Ten miles from the split between interstates 78 and 81 in northwestern Berks County, the industrial real estate market continues to pick up steam.
Indiana-based Duke Realty Corp., a nationwide real estate investment trust that specializes in industrial facilities, recently purchased 73 acres of land off I-78 in Bethel Township for future development.
The tract, part of what is known as the Central Logistics Park, can accommodate a warehouse of up to 832,000 square feet. Duke Realty purchased the land for $11.9 million, according to county property records.
Duke Realty has not started development nor engaged any brokers about possible tenants for the site, which is near distribution centers for national companies Dollar General and PetSmart.
Duke’s new property sits at the western edge of the Lehigh Valley submarket, which has experienced strong tenant demand and some of the highest rents in the Greater Philadelphia region.
“We are pleased with this land purchase because it provides us with an excellent position right on I-78 in this up-and-coming distribution corridor,” said Jeff Palmquist, the company’s senior vice president for the Northeast Region.
When Duke Realty develops the tract, the building will be the company’s fifth in the Lehigh Valley area.
A concept plan for the Central Logistics Park shows a second phase with enough land to accommodate four warehouses collectively totaling more than 2 million square feet, according to marketing materials from Cushman & Wakefield.
Shares of Duke Realty are traded on the New York Stock Exchange under the ticker symbol DRE.