Business Journal NORTHEAST
$1.50
PENNSYLVANIA
THE REGION’S AWARD-WINNING SOURCE OF BUSINESS NEWS AND INFORMATION
April 2019 VOL. 34 NO. 4
Penn’s Northeast to present real estate summit
become fertile ground for commercial real estate developers. The six-county region is he upcoming second annual Northhome to nearly 900,000 residents, and within eastern Pennsylvania Real Estate a one-day drive resides almost one-third of Summit, presented by Penn’s Norththe American population and one-half of the east, will explore an economic development Canadian populace. system that’s a far cry from the old business The NEPA populations has also been growplan of just build a park ing since 2000, and approximately 386,000 and they will come. jobs now exist in the six-county region, with John Augustine, Penn’s two-thirds of these located in Lackawanna and Northeast president and Luzerne counties. This market now sports an CEO, explained that the average unemployment rate of 5.6 percent, event is a formal sequel which is typically higher than within Pennto the 2018 inaugural sylvania and the national rate, but also has summit attended by nearly achieved a large decrease since the dark days 200 business people. The of the Great Recession. Networking opportunities AUGUSTINE 2019 version will focus on On the real estate front, more than 6 According to Augustine, one of the big commercial, industrial and million square feet of buildings are under convalues in attending a business forum, in office markets, and explore growth and invest- addition to the educational possibilities, is struction within NEPA. Since 2000, more than ment opportunities within the sectors of medi- the participation in networking among those 41 million square feet of industrial space has cal services, downtown development, housing, present. This is vital if business people are to been leased, with 2017 featuring 5.4 million retail and office space, plus e-commerce and square feet of new industrial leases. connect and learn how to overcome predictdistribution. Unlike many single-occupation markets, able challenges that always face developers. “The forum will offer a true picture of the NEPA offers work diversity. Health care, He also commented that creation of a local regional and national real estate markets capable and pertinent workforce has now beemploying more than 65,000 workers, is the plus investment opportunities and the inherent come one of the keys to economic expansion. busiest sector followed by retail with 48,000 processes, and one of our prime goals will be The almost universal big push for four-year employees and manufacturing with 42,000. to answer development inquiries that repeatEducation also is booming. Overall, more degrees must be supplemented by two-year edly come up,” said Augustine. “In effect, this technical educations, as tech and trade careers than 40,000 students are enrolled at the will allow us to see into our own backyard, region’s 19 colleges and universities. prove to both rewarding and satisfying. plus into the neighbor’s backyard.” The warehousing and storage industry has “Remember, you can’t outsource a tech Augustine explained that within the northquickly become a great success story. This repair job to China,” said Augustine. east urban industrial corridor, recognition is According to data compiled by Penn’s occurring that NEPA is the next profitable fron- Northeast, the overall NEPA market has Please see Real Estate , Page 13 Dave Gardner
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tier for company expansion. Operating costs are steeply rising for commerce within urban setting, making NEPA a favorable target for operations as automation and superior electronic connectivity allow companies to operate in locations once thought of as unfavorable. “Many talented kids coming out of school in NEPA still leave the region, and we must do a better job of showing them the opportunities that are here,” said Augustine. “When you add in the reality that NEPA manufacturing still has a relatively older workforce, many workplace opportunities are opening up, but we’ve got to retain our graduating talent.”
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