Vacant Land & Development Real Estate in Allentown, Pennsylvania

Vacant Land & Development Real Estate in Allentown, Pennsylvania

Allentown sits at the center of one of the fastest-growing regions in Pennsylvania — the Lehigh Valley. With its strategic location along I-78, Route 22, and the Northeast Extension of the Pennsylvania Turnpike (I-476), Allentown has become a major hub for logistics, residential growth, healthcare expansion, and commercial redevelopment.

As a land and development real estate specialist, I work with buyers, sellers, and developers throughout Allentown and the greater Lehigh Valley to identify and position vacant land and redevelopment sites for residential, commercial, industrial, mixed-use, and transitional projects.

Unlike many older Pennsylvania cities, Allentown is experiencing sustained reinvestment — both downtown and along its suburban growth corridors. Understanding zoning, infrastructure capacity, warehouse market dynamics, and neighborhood redevelopment trends is essential to maximizing land value here.

Below is how I approach vacant land and development real estate opportunities in Allentown.

Residential Land in Allentown

Residential growth in Allentown is being driven by:

  • Migration from New Jersey and New York
  • Strong logistics employment
  • Healthcare expansion (Lehigh Valley Health Network)
  • Downtown revitalization
  • Relative affordability compared to Eastern PA metro markets

Opportunities include:

  • Infill townhome and twin-home sites
  • Small multifamily parcels
  • Mid-rise apartment development sites
  • Larger suburban subdivision tracts on the west and south sides
  • Adaptive reuse of obsolete buildings

Neighborhoods and areas seeing activity include:

  • Downtown Allentown (NIZ District)
  • West End
  • Allentown Hamilton District
  • South Allentown
  • Cedar Crest corridor
  • Areas near Parkland School District

Residential land pricing varies significantly: Urban infill sites often trade based on per-unit feasibility. Larger suburban tracts can range from $75,000 to $200,000 per acre, depending on utilities and zoning density. Entitled multifamily land can command substantially more based on yield.

I help clients evaluate:

  • R-L, R-M, and R-H zoning classifications
  • Density allowances
  • Parking ratios
  • Stormwater requirements
  • Neighborhood redevelopment overlays

Commercial Land

Allentown’s commercial market has strengthened significantly due to downtown revitalization and regional population growth. Key commercial corridors include:

  • Hamilton Street (Downtown)
  • Airport Road
  • Tilghman Street
  • Lehigh Street
  • Cedar Crest Boulevard Areas near Dorney Park and Route 22
  • Opportunities include:
  • Retail strip centers
  • Medical office development
  • Mixed-use projects
  • Hospitality sites
  • Restaurant pads

The Neighborhood Improvement Zone (NIZ) has been a major catalyst for downtown commercial investment, incentivizing office, residential, and mixed-use development.

Commercial land pricing typically ranges: $150,000 to $500,000+ per acre, depending on traffic counts, visibility, and utilities.

Industrial Land

Allentown is one of the most important industrial markets in Pennsylvania. The I-78 / Route 22 corridor has become a premier:

  • Warehousing
  • Distribution
  • Logistics
  • E-commerce
  • Cold storage
  • Light manufacturing

Industrial development is concentrated near:

  • I-78 interchanges
  • Route 100
  • Airport Road
  • Lehigh Valley International Airport
  • Southwestern Allentown industrial parks

Industrial land prices vary based on proximity to I-78 and site readiness:

  • $150,000 to $350,000 per acre for well-located industrial land
  • Higher for fully entitled and pad-ready parcels

Vacancy rates in the Lehigh Valley industrial market remain tight relative to statewide averages, although new supply has moderated rental growth slightly.

I assist industrial clients with:

  • Zoning (I-L, I-C, Industrial Park districts)
  • Traffic and truck circulation analysis
  • Utility capacity
  • Wetlands and environmental review
  • Entitlement strategy

Agricultural Land

While Allentown itself is urbanized, the surrounding Lehigh County area includes productive farmland.

Agricultural land in the Allentown region supports:

  • Corn and soybean farming
  • Specialty crops
  • Greenhouses
  • Transitional farmland near growth corridors

Farmland values in Lehigh County typically range from: $10,000 to $20,000 per acre, depending on soil quality and development pressure.

Many agricultural parcels are purchased as long-term holds for future residential or industrial conversion. Understanding conservation easements and agricultural preservation programs is critical when evaluating these properties. 

Recreational Land

Recreational land opportunities in the Allentown area often tie into:

  • Lehigh Parkway
  • Little Lehigh Creek
  • Jordan Creek
  • Greenway
  • Dorney Park vicinity
  • Blue Mountain area (just north)

Opportunities include:

  • Outdoor recreation facilities
  • Hospitality and event venues
  • Short-term rental concepts
  • Campground or specialty recreational development (in surrounding townships)

Recreational land pricing varies widely based on location and utility access.

Transitional & Redevelopment Land

This is where Allentown offers some of its strongest upside. Redevelopment opportunities include:

  • Obsolete commercial strip centers
  • Vacant industrial buildings
  • Downtown underutilized parcels
  • Large surface parking lots
  • Former institutional properties

The NIZ District has been instrumental in spurring redevelopment downtown, leading to:

  • New apartment towers
  • Office buildings
  • Retail redevelopment
  • Public-private partnership projects

Outside downtown, older industrial corridors offer adaptive reuse opportunities for flex industrial and mixed-use redevelopment.

Growth Drivers

Allentown’s continued momentum is driven by:

  • Strategic location between NYC and Philadelphia
  • I-78 logistics corridor
  • Strong healthcare sector
  • Distribution and warehousing growth
  • Affordable housing relative to NJ and NY

Population inflows into the Lehigh Valley

The Lehigh Valley has consistently ranked among Pennsylvania’s faster-growing regions.

Why Work With a Land & Development Specialist in Allentown

Allentown is not just a residential resale market — it is a development-driven market shaped by:

  • Interstate access
  • Zoning overlays
  • Incentive programs like the NIZ
  • Infrastructure capacity
  • Industrial absorption rates
  • Population migration trends

Working with a land and development specialist allows buyers and sellers to:

  • Price land based on development yield
  • Identify entitlement pathways
  • Understand industrial absorption dynamics
  • Evaluate environmental and stormwater constraints
  • Market to the correct developer pool

Most agents focus on existing buildings. Land requires feasibility analysis, zoning expertise, and financial underwriting knowledge.

Whether you are acquiring land for industrial development, assembling residential infill sites, selling agricultural land near growth corridors, or repositioning a redevelopment property in downtown Allentown, specialized expertise makes a measurable difference.