Acceptable year for Bucks County Industrial market

Overall, 2008 will prove to be an acceptable year for the Bucks County Industrial market. Activity remained strong through the first half of the year but slowed considerably with the uncertainty of the upcoming presidential election and the failed credit markets. Inventory for lease remained in good supply while properties for sale were more difficult to secure. Sale prices continued to be strong though on the market longer and off their highs of 2007 while lease rates remained constant with some modest landlord concessions. The housing market and associated industries have been hard hit, but the renewal energy and energy efficiency industries are aggressively seeking opportunities within our Keystone State. This is a direct result of Governor Rendell's Energy Independence Strategy. The recent passage of a $650 million energy package will generate tremendous opportunities for job creation and business growth at local levels and Bucks County should thrive with approximately 1,200 acres left within its Keystone Industrial Port Complex (KIPC). As a result, Bucks County continues to receive strong interest on a global basis, as heavy manufacturing, hi-tech and alternative energy companies seek power, rail, port, and economic incentives offered within The Keystone Industrial Port Complex in Morrisville. The Bucks industrial marketplace totals 54.7 million s/f.  The vacancy rate increased 1% from last year to 7%. Land parcels of any size are scarce throughout the "Delaware Valley" but Bucks County features two of the premier tracts in the region, with approximately 1,200 acres still available within the Keystone Industrial Port Complex and another 250 acres owned by Matrix Development. Industrial land prices range from $100,000-$250,000 per acre. Buck's features a host of economic development initiatives via their Keystone Opportunity Zones, Enterprise Zone and Local Economic Tax Abatement Program. A new Keystone Innovation Zone was created on the former Rohm and Haas site to stimulate high tech development.  Plans for a speculative 60,000 s/f flex building have received approvals while existing buildings have and/or are being retrofitted. NAI Mertz is working with NAI Global as exclusive agent for the Keystone Industrial Port Complex. KIPC was designated a KOIZ adding 1,259 acres of heavy industrially zoned land with port and rail facilities to the 44,000 acres of developable land designated within Penn,'s KOZs throughout the state.  KOZs, KOEZs and KOIZs are areas which offer companies special tax exemptions and abatements on their real estate, state, and local taxes as well as priority for state and local financing programs to locate within a designated KOZ through December 31st, 2010, December 31st, 2013 or December 31st, 2018 respectively. Notable transactions include: Gamesa's takedown of another 50+ acres to expand their 300,000 s/f facility purchased last year; AE Polysilicon completion of their purchase of 30 acres last year and their breaking ground on a $53 million build-to-suit; Abington Metals breaking ground on their 50,000 s/f build to suit on 10 acres; and Samax Corporation purchasing an existing 177,000 s/f industrial building on 14 acres within the same industrial park. Our "Delaware Valley" industrial marketplace continues to flourish due to its proximity to Philadelphia, while being minutes to N.J. via several bridges. Bucks County is well situated for any company to warehouse and distribute along the I-95 Corridor from Florida to Maine. Jeffrey Licht, SIOR, is senior vice president of NAI Mertz and chairman of NAI Global Industrial Council, Southampton, Penn.