Industrial Development Levels Make Dramatic Jumps

Wayne, PA (July 17, 2019) — Newmark Knight Frank (NKF) released its second-quarter 2019 industrial market reports for Greater Philadelphia and the I-81/78 Corridor. New supply was the foremost topic as the total construction pipeline across the two markets increased by 5.4 million square feet. Also, notably, the I-81/78 Corridor realized a rare quarter of negative absorption. However, market activity indicates overall fundamentals in the two regions will remain strong throughout the remainder of the year.

In the second quarter of 2019, the development pipeline in the I-81/78 Corridor industrial market expanded to a record-breaking 18.6 million square feet. Although there are millions of square feet of tenant requirements in the market, the decade-long streak of positive absorption finally broke this quarter due to struggling national retailers closing regional distribution centers. 1.1 million square feet of negative absorption was recorded, and 2.1 million square feet of new speculative inventory delivered vacant. As a result, vacancy jumped from 6.3 percent to 7.1 percent quarter over quarter, its highest measure in three years. The Central Pennsylvania submarket was responsible for the largest share of negative absorption with Sears and Kmart closing warehouse facilities in the region. The Lehigh Valley submarket accumulated 337,211 square feet of new tenancy driven by third-party logistics firms and maintained its standing as the epicenter of new development, with more than 6.5 million square feet of construction underway. In Northeastern Pennsylvania, the supply pipeline nearly doubled this quarter, from 3.5 to just under 6.5 million square feet, the highest quarterly construction total on record for the submarket. Speaking on the subject of this substantial increase, NKF Executive Managing Director Jim Belcher noted, “Warehouse users want to be in the Lehigh Valley, but the tightening labor supply is a real issue. This is starting to drive developers and tenants up into Northeastern Pennsylvania.”

Major big-box occupancies are slated to occur next quarter, which will eclipse the negative absorption sustained in the second quarter and ensure the Corridor market concludes the second half of the year on a positive note.

In Greater Philadelphia’s industrial market, 2.4 million square feet broke ground in the second quarter, driving the supply pipeline up to 7.3 million square feet, a five-year high. There was construction underway in every one of the eleven counties that comprise the tri-state regional market, with the Southeastern Pennsylvania counties responsible for the largest share. Commenting on the expansion of the construction pipeline, NKF Managing Director Justin Bell said, “the majority of Southeastern Pennsylvania’s warehouse inventory was built before 1980. This new supply of efficient, high-bay space will be a boon to the market’s warehouse users.”

Average asking rents skyrocketed in the Greater Philadelphia industrial market this quarter reaching $6.33 per square foot, up almost a full dollar from last quarter. This was largely a function of newly established rates on R&D/flex space at the rebranded and repositioned Discovery Labs complex in the Philadelphia suburbs.

Occupancies in recently completed warehouse space predominantly drove the quarter’s net absorption, totaling 1.8 million square feet. Market-wide vacancy, down 30 basis points from the first quarter to 5.1 percent, is expected to hover in the low 5.0 percent range through the rest of the year, while pent-up demand in the market for modern logistics space continues to drive the absorption of new additions to the inventory.

In the Southern New Jersey industrial market, ecommerce giant Amazon yet again represented the largest quarterly move-in, taking possession of the 650,000-square-foot warehouse at 240 Mantua Grove Road upon its completion. Aside from the development focus on the warehouse sector in South Jersey, a significant manufacturing project was launched in the market this quarter: ResinTech broke ground on a $130.0 million global HQ in Camden County, which will be used to consolidate multi-state operations when complete in 2020. Moving westward into the New Castle County market, available industrial space is as scarce as it can be with vacancy at 2.7 percent in the second quarter. This tightness has driven average asking rents beyond $5.00 per square foot for the first time ever.

About Newmark Knight Frank
Newmark Knight Frank (“NKF”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, NKF’s 16,000 professionals operate from approximately 430 offices on six continents. NKF’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.

Discussion of Forward-Looking Statements about Newmark Group
Statements in this document regarding Newmark Group that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. Except as required by law, Newmark Group undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark Group’s Securities and Exchange Commission filings, including, but not limited to, any updates to such risk factors contained in subsequent Forms 10-K, 10-Q, or Forms 8-K.

