Greater Philadelphia has experienced tremendous growth in its industrial sector. In the last year, nearly $1.6 billion of industrial space has been traded, an enormous increase from the $166 million in 2009.
Investors search for properties in urban areas that are often less than 200,000-square-feet and seek specific features, such as loading docks, column spacing, ceiling height, and more.
“The reason why these buildings are becoming more valuable in Philadelphia is because you can reach the consumer in a shorter length of time,” said Matthew Marshall, an industrial broker with Cushman & Wakefield.
The change in distribution has played a crucial part in the industrial industry. Customers expect products to be mailed directly to them when years ago customers were more likely to visit a brick and mortar store.
Greater Philadelphia’s transportation network has also been an important factor in the change of distribution and industrial growth. Accessibility to the New Jersey Turnpike, the Port of Philadelphia, and more, have made it easier for products to reach customers quickly, making our region more valuable for companies in need of distribution centers.
In August, Amazon announced that it opened its new fulfillment center in Burlington County, New Jersey. Amazon has become a major employer in the region due to its multiple distribution centers throughout our region.