Last week, we shared the first quarter 2012 office segment breakdown for the Harrisburg East submarket. This week, we reveal the first quarter 2012 office segment breakdown for the Harrisburg West submarket.
Overall rental rates ended the first quarter at $18.02, a decrease of 15 cents per square foot over the previous quarter. Meanwhile, the Harrisburg Area West office market ended the first quarter of 2012 with an overall vacancy rate of 10.1%, a decrease of 0.9% from the previous quarter. There were no new deliveries or new construction at the end of this quarter.
Rental Rates
The average quoted asking rental rate for available office space, all classes, was $18.02 per square foot at the end of the first quarter 2012 in the Harrisburg Area West office market area. This represented a .15 cent per square foot decrease in quoted rental rates from the end of the fourth quarter 2011, when rents were reported at $18.17 per square foot.
The average quoted rate within the Class-A office market was $20.74 at the end of the first quarter 2012, while Class-B rates stood at $16.83, and Class-C rates at $17.52. At the end of the fourth quarter 2011, Class-A rates were $20.27 per square foot, Class-B rates were $17.12, and Class-C rates were $17.32.
Vacancy
Class-A projects reported a vacancy rate of 10.7% at the end of the first quarter 2012 compared to 13.7% at the end of the fourth quarter 2011.
Class-B projects reported a vacancy rate of 9.0% at the end of the first quarter 2012 compared to 9.3% at the end of the fourth quarter 2011.
Class-C projects reported a vacancy rate of 12.1% at the end of the first quarter 2012 compared to 12.9% at the end of fourth quarter 2011.
Absorption
Net absorption for the overall Harrisburg Area West office market was positive 61,200 square feet in the first quarter 2012. That compares to positive 20,290 square feet in the fourth quarter 2011.
The Class-A office market recorded net absorption of positive 21,132 square feet in the first quarter 2012, compared to positive 19,754 square feet in the fourth quarter 2011.
The Class-B office market recorded net absorption of positive 19,970 square feet in the first quarter 2012, compared to positive 92,214 square feet in the fourth quarter 2011.
The Class-C office market recorded net absorption of positive 20,098 square feet in the first quarter 2012 compared to negative (91, 678) square feet in the fourth quarter 2011.
Largest Lease Signings
The largest lease signing occurring in the first quarter 2012 in the Harrisburg Area West submarket was the Arbor Building, a 20,000-square-foot-property leased by the Holy Spirit Hospital Camp Hill from Kinsley Properties.