Lehigh Valley Industrial Space

Lehigh Valley Industrial SpaceWolf Commercial Real Estate is the Lehigh Valley commercial real estate broker that buyers, sellers, owners and tenants rely on for their Lehigh Valley industrial space needs.

We specialize in all types of available industrial space in the Lehigh Valley and surrounding area, from traditional space for warehousing and manufacturing to more complex Lehigh Valley industrial flex space appropriate for multiple uses under one roof, such as offices, showrooms, warehousing and more.  Wolf Commercial Real Estate is the Lehigh Valley commercial real estate brokerage firm with the people, the power and the connections you need to turn your commercial real estate goals into reality.

The team of real estate professionals at Wolf Commercial Real Estate maintains a total commitment to client-focused relationships, providing unparalleled service and proven expertise.  As a premier Lehigh Valley commercial real estate broker, we supply clients and prospects with ongoing detailed information about Lehigh Valley industrial flex space to help them meet their commercial real estate goals.

Buyers and tenants trust our Lehigh Valley commercial real estate brokerage firm to select the available industrial space in the Lehigh Valley that is ideal for their needs. Our experts then examine the sale or lease terms to assure that they enhance your commercial real estate goals. At Wolf Commercial Real Estate, we’re by your side every step of the way to facilitate a smooth transition to your new Lehigh Valley industrial flex space.

Owners and investors recognize the value of the defined marketing process our Lehigh Valley commercial real estate brokerage firm has developed.  Our marketing plan is customized to each property and sub-market, making it uniquely effective in matching buyers and tenants with available industrial space in the Lehigh Valley and surrounding area.  Demand is high for Lehigh Valley industrial space.  If you are thinking about selling or leasing your Lehigh Valley industrial flex space, act now to take advantage of favorable market conditions.

For more information about Lehigh Valley industrial space for sale or lease, please contact Wolf Commercial Real Estate, the Lehigh Valley commercial real estate broker that clients depend on for all their Lehigh Valley commercial real estate needs.

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ShipHero Subleases Lehigh Valley Warehouse

ShipHero has subleased a warehouse facility at 6736 Tilghman St. in Allentown, Pennsylvania.

The U.S. multinational e-commerce logistics company is taking the entire 150,0000-square-foot industrial building called Iron Run Distribution Center II.

ShipHero will use the Lehigh Valley warehouse as a fulfillment center. It will be the company’s ninth location in the country.

The 150,000-square-foot building was developed in 1975. Prologis acquired the property in January as part of the Black Creek Group portfolio deal.

*Article courtesy of CoStar

For more information about Lehigh Valley space for sale or lease inLehigh Valley or about any other Lehigh Valley properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier  Lehigh Valley commercial real estate broker that provides a full range of  Lehigh Valley commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Lehigh Valley commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Lehigh Valley commercial properties for lease or sale through our  Lehigh Valley commercial real estate brokerage firm.

Lehigh Valley Not Terribly Affected by Coronavirus Through the Second Quarter

The coronavirus caused some minor disruption to Pennsylvania’s Lehigh Valley logistics market through the second quarter, but fallout from the pandemic was largely limited to investment activity.

Roughly 60 deals closed through 2020’s tumultuous first two quarters, but only a handful finalized from April through June. With one exception, these were small properties trading between local buyers.

Given the uncertainty, its understandable why investment remains mostly muted through the third quarter; However, a June acquisition of the five-star, 475,000-square-foot LogistiCenter 33 could indicate investor confidence slowly coming back. The $62.5 million deal was easily the largest of the quarter and involved Black Creek Industrial. The Denver-based REIT acquired the asset for roughly $130 per square foot, comparing quite favorably to the market average near $85 per square foot.

Nearly everyone involved in the logistics industry remains bullish about its future, and it’s not hard to see why. The pandemic has forced the nation to rapidly adapt to online shopping, and e-commerce levels surged through the second quarter. According to Adobe’s Digital Economy Index, e-commerce growth has accelerated about five years in the past three months. Total online spending for May, at $82.5 billion, is up 77% from that same time in 2019.

Lehigh Valley is uniquely situated to take advantage of this trend. The market is at the intersection of I-79 and I-476, which allows distributors direct access to all the northeast’s major cities as well as other prominent shipping nodes like Nashville and Columbus.

Consequently, more than 10 million square feet was underway at the time of the shutdown, and builders still managed to deliver roughly 1 million square feet through the second quarter. The most notable of these new properties was at 7378 Airport Road, a 450,000-square-foot distribution center near the international airport in Bath.

