The Lehigh Valley is coming off a banner year for economic growth, with interest in the region remaining high, officials said at the Lehigh Valley Real Estate Outlook 2024, hosted by the Greater Lehigh Valley Chamber of Commerce.
Nearly 500 real estate professionals, business executives and owners, public officials, and others were provided with the most-recent data and trends at the event, held April 9 at the Delta by Marriott in Upper Macungie Township. 
They were told that while the data is largely positive – a record Gross Domestic Product, job and population growth, more housing units on the way – there are challenges to be faced.
“Our region is growing, creating economic opportunity and sustaining an exceptional quality of life for those of us fortunate enough to call the Lehigh Valley home,” said George Lewis, Special Assistant to the President & CEO at Lehigh Valley Economic Development Corp. (LVEDC).
He touted the Lehigh Valley’s latest accolade, being named the No. 1 mid-sized market in the U.S. for economic development in 2023, based on an analysis of economic development projects by Site Selection magazine.
The Lehigh Valley’s economic growth, to a record GDP of $50 billion, has coincided with an increase in median household income and a decrease in the poverty rate, Lewis said.
“As a region, we’ve built lasting partnerships and delivered on strategies that are creating opportunities for people of all skill levels, all education levels, and all walks of life.”
The economy is diverse but continues to be driven by manufacturing.
“Manufacturers want to be in the Lehigh Valley,” Lewis said. “They come here, they grow here, and they stay here because they appreciate the value of our location, our skilled workforce, and our strong talent pipeline.”
There has been a normalization of the commercial real estate market, due to higher interest rates, slower growth in online retail sales, limited availability of industrial space, and public sentiment toward development. He said the region is reaching an “inflection point,” and that balance is necessary.
“It is essential that we keep working together on hard-to-do tasks like brownfield re-use, downtown development, and high-value strategic sectors. We must balance the equally important elements of quality of life, open space, and economic opportunity.”
LVEDC previously led a conversation about that at its Annual Meeting in March, during a panel discussion of local leaders.
Becky Bradley, Executive Director of the Lehigh Valley Planning Commission, underscored many of those points in her remarks at the Lehigh Valley Real Estate Outlook 2024.
Bradley presented data showing an increasing number of land development and subdivision plans in recent years, with nearly an even split between residential and non-residential development over the last five years.
She said the region is growing in the number of people and the number of businesses, and “there's rapid technological advancement of the Fourth Industrial Revolution.”
There continues to be a housing shortage, despite 4,900 units proposed last year, she said. There could be even more housing proposed this year if the early pace continues, as 1,401 apartments, townhouses, twin homes, and single-family homes were proposed in the first quarter.
“The region is on an encouraging development track. Higher density housing helps increase the number of units available at a greater variety of prices,” Bradley said.
There has been a “measurable slowdown” in non-residential development, she said, particularly industrial development. If the pace from the first quarter continues through the year, the amount of new industrial space that’s proposed would be the lowest since 2015.
But Bradley cautioned not to read too much into that, as there was rapid industrial growth over the last decade and interest rates and a retraction of pandemic fueled e-commerce are playing a role.
“I'm not really entirely sure I would put a trendline on it at this point,” Bradley said.
The Lehigh Valley Real Estate Outlook 2024 included a panel discussion, “What’s Trending in Valley Development,” hosted by Chamber of Commerce President & CEO Tony Iannelli and recorded for his “Business Matters Live!” show on WFMZ.
The panelists were Nicholas Dye, Managing Member of D&D Realty Group in Scranton that plans to purchase and renovate the PPL Tower in Allentown; Mark Mulligan, CEO of VM Development Group in Easton; and John Callahan, Director of Development at Peron Development in Bethlehem.
Dye said D&D Realty Group is excited to be entering the Lehigh Valley market. He said plans call for converting the upper floors of the PPL Tower into apartments, with complimentary uses on the first and second levels and commercial tenants in the adjacent PPL North Building.
Mulligan said VM Development Group is focusing on building live-and-work spaces, to accommodate the trend of more people working from home.
“Like a one bedroom with a den, and the den has a sliding door or barn door or glass, so that you can still feel you're working but you're not working from home, but you are at home,” he said.
Callahan said Peron Development is working with City Center Group of Allentown on two mixed-use retail and housing projects in downtown Easton, The Marquis and The Confluence, which will create about 600 housing units.
“While we do certainly have an affordable housing issue, the biggest deficit in housing in the Lehigh Valley is $100,000 and more. So, whether that's a for-rent product or a for-sale product, we're trying to do our part to bring that kind of product to downtown Easton,” Callahan said. “And I think we’re going to make a real impact.”
Optima Durant Group was recognized at the event with the Chamber’s 2024 Commercial Real Estate Development Award for The Commodore, a recently completed mixed-used development along the Delaware River in Easton that includes luxury residences, a rooftop restaurant, retail space, and other amenities.