Pennsylvania Warehouse Market Insights: Inside the I-78/I-81 Corridor With Link Logistics
Jim Maneri serves as managing director and Pennsylvania market officer for Link Logistics, specializing in distribution centers and logistics facilities across the state's strategic industrial corridors. With extensive experience in Pennsylvania industrial real estate, Jim provides leasing solutions for companies seeking warehouse space in key logistics zones including the I-78/I-81 Corridor, where proximity to major East Coast population centers supports distribution operations. He works with businesses ranging from regional distributors to national retailers optimizing their Mid-Atlantic supply chain networks. Here, Jim discusses current market conditions, emerging trends in Pennsylvania warehouses and industrial real estate, and opportunities for businesses seeking distribution space in the I-78/I-81 Corridor.
What's driving demand for industrial real estate in the I-78/I-81 Corridor right now?
Jim: Location is the primary driver. Companies can efficiently reach 40 percent of the U.S. population from the I-78/I-81 Corridor, which stretches approximately 100 miles from the Delaware River west to Harrisburg in Central Pennsylvania, and 200 miles north-south from Northeast Pennsylvania through to the Maryland border. This geographic advantage makes the corridor essential for national distribution networks—major logistics companies including Amazon maintain a significant portion of their national warehouse footprint here.
The corridor offers direct highway access to major East Coast population centers including New York, Boston, Philadelphia, Baltimore, Washington D.C. and Pittsburgh, all within a one-day truck drive. Infrastructure supports this demand with major east-west routes including I-78, I-80 and the Pennsylvania Turnpike, plus north-south access via I-81 and I-476. These highways connect directly to New Jersey ports, making the corridor attractive for companies with imported products who need cost-effective storage and distribution beyond the more expensive North Jersey market.
The region also benefits from strong intermodal rail infrastructure, particularly around Harrisburg in Central Pennsylvania, which has established it as a hub for goods movement. Finally, the corridor maintains a skilled labor force with a blue-collar workforce heritage rooted in the region's former steel and coal industries. Local governments in both the Lehigh Valley and Greater Harrisburg areas have invested in workforce training programs for manufacturing and warehouse operations, ensuring businesses can staff their facilities with experienced workers.
What's one major trend or development you're seeing in the I-78/I-81 Corridor warehouse market that businesses should know about?
Jim: Supply chains are expanding, and companies are widening their search parameters from traditionally expensive North Jersey markets into Pennsylvania. What used to be viewed as an alternative to Central New Jersey has evolved into a primary distribution strategy. Many national retailers and logistics providers now operate a smaller facility in Central New Jersey for New York-focused operations alongside a larger distribution center in the I-78/I-81 Corridor that serves the broader Northeast and Mid-Atlantic regions. The corridor has become known as "the Inland Empire of the East" because it offers similar cost advantages relative to port-adjacent markets while maintaining accessibility to major consumer populations. In recent years, the market has recorded activity levels in large-format warehouse deals that rival major markets including Dallas, the Inland Empire, Chicago, and Atlanta, reflecting this shift in distribution strategy.
Companies are also expanding their search within Pennsylvania itself—operators who once focused solely on the Lehigh Valley, which is located along the eastern portion of I-78 near the Delaware River, are now considering Central Pennsylvania around Harrisburg and northeastern Pennsylvania around Scranton, where rental rates can be several dollars per square foot lower while still providing similar market reach. The customer mix reflects this evolution, with third-party logistics providers representing the dominant demand source over the past decade, joined by food and beverage companies (which benefit from Pennsylvania's excellent water quality), traditional brick-and-mortar retailers, manufacturers, and major shipping companies including UPS, DHL and FedEx. Most major national retailers and logistics companies maintain a material presence in the corridor, which makes sense given its population reach—businesses with more than one distribution center nationally typically include the I-78/I-81 Corridor alongside Southern California in their network.
How does Link Logistics support companies looking for warehouse space in the I-78/I-81 Corridor?
Jim: Link Logistics operates a full-service local office in the I-78/I-81 Corridor with in-house property management, ensuring responsive service and direct accountability to customers. As an established institutional landlord, we also take a customer-focused approach built on the principle that when customers succeed and grow, Link Logistics succeeds alongside them. The company manages all customer improvements in-house, providing integrated solutions rather than outsourcing critical services. Our goal is to maintain strong customer relations through reliable performance and doing what we say we'll do. This approach has established Link Logistics as a trusted partner for businesses ranging from e-commerce retailers to major manufacturers seeking warehouse space in one of the nation's premier logistics corridors.
Looking ahead, what opportunities do you see for businesses considering the I-78/I-81 Corridor for their warehouse and logistics operations?
Jim: The I-78/I-81 Corridor remains one of the most strategically positioned industrial real estate markets in the country for companies seeking warehouse distribution or light manufacturing space. The business-friendly environment combined with the ability to reach 40 percent of the U.S. population, strong transportation infrastructure and a skilled labor force creates a foundation for long-term operational success. The market has historically maintained a healthy balance between supply and demand, providing businesses with options while avoiding the volatility seen in some other major logistics markets. Unlike markets that experience significant rent fluctuations, the corridor offers more stable operating costs, which is particularly valuable for businesses making long-term real estate commitments. The Lehigh Valley specifically, as the third-largest metropolitan statistical area in Pennsylvania after Pittsburgh and Philadelphia, provides substantial population and workforce depth to support warehouse and distribution operations.
For companies expanding their distribution networks or evaluating their first or second major fulfillment location nationally, the I-78/I-81 Corridor consistently ranks among the top strategic choices based on population access, cost efficiency and infrastructure quality. The corridor's position will only strengthen as supply chains continue to evolve and companies seek cost-effective alternatives to port-adjacent markets without sacrificing market reach.
Explore available warehouse space in Pennsylvania’s I-78/I-81 Corridor to learn more about industrial real estate opportunities in the region.
