(Read more on the industrial market.)

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LEHIGH VALLEY, PA-Chicago-based Higgins Development Partners'development spree throughout Eastern Pennsylvania is far from over.Having completed more than 1.9 million sf of warehouse distributionspace at four buildings between Harrisburg and the Lehigh Valley in2007, it looks to add another 1.4 million sf in Coolbaugh Townshipand has a Carlisle site under contract that can accommodate inexcess of 500,000 sf.

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The development cost comes in at about $50 per sf, according toGene Preston, SVP, who is located in the company's Morristown, NJoffice. That puts its 2007 investment at about $100 million hetells GlobeSt.com. The 85.5-acre Coolbaughsite Arcadia North Business Park, which Higgins acquiredfor $14 million, would add another investment of approximately $28million. The close of the Carlisle land deal would ratchet that upby an additional $10 million.

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This is all part of Higgins' Eastern Pennsylvania strategy."We're still very bullish on Pennsylvania," Preston says, "andwe're actively looking for land opportunities in the Lehigh Valleyand west to Greater Harrisburg and the I-78 corridor." He puts landprices in the Lehigh Valley at between $150,000 and $175,000 anacre, "slightly less as you head west," he says, adding "pricesleveled off in second quarter 2007, but they have not comedown."

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One of the four completed buildings is a 503,000-sfbuild-to-suit for PepsiCo in the Crestwood Industrial Park at545 Oak HillRd. in Mountaintop. The other three, aggregating nearly 1.4million sf, were built on spec and are in the process of leasingup. Higgins is asking $4.25 per sf for the 400,260-sf asset at 68Green Mountain Rd. in the Humboldt Industrial Park in Hazelton,which is designated a Keystone Opportunity Zone that provides taxexemptions.

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The asking rate at the 602,000-sf facility at 1700 Ritner Hwy.in Carlisle is also $4.25 per sf. The asking rate for the385,000-sf warehouse/distribution building in Arcardia WestIndustrial Park at 9747 Commerce Circle in Weisenberg Townshipmoves up a notch to $4.50 per sf. It is designed as a single-tenantor multi-tenant facility, and Preston says, "we're closing in on adeal. It could be one or two tenants." Groundbreaking on the largeCoolbaugh parcel awaits a build-to-suit client. "We've had a numberof expressions of interest," Preston says.

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