Representatives of Duke Realty’s Northeast Region took real estate professionals on a tour of Duke Realty’s new 600,000-square-foot facility in Lehigh Valley recently, and talked about the company’s long-term industrial strategy. Local dailies The Morning Call and Lehigh Valley Live covered the tour of the Palmer Township facility, the second to be leased at 33 Logistics Park.
Members and guests of CREW Lehigh Valley—a commercial real estate network of women in the industry—were shown around the warehouse, which has been leased by XPO Logistics just before completion. A third, 1-million-square-foot building is already under construction at the complex.
The third building hasn’t been leased yet, but demand in the area is high, according to Senior Vice President of the Northeast Region, Jeff Palmquist. As Palmquist explained to The Morning Call, land zoned for industrial development is getting hard to find in Lehigh and Northampton counties, which include the Route 33 corridor. Demand, in part, is driven by quickly growing internet retailers in need of distribution centers in key markets. The first building to be built at 33 Logistics Park, a 1.1-million-square-foot fulfillment center, is leased to Amazon.
Both short- and long-term timing matter in this market, said Matt Bremner, Vice President of Leasing and Development for the Northeast Region. “We build these thinking 10, 15, 20 years and multiple tenants down the road,” Bremner said. “We try to be really creative and stay ahead of the curve on market trends.”
At the same time, the buildings are designed to be occupied quickly by their first tenants. Office space and restrooms at the entrance to the newest warehouse will enable its potential tenant to get a temporary certificate of occupancy to begin operations as soon as possible. “You have to get the timing right,” said Bremner.