Philly Industrial Space

Philly Industrial SpaceWolf Commercial Real Estate specializes in representing a wide range of Philly industrial space for buyers, sellers, tenants and investors.

The team at our Philadelphia commercial real estate brokerage firm is uniquely qualified in all types of industrial space in Philly, from traditional space for warehousing and manufacturing, to industrial flex space for multiple uses under one roof, such as offices, showrooms, warehousing and more. As a leading Philadelphia commercial real estate broker, we offer clients the highest standard of service and unmatched expertise as we partner with them to help them realize their Philly industrial space goals.

Buying Philly Industrial Space

For buyers and tenants looking for new industrial space in Philadelphia, the knowledgeable team at our Philadelphia commercial real estate brokerage firm is experienced in identifying the available industrial space in Philly that is the best match for your specifics needs. We assure that the sale or lease terms of your new Philadelphia industrial space complements your real estate goals, and we’re with you from the beginning of the process to the very end in order to facilitate a smooth transition into your new Philly industrial space. At Wolf Commercial Real Estate, we have the people, the power and the connections to get you the right industrial space in Philadelphia at the right price.

Selling Philly Industrial Space

For owners looking to sell or lease their industrial space in Philly, there is nothing better than the defined marketing process that our Philadelphia commercial real estate specialists developed and then tailor for each property and sub-market. This comprehensive and proven marketing strategy works exceedingly well to match buyers and tenants with available Philadelphia industrial space.

Whether you are looking for new industrial space in Philadelphia, or seeking buyers or tenants for your available Philly industrial space, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need to make your commercial real estate goals a reality.

Search Our Commercial Real Estate Listings

Local Company Buys Philadelphia Industrial Complex to Expand Business

A local private company has purchased a 330,000-square-foot industrial complex at 700 Ramona Ave. in Philadelphia for $8.5 million, or about $26 per square foot.

The buyer purchased the property to utilize the site as an expansion of their existing business.

The property consists of two large industrial buildings on approximately 14.5 acres and provides access to Route 1 Roosevelt Expressway and I-95.

*Article courtesy of CoStar News

For more information about Philly Industrial space for sale or lease in Philadelphia or about any other Philadelphia properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Exclusive: DHL signs big lease as Northeast Philadelphia industrial market stays hot

NorthPoint Development has signed a lease for a division of DHL International to occupy a 465,000-square-foot industrial building it is constructing at 11601 Roosevelt Blvd., a project that is helping to reshape Northeast Philadelphia into as a regional distribution market. 

KLS Logistics, of which DHL is a part, signed a long-term deal on the building and “chose this location in order to provide the best service for our customers to the five-county area in southeastern Pennsylvania,” said Daniel McGrath, a spokesman at DHL. 

McGrath declined to provide additional details such as how many jobs the company might create at the facility. 

Construction of the building has been halted as a result of a mandate by Gov. Tom Wolf to cease construction of all non-essential projects during the pandemic. It couldn’t be determined when the project will be completed. 

The Roosevelt Boulevard project is among several other industrial developments totaling three million square feet that are in various stages in Northeast Philadelphia. Once completed, they will increase the size of the submarket to 20 million square feet from 17 million square feet.

Other projects in the works include: 

  • A 1-million-square foot facility that is planned and expected to be built on 138 acres at One Red Lion Road. UPS will occupy the site, which had once been part of the Budd Co. property. Once completed, it will be the largest industrial building in Northeast Philadelphia;
  • Brandywine Realty Trust has plans for 680,000 square feet in two buildings at 15000 Roosevelt Blvd.;
  • At 11501 Roosevelt Blvd., NorthPoint is renovating a 230,000-square-foot building and has leased a portion of it to a self storage company;
  • At 2900 Grant Ave., Crow Holdings of Dallas is knocking down a 140,000-square-foot building to make way for a proposed 400,000-square-foot building to be constructed on speculation;
  • A new 200,000-square-foot building at 3025 Meetinghouse Road was completed late last year and available. Black Creek Holdings bought it for $25.6 million; and 
  • First Industrial Realty Trust is developing on speculation a 100,000-square-foot building at 2021 Woodhaven Road. 

Companies prefer new warehouse-distribution centers with higher clearances and better loading areas for tractor trailers. 

