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Posts tagged "CREDC"

Home» Posts tagged "CREDC"

Manufacturing Continues to Grow in Central Pennsylvania: What’s Going On and Why It Matters

Posted on October 27, 2015 by Mike Kushner in Blog, CREDC Articles, Local Market, Trends No Comments

This article has been featured by the Capital Region Economic Development Corporation (CREDC) and can be also viewed on their website. 


Manufacturing Continues to Grow in Central PennsylvaniaAccording to the PA Manufacturers Association, manufacturing and its affiliated businesses contribute $11 Billion to the economy in south-central Pennsylvania alone, providing our community with an estimated 110,000 jobs. This industry is a huge part of our local economy and its growth impacts the growth of many other businesses.

It should come as good news that the demand for manufacturing space is on the rise. Central PA is considered one of the premier “Big Box” industrial and multi-tenant logistics markets because of the area’s affordable cost of living, raw land and non-union labor. Additionally, the governmental approvals required for warehousing and distribution are comparatively easy and straightforward compared to other states or regions

As for location, this area is a central hub where products, after being manufactured, can be easily distributed throughout the northeast United States (via I-81, I-83, and I-78). Central PA also offers easy access to Port of Baltimore, MD and Port of Elizabeth, NJ and is within a one-day drive to 40% of the nation’s population.

For businesses who need to manufacture and distribute their goods far and wide, Central Pennsylvania is an obvious choice for setting up shop. No matter your particular business or industry, this growth matters to you too! It’s important to understand these trends and the various ways they will likely impact your business. Let’s take a look.

Current Market Trends Worth Noting:

Six more manufacturing buildings entered the market in the last quarter alone, giving us the highest RBA we have seen in more than two years at 62,988,707 square feet. Among this space, 60,527,229 square feet are currently occupied which showcases the high demand for manufacturing space in Central Pennsylvania.

Net absorption has also shown tremendous improvement since the 2013. Just two short years ago, net absorption was in the red by hundreds of thousands of square feet. The lowest point occurred in 2013 Q2 when net absorption was negative 403,861 square feet. The very next quarter, net absorption shot up to a positive 598,898 square feet. Though there has been some fluctuation in the market since, we have remained mostly in the black and currently have a net absorption of 30,468 square feet.

Additionally, Central Pennsylvania’s vacancy rate for manufacturing space has shown significant improvement from the 5.6% we saw in 2013 Q3. A steady decrease has brought this rate down nearly two whole percentage points to the 3.9% we see today.

Finally, the average rental rate has declined approximately $.20/SF since 2013, but has stabilized at approximately $3.50/SF in 2014 and 2015.

What this means to the Central Pennsylvania region:

To the many businesses that are directly and indirectly impacted by the manufacturing industry, the current real estate market is a positive indicator that other markets will follow this favorable trend. Growing manufacturing companies produce more jobs which spur growth in almost every other aspect of the economy from office and residential space to restaurants and shopping centers.

To the 110,000+ people who are employed by the Central Pennsylvania manufacturing industry, the market shows positive signs that these businesses continue to grow and also offers the potential of even more manufacturing businesses being drawn to the area.

Overall, Central Pennsylvania maintains its reputation for being a hub for manufacturing and distribution. The industrial real estate market, specifically for manufacturing space, reflects the strong and steady growth would we expect to see in this region.

View the original article on the CREDC website here. 

[Online Resources] Real Estate, blog, camp hill, Capital Region Economic Development Corporation, central pennsylvania, commercial, CREDC, cumberland, dauphin, demand, Economy, growth, harrisburg, industrial, industry, lancaster, local, manufacturing, market, mechanicsburg, Mike Kushner, Omni Realty, pa, region, trends, writing, york

Real Estate Financing Programs Available Through CREDC

Posted on June 20, 2012 by mike.kushner in Blog, Commercial Real Estate, Community No Comments

The Capital Region Economic Development Corporation (CREDC) has a variety of programs available to help area businesses purchase real estate.These programs can be used by businesses to purchase property or equipment for their operations.  CREDC’s Business Finance staff works directly with the applicant to guide him/her through the application process, while working hand-in-hand with the applicant’s financial institution. CREDC also works with businesses to help them find the best option for their situation. Overall, CREDC can help you close the deal.

