recent trade

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Other trends pointing to a leveling off: direct vacancy ratesinside the Greater Philadelphia industrial market rose 6.9%--upslightly from 6.39% at the close of third quarter 2007. By theclose of 2007, its annual positive net absorption figures finishedat just over 3.9 million-sf--less than when compared to the sametime a year before.

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This confluence of factors has led the industry to approach 2008with a "lie and wait" attitude. "The upcoming year will most likelybring a slow, but steady growth across the industrial propertiessector," says CBRE managing director Carl Gersbach. "However,challenges such as growing construction costs, rising financingcosts, higher cap rates and relatively flat rents will certainlyhave an impact on the marketplace."

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Still, though, the long-term fundamentals for the area remainpositive, both anecdotally and quantitatively. The $11.5 millionsale of 13500 Roosevelt Blvd., by BlackRock Realty Advisors tookplace within a 60-day period, according to CBRE, which representedBlackRock. Needham, MA-based Equity Industrial Partners purchasedthe single tenant assembly/warehouse/office asset. More deals aresure to come to market as well, Stephen Marzullo, SVP of theInvestment Properties Group, of the CBRE marketing team handlingthat deal, which also included Michael Hines, Patrick Green andMichael Mullen. "Our team has experienced an unwavering appetitefor industrial throughout this credit crisis," he says. "Currently,our team is handling an industrial sales pipeline of over 21million sf of both regional offerings and national portfolios withan aggregate value over $1.1 billion."

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Erika Morphy

Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.