This week, we begin reporting information on the various commercial real estate segments in order to help you better understand the intricacies of the Central Pennsylvania market. The following is a breakdown of the retail market for the Harrisburg East submarket.
Net Absorption
Retail net absorption decreased in the fourth quarter 2011, with negative 376 square feet absorbed in the quarter. In third quarter 2011, net absorption was positive 36,858 square feet.
Vacancy
The retail vacancy rate increased slightly from 6.4% in the third quarter to 6.6% in the final quarter.
Largest Lease Signings
The largest retail lease signing in the Harrisburg East submarket occurring in 2011 was the 28,499 square foot lease signed by Gold’s Gym at Oakhurst Plaza.
Rental Rates
Average quoted asking rental rates in the Harrisburg East submarket decreased slightly in the third quarter. Quoted rents ended the fourth quarter 2011 at $11.74 per square foot per year. That is 21 cents lower than the third quarter rate.
Inventory & Construction
During the fourth quarter 2011, no new buildings were completed in the Harrisburg East submarket.
Shopping Center
The Shopping Center market in the Harrisburg East submarket currently consists of 70 projects with 5,421,290 square feet of retail space. At the end of the third quarter, the Shopping Center market in the Harrisburg East submarket consisted of 70 projects with 5,409,085 square feet of retail space.
Power Centers
The Power Center average vacancy rate was 3.8% in the fourth quarter 2011. With negative 6,825 square feet of net absorption and no new deliveries, the vacancy rate went from 4.0% at the end of the third quarter to 3.8% at the end of the fourth quarter.
General Retail Properties
The General Retail sector of the Harrisburg East market, which includes all freestanding retail buildings, except those contained within a center, reported a vacancy rate of 6.3% at the end of fourth quarter 2011. There was a total of 491,305 square feet vacant at that time. The General Retail sector has average rental rates of $10.55 per square foot per year. There are a total of 839 buildings with 7,838,052 square feet of General Retail space in Harrisburg East.
Specialty Centers
There is currently 1 Specialty Center in the Harrisburg East submarket making up 237,618 square feet of retail space. There was no change from the third quarter. Specialty Centers in this market have experienced 1,679 square feet of net absorption in 2011. The vacancy rate currently stands at 1.1%, and rental rates average $20.00 per square foot.
Malls
Malls recorded net absorption of positive 4,852 square feet in the fourth quarter 2011, which indicates no change from the third quarter.
Sales Activity
There was no new sales activity in the third or fourth quarters of the Harrisburg East sub-market.
Stay tuned next week for information on the retail market for the Harrisburg West submarket.