Northeast Philadelphia’s proximity to the city as well other parts of the region and access to major highways such as Interstate 95, Route 1 and the turnpikes in Pennsylvania and New Jersey also make it an ideal location for warehouse-distribution centers. Labor and access to mass transit also make it attractive. 

*Article courtesy of Philadelphia Business Journal

For more information about Philly Industrial space for sale or lease in Philadelphia or about any other Philadelphia properties for sale or lease, please contact WCRE at 215-799-6900.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Diverging Trends Emerge in Philadelphia’s Industrial Market Heading Into 2020

If there was one clear takeaway from Philadelphia’s industrial market performance last year, it was that investor demand was red hot for nearly all types of distribution properties.

Deutshce Bank’s DWS Group acquired two of Dermody Properties’ newly delivered South Jersey distribution centers, 2320 Center Square Road, and 2650 Oldmans Creek Road, for between $90 and $95 per square foot, despite the fact that both properties were unleased upon delivery.

A range of smaller firms, including Endurance Real Estate Group and Burton Real Estate, also successfully sold older properties they had acquired, renovated and leased-up within the past 36 months, often realizing large capital gains in the process.

But as the record-breaking levels of industrial leasing that prevailed during 2016 and 2017 are fading further into the rearview mirror, a noticeable divergence is emerging.

Speculative development is adding millions of square feet of unleased, modern distribution centers to Philadelphia’s inventory. Amazon’s leasing in the region has slowed and options are quickly growing for tenants looking for newly delivered space with clear heights of 30 feet or more.

At the same time, vacancies have never been tighter among older properties with lower ceilings, as more traditional industrial tenants compete for a limited inventory of affordable space.

Our latest Philadelphia industrial market video update dives into these trends in more detail, to help investors understand opportunities and risks emerging in 2020.

*Article courtesy of the CoStar News, Adrian Ponsen

For more information about Philly industrial space or other Philadelphia commercial properties, please contact the team at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philly industrial space at  215-799-6900.

Wolf Commercial Real Estate is a Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Philly finally gets a million-square-foot warehouse – but not the thousands of jobs: UPS on Red Lion Rd. will be ‘highly automated’

It hasn’t been announced by the company, but the Inquirer has confirmed that United Parcel Service plans to build a million-square-foot facility on the 138-acre former Budd Co. property at 1 Red Lion Rd. in Northeast Philadelphia, one of the biggest available industrial properties in the city.

Plans call for 950 parking spaces, and UPS had told city officials they were planning a facility that could employ 1,000, including shift and part-time workers. But UPS has told state officials it is committed to hiring a more modest 352 full-time workers by the time it opens in 2022, and has separately said new plants in Philadelphia and other Pennsylvania cities are part of a wave of “highly automated” facilities that won’t create as many jobs per box as earlier ones.

UPS and its competitors such as Amazon and FedEx have been adding automation equipment to save labor. “We are early in the planning and feasibility phase of the new facility, so additional project details are not available at this point,” UPS spokeswoman Kim Krebs said.

Nearby residents and storekeepers, including owners of upscale houses built since Budd closed, will have to get used to renewed truck traffic.

“Large 18-wheel tractor trailers will enter and exit by using Sandmeyer Lane, with the smaller UPS delivery trucks using the Red Lion Road entrance,” wrote Jack O’Hara, head of the Greater Bustleton Civic League, in a note to residents, confirming he’d gotten word of the plan from developers.

Some neighbors have started calling the property “Mount Somerton,” for the vast mound of cleaned dirt that Meyer Contracting Co. has piled there from road projects around Philadelphia for owner and developer Commercial Development Corp. of St. Louis. That firm will use that dirt to cap the building site, which has been subject to environmental remediation projects to clean up toxic materials left over from its railcar construction days.

The site is in a city and state Keystone Opportunity Zone, said city Commerce Department spokesman Kevin Lessard. That means UPS will qualify for state and local income and business tax exemptions. UPS won’t need zoning variances or waivers for the industrial-zoned site, but it will need a stormwater management permit, Lessard added.

