Chief among them is a 500,000-sf, expandable warehouse/distribution facility at 9755 Commerce Circle in Arcadia West Industrial Park, New Smithville, PA. The asset, a joint venture between Arcadia Properties of Bethlehem, PA and Prudential Real Estate Investors (PREI) of Parsippany, NJ is being marketed for sale or lease. Garibaldi will also market the rest of the 250-acre Arcadia West, which has five existing buildings and a build-out potential of 2.3 million sf.
Other proposed projects in the Arcadia portfolio being handled by Garibaldi include Arcadia East Business Park, East Allen Twp., PA; Arcadia Business Center, Bethlehem; Humboldt East Industrial Park in Hazelton; Saucon Valley Plaza, Upper Saucon; Uplands Office Park in Bethlehem; and West Point Office Center in Allentown.
The Lehigh Valley market, encompassing the Allentown/Bethlehem/Easton region, totals 6.5 million sf of office space. The vacancy rate doubled during the past year to nearly 15% because of new spec construction and an increase in lease and sublease opportunities in existing buildings. Full-service asking rents for new multi-story office space are slightly over $20.00 per sf.
The industrial market encompasses 35 million sf, and construction of distribution space topped one million sf in each of the past five years. The vacancy rate has fluctuated due to speculative construction. Asking rents for new distribution space over the past two years have ranged between $4.25 and $4.50 per sf triple net.
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