Back

New Lehigh Valley Real Estate Report Focuses on Office, Industrial, Flex Markets

By Colin McEvoy on December 22, 2015

Sample pages from the newest issue of the Lehigh Valley Commercial Real Estate Report. The full report can be downloaded here.

Sample pages from the newest issue of the Lehigh Valley Commercial Real Estate Report. The full report can be downloaded here.

The Lehigh Valley Economic Development Corporation (LVEDC) has released the newest issue of its quarterly report detailing the real estate climate of the Lehigh Valley.

First launched in May, this is the third edition of the Lehigh Valley Commercial Real Estate Report, which focuses on the region’s office, industrial, and flex space markets, with data from the third quarter of 2015.

“We continue to receive strong feedback regarding this report, which is in keeping with one of our core principles to serve as the leading source of economic data and market intelligence in the Lehigh Valley,” said Don Cunningham, LVEDC President and CEO. “It’s important to have this knowledge at our disposal because the only way to affect tomorrow is to understand where we are today.”

The new issue is available digitally on the LVEDC website, and hard copies can also be made available upon request at no cost. To obtain copies, contact Director of Communications Colin McEvoy at [email protected] or 610-266-3817.

Among the findings from the eight-page report is that the Lehigh Valley commercial real estate market fundamentals continue to remain strong across the office, industrial, and flex markets. The national office vacancy rates have increased from 14.9 percent in the fourth quarter of 2014, to 16 percent in the third quarter of 2015.

The Lehigh Valley office vacancy rate is significantly lower than the national average, the report states, and has improved from 11.79 percent in Q4 2014, to 10.66 percent in Q3 2015, with asking rental rates remaining relatively steady.

The industrial real estate market in the Lehigh Valley remains strong, with vacancy rates for buildings 500,000 square-feet or higher at 1.2 percent, and low rates for medium- and small-sized buildings as well, the report finds. The region’s flex market consists of 241 buildings, and vacancy rates in that market remain low at 4.5 percent.

“The Lehigh Valley continues to see strength in the commercial, industrial, and multi-family segments of the market,” said Cindy Feinberg, co-founder of Feinberg Real Estate Advisors, who contributed her perspective to the report. “We expect this to continue in 2016 due to our location and the strength of our economy.”

The report also includes such information as net absorption, average asking prices, total rentable building area, and current economic data such as employment by industry, growth rates, historical unemployment data, and workforce growth. It also reports on the Lehigh Valley’s gross domestic product, which reached a record-high $35.4 billion in 2014.

Additionally, the report includes a list of all industrial and commercial real estate transactions recorded in Northampton and Lehigh counties during the first quarter of 2015 that sold in excess of $850,000, as well as a map showing the distribution of those sales.

The data featured in the Lehigh Valley Commercial Real Estate Report was gathered by John Lamirand, LVEDC’s research specialist.

LVEDC Launches New and Improved Website

For many businesses and site selectors considering coming to the Lehigh Valley, the Lehigh Valley Economic Development Corporation (LVEDC) website serves as their first in[...]

Continue to Next Page

Lehigh ValleyQuick Facts

Industry Spotlight

13.8% of Labor Force
Employed in Professional & Business Services
Q4 2016

By the Numbers
$39.1 Billion

Gross Domestic Product
2016

Investor Spotlight
City Center Lehigh Valley
Industry Spotlight

9.8% of Labor Force
Employed in Manufacturing
Q4 2016

By the Numbers
$3.44 Billion

Exports
2015

Investor Spotlight
Air Products
Industry Spotlight

1,504 Total Office Buildings
Q2 2017

By the Numbers
$57,510

Median Household Income

Investor Spotlight
PPL Electric Utilities
Industry Spotlight

1,770 Total Industrial Buildings
Q2 2017

By the Numbers
24,400

New Jobs Created Over Past 5 Years

Investor Spotlight
National Penn
Industry Spotlight

5.0% Industrial
Vacancy Rate
Q2 2017

By the Numbers
658,477

Population

Investor Spotlight
Olympus
Industry Spotlight

7.7% Office
Vacancy Rate
Q2 2017

By the Numbers
342,493

Labor Force

Investor Spotlight
Lutron Electronics
Industry Spotlight

17.2% of Labor Force
Employed in Health Care & Social Assistance

By the Numbers
5,073

Technology Patents from 2000-2015

Investor Spotlight
Mack Trucks
Industry Spotlight

9.1% Increase in exports
Among top 20 markets nationally in export growth

By the Numbers
25.8 Million

Total Office Inventory (Square Feet)
Q2 2017

Investor Spotlight
UGI
Industry Spotlight

10.1% Industrial rent growth
Second highest in the U.S.

By the Numbers
115.5 Million

Total Industrial Inventory (Square Feet)
Q2 2017

Investor Spotlight
NFI