PA Distribution Markets Roar
Pennsylvania is becoming a distribution mecca, CBRE research whiz Ian Anderson tells us. Leading the charge are the Lehigh Valley (as we reported last week) and Central PA, two of the strongest markets in the country, which experienced record-breaking demand for warehouse space last year and are on pace to repeat that this year.
More than 10M SF of industrial space is set for delivery in greater Philly this year, Ian points out, which is the most we’ve seen since before the recession. Of the 20 properties coming online, 17 are big box (200k SF or larger), which serve the largest distribution, logistics or light manufacturing operations. The region’s availability rate still isn’t as low as it was before the recession, though it’s headed downward, Ian says.
Major users are interested in finding major space: late last year, for instance, Wal-Mart decided to open two distribution facilities in the market this year, the 1.2M SF Majestic Bethlehem facility and a 1M SF facility in the Lehigh Valley Industrial Park (pictured). Ian adds that Chester and Montgomery counties lead the light industrial market in the region, with the two highest asking rates in the region other than the Lehigh Valley.