Marcus & Millichap is pleased to present the opportunity to acquire the property located at 312 to 314 Baumer Street in Johnstown, Pennsylvania, leased to Matheson Tri-Gas, Inc. The subject property consists of approximately 11,220 square feet of industrial space and is situated on 0.79 acres of land. The two-building asset sits along a Norfolk Southern rail line and features a combined three dock-high doors, two grade-level doors, and 15 parking spaces. Branded as MATHESON, the tenant has occupied the property since 2008 and is signed through July 2026 with two five-year renewal options that include 3.0 percent rent escalations. The full term of the triple-net lease is guaranteed by MATHESON, a leading provider of liquid gases and gas equipment that employs over 4,500 employees across more than 300 locations (MATHESON).
Johnstown is a relatively small market, containing 5.9 million square feet of industrial space. The vacancy rate has trended lower over the last two years, settling at just 2.1 percent to close out 2023. While the increase in market rents has recently slowed, the annual growth rate remained robust at 5.8 percent in 2023, allowing landlords to stay ahead of the consumer price index. Unlike most markets that have to contend with a flood of new developments, Johnstown had no deliveries of industrial properties in 2023 and had no properties under construction going into 2024 (CoStar). If net absorption remains intact, tight availability should allow landlords to re-lease any vacated space within a reasonable time.
Located 57 miles east of Pittsburgh, Johnstown, Pennsylvania, is home to over 18,000 residents in the picturesque landscape of the Laurel Highlands. The development of the city began with the construction of the Pennsylvania Railroad, which spurred the growth of the iron, coal, and steel industries during the second half of the 19th century. During this time, Johnstown’s Cambria Iron Company emerged as the nation’s largest steel producer in the United States. However, Johnstown’s fame also stems from the devastating Johnstown Flood of 1889, one of the deadliest natural disasters in U.S. history. Over the years, Johnstown has experienced significant shifts in its economy along with the decline of the steel industry. Today, the local economy is largely anchored by healthcare, education, defense, and tourism. Major employers include Conemaugh Memorial Medical Center and the University of Pittsburgh at Johnstown. While Johnstown has faced socioeconomic hardships, it retains its small-town charm and community spirit. The resilient city continues to reinvent itself, embracing new opportunities while honoring its industrial heritage.
BROKER OF RECORD
Timothy Stephenson, Jr.
Pennsylvania Broker of Record
2005 Market Street, Suite 1510
Philadelphia, PA 19103
P: (215) 531-7000
License #:RMR006104
Firm License #: RB062197C
Timothy.Stephenson@MarcusMillichap.com
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2023 Marcus & Millichap. All rights reserved. (Activity ID: ZAE0060775)
