The latest edition of the Lehigh Valley Commercial Real Estate Report shares data about the marketplace, including the most industrial space under construction in the past two years and several key expansions in manufacturing.

The cover article, “America’s Digital Infrastructure is Made in Lehigh Valley,” highlights Nokia’s $30 million expansion of its advanced testing and packaging facility in Upper Macungie Township.

Announced in June, the expansion will add nearly 250 new jobs to the company’s Lehigh Valley workforce, including some at a newly opened second location. The investment is projected to have a $500 million economic impact on the region over five years.

“Nokia’s investment and expansion here showcase the continued growth and importance of this critical technology sector in the Lehigh Valley,” said Don Cunningham, President & CEO of Lehigh Valley Economic Development Corporation (LVEDC).

The report shares comments from Nokia President & CEO Justin Hotard about how the region’s legacy of semiconductor and technology development makes the Lehigh Valley a key location.

“This location has become a strategic hub for the United States for advanced testing and packaging of optical components supporting telecommunications and AI infrastructure here in the United States but reaching globally,” he said.

The report also highlights an expansion by Freshpet, which is nearing completion on its first cold-storage facility in Bethlehem. And the report shares how the region is home to three of the 10 fastest-growing communities in Pennsylvania.

Published each quarter by LVEDC, the Lehigh Valley Commercial Real Estate Report provides a detailed overview of industrial and office market activity, notable real estate transactions, and population and labor force trends.

The report won a Gold Award from the International Economic Development Council, the largest economic development association in the world, in last year’s Excellence in Economic Development Awards program.

The newest edition covers data from the second quarter of 2026.

During the quarter, more than 2.2 million square feet of industrial space was under construction, as the vacancy rate dropped to 8.4%. Net absorption was positive for the first time in two years. Smaller industrial buildings continued to see stronger demand, with vacancy rates at 4.8% for spaces under 100,000 square feet, compared to 9.6% for larger facilities. The vacancy rate for office space remained roughly consistent with previous quarters, at 7.6%.

The digital version of the Q2 Commercial Real Estate Report can be downloaded here, and hard copies are available upon request.