JLL launched its Northeast Industrial Region in 2017, bringing together brokerage operations for the sector across New Jersey, Connecticut, New York and Pennsylvania. Currently, that market encompasses approximately 1.76 billion square feet of industrial space – the largest industrial market in the U.S., according to the firm.
That Northeast Industrial Region arranged the acquisition of an 85-acre development site and secured a tenant to lease the future 1.2 million-square-foot property coming to the site.
JLL completed both transactions on behalf of national investor, developer and asset manager Newland Capital Group, the firm announced Sept. 19. The site, located at 3379 Pocono Summit Road in Mount Pocono, Pa., is located off of Interstates 80 and 380 on the eastern edge of the Northeast Pennsylvania Industrial Market and approximately an hour-and-a-half’s drive from Newark Liberty International Airport.
Construction is slated to start this October, with completion scheduled for the first quarter of 2024. The distribution site will include 191 truck docks, four drive-in doors, 359 trailer stalls and parking for 426 vehicles.
The JLL Northeast Industrial team representing the buyer was led by Executive Managing Director Jeff Lockard, Vice President Ryan Barros and Associate Kevin Lammers, who arranged the sale and negotiated the lease with Casey Mungo of DAUM Commercial. JLL Managing Director Steve Cooper represented the seller.
“This is an ideal site offering access to the nation’s most densely populated region, with over 24 million people living in the NY–NJ–CT–PA Combined Statistical Area,” said Lockard. “Newland Capital Group will bring an exceptional new development to one of the most sought-after industrial submarkets in the country and we are delighted to be a part of this exciting new venture.”
As in New Jersey, across the border in Pennsylvania, industrial demand is at a fever pitch. According to JLL’s Second Quarter 2022 report for the Eastern & Central Pennsylvania Industrial Market, Class A vacancy rates were at 1.7% over the course of the previous year, with asking rents growing 24% year over year to $7.93 per square foot. In New Jersey, industrial rents were up across all classes, 13% quarter over quarter and 56% year over year, to a new average high of $13.86 per square foot.