The United States had a record year for large warehouses in 2021 and the I-78/I-81 corridor, running through the Lehigh Valley, Central Pennsylvania and Northeastern Pennsylvania ranked second in the country for these large transactions.
According to CBRE, driven by a rebounding economy and strong e-commerce sales, companies committed to 57 warehouse leases of 1 million square feet or more across the country in 2021. That’s a 19% increase.
Chicago had the greatest number of the top 100 transactions with 12. In second place, the I-78/81 corridor followed with 11, however it did record the most transacted square feet at 12.4 million.
“Each year, the PA I-78/I-81 corridor is among the leaders of 1 million square feet or larger transactions,” said CBRE Executive Vice President Vincent Ranalli. “Tenants with needs of 1 million square feet or more seek out our region due to availability of large sites to accommodate these mega deals, competitive lease rates, labor availability and an overall business-friendly environment.”
The industry sector claiming the largest share of those leases is general retail and wholesale, which recorded 44 transactions at 46.1 million square feet.
Ranalli said this was a significant jump from 2020 when that sector recorded 32 transactions of 35 million square feet.
E-commerce-only occupiers, which was the leader in 2020, were second at 21 deals of 27 million square feet, followed by food and beverage users at 15 deals at 14.2 million square feet.