Lee & Associates of Eastern Pennsylvania was pleased to support IAMC’s Princeton Local Event held on Thursday, September 24, 2026, where Brian Knowles, CCIM, SIOR, President and Managing Principal, joined industry leaders for a discussion of the forces shaping industrial real estate across the Northeast.

 

The panel, “Northeast Industrial Outlook: Labor, Logistics & Development Trends Shaping the Region,” was moderated by Edward M. English Jr., Principal, Industrial Occupier Solutions at Avison Young. Brian was joined by Troy Adams, Senior Vice President of Real Estate at NFI Industries, and Jason Hickey, President of Hickey & Associates.

The conversation focused on the issues most relevant to industrial occupiers and their real estate partners, including market conditions, labor availability, transportation, facility costs, power, community relations, and the changing requirements of distribution operations.

For Brian, the event was an opportunity to share market perspective and contribute to IAMC’s ongoing conversations among corporate real estate and supply-chain leaders. It also reflects Lee & Associates’ continued partnership with IAMC and its commitment to connecting real estate decisions with broader operational strategy.

Several themes emerged from the discussion.

 

The industrial market is improving, but occupiers still have leverage.

Market conditions have improved since the peak of vacancy and sublease availability. Vacancy and sublease space have begun to decline, positive absorption has returned in many areas, and overall sentiment has strengthened.

However, occupiers continue to have options in many markets. Landlords are competing through free rent, tenant improvement allowances, and other concessions, creating opportunities for companies that evaluate the full economic value of a lease. The strongest deal may not involve a lower face rate, but it may provide more favorable economics through the overall lease structure.

At the same time, available inventory does not always represent meaningful choice. The most attractive opportunities remain highly dependent on location, building functionality, transportation access, and workforce availability.

 

Labor is increasingly a real estate consideration.

Workforce availability continues to influence where companies locate, expand, and remain. Employers are navigating challenges related to retention, wages, benefits, skill gaps, transportation access, and the perception of industrial work.

Automation can improve productivity, but it does not eliminate the need for people. Companies must still determine whether a market can provide a reliable workforce with the skills and access needed to operate a facility sustainably.

For occupiers, labor analysis should begin early in the site-selection process. A facility with the right rent and physical specifications will not support the business if the operation cannot be staffed effectively.

 

Transportation can outweigh rent.

Transportation cost and reliability remain central to Northeast distribution strategies. Access to ports, intermodal hubs, highways, customers, and population centers can have a greater effect on total operating costs than the asking rent for a building.

A lower-cost facility may not be the lowest-cost option if it adds distance to a distribution network, increases delivery times, or creates additional workforce challenges. The right location is the one that supports the entire operating model.

Core ports and major intermodal hubs continue to see strong activity, while secondary locations may face greater pressure as companies reassess sourcing, inventory positioning, and transportation reliability.

 

Power, land, and community relations are becoming more important.

Labor may be one of the largest costs for a facility; for other operations, power is becoming an equally important consideration. Rising electricity costs, limited land availability, infrastructure constraints, and growing power requirements are all affecting industrial site selection.

Companies evaluating expansion or relocation must identify these constraints early. A market may appear attractive based on rent, vacancy, and available buildings, but the list of viable options can narrow quickly once power, transportation, labor, site access, and operational requirements are considered.

Community relations are also becoming more significant as new development reaches increasingly constrained locations. Industrial projects and other power-intensive uses are facing greater scrutiny from residents and local officials, making early and constructive community engagement an important part of the development process.

 

Available space is not necessarily suitable space.

The panel reinforced an important distinction for occupiers: a market can have substantial availability while offering very few buildings that actually work for a particular operation.

Requirements such as loading, clear height, trailer parking, employee parking, power, transportation access, labor availability, and customer proximity can quickly eliminate options. New construction does not automatically solve the problem if the location does not support the operation.

For industrial occupiers, the next phase of the market will require a more complete analysis of total operating costs and facility functionality. Real estate decisions will be most effective when they are evaluated as part of the broader distribution network.

Lee & Associates thanks IAMC for the opportunity to have Brian participate in the Princeton panel, along with Ed English, Troy Adams, Jason Hickey, and everyone who attended and contributed to a timely and practical discussion on the industrial market.