The airport area has seen a flurry of construction and leasing activity in recent years. Within a five-mile radius, there’s close to 2.3 million square feet of logistics space underway, and it was here that the biggest lease of the second quarter finalized, when Geodis signed for a million square feet in April.

This type of sustained demand has given owners the confidence to continue building in the midst of a world-altering pandemic, and close to 2.3 million square feet broke ground between April and June.

While vacancies understandably softened somewhat through the second quarter, this is largely the result of incoming supply and a handful of moveouts. Because of the primacy of location in shipping, Lehigh attracts some of the biggest names in logistics, and it had a relatively low level of at-risk tenants when the coronavirus arrived. This should insulate owners of existing supply in the coming months, as millions of square feet in spec space arrives.

CoStar data shows less than half of this space was pre-leased at the end of second quarter, and an excess of supply might drag on rents. However, growth over the past several years has been otherwise healthy, and year over year changes remained positive through the second quarter. At the end of June, the average space in Lehigh was leasing for close to $6.20 per square foot, a year-over-year change of nearly 5%.

Lehigh will remain a market worth monitoring through the third quarter. New space arriving during so much uncertainty will test demand like never before and the speed of lease-up will likely impact both rents and investment volume.

*Article courtesy of CoStar News

For more information about Lehigh Valley industrial space for sale or lease in Lehigh Valley or about any other Lehigh Valley properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate broker that provides a full range of Lehigh Valley commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Lehigh Valley  commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Lehigh Valley  commercial properties for lease or sale through our Lehigh Valley commercial real estate brokerage firm.

Pennsylvania’s Lehigh Valley Transportation Infrastructure Source of Strength During Uncertain Times

The Lehigh Valley was a premiere logistics hub before the coronavirus hit, and it looks remarkably well positioned to maintain that stature through the coming quarters.

The map below the location of distribution space occupied by America’s most troubled retailers – those that either had S&P credit rating of BBB – or lower even before the coronavirus took hold, or were cited as particularly high risk borrowers by other ratings firms leading up to the current crisis.

Many of these firms will outlast the coronavirus, but the fact that they occupy more than 170 million square feet of distribution space throughout the U.S. hints at potential trouble spots for the industrial sector. Companies like Kmart were already downsizing their distribution presence pre-pandemic, and a few firms, including Office Depot, have already announced they planned to shutter some distribution spaces permanently in recent weeks.

But despite its large inventory of more than 100 million square feet of logistics space, the Lehigh Valley has notably fewer of these troubled tenants, which make up 0.7% of the local logistics space. That’s well below other nearby distribution hubs in Harrisburg and Scranton, and also less than half the share found in other major U.S. markets such as Kansas City and the Inland Empire.

Whether it’s simply luck that Lehigh Valley has less exposure to these old line retailers, or a reflection of the market’s particular appeal to the most advanced and dominate logistics chain operators such as Amazon.com, Fedex, and Walmart, is unclear. Either way, the market’s unique location should help it continue to garner tenant interest as the economy begins to recover.

Lehigh’s main advantage over its neighbors is that it lies at the intersection of interstates 78, 80 and 476. These routes not only offer direct access to New York City and Philadelphia, they also allow for optionality. Drivers can use I-78 to access markets to the west, while I-80 and I-476 makes it easy to deliver across the mid-Atlantic and Northeast.

Brian Knowles, a principal at Lee Associates near Philadelphia, said that location trumps rents in this industry.

“Rents obviously mean something,” he said. “But if more than 60% of my cost is in transportation expenses, location is more important.”

Knowles has been leasing warehouses for decades, and has witnessed the evolution of eastern Pennsylvania’s logistics market first hand. Shippers flocked to the region, and developers have added close to 85 million square feet across these markets over the last decade.

Knowles credits Lehigh’s growth to its labor pool as well. The costs of being that close to the Port of New York and New Jersey became prohibitively high for those moving goods within the region. Rents in the Newark submarkets, close to the port, lease for about $12 per square foot these days. But the labor is pricier too, and there’s less of it.

Eastern Pennsylvania, a manufacturing hub hurt by decades of outsourcing and automation, offered a deeper, and cheaper, pool of workers in a better location for moving products across the country.

Knowles is also quick to point out that while the Valley might be Pennsylvania’s strongest positioned market right now, he firmly believes other major Pennsylvania markets will weather the storm well, too East Pennsylvania’s location is as strong as before, its labor pool is still deep, and the virus will likely accelerate the growth of e-commerce.