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Intact Vascular Announces Launch of the Tack Endovascular System® in the EU and First Commercial Use in Germany

WAYNE, Pa.–(BUSINESS WIRE)–Intact Vascular, Inc., a developer of medical devices for minimally invasive peripheral vascular procedures, today announced the first commercial use of its Tack Endovascular System® in multiple hospitals within Germany. A novel therapy for dissection repair following balloon angioplasty, the Tack® implant is a first-of-its kind device for patients with peripheral arterial disease (PAD) and/or critical limb ischemia (CLI).

“The Tack System provides a much needed therapeutic option for treating dissections in the superficial femoral or popliteal arteries following balloon angioplasty,” said Dr. Christian Wissgott, Assistant Director, at Westküstenklinikum Heide in Heide, Germany. “I am very pleased with my experience using the implant and I am excited to incorporate this technology into my above and below the knee treatment algorithms going forward.”

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Intact Vascular Announces Enrollment Completion of TOBA II BTK Clinical Trial

First-of-its-kind study designed to demonstrate safety and efficacy of the Tack Endovascular System® in treating post-PTA dissections below the knee

WAYNE, Pa.–(BUSINESS WIRE)–Intact Vascular, Inc., a developer of medical devices for minimally invasive peripheral vascular procedures, today announced its Tack Optimized Balloon Angioplasty II BTK (TOBA II BTK) clinical trial successfully completed enrollment, ahead of schedule. This study further augments Intact Vascular’s robust clinical program and is notably the first pivotal trial investigating a permanent vascular implant in arteries below the knee.

“Patients with critical limb ischemia (CLI) experience painful symptoms and are at increased risk of amputation. Unfortunately, therapeutic options are very limited, and no scaffolding solutions are currently FDA-approved for BTK interventions,” commented George Adams, M.D., M.H.S., Director of Cardiovascular and Peripheral Vascular Research, UNC Rex Hospital, Raleigh, North Carolina, Co-Principal Investigator for the TOBA II BTK study. “The potential to have a treatment option that maintains vessel integrity and improves blood flow will have a significant clinical impact for treating patients with below-the-knee disease.”

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Intact Vascular Announces Positive One-Year Data from the TOBA II Clinical Trial

First-of-its-kind study designed to demonstrate safety and efficacy of the Tack Endovascular System®in treating post-PTA dissections

WAYNE, Pa.–(BUSINESS WIRE)–Intact Vascular, Inc., a developer of medical devices for minimally invasive peripheral vascular procedures, today announced at the 15th annual VIVA conference in Las Vegas that its Tack Optimized Balloon Angioplasty II (TOBA II) clinical trial successfully achieved both primary and secondary endpoints. One year results from the TOBA II study were presented in the late-breaking scientific session by William Gray, M.D., System Chief, Division of Cardiovascular Disease at Main Line Health, President, Lankenau Heart Institute and Principal Investigator for the TOBA II trial.

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Fairmount Partners November News

PACT Times November 2018: News

Fairmount is the most active M&A firm based in the Mid-Atlantic, with a national and international practice.  Since 2003, the firm has completed more than 200 transactions throughout North and South America, Europe, Asia and Australia.   Fairmount specializes in advising middle-market companies on sell-side, buy-side and capital placement transactions, and provides fairness opinions and strategic advice in the transaction context.

  • Fairmount Partners represented Artech Information Systems in their acquisition of the Talent & Technology Solutions business unit of CDI Corporation.  Artech is now one of the top-7 largest IT staffing firms in North America that provides workforce solutions, IT consulting, and SOW-project services. Headquartered in Morristown, NJ, Artech employs over 7,800 professionals, maintains over 25 locations across the U.S., Canada, India, and China and is a Tier-1/Preferred Supplier to more than 70 Fortune 500 companies and numerous federal and state government agencies. Headquartered in Philadelphia, PA, CDI Corporation is a privately held, multinational company that provides engineering, information technology, and staffing services to clients in a range of industries including energy, chemical, transportation and financial services.  This is Fairmount Partners fourth transaction with Artech.
  • Fairmount Partners represented TayganPoint Consulting Group, a well-known life sciences consulting boutique based in the greater Philadelphia area, in their acquisition by Grant Thornton LLP.  Founded in 2009, TayganPoint advises global organizations navigating complex transformation management projects, with particular expertise in healthcare and life sciences. TayganPoint has a demonstrated track record of delivering high-impact, execution-oriented results in the fields of business transformation and organizational change, business process improvement, and strategy alignment and execution.  Founded in Chicago in 1924, Grant Thornton is one of the world’s leading organizations of independent audit, tax and advisory firms. Grant Thornton, which has revenues in excess of $1.7 billion and operates 59 offices, works with a broad range of dynamic publicly and privately held companies, government agencies, financial institutions, and civic and religious organizations.

