Black Creek Group, a Denver-based real estate investment management firm and non-traded real estate investment trust sponsor, sees E-commerce continue to positively impact industrial demand, particularly in coastal and urban markets. The firm has signed nearly one million square feet of leases with a “global e-commerce provider” and has another 4.5 million square feet of industrial space under development in the northeast region.
Black Creek has signed 943,000 square feet of leases with a global e-commerce provider. The leases span six full buildings across three markets in the North East Region:
- 290,000-square-foot prelease at Lodi Distribution Center, a two-building development in New Jersey. The buildings are currently under construction with an expected completion in the fourth quarter of 2020.
- 290,000-square-foot lease at Premier Business Park, a two-building industrial park located in Prince William County, Virginia.
- 156,000-square-foot lease at Paddock Distribution Center in New Jersey, which the firm recently completed construction of in the third quarter of 2020.
- 207,000-square-foot lease at Philadelphia Logistics Center, a Class A distribution warehouse.
Although Black Creek Group did not name the tenant, the Philadelphia Inquirer reported last week that Amazon will be the sole tenant at the Philadelphia Logistics Center building.
“Black Creek continues to pursue industrial opportunities as we have experienced firsthand the uptick in demand for industrial space amid the ongoing pandemic as businesses increase their e-commerce fulfillment operations as consumers shift to ordering more goods online,” said Dave Fazekas, Black Creek Group’s senior managing director for the Eastern Region. “Additionally, more and more retailers are moving from a ‘just in time’ to a ‘just in case’ supply chain strategy to avoid future disruptions, which in turn increases the demand for industrial facilities located in close proximity to dense populations to meet delivery demands and rising inventory levels.”
To address the continued industrial space demand, Black Creek has five buildings totaling 4.5 million square feet in the northeast region under development, including:
- North Valley Trade Center: a 1.3 million-square-foot two-building development located in the Lehigh Valley submarket of Pennsylvania with completion expected in the first quarter of 2021.
- Interchange @ 309: a 907,000-square-foot, three-building development located in the Lehigh Valley submarket of Pennsylvania with completion expected in the first quarter of 2021.
- Florence Turnpike Crossings: a 528,000-square-foot facility located in the Burlington County submarket of New Jersey with completion expected in the third quarter of 2020.
- Railroad Avenue: a 301,000-square-foot facility located in the Burlington County submarket of New Jersey with completion expected in the second quarter of 2021.
- 320 Dulty’s Lane: a 208,000-square-foot facility located in the Burlington County submarket of New Jersey with completion in the second quarter of 2021.
Black Creek Group is a leading real estate investment management firm that has bought or built more than $21 billion of investments throughout its more than 25-year history. The firm manages various investment offerings across the spectrum of commercial real estate – including industrial, multifamily, office and retail.