Developers and the quasi-public Philadelphia Industrial Development Corp. had sought and failed to locate projects for the site since the successor to the Budd Co. railcar plant closed in 1987. A golf course developer and Teva Pharmaceuticals USA had each announced and then canceled redevelopment plans for the site. Commercial finally bought the property for $18 million from Teva two years ago.

reported UPS was looking at the site last September after UPS and other sources confirmed the company had hired local contractors to draw up plans.

Commercial Development has hired a local team of big-project specialists for the UPS job: real estate lawyer Carl Primavera of Klehr Harrison Harvey Branzburg LLP; Blue Rock Construction, owned by Steve Kettelberger, which specializes in Eastern Pennsylvania and New Jersey warehouses; and Watchdog Real Estate Project Management, headed by Stephen Fean, whose local clients include Campbell Soup, FMC, and PNC.

Gov. Tom Wolf said last month that he planned to give as much as $9 million in public training and incentive funds to UPS, the largest nonretail private employer in the state, with nearly 20,000 workers, plus thousands of pre-Christmas temps, to help it build additional facilities somewhere in Philadelphia and in three other counties.

The company operates sorting hubs across the region, plus one of its six main U.S. air hubs at Philadelphia International Airport. But, like Amazon, UPS had mostly preferred to build its larger one-million-square-foot-sized facilities in former farming, mining, or factory districts away from the major cities, such as in Gloucester County and the Lehigh Valley. The company plans its sixth U.S. “super hub” in Harrisburg.

According to Wolf, UPS will create a total of 1,721 new, full-time jobs at Philadelphia and three other Pennsylvania sites, and agreed to “retain” more than 6,000 of the workers at its remaining facilities.

The Pennsylvania taxpayer subsidy offered to UPS, which collected more than $4 billion in after-tax profits last year, includes “$2.7 million in Job Creation Tax Credits to be distributed following the creation of the new jobs, $5.6 million in Infrastructure and Facilities Improvement Program funding, and $659,400 in grants for workforce training and development,” according to state spokesperson Casey Smith.

When it bought the property in 2018, Commercial Development said it planned to build up to 1.6 million square feet of industrial space, larger than the tallest Center City office buildings.

O’Hara said the UPS facility would cover one million square feet. Although Northeast Philadelphia Airport is nearby, O’Hara added that the airport “will not be involved” with the Red Lion Road facility.

Commercial Development is used to moving mountains, or at least hills and swamps, to accommodate new construction. The company is filling and replacing wetlands to redevelop the Claymont Steel site on the Delaware-Pennsylvania border. That is so Media-based developer Greg Lingo can proceed with plans to build 1,200 townhomes along the Delaware River, next to a planned $54 million SEPTA train station. Lingo’s company, Rockwell Custom, is also building homes along the Delaware farther south, at the former Fort DuPont State Park near Delaware City, Del.

Like its rivals, UPS has been using robotics and experimenting with airborne drones to speed package movement. Automation would not displace jobs at older UPS locations, spokesman David Graves said after a demonstration at the company’s new plant near Swedesboro last year.

According to O’Hara’s letter, Commercial Development plans “a series of community outreach meetings” in March or April to provide more of the project’s final details. He said neighbors in Philadelphia’s Bustleton and Somerton sections and in Lower Moreland Township will be notified of the meetings.

O’Hara said PennDot and the Philadelphia Streets Department are conducting a traffic study. He said the results and planned road improvements should be presented at the community meetings this spring.

*Article courtesy of the Philadelphia Inquirer

For more information about Philly industrial space or other Philadelphia commercial properties, please contact the team at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philly industrial space at  215-799-6900.

Wolf Commercial Real Estate is a Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Philly Industrial Space for Lease in Delano

Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker with expertise in Philly commercial real estate listings and services, now has available a highly visible Philly industrial building for lease at 10 Schultz Drive Delano PA.

This Philly space for lease is a +/- 69,300 square-foot building and the asking lease price for this industrial space in Philly is $3.50 sf NNN. This Philly industrial space for lease at 10 Schultz Drive Delano PA is available through Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm that specializes in Philly commercial real estate listings and services.

This Philly industrial building for lease has a ceiling height of +/- 20 feet and this industrial space in Philly has a truck loading capacity of 13 tailgate doors. This Philly industrial space for lease also has one drive door.

There is public sewer and water at this industrial space in Philly and the heating system at this Philadelphia industrial building for lease is propane-fired hot air.

