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July 10, 2018 11:30 AM, EDT

UPS Signs Lease for Million-Square-Foot Pennsylvania Warehouse

Mike Blake/Reuters

What can brown do for you? Apparently, it can fill a 1 million-square-foot warehouse along Route 33 in Palmer Township, Pa.

Package delivery giant UPS has signed a lease for the massive building being completed in 33 Logistics Park, company spokeswoman Kim Krebs confirmed. While Krebs did not have hiring specifics July 9, she said the facility is part of the company’s preparations for the holiday shopping season — and all the online orders that come with it.

UPS ranks No. 1 on the Transport Topics Top 100 list of the largest North American for-hire carriers.

“It’s what we call a peak season hub,” Krebs said. She expects to release more information at a later date.

The only visible sign of the company at the facility July 9 was a lawn sign, with a UPS logo, that read “now hiring.”

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The comments from UPS came after a news release July 9 from property owner Duke Realty Corp., which said it leased 33 Logistics Park 1620 to a “leading logistics services provider.” The building, which UPS is expected to occupy by October, officially measures 1,015,740 square feet and will be completed this month.

For Duke, this is its third and final building in 33 Logistics Park. Its first building, a 1.1 million-square-foot center, is occupied by Amazon, and third-party logistics provider XPO Logistics leases a 628,475-square-foot facility there.

XPO ranks No. 3 on the TT Top 100 for-hire carrier list.

“33 Logistics Park’s desirable location and highway access have been attractive to all three companies that have signed leases for our facilities,” Jeff Palmquist, senior vice president of Duke Realty’s Northeast Region, said in a news release. “From here our tenants have superior access to the highly populated New York City metropolitan area and can easily connect to I-78, I-81 and I-80, putting them within a day’s drive of more than 40% of the U.S. and Canadian populations.”

The Lehigh Valley’s location has turned the area into one of the nation’s hottest transportation and warehousing hubs, one where industrial property rents increased from $5.33 per square foot in the first quarter of 2017 to $5.78 per square foot in the first quarter this year, according to the latest Lehigh Valley Commercial Real Estate Report.

It’s an area that has attracted giant e-commerce operations from the likes of Amazon, Walmart, Stitch Fix and Zulily. The Lehigh Valley also has lured UPS’ closest competitor: FedEx.

FedEx ranks No. 2 on the TT Top 100 for-hire carrier list.

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