LVEDC Reports Growth in Lehigh Valley Commercial Real Estate Market
The Lehigh Valley Economic Development Corporation (LVEDC) recently released its Lehigh Valley Commercial Real Estate Report, which summarizes data collected on the industrial and office markets in the region, highlighting growth in both markets.
The report indicates a 7% growth in the industrial market for the fourth quarter in 2016. Fourth quarter numbers included almost half of the net absorption (square-feet) for the year. In the industrial real estate market, the region saw a 4.3% increase in rent from 2015 and ended 2016 with 4.9% vacancy.
LVEDC’s 2016 report also highlights an increase in square-footage of office space in the region as well as steady vacancy rates that are significantly lower than the national average. As expected, quarter two saw the most action last year in both supply and demand. The market saw over 350,000 square feet in deliveries for 2016.
Don Cunningham, LVEDC President and CEO, predicts 2017 will bring several big announcements in the industrial market. These will be in addition to the largest FedEx Ground center in the U.S. being built in Allen Township. Mr. Cunningham also indicates that the Lehigh Valley will continue to see a trend in manufacturing growth, specifically small to mid-sized manufacturers.
There is some uncertainty as to what this year has in store for legal regulations in the real estate market. The possibility of the new administration loosening banking regulations could produce increased commercial real estate lending. No matter the outcome, Gross McGinley’s team of real estate attorneys and licensed title agents will continue to work hand-in-hand with commercial brokers and banks on significant commercial real estate deals. We not only assist in real estate purchases and sales, but also with commercial financing and lending, land development, zoning, and leasing (landlord and tenant).