14B — June 12 - 25, 2020 — Pennsylvania — M id A tlantic Real Estate Journal
The state of commercial real estate conditions in Central Pennsylvania ROCK Commercial Real Estate releases 2020 Q1 Market Reviews prising 33% of Class A & Class B industrial leases.
ORK/LANCASTER, PA — ROCK Com- mercial Real Estate publishes quarterly market reviews designed to survey and gauge the state of com- mercial real estate conditions in Central Pennsylvania. The publications offer thoughtful, forward-looking insight into trends in the local office, in- dustrial, and retail markets. York County Industrial | Industrial Sales Exceed $178M, Rental Rates Re- main Stable • York County continues to attract attention of investors Y
as a prime distribution hub with over 4.3 MSF sold and more than $178M in sales volume. • Q2 statistics will help shed light on possible trends result- ing from the COVID-19 pan- demic as quarantine measures and widespread economic dis- ruptions occurred late in Q1. • 660,984 s/f of inventory remains under construction with an additional 4.8 MSF of warehouse proposed to be built. • The most popular unit size this quarter was between 3,500 s/f and 7,500 s/f, com-
among office tenants in Q1 were spaces less that 1,500 s/f, accounting for 53% of all office leases. • 74% of available office space can be found in Greater York East. • The first phase of York City’s Innovation District remains planned to break ground in June 2020 and be completed by late 2021. Phase 1 will deliver 60,000 s/f of flex office space geared to at- tracting a line up of high tech tenants including York Expo- nential, a York based robotics manufacturer.
York County Retail | Re- tail Footprints Decrease, 44% Smaller Than This Time Last Year • Traditional retail locations continue to adapt in an age of evolving consumer preferenc- es. Plans for experiential retail and mixed-use town centers must adapt once more with a health conscious mindset in a post COVID-19 world. • Physical stores will re - main. However, we have wit- nessed preference in layout and size requirements of re- tailers change to maximize efficiency and consumer ex- perience. • 59% of retail leases this quarter took place in subur- ban markets (outside a city or borough). • The most popular unit siz - es this quarter were between 1,000 and 1,500 s/f. 39% of all retail leases were in this size range. Lancaster County Indus- trial | Class B & Class C Dominate Sales Activity, Vacancy Increases 0.49% • 86% of sales in Q1 at - tributed to class B & class C facilities. • Q2 statistics will help shed light on possible trends result- ing from the COVID-19 pan- demic as quarantine measures and widespread economic dis- ruptions occurred late in Q1. • 36% of industrial leases took place in Greater Lancast- er East, a region encompassing the U.S. Route 30 and New Holland Pike corridors and Greenfield Corporate Center. • A 0.49% increase in va - cancy this quarter may be attributed to the influx of available product in addition to sustained vacancy at large industrial facilities. Two large properties account for 36% of vacant industrial square feet in Lancaster County. Lancaster County Office | Low Vacancy Remains Intact, Average Rent At Five Year High • Infill development in prom - inent, accessible and conve- nient locations in Lancaster City continues to increase average lease rates. • Preference in unit size decreased fromQ4 2019. Units 1,800 s/f or less were the unit size of choice this quarter and accounted for 73% of leases. • Net absorption continued its downward trend from last quarter dipping negative to continued on page 15B
York County Office | Vacancy and Lease Rates Hold Steady • Vacancy and lease rates hold steady despite late quar- ter disruptions from the CO- VID-19 pandemic. Ramifica- tions of these disruptions will become more evident in Q2 and beyond. • Medical office continues to drive office sales in the York market with 68% of sales volume attributed to medical users. • The most popular unit size
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