half could bring some pressure on vacancy as the current spec pipeline delivers. Whether that pressure emerges will depend on how quickly larger tenant requirements return
to the market. Even with this uncertainty, NEPA maintains several long-standing advan- tages including strong high- way connectivity, competitive operating costs, and proximity to major consumer hubs. Overall, 2025 functioned as a recalibration period rather than a contraction. The market absorbed a significant early shock, regained its footing, and moved into the final quarter on stable ground. Entering 2026, NEPA is adapting to changing demand, evolving development strategies, and the emergence of new industrial users, all of which will shape the next phase of the market. Heather M. Kreiger, CCIM is principal & re- gional research director at Lee & Associates of Eastern & Western Pennsylvania – Mechanicsburg, PA. MAREJ
than in re- cent years, but the mar- ket proved once again that it has a strong abil- ity to stabi- lize. Vacancy opened the
year with a sharp jump after several large blocks returned to the market, yet by year end NEPA is expected to settle back into its long-term struc- tural range near 7 to 8 percent. For a region that has absorbed multiple development cycles, shifting tenant trends, and na- tional economic uncertainty, that level of balance reinforces the underlying durability of this submarket. Heather M. Kreiger
NAI Mertz and Italiano CRE broker deals in Willow Grove and Chester
Larken Associates adds Fusion Eyewear to Westfall Town Center
850 Davisville Rd. in Willow Grove founder Dov Hertz . “This is a functional shallow-bay as- set in a high-barrier-to-entry industrial market, and we an- ticipate significant long-term rent growth.” Located 1.8 miles from the I-276 on/off ramps, the proper - ty sits within the Montgomery County submarket, one of the most established distribution corridors in the greater Phila- delphia metro area, offering strong connectivity, a deep labor pool, and proximity to key distribution nodes. Also in Pennsylvania, DH PH and DRA Advisors have ac- quired 950 Township Line Rd., a 3.5-acre site with 63,080 s/f of industrial space in two build- ings in Chester, for $6.5 million. The property, which includes a 40,080 s/f warehouse and a 15,000 s/f service facility, is fully leased to three tenants with units ranging from 7,500 to 25,000 s/f of space. The warehouse property offers nine
loading docks and one drive- in door; truck court depth of 155 feet; building depth of 65 feet, and 16’ clear heights. The service facility offers two drive- in loading docks, and 20-foot clear heights. The property was acquired in an off-market transaction from a long-term family own- er who was represented by Steve Italiano president of Italiano Commercial Real Estate Services LLC . This acquisition marks DHPH’s fourth transaction with DRA Advisors and expands their Northeast portfolio to 500,000 s/f. Strategically located .5 miles from the I-95 on/off ramps, the property sits within the Delaware County Submarket, one of the most established corridors in the greater Philadelphia metro region, offering proximity to key distribution nodes and a dense population. MAREJ
MONTGOMERY & DELA- WARE, PA — DH Property Holdings LLC (DHPH) has acquired 850 Davisville Rd. in Willow Grove, in Montgomery County, for $5.225 million in an off-market transaction. The 5.55-acre site includes a 36,597 s/f warehouse and an additional 1.16 rentable acres for IOS. The property features four dock doors, 10 oversized drive-in doors (1/2,614 s/f), 18’ clear heights, a 75’ building depth, and 81 parking spaces. The warehouse property is 100% leased to six tenants ranging from 3,700 s/f to 14,250 s/f in the warehouse, with an additional two existing IOS ten - ants. Scott Mertz , president of NAI Mertz , represented DHPH in the acquisition of the family-owned property. “850 Davisville Rd. offers a range of unit sizes, accommo- dating the robust and increas- ing demand by tenants 20,000 s/f and under,” said DHPH
Westfall Town Center
“Westfall Town Center con - tinues to attract a diverse mix of tenants that serve the daily needs of residents of Pike County and the sur - rounding communities,” said Kelly. “Fusion Eyewear is a great addition to our tenant roster at the center, and we look forward to seeing them serve residents from across the region for years to come.” Westfall Town Center is a 203,907 s/f grocery-anchored shopping center situated along Rte. 6 and easily accessible via I-84 and I-209. The center is anchored by a 73,000 s/f Shop - Rite and 25,000 s/f TJ Maxx, and is also home to a variety of complementary tenants includ- ing Planet Fitness, Dollar Tree, Flagship Cinemas, Wendy’s and Perkins Restaurant. MAREJ
MATAMORAS, PA — Larken Associates announced a 1,200 s/f retail lease with Fu - sion Eyewear LLC at Westfall Town Center, located at 111 Hulst Dr. in Matamoras. Victor Kelly , executive vice president, Commercial Division of Larken Associates, represented the firm in the transaction. Fusion Eyewear is an inde- pendently owned optical store providing a wide selection of eyeglass frames, lenses and accessories, as well as comprehensive eye exams and vision care services. The business is expanding its footprint in Pennsylvania with the opening of its second loca- tion, underscoring continued growth and strong demand for accessible, community-based eye care.
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