This one-story industrial space in Philly at 10 Schultz Drive Delano PA is about 1/8-mile from Route I-81 and this Philly industrial building for lease is about 10 miles south of Hazleton.

More than 56,000 people reside within a 10-mile radius of this industrial space in Philly at 10 Schultz Drive Delano PA.  The average household income in the same area near this Philly industrial space for lease is $46,328.

For more information about this Philly industrial building for lease at 10 Schultz Drive Delano PA or about any other Philly commercial properties for sale or lease, please contact Lee Fein (215-799-6040, lee.fein@wolfcre.com) at Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philly commercial real estate broker that provides a full range of Philly commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philly commercial properties for buyers, tenants, investors and sellers. Please visit our websites for a full listing of Philly commercial properties for lease through our Philly commercial real estate brokerage firm.

Large Philadelphia Industrial Space for Lease on Columbus Boulevard

Wolf Commercial Real Estate, the foremost Philly commercial real estate broker that specializes in Philadelphia commercial real estate listings and services, now has available Philly industrial space for lease at 1910 South Columbus Boulevard.

This Philadelphia industrial space for lease is on the third floor of a building at 1910 South Columbus Boulevard.  There is approximately 70,100 square feet of Philly warehouse space for lease in this industrial space in Philadelphia.

The asking lease price for this industrial space in Philadelphia has just been reduced to $4.75/sf NNN.  This Philly industrial building for lease is now available from Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm with expertise in Philly commercial real estate listings and services.

This industrial space in Philadelphia has secure access and this Philly industrial space for lease has a loading dock. In addition, this Philadelphia industrial space for lease at 1910 South Columbus Boulevard features a flexible T.I. package. There are 14-foot-high ceilings at this Philly industrial space for lease and this Philadelphia industrial space for lease has column spacing of 25’ x 25’.

Such major retail chains as Target, Marshall’s, and Old Navy are close by this Philly industrial space for lease while Wawa, Boston Market, and Dunkin Donuts can also be found near this Philadelphia industrial space for lease.

This Philly industrial space for lease at 1910 South Columbus Boulevard offers convenient access to the Walt Whitman Bridge and, in addition, this Philadelphia industrial building for lease is easily accessible to I-95, I-76, and I-676.  This Philly warehouse space for lease is available through Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise in Philly commercial real estate listings and services.

More than 2.2 million people reside within 10 miles of this Philadelphia industrial space for lease and the average household income in the same area of this industrial space in Philly is $55,715.

For more information about this Philadelphia industrial space for lease at 1910 South Columbus Boulevard or about any other Philly commercial properties for sale or lease, please contact Mitchell Russell (215-799-6143; mitch.russell@wolfcre.com) or Ty Martin (215-799-6144; ty.martin@wolfcre.com) at Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm that specializes in Philly commercial real estate listings and services.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philly commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philly commercial properties for buyers, tenants, investors and sellers. Please visit our websites for a full listing of Philadelphia commercial properties for lease or sale through our Philly commercial real estate brokerage firm.

Gallagher Tire Leases 4-Star Industrial Facility Near Philadelphia

Gallagher Tire Inc., a distributor of specialty tires and related products, leased Suburban Management Co.’s 143,092-square-foot warehouse in Parker Ford, Pennsylvania.

The single-story facility at 36 Anderson Road comprises 24 loading docks, eight drive-in bays and a 31-foot clear ceiling height. Built in 1998, the 4-Star property spans 16 acres less than 35 miles from Philadelphia International Airport.

Headquartered in Oaks, Pennsylvania, SMC currently manages a 7 million-square-foot portfolio of single and multi‐tenant facilities; largely concentrated along the Route 422 corridor from King of Prussia to Reading, according to its website.

For more information about Philly industrial space or other Philadelphia commercial properties, please contact the team at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philly industrial space at  215-799-6900.

Wolf Commercial Real Estate is a Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

*Article courtesy of CoStar News, June 3, 2019, Stephen McIntyre

Philly Industrial Space for Sale on Vandike Street

Wolf Commercial Real Estate, a premier Philly commercial real estate brokerage firm that specializes in Philadelphia commercial real estate listings and services, is now offering Philly industrial space for sale at 7921 Vandike Street Philadelphia PA.