A typical loan is structured in the following manner:

  • 50% Financial Institution Loan
  • 40% CREDC loan (subordinate to Financial Institution’s 1st lien loan)
  • 10% Client Equity Injection

CREDC’s involvement helps to close the deal by reducing the Financial Institutions risk through lower exposure and improved collateral position.  CREDC’s loan also benefits the client through lower interest rates, long-term fixed interest rates that stabilize a portion of the debt payments, and keeping cash in the client’s pocket to finance working capital and/or growth needs.

To qualify for real estate projects, the property must be owner-occupied. For more information about the programs or to discuss options, contact Shaun Donovan at (717) 213-5033 or go to credcpa.org.

[Online Resources] Real Estate, building, Central PA Real Estate, commercial lease, Commercial Real Estate, commercial real estate financing, Commercial Realtor, Construction, CRE, CREDC, Going Green, loan programs, Mike Kushner, office lease, office leasing marketing, Office Space, office space camp hill, office space Harrisburg, office space in central pa, Omni Realty Group, rent office space

How CREDC Aids in Site Selection

Posted on June 6, 2012 by mike.kushner in Blog, Commercial Real Estate, Community No Comments

By Shaun Donovan, CREDC Economic Development Specialist

The Capital Region Economic Development Corporation (CREDC) serves as a catalyst for business development within Cumberland, Dauphin and Perry Counties by offering services such as loans, economic development incentives and business location support. Many of the programs are aimed at helping existing businesses within the region grow and prosper.  We do, however, help businesses find the appropriate location for their business through our site selection program.

The site selection program is a way for businesses to confidentially search for properties that meet their criteria.  Whether it is an existing building, or a lot for development, CREDC helps guide the process in matching potential businesses with their ideal location.  Our incoming projects come from four sources: direct calls from companies, the Governor’s Action Team, Pennsylvania’s Offices of International Business Development, and site selection consultants.  We help these groups by working with the commercial real estate community.  CREDC does not directly benefit from site selection activities. We act as a conduit for matching companies with the correct site and encouraging the business to stay in the region or locate here from other places.

To assist with the site selection prospecting we have access to a statewide database of available commercial and industrial properties through http://www.pasitesearch.com.  Properties listed in this system can be viewed by the public and is the first place that the Governor’s Action Team looks whenever a new project is created.  Many of our incoming projects already have preferred locations listed on the PA Site Selector website.  Commercial Real Estate agents are encouraged to include information about their properties to the site which is available at no cost.  The website directs any questions about building or lots to the real estate agent that has the listing posted.

One reason that companies come to CREDC for site selection is to remain anonymous through the initial phases of their search.  There are many reasons that companies prefer to remain anonymous such as labor concerns, competitive forces, and publicity concerns.  Often these companies are in the very initial stages of their search and do not want to be known until they can evaluate the opportunity and make a preliminary decision.   Some companies eventually reveal who they are but many remain anonymous.

CREDC works with companies from around the globe that are looking to find a location.  Some of the projects involve comparing our region to other places around the country. Other projects have a more local focus in which companies are only looking at several counties.  In addition to locating the site, we provide information to the company about the region and help the company find resources to make the project work.  This includes adding regional information to RFI requests and working with the Governor’s Action Team on developing packages for a company looking to locate here.  By working together with the commercial real estate community, we have been successful in attracting both large and small businesses.  Some of the most recent businesses include Lennox Industries, Quality Bicycle Products and       WorldPantry.com. Last year, we completed three site selection projects in our region.  Currently, we have a few projects that are in the final stages.

[Online Resources] Real Estate, building, Central PA Real Estate, commercial lease, Commercial Real Estate, Commercial Realtor, Construction, CRE, CREDC, Going Green, Mike Kushner, office lease, office leasing marketing, Office Space, office space camp hill, office space Harrisburg, office space in central pa, Omni Realty Group, rent office space, site selection

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