Pennsylvania industrial demand fueling new spec projects
JLL Capital Markets arranged the partnership between J.G. Petrucci Company and Cabot Properties for a speculative industrial facility in suburban Philadelphia
MORRISTOWN, N.J., March 22, 2021 – JLL Capital Markets announced today that it has arranged a partnership for the development of a 148,960-square-foot, single-tenant speculative industrial facility at 59 Fretz Rd. in the suburban Philadelphia community of Souderton, Pennsylvania.
With a target completion date in the fall of 2021, the one-building facility at 59 Fretz Rd. will feature a 32-foot clear height, 24 loading positions, two drive-in doors, deep speed bays, 24 trailer storage positions, ample vehicle parking and a modern fire safety and lighting system.
59 Fretz Rd. is 30 miles north of downtown Philadelphia and along the Pennsylvania Turnpike’s northern extension. The site also has access to other important thoroughfares, including Interstates 78, 95 and 476, along with U.S. Highway 22 and State Routes 202 and 33. This allows a tenant to reach a third of the nation’s population within a 24-hour drive. The development will be within the Eastern and Central Pennsylvania Industrial market, which is considered one of the top five industrial markets in the country.
E-commerce sales could hit $1.5 trillion by 2025, which, in turn, will increase the demand for industrial real estate by an additional 1 billion square feet. In its Industrial Insight - Q4 2020 report, JLL Research details that the Eastern and Central Pennsylvania Industrial market has a total vacancy of 5.1 percent. While construction activity rose during 2020, more than half of that space is already pre-leased, causing growing asking rents and declining vacancy rates. Increasing groundbreakings in 2020 also suggest that the Eastern and Central Pennsylvania Industrial market is still in a stage of expansion. As a result, continued rent growth is expected through 2021.
The JLL Capital Markets team representing the sponsor was led by Senior Managing Directors Jon Mikula and John Plower and Vice President Mike Lachs.
Earlier this year, JLL announced that the same team arranged a partnership between J.G. Petrucci Company, Inc. and Cabot Properties, Inc. for the acquisition of a 18.31-acre land site and the development of a 225,000-square-foot light/bulk distribution industrial facility at 85 Ben Fairless Dr. in the Bucks County community of Fairless Hills, Pennsylvania. The developers expect that project to be completed this year as well.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion, operations in over 80 countries and a global workforce of more than 91,000 as of December 31, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About J.G. Petrucci Company, Inc.
With offices in Asbury, New Jersey, and Bethlehem, Pennsylvania, J.G. Petrucci is a privately held development firm specializing in design/build construction. The company has over 34 years of experience in the design, development, redevelopment and acquisition of commercial, industrial, educational, multifamily and healthcare properties.
J.G. Petrucci Company, Inc., has delivered more than 700 design/build projects for local, regional, and national leaders in a variety of industries. In addition, the firm owns and operates over 4.5 million square feet of commercial, industrial and retail properties; 2,000 luxury apartment homes; and has extensive land holdings to offer its clients throughout New Jersey and Pennsylvania.
For more information on J.G. Petrucci Company, Inc., visit jgpetrucci.com or call 908.730.6909.
About Cabot Properties, Inc.
Cabot Properties is an international private equity real estate investment firm exclusively focused on industrial properties. Formed in 1986, the firm is a leading investor, developer and operator of industrial properties throughout North America, the United Kingdom, Europe and Australia. Cabot has invested over $10 billion in industrial real estate, managed nearly 3,900 tenants, and operated over 1,400 buildings totaling approximately 190 million square feet. Cabot is headquartered in Boston with affiliated offices in London, Sydney, Dallas and Chicago.