4C — September 12 - 25, 2014 — Pennsylvania — M id A tlantic
Real Estate Journal
www.marejournal.com
C entral PA
By Pat McBride, Cushman & Wakefield of Pennsylvania, Inc. Central PA Industrial Leasing: The Good Ol’ Days
E
veryone’s busy. Every- one. Brokers, landlords
over the past decade. When the deal book closes on the third quarter of 2014, the vacancy rate in Central PA will likely fall below 6%. This is a far cry from the 12.9% vacancy rate at the end of 2009. In the 111 million s/f market, there is only one existing Class A vacancy above 300,000 s/f - Clarion’s 575,000 s/f at 70 Logistics Dr. in Carlisle. The leasing activity has been broad-based in terms of dif- ferent occupier groups. Auto- motive, Food and Beverage, E-Commerce, Pets, Apparel and Home Improvement have contributed significantly to the
record-setting deal volumes. Specific deals of note year-to- date include Federal Mogul (708,000 s/f), Lindt Choco- late (422,000 s/f), Chewy.com (424,000 s/f), Kenco Logistics (330,000 s/f), Graham Pack- aging (200,000 s/f), Ingram Micro (330,000 s/f) and Reckitt- Benkiser (140,500 s/f). On the demand side, there seems to be no end to the party in site. Our team is tracking over 8 million s/f of users tar- geting central PA for establish- ing a new facility or expanding current operations. Nearly every day a new inquiry adds to the size of the pipeline. On the supply side, specula- tive construction continues to pick up momentum. Following First Industrial’s successful 708,000 s/f speculative project at First Logistics Center @ I-83 in York, Woodmont (400,000 s/f) and Clarion (250,000 s/f) spec buildings are currently under construction in Lower Swatara Township. Hillwood (1.2 Ms/f), Prologis (1.0 Ms/f) and Dermody (602,000 s/f) are gearing up to break ground on projects in York and Carlisle. Site work for USAA’s 990,000 s/f building in Fredericksburg is underway, and there are several build-to-suit proposals flying around the market. De- velopers are once again aggres- sively competing for land sites to accommodate additional speculative development. The big draw of Central PA as a distribution hub is the region’s unparalleled trans- portation infrastructure. The lifeblood of the region is the I-81/I-78 corridor that enables distributors to reach nearly 40% of the U.S. population and 56% of the Canadian popula- tion in a one-day truck drive. With the national economy kicking into high gear, Central PA’s industrial market is enjoy- ing a robust recovery. As we draw closer to the end of the third quarter, deals are happening. Existing tenants are extending lease obligations and expanding operations. Companies new to the market are signing long term leases. Vacancy is shrinking, lease rates are rising, and specula- tive construction is back. The reason we feel as if time is fly- ing by is, “These are the good ol’ days!” Pat McBride is a senior director at Cushman & Wakefield’s Harrisburg, PA office. n
a n d u s e r s a l i k e a r e collectively shaking their heads with dismay that Lab o r Day has passed and we are already head- ing into the fourth quarter of 2014.
Pat McBride
before. Year-to-date 2014 industrial leasing activity (new leases and renewal leases) in the Central PA industrial mar- ket has exceeded 7.4 million
s/f. This “thru Q3” volume already surpasses last year’s record setting 6.1 million s/f, and in fact is the highest level of combined renewal and new deal activity for any full year
What happened to summer? A look at the industrial leas- ing numbers reveals why time is passing in a blur like never
SEALED BID AUCTION VFW POST 6241 Former RESTAURANT-BAR-& EVENT FACILITY ON 2.6+-ACRES 20 Veterans Way-Mercersburg, PA 17236
Ballroom/dining area w/ dance floor, stage & service bar, enlarged kitchen/catering area w/ walk-in cooler & freezer, bar area w/ custom made bar, conference/banquet room, game room, main office room and several storage/work areas. Several mens/ladies/neutral rest rooms. 60+car paved parking lot.
Bids Due September 19, 2014 Preview: Tues Sept 9 3-5pm
Matthew Hurley-003413-L | Auction Zip ID: 1023 | 717-597-9100 WWW.HURLEYAUCTIONS.COM
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