Real Estate Savings: Lehigh Valley

March 2025 | Real Estate

NYC to Pennsylvania

Lehigh Valley's modern 3PL warehouses, such as JW Industrial Park (opened January 2025) and Lecangs Distribution Center (504,000 SF, operational since 2023), offer $10.39/SF/YR rates compared to NYC’s $17.01–$25/SF/YR, slashing storage costs by 40–60% (1) (2).

These facilities feature 40-foot clear heights, enabling vertical stacking for 3–4x denser storage than traditional self-storage units, maximizing space utilization. Class A designs also reduce maintenance costs, while proximity to major highways (I-78, I-80) ensures seamless integration into supply chains. For example, Goodman Industrial Center in Easton, PA, provides turnkey access to Northeast markets at half the cost of NJ/NYC warehouses13. Advantage: Lower fixed costs free capital for core operations while maintaining scalable, high-capacity storage.

The Lehigh Valley offers distinct advantages over areas just north of NYC or other nearby Pennsylvania regions for warehousing and logistics operations. Its strategic location, approximately 90 miles west of New York City, provides a balance of proximity to major markets while offering significantly lower operational costs. The region's average asking rent for industrial space is $9.94 per square foot, compared to $18.74 in Northern New Jersey and $17.52 in Central New Jersey7. This cost advantage, combined with the Valley's access to major highways like I-78 and I-476, allows for quick and cost-effective transportation to NYC, Philadelphia, and other Northeast markets3. Additionally, the Lehigh Valley has experienced substantial growth in warehousing space, adding 56 million square feet in recent years, surpassing other comparable regions4. The area's established logistics infrastructure, including the Lehigh Valley International Airport and proximity to the Port of New York and New Jersey, further enhances its appeal as a distribution hub45. These factors make the Lehigh Valley a more attractive option for companies seeking to optimize their supply chains and reduce operational costs while maintaining efficient access to major consumer markets.