the lehigh valley economy - naiop
TRANSCRIPT
The Lehigh Valley Economy
DON CUNNINGHAM PRESIDENT & CEO
within 1 day’s drive to reach 1/3 of U.S. Consumers and ½
of Canadian Consumers
Lehigh Valley at a Glance
$35.4 Billion GDPLarger than the entire state of Vermont
and 94 other countries in the world3 Fortune 500 Companies
Site Selection magazine – March 2015The Lehigh Valley was ranked the top-
performing region for economic development in the Northeastern United States
Lehigh Valley at a Glance
Economic base is diversified
$5.24$5.01 $4.95 $4.84
$2.22
$1.61 $1.53 $1.36
$0
$1
$2
$3
$4
$5
$6
FINANCE & REALESTATE
BUSINESSSERVICES
MANUFACTURING EDUCATION &HEALTH CARE
RETAIL TRADE TRANSPORTATION& WAREHOUSING
INFORMATION ARTS &ENTERTAINMENT
Billio
ns
Lehigh Valley GDP by sector
Lehigh Valley at a Glance
9 of 19 projects in 2015 were international I2R Nanowave (Canada)
Lower Macungie, Manufacturing
Malmedie (Germany) Upper Macungie, Manufacturing
Nihon Koden (Japan) South Whitehall, Bio-Tech
SunOpta (Canada) Upper Macungie, Food & Beverage
Inditex (Spain) Forks, Clothing Distribution
MBD – Safran (France) Lower Nazareth, Aerospace
Primark Stores (Ireland) Bethlehem, Clothing Distribution
Ricoh (Japan) Hanover (NC), Electronics
Norac (France) Forks, Food & Beverage
Commercial Real Estate Supply Growth
3,67
2,99
1
4,40
0,16
7
4,46
9,95
5
- 500,000
1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 5,000,000
Inventory Growth (SF)
373,
618
71,6
02
225,
124
143,
575
350,
265
621,
579
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
Inventory Growth (SF)
Source: CoStar, JLL
2014 2014 20142015 2016 – In Progress
2016 – In Progress
2015 20152016 – In Progress
Industrial Office Retail
570K SF –Hamilton Crossing
2015 Year-end Vacancy Rate
6.0%
9.6% 3.8%6.
4% 14.7
%
5.7%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
Industrial Office Retail
Vacancy Rates by Sector
Lehigh Valley National
Source: CoStar, JLL
Major Recent Deliveries & Deals
1185 Feather Way
179,00 SF
10 Emery St
880,000 SF
Primark2485 Commerce Center Blvd
677,000 SF
Major Deliveries & Deals- Office
Three City Center
166,000 SF delivered
Founder’s Building (former LSI HQ)
247,000 SF lease
2016 Pipeline
OFFICEGuardian Life Insurance HQ
280,000 SF
INDUSTRIALULINE Distribution Site
1.6 million SFRETAILHamilton Crossings Lifestyle Center
570,000 SF
INDUSTRIALFedEx Ground Hub –Largest in system
1 million+ SF
Source: ChrinCommerceCentre.com
2016 Pipeline
Chrin Commerce Center 800 acres along Rt. 33 in Northampton
County
Duke Realty 1.1 million SF – delivered Q1 2016
1 million SF
630,000 SF
DCT Industrial 425,000 SF – leased to FedEx and Inditex
Remainder to be manufacturing, office, retail, hotel, and medical
Market Trends
Industrial space being built on spec Nearly 5 million SF under construction
E-Commerce driving growth
Manufacturing GDP and growth remains strong Lehigh Valley’s manufacturing GDP of $4.95 billion ranks
64th out of 351 major U.S. MSAs
The Bethlehem Steel
4 miles of industrial manufacturing on the Lehigh River
Over 1800 Acres
Closed in 1998
Redevelopment
LV Rail Management Intermodal Facility
Bethlehem Intermodal 4.6 miles of track1,200 trailer parking
spaces1 mile from I-78Serviced by Norfolk
Southern and Canadian Pacific railroads
Multi-Modal Logistics & eCommerce Fulfillment Park
www.MajesticBethlehem.com
Multi-Modal Logistics & eCommerce Fulfillment Park
The Majestic Realty Co.
WHO WE ARE Family owned and operated since 1948 Headquartered in Los Angeles Regional offices in Atlanta, Bethlehem PA, Dallas/Fort Worth, Denver,
and Las Vegas
WHAT WE DO Develop commercial real estate with a long-term, Build-and-Hold
business model Own and manage an approximately 80,000,000 SF portfolio Largest privately-owned light industrial developer and owner in the U.S.
HOW WE DO IT Vertically integrated In-house design, engineering and construction capabilities In-house property management
Multi-Modal Logistics & eCommerce Fulfillment Park
Location, Location, Population
Multi-Modal Logistics & eCommerce Fulfillment Park
Bethlehem: ‘Inland Empire NE’
Multi-Modal Logistics & eCommerce Fulfillment Park
TODAY
Bethlehem Steel, circa 1999
Opened Escrow with Bethlehem Steel in 1999
• Close to Interstate 78• Robust utility services
• Industrial Zoning• Extensive Rail
Multi-Modal Logistics & eCommerce Fulfillment Park
TODAY
1999 TODAY
Acquired 441 acresPerformed Extensive Environmental Characterization
Planned 8 MSFFlexible Zoning and Land Use in Place
FTZ and Economic Incentives
• US EPA and PA DEP approvals via Act 2• Only mitigation is to redevelop• Massive demolition and grading program
• On-site rail for direct rail-served buildings• Adjacent intermodal – eliminates drayage costs
and presents heavy-haul opportunity. • New road infrastructure6
Multi-Modal Logistics & eCommerce Fulfillment Park
Interstate, Mainline Rail and Intermodal
1999
Lehigh University
9
Multi-Modal Logistics & eCommerce Fulfillment Park
800ksf 1.2msf2014
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Multi-Modal Logistics & eCommerce Fulfillment Park
Crayola DC (800,000sf)
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Multi-Modal Logistics & eCommerce Fulfillment Park
Walmart FC (1,200,000sf)
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Multi-Modal Logistics & eCommerce Fulfillment Park
Coming Soon….. Bldg #3
All buildings have 360 degree access via common access ring roads
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Multi-Modal Logistics & eCommerce Fulfillment Park
1,000,000 sf Spec (expandable to 2msf)
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Multi-Modal Logistics & eCommerce Fulfillment Park
….Or 2 independent buildings
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