“When I started, the guy in charge of supply chains and logistics worked in some backroom of the warehouse,” said Knowles. “Now, he’s in the executive suites near the CEO.”

*Article courtesy of CoStar News

For more information about Lehigh Valley industrial space for sale or lease in Lehigh Valley or about any other Lehigh Valley properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate broker that provides a full range of Lehigh Valley commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Lehigh Valley  commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Lehigh Valley  commercial properties for lease or sale through our Lehigh Valley commercial real estate brokerage firm.

Census: Lehigh Valley Leads Pa. in Working-Age Population Growth

The latest data released by the U.S. Census Bureau involving national and Lehigh Valley commercial real estate markets shows Pennsylvania continues struggling to lure new industries and working age residents. The U.S. population aged 20-64 increased by 0.25 percent last year, but of Pennsylvania’s 67 counties, only seven surpassed this growth rate and 55 experienced net declines.

The highest levels of working-age population growth (ages 20-64) in the U.S. commercial real estate market – including Lehigh Valley industrial space – occurred in the counties surrounding Philadelphia.

This CoStar Realty Information Inc. report involving U.S. and Lehigh Valley commercial properties is being made available through Lehigh Valley commercial real estate broker Wolf Commercial Real Estate, a Lehigh Valley commercial real estate brokerage firm.

Lehigh Valley is the state’s fastest growing region for working-aged adults. The county grew by 0.5 percent in 2018, adding over 1,000 residents. The region and its U.S. and Lehigh Valley commercial real estate listings have benefited tremendously from the logistics boom, adding around 16,000 transportation jobs this decade, doubling the number of transportation workers.

The latest population figures among national and Lehigh Valley commercial real estate properties don’t surprise Lehigh Valley Economic Development Council President and CEO Don Cunningham.

“A lot of our growth has been from young people,” Cunningham said in speaking of the U.S. commercial real estate market – including Lehigh Valley industrial space. “Thirty percent of the population in our cities is between 18 and 34, and we have a lot of young people moving into the area for the jobs.”

Cunningham believes trucking is playing a role, but that other factors among national and Lehigh Valley commercial real estate listings are at play in the Lehigh Valley as well.

“Distribution is definitely our fastest growing employment sector, but our biggest employers are in finance, insurance, and real estate, as well as advanced manufacturing,” Cunningham said. “It doesn’t hurt that we’re also an hour and a half from New York City and Philadelphia.”

This logistics growth is likely fueling central and northeast Pennsylvania’s population gains. In counties like Monroe, York and Lebanon, the trucking and distribution industries are generating new blue-collar jobs sorely lacking in other parts of the state. This growth helps to attract residents from nearby counties, and helps local families remain in their hometowns rather than move to other parts of the country in search of viable employment. – By Adrian Ponsen and Ben Atwood, CoStar Realty Information Inc.

For more information about Lehigh Valley industrial space or other Lehigh Valley commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) or Lee Fein (lee.fein@wolfcre.com) at Wolf Commercial Real Estate, a leading Lehigh Valley commercial real estate broker that specializes in Lehigh Valley industrial space.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Lehigh Valley commercial real estate brokerage firm that provides a full range of Lehigh Valley commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Lehigh Valley commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Lehigh Valley commercial real estate broker with expertise in Lehigh Valley commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Lehigh Valley industrial space with the Lehigh Valley commercial properties that best meets their needs.

As experts in Lehigh Valley commercial real estate listings and services, the team at our Lehigh Valley commercial real estate brokerage firm provides ongoing detailed information about Lehigh Valley commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Lehigh Valley industrial space for sale or lease, Wolf Commercial Real Estate is the Lehigh Valley commercial real estate broker you need – a strategic partner who is fully invested in your long-term growth and success.

Please visit our websites for a full listing of South Jersey and Lehigh Valley commercial properties for lease or sale through our Lehigh Valley commercial real estate brokerage firm.

MINIMIZING RISK IN SELLING OR DECOMMISSIONING INDUSTRIAL PROPERTY UNDER ISRA

industrial buildingIn an improving economy, industrial property can change hands frequently. In a declining one, industrial property owners may be forced to wind up operations and close the facility. If you own or intend to purchase or shut down an industrial facility in New Jersey, pay particular attention to the provisions contained in the state’s Industrial Site Recovery Act.

