Landscapes3 — Five-Year Trends Report
Commerce and Industry Trends

Five-Year Trends Report | Changes to How and Where We Work | Pandemic Impacts on Transportation | Commerce and Industry Trends | Housing Affordability 2.0 | Climate Change Impacts and Sustainability

The Trend

Several economic trends changed or continued at a faster pace after Landscapes3 was adopted in 2018. The county saw continued efforts to reuse and repurpose older commercial areas that have become obsolete or have high vacancy rates, such as malls and shopping centers. The pandemic put further stress on "brick and mortar" businesses as people turned to online shopping and services to an even greater degree. Demand for warehouse space to accommodate online purchases increased and more delivery trucks were seen multiple times per day in neighborhoods. Worker shortages became more pronounced, especially for frontline services where in person contact was not optional, and supply chains were disrupted. The county also began to see an increased number of industrial and manufacturing proposals since 2018, a positive job creating trend although total employment in the sector did fall somewhat immediately following the pandemic.

Planning Implications

The Survey Connection

Those who responded to the Landscapes3 Trends Survey rated the accelerated impact of online retail on brick-and-mortar businesses as the highest impact on their community business, followed by the inability to find employees to fill job openings. Write-in responses included concerns about the impact on stores and businesses such as less stock, staffing shortages, reduced hours, and stores closing altogether. Another respondent noted that decreased profits and inability to complete projects due to supply shortages and slowdown of mail service was a concern. The priority to reuse and redevelop vacant and underused commercial areas over the development of greenfields was noted.

reinventing office parks

Landscapes3 Connection

The Prosper goal of Landscapes3 anticipated many of these trends, particularly the need to support redevelopment and coordinate and support workforce development. Housing affordability was recognized as a barrier to workforce development. Recommendations were included for growing and expanding a skilled workforce as well as creating a countywide program for revitalizing and underutilized properties. (Housing Affordability is addressed in Trend 4.) Flexible zoning was also recommended to accommodate a range of development opportunities.

Several projects have been completed that address these issues including a pre-Landscapes3 publication on Transforming Greyfields into Dynamic Destinations (2017) located on the Commercial Landscape Series webpage. The Planning Commission also created a Development and Redevelopment Opportunities webpage which encourages reinvestment in growth areas that already have supportive infrastructure. The webpage includes a Reinvestment Strategies and Tools section that provides a wide range of valuable information on how municipalities can help to encourage reinvestment of properties through planning, promoting, and land preparation. A centerpiece of this page is a Reinvestment Indicators map that allows the user to drill down on finding specific locations in the county with redevelopment potential based on infrastructure availability and lack of site constraints. The Landscapes Design Guide series, particularly for the Suburban, Urban, and Rural Centers, was developed after Landscapes3 was adopted to provide specific design and planning guidance for the county's growth centers.

Early in the pandemic the Planning Commission, working closely with the Chester County Economic Development Council (CCEDC), created an economic recovery page focused on helping businesses that were struggling with shutdowns and other major issues employers were dealing with at the height of COVID. Fortunately, that website was no longer needed and relevant economic information was transferred to the Economic Development section of the Planning Commission's website. The CCEDC also focuses much of its efforts on workforce development recognizing that building, sustaining, and retaining a viable workforce, improves economic success for individuals, businesses, and communities. For more information on these efforts, see the Workforce Development section of their website.

In 2021, the County Commissioners created the Department of Workforce Development (DWD) as part of a restructuring of county agencies addressing human services. The DWD is responsible for the strategic planning and promotion of an effective workforce development system.

Looking Forward

While Landscapes3 did not foresee the pandemic, it addressed the importance of continued economic growth in the county through multiple efforts. Planning guides, publications, eTools, and other resources developed even before Landscapes3 was adopted supported implementation of the Prosper goals and continue to provide valuable information to the county's business community. Landscapes3 also protects the many qualities of Chester County, including open space, natural and cultural resources, and vibrant urban areas, which contribute to the county's continued appeal as a place to live, work, and raise a family.

CCEDC Logo

Actions to address these trends include:

  1. Continue to update and enhance the Planning Commission's efforts already completed and underway to support the county's economy.
  2. Continue working with important partners such as the CCEDC, the Chester County Chamber of Business and Industry (CCCBI), and local chambers of commerce.
  3. Assist municipalities in understanding newer retail trends and adjusting zoning in retail areas as appropriate.
  4. Protect industrial land from rezoning or the inclusion of non-industrial land uses to ensure a sufficient supply of industrial zoned land.
  5. Ensure that "mega-warehouses" are only permitted in areas where major highway access is available. Transportation and utility capacity should also be assessed for industrial and warehouse last mile delivery needs.
Trend 3

By the Numbers

New non-residential development in Chester County has exceeded 900,000 square feet every year since 2016. In five of the last eight years, it exceeded 1,000,000 square feet. (Source: CCPC, 2023 Non-Residential Construction Report)

In the last five years, a number of commercial and industrial developments over 100,000 square feet in size were constructed in locations around the county including Sadsbury, Tredyffrin, Uwchlan, Upper Uwchlan, and New Garden townships. (Source: CCPC, Annual Non-residential Construction Report 2019-2023)

The vacancy rates for retail and industrial buildings were not dramatically impacted by the pandemic. Between 2015 and 2024, retail building vacancy rates ranged between 4% to 6%, with the highest vacancy rate of 6% occurring in 2022 and most recently 5% in 2024. The industrial building vacancy was quite stable ranging between 4% to 5% during that time. This stability is likely because working from home is not an option in these sectors as it is in the office sector. (Source: CCPC The Chester County Economy, 2024)

According to the US Census, from 2014 through 2023, employment in manufacturing has ranged from 28,950 in 2017 to a high of 32,632 in 2019. As of 2023, 30,322 persons or 10.3% of the population were employed in manufacturing, showing a decrease following the pandemic. Overall, during this 10-year period, the percentage of county residents employed in manufacturing has stayed steady at just under 11% on average. (Source: US Census, 1 Year American Community Surveys)

During the five years from 2020 to 2024, the Planning Commission reviewed 31 warehouse proposals, totaling over 4.8 million square feet. The highest number for both number of proposals and square footage received was in 2021 totaling 8 proposals and nearly 2.3 million square feet. Annual warehouse submittals during this time period were consistently higher than in the prior three years.

During the five years from 2020 to 2024, the Planning Commission reviewed 68 industrial development proposals, totaling over 7.4 million square feet. The highest number of both proposals and square footage received was in 2021 totaling19 proposals and 2.9 million square feet. Annual industrial submittals during this time period were consistently higher than in the prior three years.