DSA Awarded Army ITES-3S IDIQ Contract

Trevose, PA – Data Systems Analysts, Inc. (DSA), a leader in delivering secure, innovative technology, and information management solutions to Federal and State Governments and commercial enterprises, is pleased to announce its award of the Information Technology Enterprise Solutions (ITES) Services (ITES-3S) contract with the Army, Assistant Secretary for Acquisition, Logistics and Technology (ASA(ALT)), Program Executive Office, Enterprise Information Systems (PEO EIS), PD Computer Hardware, Enterprise Software and Solutions (PD CHESS). ITES-3S is a Multiple Award, Indefinite-Delivery, Indefinite-Quantity (IDIQ) contract that will provide the Department of the Army with enterprise mission support service solutions. ITES-3S has up to a nine year period of performance, and a total value of $12.1 Billion.

The ITES-3S contract offers customers across all of the Army a robust scope of work aligned to provide a full range of services and solutions necessary for the Army to support its enterprise infrastructure and info structure goals with Information Technology (IT) services worldwide. The scope includes all Command, Control, Communications, Computers, and Information Management (C4IM) requirements, and end-to-end solutions to satisfy worldwide development, deployment, operation, maintenance, and sustainment requirements. Additional requirements include analysis, development and implementation of recommended solutions, and operations and maintenance of legacy systems, and equipment.

Fran Pierce, DSA’s CEO and President noted, “With the award of Army ITES-3S, combined with our other prime IDIQ contracts, DSA has an increased opportunity to expand our delivery of exceptional service to our valued government customers. We are particularly pleased about the prospects of capitalizing on the broad scope of the contract to apply innovative R&D, scientific, and technical solutions to address the Army’s most complex emerging problems.”

About DSA

DSA is an employee owned professional services provider that enables its customers to achieve sensitive, mission critical goals. We are ISO 9001:2015 and ISO/IEC 27001:2013 registered and appraised at CMMI Maturity Level 3 for Service Projects and for Development. Founded in 1963, DSA’s service offerings include Systems Engineering and Integration, Software Development, Data Analytics, Cyber Operations and Security, Systems Modernization, Cloud Solutions, Enterprise Collaboration and Knowledge Management, and Critical Infrastructure Intelligence Systems. DSA is headquartered in Trevose, PA and has major operations in Colorado Springs and Denver, CO; Honolulu, HI; O’Fallon, IL; Aberdeen and Frederick, MD; Tinton Falls, NJ; San Antonio, TX; Charlottesville, Fairfax and McLean, VA; and in other locations in the National Capital Region.

Contact:

RJ Kolton, Sr VP, Business Development, 703.261.6083; [email protected]

Inventory Fails to Keep Up With Demand

Wayne, PA (October 29, 2018) — Newmark Knight Frank (NKF) released its third-quarter 2018 industrial market reports for Greater Philadelphia and the I-81/78 Corridor. The combined markets closed the period with 5.0 million square feet of positive absorption. Warehouse properties accounted for 4.5 million square feet of this quarter’s occupancy gains. Overall vacancy declined 10 basis points to 6.2 percent, while warehouse vacancy decreased 20 basis points to 7.0 percent. 4.3 million square feet delivered during the third quarter with most of it centered in the I-81/78 Corridor market.

The Southeastern Pennsylvania market closed the third quarter of 2018 with 263,684 square feet in negative absorption. Total vacancy for all property types increased 20 basis points from the second quarter to 5.9 percent. Philadelphia County and Montgomery County were the only submarkets in Southeastern Pennsylvania with quarterly positive absorption reporting occupancy gains of 31,748 square feet and 111,795 square feet, respectively. During the third quarter, AgustaWestland began its move into 47,750 square feet at 9230-9250 Ashton Road in Philadelphia County. The tenant will occupy its remaining space in October. In Montgomery County, Cambria moved into 65,000 square feet at 780 3rd Avenue.