ISRA is a unique environmental law that requires industrial facility owners and operators to investigate and remediate environmentally impacted media prior to the sale, transfer, or decommissioning of certain types of businesses. The thrust behind the law centers on the assumption that such industrial establishments, typically of the manufacturing variety, discharge, intentionally or not, contaminants during their useful life. Thus, before a sale, transfer, or closure, such property should be cleaned up appropriately. While there are exceptions, ISRA generally governs as follows.

ISRA applies to any individual or entity, corporate or governmental, who owns an industrial establishment, owns the real property of an industrial establishment, or operates an industrial establishment in New Jersey. The law only regulates those facilities listed in ISRA’s Appendix C and as defined by the North American Industry Classification System (NAICS) codes therein. Such industrial
establishments falling under ISRA’s purview include those used for chemical manufacturing, hazardous waste treatment and disposal, and utilities, to name a few. In addition, to qualify as an industrial establishment for purposes of ISRA, the business must have operated in the state on or after December 31, 1983 and use and/or store hazardous substances as defined by the state’s Spill Compensation and Control Act.
As the owner or operator of an industrial establishment, the need to comply with ISRA arises after a triggering event. Triggering events include significant changes in ownership or operation, such as business and property sales, cessation of operations, and leases for 99 years or longer. Examples of transactions not subject to ISRA include corporate reorganization not substantially affecting facility ownership, stock transfers, and easement grants. Similarly, portions of solid or hazardous waste facilities and undeveloped or vacant land are not considered industrial establishments for purposes of ISRA.

If a facility is subject to ISRA, and it does not qualify for any of the waivers or exemptions contained therein, the owner or operation must file a General Information Notice within five (5) days of any triggering event. Once notice is made, the owner or operator must conduct an environmental investigation in compliance with New Jersey’s Technical Requirements for Site Remediation,
found at N.J.A.C. 7:26E. At a minimum, a Preliminary Assessment (PA) must be performed by a Licensed Site Remediation Professional (LSRP) to identify any and all Areas of Concern. It should be noted that the scope of a PA differs materially from the American Society for Testing and Materials’ Phase I standard.

As such, if the PA discovers Areas of Concern, a subsequent Site Investigation shall be performed. The Site Investigation will explore the contaminants and determine if such exceed the current remediation standards contained in N.J.A.C. 7:26C. If contaminant levels exceed current standards, a Remedial Action Workplan (RAW) shall be proposed. The LSRP will oversee all remedial investigations and shall deliver a Response Action Outcome (RAO) once the property is deemed to be remediated to current state standards. For establishments undergoing a sale or transfer, an owner or operator must obtain an RAO, or a LSRPcertified RAW, before the transaction. For properties shutting down, an owner or operator must notify NJDEP after closing and submit a RAO or LSRP-certified RAW thereafter.

ISRA does however, allow an owner or operator to transfer ownership without an RAO or RAW in limited circumstances. An owner or operator may submit a remediation certification pursuant to N.J.A.C. 7:26B-3.3(c) instead of a RAO, or the Department can approve a regulated underground storage tank or remediation in progress waiver or a de minimis quality exemption. It should be stressed that both an owner and/or operator are strictly liable, without regard to fault, for compliance with ISRA. An
owner or operator’s failure to comply with ISRA allows a potential purchaser to rescind the sale and recover damages. Thus, it is of great importance, whether you are looking to buy, sell, or shutter an industrial establishment in New Jersey, to contact an attorney experienced in ISRA. The cost of doing business is great, but the cost of non-compliance is even greater.

For more information, please contact:

julie-lavanJulie LaVan, Esq.
New Jersey Office
11 E. Main Street
Second Floor
Moorestown, New Jersey 08057
(o) 856-235-4079
(f) 856-235-4018

michael-kondrlaMichael Kondrla, Esq.
Philadelphia Office
1515 Market Street – Suite 1200
Philadelphia, PA 19102
(P) 215-854-6398
(f) 215-596-0216

4 Negotiation Techniques To Help You Close The Deal

Negotiation techniques will not only save you time and money, but will assist you in closing your very next real estate investing deal. The first rule of any negotiation is to amass as much information about the person sitting across the table from you. Remember, the key is to try to create a win-win and solve their problem.

 

Key Takeaways:

  • When we negotiate a purchase, we analyze the numbers through our deal analyzer.
  • Negotiations on your first real estate deal will bring out the nerves the first time around.
  • 4 techniques that I will cover today and then dive into each one:Red Herring, Put offer in writing, Counter their offer, and Draft the contract.

 

“The goal of any author, other than becoming a best-selling author, is to convey their credibility and experience through the publication of their book.”

 

Read full article here