Pennsylvania is a very large state with a very large population. Its estimated 12,440,000 residents makes it the 6th most populated state in the country. Growth in the state is slow. The population has risen by only about 500,000 people in the past 35 years.

Commercially, Pennsylvania is a varied state. Its two largest cities, Philadelphia and Pittsburg are major urban manufacturing centers. Most of the rest of the state is far more suburban and rural and commercial ventures range from small fishing bait and tackle shops in the rural areas to major pharmaceutical companies that make their homes in the Philadelphia suburbs.


There is a diverse choice of commercial real estate for those looking to bring their industry or business to the area. In Philadelphia, investors are making a conscious effort to invest in office space in the downtown area, even as the office market in the Philadelphia suburbs remains strong. The office market in the city is showing a slight recovery after years of decline, so investors are being slowly lured back into Philly. Meanwhile, the demand for office space in the suburbs has increased to about 3.2 million square feet from about 2.4 million the previous year. Experts forecast an increase in rents as office space becomes scarce.

Every sector of Pennsylvania's industrial market strong with above average leasing activity and rents. The market has absorbed over seven million square feet of industrial and is expected to also absorb another six and half million that will be coming online in the coming years.

The Philadelphia suburbs, which at one time were mainly farmland, are being developed into housing communities and the landscape is quickly changing. Along with these housing developments, upscale retail shopping and dining centers are being developed. Commercial real estate in Pennslyvania is also being used for the services that the residents of these new housing communities demand - convenience services such as spas, dry cleaners, fast food restaurants, and entertainment centers. Much of the state's remaining farmland is likely to be bought in the future by real estate developers and turned into housing communities and business campuses.

Tourism is big business for Pennsylvania particularly in the eastern half of the state. Tourists visit Philadelphia for its history, the Poconos for the winter sports and romantic getaways, and Lancaster County for a glimpse of the Amish way of life and the fantastic outlet shopping. Even so, there is little demand for new development in these areas, and commercial activity is limited.