16A — June 26 - July 16, 2020 — M id A tlantic Real Estate Journal
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M id A tlantic R eal E state J ournal Colliers International Research & Forecast Report Northeastern Pennsylvania Spring Office 2020 Q1 Market Reviews
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ey Market Trends The following re- sults were based on
the two-and-a-half month pe- riod prior to the pandemic shutdown. • The overall vacancy re - mained at 9.0%. class A va- cancy increased from 11.5% to 12.1% due to smaller space givebacks. The class B vacancy rate decreased from 7.3% to 7.0%. • The weighted average asking rent remained essen- tially flat for class A and class B space. • Leasing activity was very limited even before the state- wide business shutdown. Gen- eral uncertainty about the duration of this economic event and the assessment of longer term impacts are likely to im- pact business decisions for the next one to two quarters at the minimum. • No immediate, sharp in - crease in vacancy is anticipated and asking rental rates are projected to remain flat for the next quarter. However, there may be sig- nificant changes to future office space needs. Companies have had to adjust to having a re- mote workforce and are likely to have to provide flexibility for employees who want to con- tinue working from home. The office environment may also be adjusted to provide more room for employees, ending the trend of tightly grouped, collaborative workspaces. With these changes, it is expected that despite the economic un- certainty going forward, office space needs will remain con- stant, and the amount of space
needed per employee may actu- ally increase. Investment Activity: New to and on the Market An 8,470 s/f, two-story of- fice building on Layton Rd. in Clark’s Summit came on the market at $775,000 this past quarter, targeted to either an owner/user or investor. • The medical office building at 4437 N. Center St. in Potts- ville is a high vacancy asset that was brought to market just after the New Year. It is being marketed to an owner/ user for $795,000. • A 10,000 s/f professional office complex on Route 611 in Tannersville is available as an REO sale. • After seven months the Waterfront Professional Park at 670 – 672 S River St. in Plains is still on the market for sale unpriced. This two build- ing, 122,000 s/f complex is just off the Cross-Valley Express- way and minutes fromWilkes- Barre General Hospital. • A five-building portfolio of medical office buildings throughout PA anchored by Dental Care Associates and containing 39,000 square feet
is offered at $7,225,000 which is purported to yield a 7% cap rate on existing NOI. One of the assets is in Montoursville, and another is in Selinsgrove. The properties may be purchased individually. The offering first came to market in Oct. 2019. • The 417 Lackawanna Av - enue building in downtown Scranton remains on the mar- ket since 2016 despite its 75% occupancy with credit tenants. Offered at $3,850,000, this 31,420 s/f, class A office build - ing is being touted as soon to be 100% occupied. Footnote Regarding CO- VID-19 In the midst of the CO- VID-19 outbreak, information and data is emerging at a quick and uneven rate. The informa- tion contained herein has been obtained from sources deemed reliable at the time the report was written. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report. MAREJ
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