What’s the status of the industrial and commercial markets?

The Greater Philadelphia region has long been recognized as a pivotal logistics hub, but the landscape has undergone a significant shift due to the pandemic. The surge in e-commerce giants leasing extensive urban space in Philadelphia and Southern New Jersey has transformed the market. CBRE notes this transformation, especially around the former PES Refinery site and in atypical last-mile logistics locations. Anticipated is a continued rise in demand for industrial spaces through 2021. However, repurposing defunct retail spaces for large commercial use presents challenges. Factors like traffic flow adjustments and rent disparities between industrial and prime urban commercial sites are significant considerations. CBRE expects a strategic shift towards either 100% last-mile or hybrid brick-and-mortar/last-mile setups where favorable conditions align.

Where are the emerging hotspots for industrial growth?

Over the last year, New Castle County in Delaware and Burlington County in Southern New Jersey have emerged as key epicenters for industrial space within the Northeast. This shift is attributed to industrial users’ deliberate assessment of critical factors such as the NJ Turnpike’s expansion, labor availability, and accessibility to Philadelphia’s urban core, while simultaneously supporting logistical operations across the wider Northeastern region.