This Philly industrial space for sale is an auto body shop and this Philly industrial building for sale contains 6,180 sf of industrial space in Philly.

The asking sale price for this industrial space in Philly is $650,000. This Philly industrial space for sale at 7921 Vandike Street Philadelphia PA is being offered by Wolf Commercial Real Estate, a Philly commercial real estate broker with expertise in Philadelphia commercial real estate listings and services.

This Philly industrial building for sale at 7921 Vandike Street Philadelphia PA is ideal for either industrial or retail use. This Philly industrial space for sale at 7921 Vandike Street Philadelphia PA has three separate bays. Each of the bays at this industrial space in Philly is 2,060 square feet.

The three bays at this Philly industrial building for sale each has a 15-plus-foot ceiling and, in addition, each bay at this Philly industrial space for sale has an office and a bathroom. There also are separate gas, water, and electric meters in each bay at this Philly industrial building for sale. Prospective buyers should know that the end bay of this Philly industrial space for sale currently is leased by a long-term tenant.

There is a dust-free, encapsulated paint booth at this Philly industrial space for sale and there are other pieces of updated mechanical equipment included for sale at this industrial space in Philly. This Philly industrial building for sale is available through Wolf Commercial Real Estate, a Philly commercial real estate broker with expertise in Philadelphia commercial real estate listings and services.

This Philly industrial building for sale has 111 feet of frontage along Vandike Street and there are 12 parking spaces at this industrial space in Philly; there’s also ample street parking available at this industrial space in Philly.

For more information about this Philly industrial space for sale at 7921 Vandike Street Philadelphia PA or about any other Philly commercial properties for sale, please contact Mitchell Russell (215-799-6143; mitch.russell@wolfcre.com) or Ty Martin (215-799-6144; ty.martin@wolfcre.com) at Wolf Commercial Real Estate, a Philadelphia commercial real estate broker.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philly commercial real estate broker that provides a full range of Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philly commercial properties for buyers, tenants, investors and sellers. Please visit our websites for a full listing of Philadelphia commercial properties for sale or lease through our Philly commercial real estate brokerage firm.

Industrial Market Could Face Supply Shortfall in 2019

Philly Industrial Market Could Face Supply Shortfall in 2019

The industrial property sector’s lengthy run of historically strong demand and rent gains might work against it a bit as the market proceeds through 2019.

With vacancies now at a historic low of 4.7 percent among U.S. and Philadelphia commercial real estate properties, and construction still not keeping up with demand, the options for tenants to expand are limited. That, experts say, probably will push up rents further.

This could be a problem for nationwide and Philadelphia industrial commercial real estate listings, according industry expert Eric Rehn, who said “an industrial housing crisis is affecting the commercial real estate market and will have a major impact on the ability for our economy to grow.”

Most concerning, Rehn continued, is the lack of entry-level, light industrial incubator buildings in the 1,500-square-foot to 3,000-square-foot unit size range involving U.S. and Philly industrial space. Most vacant industrial space is found in large blocks of high-cube warehouses made in the past few years to support demand for companies like Amazon, rather than smaller, multiple tenant buildings.

This Co-Star Research report involving Philadelphia industrial commercial properties is being made through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm.

The speed of the market is changing. The time frame to lease buildings among U.S. and Philadelphia industrial commercial real estate listings has dropped more than 50 percent; it now takes three-and-a-half months to lease, compared to the seven-to-eight-month historical average, according to CoStar data.

This has helped drive rents up from $8.09 per square foot on average at the start of 2016 to $9.32 per square foot at year-end 2018.

“What’s remarkable about the industrial sector is not only the strong rent growth, easily outpacing all the other property types — but also that we’ve not really seen any slowdown,” said John Affleck, vice president and senior economist at CoStar Group.

For more information about Philly industrial space or other Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) at Wolf Commercial Real Estate, a leading Philadelphia commercial real estate broker that specializes in Philly industrial space.

Wolf Commercial Real Estate is a Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly industrial space with the Philadelphia commercial properties that best meets their needs.

