The volume of industrial sublease space in Lehigh Valley, Pennsylvania has notably increased this year, more than doubling from 3.9% in the first quarter to 8.8% by the end of November. This mirrors a larger national pattern, where industrial sublet availability has risen from 7.2% to 10% over the same period.
Initially, pandemic-driven demands for warehouse and distribution centers had squeezed industrial sublet availability to a low of 2.5% in early 2022. However, recent quarters have seen a shift due to inflation, heightened capital costs, and macroeconomic uncertainties, cooling the previously high demand. Consequently, sublet availability has been consistently rising since early 2022. This turning point coincided with the Federal Reserve’s initiation of interest rate hikes in March 2022 to address inflation concerns.
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