By Brenda Nguyen CoStar Analytics
Lancaster, Pennsylvania's industrial market has hit a historic milestone. Investment reached $418.9 million in the trailing 12 months through the third quarter of 2025 — a record that signals the market has entered a new era of institutional interest.
Institutional investors dominated the action, accounting for more than half of all transaction volume by dollar value over the past year. Private buyers captured 20% of the market, while private equity firms claimed 25%.
In February, institutional investment manager Machine Investment Group acquired two former printing press facilities for $130 million with plans to redevelop them into data centers. This marked the highest valued industrial trade in Lancaster’s history.
Dalfen Industrial, Spectre Equities and Upward Investments are among other institutional players that have acquired local industrial facilities in the past year.
Lancaster’s recent performance surpassed its previous record of $402 million in trailing 12-month sales, set during the third quarter of 2021. That earlier peak came during the pandemic boom, when surging demand for logistics and distribution space drove industrial development across the Mid-Atlantic to new heights. Lancaster's ability to exceed that mark demonstrates a fundamental shift in the county's industrial real estate landscape.
The surge reflects the growing strength of Pennsylvania's industrial corridor. Lancaster offers proximity to major metropolitan markets, robust logistics infrastructure and competitive operating costs — a combination that continues to draw warehouse, distribution and manufacturing operations. Amid limited new development, Lancaster punches above its weight as a small industrial market delivering outsized results.
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