Lehigh Valley’s location and proximity to major markets position the region to fare well as commercial real estate activity rebounds, according to a top industrial economist. 
Communities along the Interstate 78/81 corridor, which includes the Lehigh Valley, are attractive for growth and vacant industrial space should fill faster than the rest of the nation, said Adrian Ponsen, Senior Economist at Cushman & Wakefield.
“If you want to beef up the speed at which your goods are getting to consumers, this is a great market to do that,” Ponsen said at the Office and Industrial Property Summit of the Philadelphia chapter of the Society of Industrial and Office Realtors® (SIOR), held at ArtsQuest Center in Bethlehem on Sept. 29-30.
“If you're an e-commerce operator or a third-party logistics company, and you're looking to speed up the amount of time that you can get your goods to the ultimate destination, this location is really prime,” he said.
Ponsen presented data showing the Lehigh Valley is the No. 1 metro area in the U.S. for proximity to population within a four-hour truck drive, being able to reach just shy of 50 million people.
Lehigh Valley Economic Development Corp. (LVEDC) was a sponsor for the SIOR event, which was attended by about 250 commercial real estate brokers, developers, architects, and others in the industry, along with regional partners.
The Lehigh Valley, with a growing and diverse $55.7 billion economy, is ranked as one of America’s top mid-sized markets for economic development, based on the number of new and announced projects.
Companies are drawn to the region because of its ample and skilled workforce and its location, within a day’s drive of one-third of U.S. consumers.
Ponsen also said the I-78/81 corridor is positioned to return to a normal level of vacancy in industrial space sooner than the nation will.
Vacancy rates have been increasing nationwide as commerce has been normalizing from peak levels from the pandemic, and amid continued uncertainties over national trade policies, high costs, and interest rates.
The SIOR event also included two panel discussions.
“Navigating the Future: Corporate Tenants’ Perspectives on Market Trends and Strategies” was moderated by Lou Battagliese, Partner at Jackson Cross Partners. Panelists were John Bullen, Executive Director, Real Estate, at Comcast; Don Mell, Executive Director at JPMorgan Chase; and Dallas Pulliam, Vice President of Real Estate at Jefferson Health.
Pulliam said Jefferson Health, which merged with Lehigh Valley Health Network last year, is continuing its model of building micro-hospitals, to bring healthcare to where people live instead of centralizing services at one large location.
He said micro-hospitals, typically 22,000 square feet, can be built on as little as five acres.
The other panel discussion, “The Industrial Market: Key Insights and a Look Ahead,” was moderated by Heather Kreiger, Regional Research Director at Lee & Associates of Eastern Pennsylvania. Panelists were Jeff Milanaik, Partner at Bridge Industrial; Mark Stiles, Partner at PNK Group; and Paul Whitford, Vice President – Acquisitions & Development, at Logistics Property Company.
That panel discussed access to capital, trends in subleasing, and factors that are drawing investment, such as quality of space, location, and cost.
The Society of Industrial and Office Realtors® (SIOR) is the leading global professional office and industrial real estate association. It has more than 4,000 members in 50 countries.
SIOR conferences are designed to help members connect, build strong relationships, and facilitate business deals while enhancing their knowledge of the latest trends in industrial and office commercial real estate.
(Top photo by Rick Kintzel. Bottom photo by LVEDC staff).