Largest warehouse in the region, spanning 1.2 million square feet, secures a new tenant.
The Philadelphia region’s warehousing sector remains resilient, showcased by the recent leasing agreement involving Maersk’s subsidiary, Performance Team. This agreement centers around the Box Park Logistics Center, the largest warehouse facility in the area, encompassing a substantial 1.2 million square feet in Cinnaminson, New Jersey. Despite a downturn in the construction of large-scale warehouses, this move indicates a continuing demand for logistical space within the region.
The Box Park Logistics Center, operated by Logistics Property Company LLC, is strategically located on Taylor’s Lane and boasts dimensions comparable to the Cherry Hill Mall. Furthermore, the facility offers expansion opportunities up to 1.5 million square feet, allowing for potential growth in operations. This warehouse was recently completed in 2023, featuring impressive specifications such as 40-foot ceilings, 215 dock doors, and 549 parking spaces. It has also achieved LEED certification, signifying its adherence to energy-efficient standards.
Performance Team, which specializes in logistics operations and transportation, aims to utilize the Box Park facilities to enhance its service capabilities in the Northeast corridor. This strategic location promises to bring the company closer to its customer base and key transportation routes, facilitating faster and more efficient service delivery. Additionally, the center is expected to create significant job opportunities within the local community.
The leasing of this expansive warehouse comes at a time when a report by Cushman & Wakefield noted a peak in industrial construction within the Philadelphia region during the first quarter of 2023. Although overall construction activities have slowed, the region’s industrial market continues to thrive, evidenced by a strong leasing activity that increased by 23 percent compared to previous quarters. The current vacancy rate stands at a moderate 9%, suggesting sustained interest in warehousing space.
Burlington County, where the Box Park Logistics Center is situated, remains a dominant player in the warehousing landscape, boasting over 53 million square feet of industrial space. Analysis from previous years highlights a dense concentration of warehousing facilities across industrial parks in South Jersey, extending into Philadelphia and its surrounding suburbs.
As demand for warehousing continues, the region’s infrastructure supports over 70% of warehouse space clustered within close proximity to major highways. This strategic positioning allows for efficient logistical operations, catering to the multifaceted needs of industries ranging from retail to manufacturing. The ongoing developments in the warehousing sector, including the significant lease at Box Park, underline the critical role that logistics plays in the economic fabric of the Philadelphia area.
As these trends evolve, the region’s ability to adapt to changing market dynamics and consumer demands will be instrumental in maintaining its status as a vital hub for warehousing and logistics services in the Northeast.
