(To read more on the industrial market, click here.)

ALLENTOWN, PA-Ground has broken for the DHL East Coast distribution center here, a 502,000-sf facility. The estimated construction cost, including internal letter and package handling systems, is $107 million, according to Craig Guers, VP and general manager of Plymouth Meeting-based Opus East, which is the developer of the build-to-suit center.

Opus East is retaining ownership of the facility and has signed an agreement to rent it to Plantation, FL-based DHL for 20 years. Guers declined to disclose the rental rate or aggregate value of the lease. In a second-quarter 2005 report, the Philadelphia office of Trammell Crow Co. puts the average asking rental rate for industrial space in the Lehigh Valley at $3.81 per sf, up three cents per sf, compared with the previous quarter. Second-quarter data from the area office of CB Richard Ellis, however, puts the current average asking rate at $4.02 per sf, down seven cents from the opening quarter of this year.

Guers tells GlobeSt.com the building “is DHL’s largest and most automated North American facility.” It has a 290,000-sf footprint and includes 200,000 sf of workspace on a mezzanine floor along with 12,000 sf of office space.

According to a DHL statement, the center will have a handling capacity of 40,000 letters per hour and 50,000 packages per hour, and, by the end of this year will service 57 stations in 10 regional hubs across the US. In the statement, Steve White, SVP of hub and gateways for DHL, says this facility “is part of our ongoing network investment program,” a program launched in June 2004 at a total investment of $1.2 billion.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.