Last week, we began reporting information on the various commercial real estate segments in order to help you better understand the intricacies of the Central Pennsylvania market. We move from the Harrisburg East submarket to the Harrisburg west submarket – both reports are from the retail market.
Net Absorption
Retail net absorption decreased in the Harrisburg West submarket in the fourth quarter 2011, with negative 168,112 square feet absorbed in the quarter. In third quarter 2011, net absorption was positive 103,217 square feet.
Vacancy
Harrisburg West’s retail vacancy rate increased slightly from 8.1% at the end of the third quarter to 8.3% in the fourth quarter.
Largest Lease Signings
The largest retail lease signing the Harrisburg West submarket occurring in 2011 was the 34,180 square foot lease signed by Linens and More for Less in the Camp Hill Center.
Rental Rates
Average quoted asking rental rates in the Harrisburg West submarket decreased slightly from the third quarter. Quoted rental rates decreased in the fourth quarter 2011 levels, ending at $11.52 per square foot compared to $11.84 per square foot in the third quarter.
Inventory & Construction
During the fourth quarter 2011, no new buildings were completed in the Harrisburg West submarket.
Shopping Center
The Shopping Center market in the Harrisburg West submarket currently consists of 76 projects with 5,802,446 square feet of retail space. At the end of the third quarter, the Shopping Center market in the Harrisburg West submarket consisted of 74 projects with 5, 535,268 square feet of retail space.
Power Centers
The Power Center average vacancy rate was 3.9% in the fourth quarter 2011. With negative 11,147 square feet of net absorption and no new deliveries, the vacancy rate went from 3.7% at the end the third quarter to 3.9% at the end of the fourth quarter.
The General Retail sector of the Harrisburg West market, which includes all freestanding retail buildings, except those contained within a center, reported a vacancy rate of 7.0% at the end of fourth quarter 2011. There was a total of 355,445 square feet vacant at that time. The General Retail sector has average rental rates of $11.56 per square foot per year. There are total of 595 buildings with 5,082,727 square feet of General Retail space in Harrisburg West.
Specialty Centers
There is currently 1 Specialty Center in the Harrisburg West submarket making up 237,618 square feet of retail space. At the end of the third quarter 2011, there were 2 Specialty Centers in the Harrisburg West submarket making up 191,721 square feet of retail space.
Malls
Malls recorded net absorption of positive 22,640 square feet in the fourth quarter 2011, compared to the end of the third quarter which had a net absorption rate of positive 6,131 square feet. Rental rates for both quarters were $18.50 per square foot.
Sales Activity
There was no new sales activity in the third or fourth quarters of the Harrisburg West submarket.
For more information about this report or retail market conditions in your area, contact Omni Realty Group.