As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly industrial space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

Please visit our websites for a full listing of South Jersey and Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

MINIMIZING RISK IN SELLING OR DECOMMISSIONING INDUSTRIAL PROPERTY UNDER ISRA

Industrial PropertyIn an improving economy, industrial property can change hands frequently. In a declining one, industrial property owners may be forced to wind up operations and close the facility. If you own or intend to purchase or shut down an industrial facility in New Jersey, pay particular attention to the provisions contained in the state’s Industrial Site Recovery Act.

ISRA is a unique environmental law that requires industrial facility owners and operators to investigate and remediate environmentally impacted media prior to the sale, transfer, or decommissioning of certain types of businesses. The thrust behind the law centers on the assumption that such industrial establishments, typically of the manufacturing variety, discharge, intentionally or not, contaminants during their useful life. Thus, before a sale, transfer, or closure, such property should be cleaned up appropriately. While there are exceptions, ISRA generally governs as follows.

ISRA applies to any individual or entity, corporate or governmental, who owns an industrial establishment, owns the real property of an industrial establishment, or operates an industrial establishment in New Jersey. The law only regulates those facilities listed in ISRA’s Appendix C and as defined by the North American Industry Classification System (NAICS) codes therein. Such industrial
establishments falling under ISRA’s purview include those used for chemical manufacturing, hazardous waste treatment and disposal, and utilities, to name a few. In addition, to qualify as an industrial establishment for purposes of ISRA, the business must have operated in the state on or after December 31, 1983 and use and/or store hazardous substances as defined by the state’s Spill Compensation and Control Act.
As the owner or operator of an industrial establishment, the need to comply with ISRA arises after a triggering event. Triggering events include significant changes in ownership or operation, such as business and property sales, cessation of operations, and leases for 99 years or longer. Examples of transactions not subject to ISRA include corporate reorganization not substantially affecting facility ownership, stock transfers, and easement grants. Similarly, portions of solid or hazardous waste facilities and undeveloped or vacant land are not considered industrial establishments for purposes of ISRA.

If a facility is subject to ISRA, and it does not qualify for any of the waivers or exemptions contained therein, the owner or operation must file a General Information Notice within five (5) days of any triggering event. Once notice is made, the owner or operator must conduct an environmental investigation in compliance with New Jersey’s Technical Requirements for Site Remediation,
found at N.J.A.C. 7:26E. At a minimum, a Preliminary Assessment (PA) must be performed by a Licensed Site Remediation Professional (LSRP) to identify any and all Areas of Concern. It should be noted that the scope of a PA differs materially from the American Society for Testing and Materials’ Phase I standard.

As such, if the PA discovers Areas of Concern, a subsequent Site Investigation shall be performed. The Site Investigation will explore the contaminants and determine if such exceed the current remediation standards contained in N.J.A.C. 7:26C. If contaminant levels exceed current standards, a Remedial Action Workplan (RAW) shall be proposed. The LSRP will oversee all remedial investigations and shall deliver a Response Action Outcome (RAO) once the property is deemed to be remediated to current state standards. For establishments undergoing a sale or transfer, an owner or operator must obtain an RAO, or a LSRPcertified RAW, before the transaction. For properties shutting down, an owner or operator must notify NJDEP after closing and submit a RAO or LSRP-certified RAW thereafter.

ISRA does however, allow an owner or operator to transfer ownership without an RAO or RAW in limited circumstances. An owner or operator may submit a remediation certification pursuant to N.J.A.C. 7:26B-3.3(c) instead of a RAO, or the Department can approve a regulated underground storage tank or remediation in progress waiver or a de minimis quality exemption. It should be stressed that both an owner and/or operator are strictly liable, without regard to fault, for compliance with ISRA. An
owner or operator’s failure to comply with ISRA allows a potential purchaser to rescind the sale and recover damages. Thus, it is of great importance, whether you are looking to buy, sell, or shutter an industrial establishment in New Jersey, to contact an attorney experienced in ISRA. The cost of doing business is great, but the cost of non-compliance is even greater.

For more information, please contact:

julie-lavanJulie LaVan, Esq.
New Jersey Office
11 E. Main Street
Second Floor
Moorestown, New Jersey 08057
(o) 856-235-4079
(f) 856-235-4018

michael-kondrlaMichael Kondrla, Esq.
Philadelphia Office
1515 Market Street – Suite 1200
Philadelphia, PA 19102
(P) 215-854-6398
(f) 215-596-0216