Gov. Josh Shapiro made the Lehigh Valley the focal point of a new state program that will accelerate development of commercial and industrial properties and make Pennsylvania more competitive with neighboring states.
In May, Shapiro came to Allentown to announce that a site there had been selected as the first location to receive funding from PA SITES, a program that invests in properties to make them shovel-ready and more appealing for development.
In July, Shapiro returned to the Lehigh Valley to tout the program again, at a former Bethlehem Steel property primed for redevelopment.
The Lehigh Valley’s portfolio of industrial space remained steady in the second quarter, at 151 million square feet. No additional space was delivered, as the market continues to normalize from the high demand during the pandemic. The industrial vacancy rate increased to 6.2%.
The delivery of additional space is not far off, though, with 3.2 million square feet of industrial development currently under construction. Analysts anticipate demand to pick up if the Federal Reserve continues to gradually reduce interest rates.
The cost of industrial space remained steady, while the rate for office space increased slightly. The Lehigh Valley’s rates for industrial and office space continued to remain lower than in the Philadelphia suburbs and northern and central New Jersey.
The inventory of office space also remained level, at about 29.6 million square feet, with a vacancy rate of 7.1%.
Notable transactions in the second quarter included the sale of the original manufacturing location of Crayola in Palmer Township, to a developer who plans more than 100 apartments. Crayola now produces crayons, markers, and other items at another location in the Lehigh Valley. It continues to do research and development at a separate building on the original site.
Logistics leader Carbel leased a 470,000 squarefoot building at JW Industrial Park in Lower Nazareth Township. Bazzini, which produces nut, fruit, and chocolate confections and is the oldest nut company in the United States, leased about 130,000 square feet in Upper Macungie Township. continue