PA Warehouse and Distribution Centers

New Jersey Business has an article on the high vacancy rate of a once leader in warehouse and distribution centers, 8a, an area off the NJ Turnpike (read it here).

In the article the drop in rental and increase in vacancies is indicated as being the result of competition from PA and to a lesser extent northern NJ where brownfield conversion has increased opportunities.

Given the recent battle in Lower Nazareth, I found this perspective interesting:

The biggest threat comes from Pennsylvania, which is often seen as the cheaper, friendlier alternative to its neighbor to the east, says Milanaik. “The rents are lower, and the labor is more abundant and less expensive,” he says. “It’s still easier to do business there. Getting buildings approved is easier out there. The tax situation is not as steep out there.” He notes Pennsylvania offers tax incentives such as the Keystone Opportunity Zone, which designates certain areas of the state to be tax-free for businesses, which can be a significant advantage for prospective tenants.