Keystone Trade Center, the mammoth redevelopment of the historic U.S. Steel Fairless Works steel plant, has drawn tenants for more than 3.4 million square feet at the project in Pennsylvania.
While some analysts are seeing a slowdown in U.S. industrial development, the Philadelphia market is stronger than ever. The response to the Keystone complex under construction is proof positive of warehouse demand in the area, earning the project a 2023 CoStar Impact Award for lease of the year in the market, as judged by real estate professionals familiar with the area.
NorthPoint Development moved Keystone, located in Fairless Hills, from idea to reality in 2022. In the span of a year, the industrial campus broke ground and quickly logged several million square feet of phase one pre-leasing activity. One of the two major parcel-service providers leased 1.2 million square feet in Building 1, which is slated to be complete in August.
In addition, an international grocery chain has leased 1.28 million square feet in Building 4. Construction of that distribution facility has started and is expected to be finished next year.
There were also two smaller but still substantial leases. A major international shipping and logistics company is taking 506,269 square feet at Building 3, while a third-party logistics firm is expanding by leasing 507,000 square feet in that same property. Construction of Building 3 is slated to be substantially complete this month.
About the project: Kansas City, Missouri-based NorthPoint plans to construct 20 or more state-of-the-art industrial warehouse buildings totaling 10 million square feet, with the potential for 15 million square feet. Keystone’s momentum has paved the way for a second phase, which will include another 2 million square feet of development in the coming year.
What the judges said: “The sheer magnitude of this development and leasing activity is impressive,” said Eric Goldstein, president and CEO of King of Prussia District.
They made it happen: The Colliers team of senior vice president Tom Golarz, senior managing directors Mark Chubb and Michael Zerbe, and executive vice presidents Michael Golarz and Summer Coulter were key players. NorthPoint’s Eric Yovanovich, Nathan Brinker, Rich Goodman and Travis Rudsill were also involved.
