When it comes to warehouses, how big is too big?
Massive warehouses are becoming a common sight throughout
the Greater Lehigh Valley and a rising trend over the past few years. But is it
sustainable and will it continue to grow?
"The evolution and size of these buildings is a new
trend," said David Berryman, chief community planner for the Lehigh Valley
Planning Commission, an organization that released a new subdivision and
building activity report last week. "The theory in how to get goods from
Point A to Point B has changed."
Based in Hanover Township, Lehigh County, the LVPC shared
details of a report that charts all development that occurred in Lehigh and
Northampton counties in 2013.
During 2013, the report showed, Lehigh Valley municipalities
approved developments that could consume 1,577 acres or 2.5 square miles.
Subdivided acreage for approved plans for nonresidential projects covered 1,274
acres, while residential projects covered 303 acres.
Much of this nonresidential development includes
warehouse/distribution projects such as the Ocean Spray Bottling Plant and
Bimbo Bakeries in Upper Macungie Township.
The approvals in 2013 for nonresidential development show a
big jump over 2012 levels, revealing a 241 percent increase, according to the
report.
Warehouses stood out as one of the biggest nonresidential
development trends in the report, and Berryman noted how the size has continued
to grow and could possibly get larger.
The warehouses for Dollar General and PetSmart in Berks Park
78 in Bethel Township, Berks County, are more than one million square feet in
size and reach similar sizes farther west on Interstate 78 into Carlisle,
Berryman said.
But Bethlehem could have the largest warehouse/distribution
facility in the state if a 1.9 million square foot warehouse is built for Majestic
Realty Co., according to Berryman.
In Lehigh and Northampton counties, there is not much land
left to locate warehouses of that size or larger.
"The market will go as far as it can and fill up the
cup until it overflows, then it will stop," Berryman said. "I don't
know if these warehouses can be changed to something else; we're just consuming
an awful lot of space for a single user."
At some point, the land is going to run out, Berryman said.
"I see it as a question of opportunity costs,"
Berryman said. "The good land will be in short supply."
In the years to come, developers may decide to go farther
into northern parts of Lehigh and Northampton counties to build warehouses, he
said. Now, the popular places for distribution/warehouses continue to be Upper
Macungie Township along Route 100, Bethlehem along Route 412, Palmer Township
near Route 33 and in Forks Township. Each of these locations has warehouses and
distribution centers in industrial parks that enable easier connections to
utilities and, in some cases, offer direct rail access to ship freight.
While rail freight would keep trucks off local roads and
highways, not every warehouse and distribution site has direct rail-freight
access.
"We are at that point now where the Lehigh Valley is
really maturing," said Becky Bradley, executive director of the Lehigh
Valley Planning Commission. "The onus is on the municipalities to require
transportation improvements."
She cited many external factors that drive both commercial
and residential development, including a rising population, the growth of
families with fewer children, younger generations with higher levels of student
loan debt and people with increasing mobility between jobs. All of these
factors played a role in 2013 statistics and likely will in the future.
"How does all that fit together? There are tax
implications with every style of development," Bradley said.
Source: LVB.com
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