LOGAN TOWNSHIP/SWEDESBORO, NJ—Cushman & Wakefield’s Pennsylvania-based industrial brokerage team recently inked an 80,750-square-foot lease with Ryder Logistics at 395 Pedricktown Road in Logan Township, while arranging the renewal of UPS’s 251,044-square-foot lease at 200 Birch Creek Road in Swedesboro. A team led by John Gartland, Cushman & Wakefield managing director responsible for the Southern New Jersey market, represented ownership in both transactions.
The recent transactions exemplify the continued demand for distribution and logistics space in Southern New Jersey’s rapidly growing industrial market.
“The Gloucester County submarket has certainly emerged as a regional distribution hub, which has benefitted from both the overall growth of Philadelphia as well as the recent expansion of the PhilaPort,” Gartland says. ”This submarket also has a tremendous labor pool to pull from, which continues to be a topic at the forefront of our business.”
According to Real Capital Analytics, a proprietary research database, Gartland and his team represented Deutsche Asset & Wealth Management – US, a large institutional owner, in the Ryder Logistics transaction. Deutsche AWM has known interests in 1,223 assets that have an estimated property value of $34.5 billion, Real Capital Analytics reports.
Strategically located at Exit 10 off Interstate 295 and Exit 2 of the New Jersey Turnpike, 395 Pedricktown Road is a 481,758-square-foot, class A warehouse built in 2017. Deutsche AWM acquired the property from Dermody Properties in April 2018 for $53.8 million, or $112 per square foot, according to Real Capital Analytics.
Situated at the mid-point between New York City and Washington, DC, the building provides exceptional access to the entire Northeast transportation corridor and is within a one-day drive of 40 percent of the total US population.
“Like many regional distribution markets, Southern New Jersey continues to see growth in the third-party logistics vertical,” says Gartland. “This deal is yet another example of this ongoing trend. The UPS lease renewal is a strong indication of its commitment to this market. As markets to the North continue to tighten, we now are starting to see a lot of that pent-up demand funnel south down the Turnpike and Route 295 into Southern New Jersey.”
The 597,232-square-foot warehouse/distribution facility is located at Exit 10 at Interstate-295, in the heart of the country’s richest consumer demographic and with easy accessibility to the region’s deep-water ports and transportation infrastructure. Cushman & Wakefield represented Principal Real Estate Investors in the transaction. PEI acquired the property in November 2015 from a joint venture of Hillwood and Brookfield Asset Management for $34.2 million, says Real Capital Analytics.