Olyphant, Lackawanna County, PA -
Continuing the region's rapidly growing warehousing and distribution industry, a developer intends to build a 1-million-square-foot facility in the borough over the next year.
In a joint announcement this week, Radnor-based Endurance Real Estate Group LLC and Boston-based Cabot Properties LP disclosed their plans to build the Olyphant Logistics Center on a 112-plus-acre site off of East Lackawanna Avenue near the Casey Highway.
The property is at the end of Corporate Way, just past Tucker Rocky Distributing.
Using a limited liability company, the partnered firms recently bought the land for $18.3 million from Langen Development Economics LLC of Easton, according to a property transaction recorded July 22. Langen had previously announced and received approval for, its plans to build a 1-million-square-foot warehouse at the site.
Construction is already underway, and the building is expected to be finished by fall 2022, according to the announcement.
“We are delighted to have closed on this acquisition of a fully entitled land site ready for immediate construction,” Jared Newman, senior vice president of acquisitions for Endurance Real Estate Group, said in a statement. “We seek out development sites that offer superior access to highway and logistics infrastructure and have a deep and qualified labor force and it was clear Olyphant Logistics Center was best in class for those standards.”
The state-of-the-art facility will be built on speculation, the firms said. Building on speculations - a common practice for warehousing in the region - means developing a structure without a specific tenant in mind.
Northeast Pennsylvania has been one of Endurance's most active submarkets over the company's 20-year history, and last year, they constructed a 1.1-million-square-foot building in Luzerne County, company President Benjamin Cohen said in a statement. Endurance secured a $54.35 million loan to build the Jenkins Twp. facility in 2018, building it on speculation before selling it to Colorado-based Ball Corp. for an aluminum beverage packaging plant.
Companies build on speculation knowing tenants will soon follow, said John Augustine, the president and CEO of Penn's Northeast. Penn's Northeast is a collective that aims to promote new investments, jobs and business opportunities by promoting Northeast Pennsylvania.
“Multiple companies are investing millions of dollars to build buildings on (speculation), knowing that if they build it, companies will come,” he said.
Although the press release did not include potential employment figures, it mentioned the Olyphant warehouse will have 477 parking spaces, along with 237 trailer stalls.
Augustine estimated that could equate to around 700 jobs. Recently, Lackawanna, Luzerne, and Schuylkill counties are seeing growth in warehousing, he said, explaining he believes that will expand into neighboring counties including Monroe, Pike, and Wayne.
When companies such as Cabot and Endurance invest in the region, it shows “we are a hot spot to be in when you're looking in the industrial market,” Augustine said.
Olyphant Council President Jimmy Baldan was enthusiastic about the logistics center and the impact it will have on local businesses.
“The estimation of 700 jobs is a fantastic thing, not only for individuals that get the jobs, but every business in this town,” he said. “All the restaurants will benefit, all of the mom-and-pop stores, everything that is on our Main Street will benefit from that warehousing.”
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