14A — December 12 - 18, 2014 — Pennsylvania — M id A tlantic
Real Estate Journal
www.marejournal.com
C entral PA
Average lease rates are currently $3.40/ s/f /year ROCK Commercial Real Estate, LLC releases third quarter 2014 York County market reviews
ORK, PA — ROCK Commercial Real Es- tate released the Third Quarter 2014 Market Reviews. These reports provide an overall view of the York County indus- trial, retail, and office markets. Office Vacancy Rates Compa- rable with 2010 – • Office vacancy declined for the fourth straight quarter to 7.16% • This rate is comparable with those witnessed in the second half of 2009 • Rate hit its highest peak in the first quarter of 2013 at 8.74% and has been trending downward since then Y
• Sales have remained relative- ly stable over the past seven quarters. Thus far in 2014, there have been a total of $6.3 million in office sales • Leasing activity has also remained stable • 150,000 s/f has been leased since the beginning of the year • During the same time pe- riod in 2013 (Q1-Q3), office s/f leased totaled 97,000 s/f • Lease rates have been trend- ing upward since 2008 • In the second quarter of 2008, the average office lease rate was $10.63 psf per year and today that rate has increased to $13.10 psf per year
• What does this mean? If you would have leased a 10,000 s/f office at $10.63 psf per year, your total lease amount would be $106,300 per year ($8,858.33 per month). If you would lease a 10,000 s/f office at $13.10 psf per year your total lease amount would be $131,000 per year ($10,916.67 per month). Retail Vacancy Continues on Downward Trend • Retail vacancy increased during the 3rd quarter of 2014 from 6.07% to 6.26%, but this rate is still comparable to 2008 and 2009 • Retail vacancy seemed to peak in the 2nd quarter 2012 and has been trending downward since then. • The rate in the last 5 quarters has been bouncing back and forth between 6% and 6.3% • There has been a large amount of retail building sales activity in 2014. • Year-to-date, there was $63.6 million in retail building sales, most of which occurred dur- ing the 1st quarter and like the industrial market, is due to higher levels of investment activity. • The current average sale price is $97.53/ s/f • Leasing activity has remained stable. • 120,000 s/f has been leased so far in 2014 • During the same time period in 2013, there was 110,000 s/f leased. • Average lease rates for retail space are $10.00/ s/f /Year Industrial Vacancy Improves in the Second Quarter – • The vacancy rate fell to 5.66% - the lowest rates since the fourth quarter of 2008! • This is also the first time the vacancy rate has dropped below 6% since that time • During the peak of the reces- sion and into mid-2013, the in- dustrial vacancy rates trended between 7.5% and 8.5% • Sales in the first three quar- ters of this year amounted to $98.6 million. The first quarter was one of the highest since 2007 for industrial sales dollar volume. The first quarter and the three quarters previous to that were the most active in industrial building sales since before 2007 mostly due to a high volume of investment activity • Thus far in 2014, there have been 8.15 million s/f – again this being the most active time period for leasing since 2008 • Average lease rates are cur- rently $3.40/ s/f /year n
Investment Opportunity! - Grocery Anchored Shopping Center
• 245,800 SF Grocery-Anchored Shopping Center • Redeveloped in 2014 • 94% Occupancy • Located with signage and visibility on I-83 • Traffic counts exceed 61,000 VPD • Major Tenants include Darrenkamp’s (Opened April 2014) and Rite Aid Corporate
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