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NKF Welcomes Sandra Benek to its Project Management Team

Philadelphia, PA (October 26, 2018) — Newmark Knight Frank (NKF) welcomes Sandra Benek as a senior member of its Project Management team in the greater Philadelphia region. Ms. Benek is an accomplished project manager with over 10 years of commercial real estate experience, specializing in project coordination, programming, space planning, design details and interior design.

In her role at NKF, Ms. Benek will focus on working closely with the end-user to understand their culture, expectations and full scope of each requirement. Her deep experience in programming and developing budget estimates will also ensure all planning and construction cost efficiencies are captured at the early stages of the engagement when budget expectations are being set. With this tried-and-true process, all critical milestones are met, vendors are coordinated seamlessly during the installation process, and minimal distractions are guaranteed on move date.

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NIKSUN Achieves Integration with ATD through the McAfee Security Innovation Alliance

Princeton, NJ, October 23rd, 2018 – NIKSUN® Inc., the world leader in developing holistic cybersecurity and network performance monitoring solutions, is pleased to announce today that it has achieved technical integration of NIKSUN NetDetectorLive® with McAfee Advanced Threat Defense (ATD), enabling customers to deploy more robust security solutions and better protect their assets from continuously evolving cyber threats.

As a member of the McAfee Security Innovation Alliance, NIKSUN plays a critical role in the program’s mission to accelerate the development of interoperable security products and to simplify the integration of these products within complex customer environments, bringing better value and more protection against the growing threat landscape to joint customers. Through this partnership, NIKSUN and McAfee address a rising industry need to shorten response times from security events and more easily remediate compromised systems, leading to a simplified Threat Defense Lifecycle.

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DSA Awarded JPEO-CBRND JE-OPETS BEI MA/IDIQ Contract

Trevose, PA – Data Systems Analysts, Inc. (DSA), a leader in delivering secure, innovative technology, and information management solutions to DoD, Federal and State Government customers and commercial enterprises, is pleased to announce it was awarded the Joint Enterprise-Omnibus Program, Engineering, and Technical Support (JE-OPETS) Business and Analytical, Engineering and Technical, and Information Technology (BEI) Multiple Award Indefinite Delivery/Indefinite Quantity (MA/IDIQ) contract by the Joint Program Executive Office for Chemical, Biological, Radiological, and Nuclear Defense (JPEO-CBRND). JPEO-CBRND manages a dynamic and diverse portfolio of critical warfighting capabilities that require cohesive and innovative total life cycle systems management approaches to respond rapidly to the needs of the Force, balanced by affordable sustainment strategies. Under this potential five year, $249M contract, DSA will provide the JPEO-CBRND and all Joint Project Management Offices (JPMOs) total life cycle systems support across the JPEO-CBRND Enterprise, within the Continental United States (CONUS) and Outside the Continental United States (OCONUS).

Fran Pierce, DSA’s Chairman and CEO noted, “We are very pleased and excited to continue our long- standing support for JPEO-CBRND under this new IDIQ contact. The award of JE-OPETS BEI, combined with our other prime IDIQ contracts, provides DSA increased opportunities to deliver exceptional service to our valued government customers”.

 

About DSA

DSA is an employee owned professional services provider that enables its customers to achieve sensitive, mission critical goals. We are ISO 9001:2015 and ISO/IEC 27001:2013 registered and appraised at CMMI Maturity Level 3 for Service Projects and for Development. Founded in 1963, DSA’s service offerings include Systems Engineering and Integration, Software Development, Data Analytics, Cyber Operations and Security, Systems Modernization, Cloud Solutions, Enterprise Collaboration and Knowledge Management, and Critical Infrastructure Intelligence Systems. DSA is headquartered in Trevose, PA and has operations in Colorado Springs and Denver, CO; Honolulu, HI; O’Fallon, IL; Aberdeen and Frederick, MD; Tinton Falls, NJ; San Antonio, TX; Charlottesville, Fairfax and McLean, VA; and in other locations in the National Capital Region.

 

 

Contact

RJ Kolton, Sr VP, Business Development, 703.261.6083; [email protected]