Overall rental rates ended the first quarter at $16.86, a decrease of 16 cents per square foot over the previous quarter. Meanwhile, the Harrisburg East office market ended the first quarter of 2012 with an overall vacancy rate of 9.1%, a decrease of 0.3% 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 $16.86 per square foot at the end of the first quarter 2012 in the Harrisburg East office market area. This represented a .16 cent per square foot decrease in quoted rental rates from the end of the fourth quarter 2011, when rents were reported at $17.02 per square foot.
The average quoted rate within the Class-A office market was $19.31 at the end of the first quarter 2012, while Class-Brates stood at $16.25, and Class-C rates at $15.42. At the end of the fourth quarter 2011, Class-A rates were $19.76 per square foot, Class-B rates were $16.68, and Class-C rates were $14.48.
Vacancy
Class-A projects reported a vacancy rate of 7.5% at the end of the first quarter 2012 compared to 7.9% at the end of the fourth quarter 2011.
Class-B projects reported a vacancy rate of 10.2% at the end of the first quarter 2012 compared to 10.8% at the end of the fourth quarter 2011.
Class-C projects reported a vacancy rate of 8.0% at the end of the first quarter 2012 compared to 7.9% at the end of fourth quarter 2011.
Absorption
Net absorption for the overall Harrisburg East office market was positive 7,126 square feet in the first quarter 2012. That compares to negative (135,414) square feet in the fourth quarter 2011.
The Class-A office market recorded net absorption of positive 15,831 square feet in the first quarter 2012, compared to positive 68 square feet in the fourth quarter 2011.
The Class-B office market recorded net absorption of positive 1,419 square feet in the first quarter 2012, compared to negative (121,830) square feet in the fourth quarter 2011.
The Class-C office market recorded net absorption of negative (10,124) square feet in the first quarter 2012 compared to negative (13,652) square feet in the fourth quarter 2011..
Largest Lease Signings
The largest lease signings occurring so far in 2012 include three properties represented by NAI/CIR: the 16,839-square-foot property at 30 North Third Street in Harrisburg as well as two properties at 8170 Adams Drive in Hummelstown – a 14,085-square-foot property and a 10,084-square-foot- property.
Stay tuned next week for the first quarter 2012 office market breakdown for the Harrisburg West submarket.