Where Pennsylvania industrial property values saw the biggest increases

By Brenda Nguyen CoStar Analytics

Industrial real estate across Pennsylvania has seen steady price increases in recent years. The state’s eight largest markets posted gains in industrial property values ranging from 6.9% to 15.7% over the past three years.

Lancaster led the pack, with a 15.7% jump in industrial property values — more than any other location in the state. Fewer new buildings and strong demand for warehouse space helped push prices up. Only 3 million square feet of new industrial space was built in Lancaster during this time, an increase in the total supply of just 3.3%. That’s about half the growth rate seen in Philadelphia, which posted a 7.2% increase, and Lehigh Valley, which also saw a strong increase of 7%.

York came in second, with a 13.6% increase in overall industrial property values. Its lower average building prices and location near Philadelphia and Baltimore made it attractive to businesses and investors.

Philadelphia produced the third-largest increase in industrial property values, with an average increase of 12.7%. Much of that increase resulted from industrial property sales in southern New Jersey's Burlington County, which plays a key role in the Philadelphia region’s logistics network.

The strong performance of Lancaster and York demonstrates how smaller metropolitan areas are gaining ground and increasing in value within Pennsylvania’s industrial market. These areas offer lower costs and access to major highways and cities, making them appealing alternatives for tenants and investors to industrial properties in larger markets such as Philadelphia.

www.omegare.com