Trammell Crow Company, Clarion Partners Begin Construction on 866,350-SF Lehigh Valley Exchange in Bethlehem

Trammell Crow Company (TCC) and joint venture partner Clarion Partners have begun vertical construction on Lehigh Valley Exchange, an 866,350-square-foot Class A speculative industrial facility in Bethlehem, Pennsylvania, the firms announced Nov. 4. The project is expected to deliver in July 2027, and KBC Advisors is leading leasing efforts.

Lehigh Valley Exchange Project Details

Lehigh Valley Exchange is located at 1600 Freemansburg Ave. in Bethlehem and sits on approximately 115.8 acres in the Lehigh Valley industrial market. The single-building project is designed for distribution, logistics, e-commerce, manufacturing and supply chain users, according to the announcement. TCC said the building will carry specifications intended to accommodate a broad range of users and support efficient distribution operations.

The full 866,350 square feet is being marketed for lease, and no tenant has been publicly announced.

The development team includes Ware Malcomb as architect, Penntex Construction as general contractor, Liberty Excavators as site contractor and Langan Engineering as civil engineer. KBC Advisors is the leasing broker.

Statements From TCC and Clarion Partners

John Pollock, a principal with TCC, said the Lehigh Valley has established itself as one of the premier industrial markets in the United States. "Future tenants at Lehigh Valley Exchange will benefit from a strategic location that enables efficient access to New York City, Philadelphia, northern New Jersey, and other key consumer markets," Pollock said. He added that the region's transportation network and business-friendly environment make it an ideal location for distribution and logistics operations.

Guilherme Palocci, senior vice president at Clarion Partners, said the firm was excited to break ground alongside TCC. "The project reflects our continued confidence in the Lehigh Valley market, with its strategic location, modern design, and connectivity to major transportation networks, all of which ideally position it to attract leading distribution and logistics users," Palocci said.

Lehigh Valley Industrial Market Conditions

The project enters construction as Lehigh Valley industrial fundamentals show mixed signals. Savills reported that Lehigh Valley vacancy fell 110 basis points to 9.3% in the third quarter of 2026, while average asking rents rose 1.6% quarter over quarter to $10.90 per square foot. Colliers reported an 8.35% vacancy rate, more than 1.7 million square feet of occupier transactions and 1.86 million square feet of positive absorption in the second quarter.

Cushman & Wakefield reported Lehigh Valley industrial inventory of about 109.0 million square feet in the second quarter of 2026, with 9.0 million square feet of vacancy, an 8.3% vacancy rate, 1.26 million square feet of year-to-date net absorption and 3.34 million square feet under construction. The weighted-average warehouse asking rent was $11.87 per square foot.

The market has substantial available space and a sizable construction pipeline alongside continuing tenant movement and positive absorption. The project's speculative nature means all 866,350 square feet will need to be leased following delivery.

Prior TCC and Clarion Partners Collaboration

TCC and Clarion Partners previously developed Lehigh Valley Trade Center III, a two-building Class A industrial project totaling approximately 588,319 square feet in Lower Nazareth Township. That project subsequently reached full occupancy after leasing totaling roughly 590,402 square feet. Lehigh Valley Exchange is materially larger and offers a single large block of space.

About Trammell Crow Company

TCC is a wholly owned subsidiary of CBRE Group, Inc. (NYSE: CBRE), headquartered in Dallas. Founded in 1948, the company has developed or acquired 3,000 buildings valued at $90 billion, spanning more than 700 million square feet. As of Sept. 30, 2026, TCC had nearly $30 billion of projects in process and in its pipeline. The company has approximately 440 employees in 25 offices across the United States and Europe and serves investors in and occupiers of office, industrial/logistics, healthcare, life science, data center, mixed-use and multifamily projects, the latter through its residential subsidiary, High Street Residential.

Sources

Trammell Crow Company: https://www.trammellcrow.com/newsroom/tcc-clarion-partners-go-vertical-lehigh-valley-exchange-bethlehem-pennsylvania