Millennials poised to bring an economic 'boom'

A key trend that will affect every industry is how closely related two seemingly divergent generations actually are.

The buying power of the emerging millennials will bring about significant, positive changes to the economy as they enter the workforce, similar to what the baby boomer generation did in their heyday of the early 1980s, according to Michael Alderman, vice president of leasing and development of Liberty Property Trust, which has an office in Bethlehem.

Alderman joined other experts who unveiled many industry trends before an audience of about 500 business executives at a commercial real estate outlook and awards program Tuesday hosted by the Greater Lehigh Valley Chamber of Commerce at DeSales University in Center Valley.

In 1980, the boomers made up 79.5 million people between the ages of 15 and 35, about 35 percent of the U.S. population, Alderman said. Today, the millennial generation makes up 84.3 million people in the same age bracket, which equates to about 27 percent of the U.S. population.

"This is the basis on how we are setting strategies, as these people start earning more and providing more, we are optimistic that this [growth] could happen again."

Many millennials (about 93 percent) plan to own a home, although 36 percent still live with their parents, Alderman said.

Alderman said this growth is "going to be positive" for real estate.

Focusing on industrial growth in the Greater Lehigh Valley, Alderman said e-commerce will continue to grow, noting that the FedEx ground project proposed in Allen Township will have a big impact in a positive way with how Internet products are distributed.

Larger, taller industrial buildings will continue, and sustainable construction also will be a key trend. As an example, in 2012, Allied Building Corp. of Bethlehem built a warehouse that achieved a Gold designation for Leadership in Energy and Environmental Design.

Part of the growth in industrial development comes from the wants of the community, he added.

"It's the greater community wanting these companies to come here," Alderman said. "You understand your strengths. This is a pro-business community when it comes to what we do."

As part of the program, the chamber feted several individuals with commercial real estate development awards.

Easton Mayor Sal Panto presented an adaptive reuse award to developer Mark Mulligan, CEO of VM Development Group LLC, for spearheading Easton's redevelopment revival with the Pomeroy's mixed use project and several other initiatives.

Also, Allentown Mayor Ed Pawlowski and Tony Iannelli, president and CEO of the chamber, presented the Lehigh Valley vision award to a group of political, community and business leaders and several organizations that helped launch the rebirth of Downtown Allentown.

Source: LVB.com