Philadelphia Warehouse Industry Looks Good for The Future

Philadelphia has found itself in the enviable position of being on the upswing of real estate commerce. An increase in warehouse development follows a trend we see in some major cities. Many businesses see the benefit of being in a major metropolitan area for proximity to its customers and an accessible distribution center.

Land and building developers are projecting that it’s just a matter of when they will fill their spaces, not if. In an unprecedented move, property moguls have begun buying land space and building warehouses without tenants signed in the building.

South Jersey

The increase in demand has rippled out to South Jersey. Building owners, wanting to stay close to Philadelphia, and centrally located business centers are opting to take warehouse space in New Jersey. Rent is hitting rates that are usually reserved for West Coast business real estate.

With many trying to find reasonable solutions to get their product from its last holding space to the final destination, the last mile problem, owners are confident New Jersey’s high pricing will keep Philadelphia prospects from venturing out too far, keeping its warehousing industry strong.

E-Commerce

Online shopping’s upsurge, in the grocery industry particularly, has actually helped the Philadelphia region, where others have declined. The northeast proximity, combined with the amount of South Jersey food processing & distribution centers, has continued to bolster industrial real estate.

Outlook is Good

Philadelphia is in a very strong position for industrial space and business growth. The city’s evolution has others outside of the region optimistic that the nation will begin to follow suit and present similar opportunities in the warehouse world.