The Lehigh Valley is right next to Pennsylvania's I-78. A major highway connecting big cities like New York to eastern Pennsylvania that allows for one day access to millions of people. In fact, there is more than 8 million people just within 50 miles around the place. The region is centrally located along the east coast close to three major ports, the port of New York and New Jersey, the port of Baltimore and the port of Philadelphia. Not to mention easy access to railroads, 100 major interstate interchanges, and multiple international airports. This is not just happening in the Lehigh Valley. It is also a broader US story like in Chicago and Southern California. Amid the warehouse boom, the once plentiful supply of land is tightening up. Because Lehigh Valley is centrally located between Boston, New York, Philadelphia, Baltimore and Washington D.C. as the same time growing population is attractive to companies looking to reshore operations or shorten supply chain in an affordable area in the heart of the Northeast. The Lehigh Valley's GDP hit a record $43.3 billion just before the pandemic, and over 16% of that economic activity was part of its strong manufacturing sector. The area's home to Crayola, Mack Trucks and Peeps maker, just to name a few.
According to CBREE's research, the northeastern PA and New Jersey markets warehouse the labor force of about 190,000 is expected to grow by 13.4% over the next decade.
You know that is translating to $45.000 a year for somebody with just a high school diploma. Workers right now are benefiting greatly from what is happennig in the Lehigh Valley economy.
In Logistics real estate warehouses are much more than stagnant storage space. So what is logistics real estate? i think the number one thing you should think of is constant motion, goods getting from where they are produced to where they are consumed, they need to make multiple stops on that journey.
A warehouse is an industrial big box facility. it is a distribution center of a least 200,000 square feet. Basically, it is a giant living, breathing mailbox. There are three different areas that are driving the need for more warehousing space: logistics and distribution, third party logistics and then e-commerce.
E-commerce is basically conducted by a company oniline related is logistics and distribution. Imagine buy something online... and once you place the order, how does it get to your doorstep? it is that trucking company or a logistics and distribution company like ups or FedEx That is picking up that package from the e-commerce facility and then delivering it to the last mile which is customer's doorstep.