The RMR Group is looking to transform a Philadelphia office at 8800 Tinicum Boulevard into an industrial asset to meet the growing demand for e-commerce.
The plans are to turn the site into a 477,500-square-foot industrial facility near the Philadelphia International Airport. The facility would feature car and trailer parking, 40-foot clear heights, and 8,000 amps of power.
The project's groundbreaking is slated to begin as soon as this summer, with Avison Young tapped by RMR to serve as the exclusive leasing agency to market the planned development. However, the completion timetable for the office-to-industrial transformation is unclear.
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Avison Young said the "new industrial development is expected to revitalize the property and support Philadelphia’s growing cargo economy."
“As Philadelphia’s airport and ports expand, the property’s industrial infrastructure will play a key role in supporting regional economic growth,” Jim Scott of Avison Young, one of the brokers leading the leasing efforts on the project for RMR, said in a statement.
Matthew Marshall, another Avison Young broker leading the leasing, added, “We also intend to maximize its locational advantages near the PHL Airport for air cargo and distribution uses. With exceptional access to Interstate 95 North and South and immediate proximity to airport cargo facilities, this may be one of the best development sites for distribution and air cargo along the I-95 Corridor between Washington and New York.”
RMR has experience with transformation projects. For example, in 2023, the asset management company finished converting a former government office into a Class A mixed-use property in Washington, D.C. The repurposed asset offered retail, penthouse amenity space, and upscale office space.
The industrial market is changing and starting to return to pre-pandemic norms. While there is less construction, vacancies are creeping up, and sector rents are starting to flatten out, a recent Cushman & Wakefield report finds. Particularly, the Northeast and West regions produced two percent decreases in first-quarter rents.
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