This Week's Philadelphia Deal Sheet: Industrial Vacancy Rate Drops Regionwide In Q3
Vacancy rates in greater Philadelphia’s industrial market have dropped for the first time since the end of 2022, though the city itself isn't seeing much change.
The regional vacancy rate was 6.5% in the third quarter, down from 7% in Q2, according to a new report from Colliers.
The trend was driven by high absorption in the Lehigh Valley, South Jersey and New Castle County, Delaware. Those areas saw vacancy rates in the sector drop from 6.6% to 5.7%, 8.2% to 7.6%, and 7.4% to 5.8%, respectively.
That movement wasn't mirrored in Philadelphia or the Pennsylvania collar counties, where the metric remained nearly flat quarter-over-quarter.
Colliers predicted the regional vacancy rate will rise again in Q4 with 7.7M SF of speculative construction expected to come online in the next three months.
PEOPLE
Law firm Polsinelli has added a new shareholder to its Philadelphia office and real estate practice group. Gary Clarke, who has experience with site acquisition, land use approvals and leasing, joined earlier this month. The addition is part of Polisinelli’s effort to expand its real estate practice nationwide.
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Tourmaline Capital Partners has announced it is moving into the life sciences space. The effort will be spearheaded by new President of Life Sciences William “Bill” D. Hunter, who has worked in the sector for more than two decades and completed more than $10B in acquisitions.
“I have dedicated my career to understanding the symbiotic relationship between science, the built environment, and its end users, and look forward to applying this research-driven approach to Tourmaline’s operating ethos of elevating ‘work as it could be and should be,’” Hunter said in a release.
SALES
Brandywine Realty Trust has sold the five-building Plymouth Meeting Executive Campus to FLD Group and the Adjmi family for $65.5M, the Philadelphia Business Journal reported. The 521K SF campus near the Plymouth Meeting Mall on Germantown Pike went for $126 a foot.
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BenchmarkReal Estate and Regal Ventures have purchased the 25-acre Crownwood Industrial Estates at 805 N. Wilson Ave. in Bristol, CityBiz reported. The site, which includes three buildings and space for further development, is operating under an industrial condo model. As part of the transaction, the site’s largest industrial tenant also purchased one of the complex’s buildings.
The sale price wasn't disclosed.
“While a condominium strategy isn’t typical for industrial properties, it was highly fitting for us in orchestrating this complex deal,” Benchmark Vice President of Real Estate Development Mike Callahan said. “It provided a level of flexibility that made it easier for us to both execute the internal sale and also maximize future opportunities associated with the development site.”
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The Kislak Co. has sold a 10-unit apartment building at 1005 Trenton Ave. in Point Pleasant, New Jersey, for $3.5M. Senior Vice President Daniel Lanni facilitated the sale to L State Realty LLC on behalf of WSJ II LLC.
CONSTRUCTION AND DEVELOPMENT
Officials and developers celebrated the groundbreaking of a 48-unit affordable housing complex in Felton, Delaware, on Tuesday. Carson Development and the Delaware State Housing Authority utilized the state’s Low-Income Housing Tax Credit program to fund the construction of the Reese Apartments, local ABC affiliate WMDT reported.
THIS AND THAT
Philadelphia homebuyer Brotherly Love Real Estate is stepping into the region’s warehouse market. Company officials cited a surge in demand for logistics and distribution centers as their motivation for the shift.
“We’ve got warehouses that need buyers and buyers who need warehouses,” co-founder Jon Sanborn said in a release. “Seems like a match made in heaven, doesn’t it?”
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Five professionals were inducted into the Greater Philadelphia Real Estate Hall of Fame at its inaugural event earlier this month.
The inductees were Kevin Flynn Sr., founder of the Philadelphia real estate firm Flynn Co.; the late Fred Jaindl, founder of the Allentown development company Jaindl Land Co.; Bob Johnson, a partner at the Allentown law firm Stevens & Johnson LLC; Charlie Walters, a co-founder of the South Jersey development company the Pureland Group; and Joseph Zuritsky, chairman of Parkway Corp., a Philadelphia parking and development company.
The Greater Philadelphia Real Estate Hall of Fame was established to annually recognize exceptional professionals in commercial real estate. The inaugural group of inductees “are legends in the industry, led distinguished careers that span decades, and have had a lasting impact,” according to a release.
CORRECTION, OCT. 31, 10:34 A.M. ET: An earlier version of this story incorrectly reported the dollar value of acquisitions made by Tourmaline Capital Partners President of Life Sciences William Hunter. It has been updated.
