Industrial flex buildings combine warehouse, distribution, and office space in flexible configurations that serve diverse tenant needs. Philadelphia's strategic location along the I-95 corridor, proximity to major ports, and access to rail infrastructure make the region attractive for logistics and distribution operations.
The Philadelphia industrial market includes traditional warehouse facilities, modern distribution centers, and flex buildings with office-showroom configurations. Each property type serves different tenant profiles, from e-commerce fulfillment centers to light manufacturing and service businesses.
Our team evaluates industrial replacement properties through the lens of transportation access, building specifications, environmental compliance, and tenant credit quality. We coordinate Phase I environmental assessments, building condition reports, and lease term analysis to ensure investors understand both current performance and future repositioning potential.
How we support this asset class in Philadelphia, PA.
- • Logistics scoring for port, rail, and highway access
- • Tenant covenant and assignment clause diligence
- • Environmental screening coordination
- • Expansion and redevelopment feasibility studies
Common situations.
- •Exchanging from retail or office properties into industrial for better tenant stability and lower management intensity
- •Selling smaller industrial properties and consolidating into larger distribution facilities with stronger tenant profiles
- •Moving from out-of-state industrial properties into Philadelphia-area assets to reduce management complexity
- •Upgrading from older warehouse facilities to modern distribution centers with better clear heights and loading capabilities
Key considerations.
- •Transportation access including proximity to major highways, rail lines, and ports for logistics efficiency
- •Building specifications including clear heights, loading dock configurations, and power capacity for tenant requirements
- •Environmental due diligence including Phase I assessments and potential remediation costs
- •Tenant credit quality and lease terms, as industrial tenants may have different financial profiles than retail or office tenants
- •Expansion potential and redevelopment feasibility for properties that may need repositioning or improvements
Market insights.
Philadelphia's industrial market has experienced strong demand driven by e-commerce growth, supply chain diversification, and the region's strategic location. Submarkets like the Philadelphia Airport area, Bucks County, and Delaware County offer strong access to transportation infrastructure, while older industrial areas may present value-add opportunities for repositioning.