Overview
As exclusive agent, Cushman & Wakefield’s National Industrial Advisory Group is pleased to present the opportunity to acquire a 100% fee simple interest in the Lehigh Valley Shallow Bay Portfolio. The Portfolio comprises eight institutional-quality industrial assets totaling 575,094 square feet across Lehigh County, offering a rare chance to acquire immediate scale within one of the Northeast’s most highly sought-after industrial submarkets.
Strategically located within the Lehigh Valley, the portfolio benefits from the region’s position as a premier logistics and industrial hub, driven by its proximity to major population centers such as New York/New Jersey and Philadelphia. With immediate access to I-81, I-78, I-476 (PA Turnpike), and U.S. Routes 22, 100, and 222, the region is within a one-day truck drive of roughly 40% of the U.S. population. Its extensive highway network, growing Lehigh Valley International Airport (ABE), and strong rail and intermodal connectivity reinforce the area’s role as a critical distribution and light-industrial hub in the Mid-Atlantic supply chain. The Lehigh Valley submarket is home to major industrial users including Amazon, Uline, FedEx, GXO, Keurig Dr Pepper, Nestlé, Home Depot, and Samuel Adams.
The Lehigh Valley Shallow Bay Portfolio is 100% leased to 12 tenants and offers a weighted average lease term of 3.2 years, providing durable in-place cash flow with near-term rollover optionality. Notably, 51% of the tenant base has occupied its current space for more than a decade. In-place rents are approximately 30% below market, presenting a compelling mark-to-market opportunity through lease renewals and re-tenanting. The properties feature an average suite size of ± 48,000 square feet, approximately ±18% office/non-warehouse space, ± 24-foot average clear heights, and ample dock-high loading throughout.
Overall, the Lehigh Valley Shallow Bay Portfolio represents a compelling opportunity to acquire a fully leased, institutional-quality industrial portfolio in a high-barrier, high-growth logistics market, offering a balanced combination of stable income, embedded rent growth, and long-term value creation.
Investment Highlights
Near-Term Upside | Mark-to-Market Opportunity
- 30% mark-to-market opportunity
- 52% of occupied suites roll within the next 36 months with FMV renewal options
- 51% of the tenant base has occupied their space for more than a decade
- Average tenure of the tenants in the portfolio is 13.45 years
Strategic Lehigh Valley Location
- Optimal Mid-Atlantic infill location offering immediate access to the New York / New Jersey and Philadelphia metro areas
- The second largest concentration of industrial space along the I-81/78 corridor, totaling approximately 108 million square feet (24% of corridor inventory)
- The Lehigh Valley saw 2.5 million square feet of leasing activity in 2025
- Vacancy rate for suites in the 25,000 – 100,000 SF size range currently sits at 5.6% in the Lehigh Valley
Best-in-Class Transportation & Logistical Connectivity
- Immediate access to major transportation arteries, including I-78, I-81, I-476 (PA Turnpike), U.S. Routes 22, 100, and 222
- Proximity to Lehigh Valley International Airport (ABE), featuring a major FedEx Express hub, and Norfolk Southern’s Northwest Regional Intermodal Yard, enabling efficient air, rail, and intermodal distribution
- Five-hour truck access to major Northeast and Mid-Atlantic population centers, including New York City, Philadelphia, Baltimore, Boston, and Washington, D.C.
- One-day truck reach to approximately 40% of the U.S. population, supporting last-mile and regional distribution demand
Continued I-81/78 Corridor Demand
- 13.8 million square feet of leasing activity in 2025
- Class B asking rents along the I-81/78 Corridor have increased 66% since 2020
- Balanced market occupancy of 92.8%, supporting continued rent growth without near-term oversupply pressure
- New supply deliveries declined to below 7.0 million square feet, less than half the prior five-year average
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