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Real Estate Journal — Spring Preview —April 26 - May 9, 2019 — 11C
M id A tlantic
By Staci Saeger, NAI Summit With Spring Flowers Brings…More Real Estate! Lehigh Valley Spring Market Update L ehigh V alley , P ennsylvania
the Lehigh Val- ley. The growth of the region throughout the years has been t r e m e n d o u s and that’s only going to con- tinue. For the third year in a W
ith spring flowers brings more real estate activity is an understatement for
that is currently under construction. Retail trends continue to shift from less big brick and mortar stores to more focus on smaller locations and the e-commerce world. In a recent NAI Global CRE Outlook article from March, the discussion of how some of our biggest retailers like Nordstrom, Kohl’s and Macy’s are downsizing and experiment- ing with new models. NAI Global states, “As more and more business is done online, these types of stores feel that less physical square footage is necessary in order to take care of their customers.” According to the Lehigh Valley Planning Commission, the amount
of land in the Lehigh Valley de- creased from 50% to 22% in the past 15 years. In 2017, they reported 1,729,110 s/f of non-residential de- velopment was approved with over a million of that solely for industrial. The total amount of acreage used for said commercial, retail, public, industrial, and office development approved in 2017 is about 257 acres. Overall, the Lehigh Valley is thriving and the real estate market is blooming more rapidly than the spring flowers. May will brings showers, but not on the real estate market in the Lehigh Valley. Staci Saeger is Director of Marketing at NAI Summit.
Staci Saeger
row, Site Selection magazine ranked The Lehigh Valley among the Top Five Best Performing Regions of its size in terms of economic development in the Northeastern United States. Much of the growing success can be contributed to the manufacturing, finance, insurance, and real estate industries. The Le- high Valley’s prime location boasts ease of access to ample consumers, 30 to 90 minutes away from three international airports that includes a Foreign Trade Zone status. The re- gion’s infrastructure provides three major interstates which offer short commutes to Philadelphia, New Jersey, and NewYork. There is even rail service and quick access to two water ports that make conducting business and getting the job done all the easier. Our economy here in the Lehigh Valley is strong and diverse. Ac- cording to LVEDC in regards to real estate, “The Lehigh Valley is 127%more affordable thanManhat- tan, 69%more than Brooklyn, 43% more than Boston, and 18% more affordable than New Jersey”. It is safe to say that the attraction and desire to be in this area will be sure to spill over into the remainder of the year and years to come. Of all the types of real estate desired here, industrial/flex space takes the cake. LVEDC reported over 4 million s/f or more of in- dustrial space has been added to the area for five years in a row but we are still experiencing a major shortage of smaller buildings. They stated only three smaller industrial/ flex buildings were built within the last five years. CoStar recorded 121+ million s/f of industrial/flex space currently in our inventory, there is 6.6 million total square footage under construction and on its way. The office market has been rela- tively consistent for some time whereas much absorption that may occur there is just as much vacancy that appears. CoStar reports a va- cancy rate of 7% for office space in Quarter 1 of 2019, decreasing from 7.7% in Quarter 4 of 2018. The Lehigh Valley plans for about 523,000 s/f of additional office space, the majority in urban areas,
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