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Posts tagged "Harrisburg east market breakdown"

Home» Posts tagged "Harrisburg east market breakdown"

Central Pennsylvania Industrial Market Ends 2013 with Lowest Vacancy Rate All Year

Posted on February 26, 2014 by mike.kushner in Blog, Commercial Real Estate, Local Market, Trends No Comments

Vacancy rates for the total industrial market in Central Pennsylvania are the lowest they have been since third quarter 2012 at 7.7 percent. This is a 0.6 percent drop from last quarter’s vacancy rate of 8.3 percent. The Central Pennsylvania flex market finished the year with a 9.7 percent vacancy rate and the warehouse market at 7.6 percent.

Industrial Vacant Space

This decline in vacancy rates reflects a combination of expected continued economic growth and positive fundamentals driving the U.S. industrial sector. Lower gas and electric costs in the U.S. compared to developing economies is leading to manufacturing being “on-shored.” Also, an uptick in e-commerce is increasing the amount of goods stored in warehouses as opposed to bricks-and-mortar retail stores.

As a result, these declining vacancy rates have stirred up a lot of real estate action in the fourth quarter. Currently, 424,000 square feet of industrial property are under construction. YTD Net Absorption for Central Pennsylvania is 1,852,412 square feet with YTD Deliveries at 720,000 square feet.

Deliveries and Absorption

First Logistics Center @ I-83 was listed number one of the top eight YTD Deliveries in the Philadelphia Industrial Market. This site is a 708,000 square-foot state-of-the art distribution/warehouse facility located in York, Pennsylvania that delivered in fourth quarter 2013.

This quarter’s list of Top Under Construction Properties included a site at 600 Independence Avenue, Mechanicsburg, PA. This project is set to be completed in second quarter 2014 and will have an RBA of 24,000 square feet.

Just down the road, at 500 Independence Avenue, is the location of one of this quarter’s Select Top Sales. This 342,498 square foot industrial space sold to Duke Realty Corporation for $22,567,200 in August of 2013. But the largest sale to take place in the Central Pennsylvania market was Ollie’s Bargain Outlet Distribution in York which sold for $31,671,000 in March 2013.

In total, 4 of the 9 Select Top Sales between October 2012 and December 2013 took place in the Harrisburg submarket, specifically York and Mechanicsburg, totaling $101,246,771 in property. Additionally, 7 of the top 10 Industrial Leases, based on leased square footage for deals signed in 2013, also took place in the Harrisburg East or Harrisburg West submarkets.

After having reached their lowest rate since 2011 during second quarter 2013, Quoted Rental Rates continue to rise slightly to $3.89 per square foot per year.

Quoted rental rates

Fourth quarter 2013 closed on an active real estate market for the industrial sector with decreasing vacancy rates and increasing construction. One possible catalyst for this trend is the devastating Japanese tsunami and Thai floods that highlighted the dangers of thinly stretched supply chains. Entire plants had to be shut down because of inadequate inventory. As a result, companies are moving away from the “just in time” supply chain management, where companies keep only enough inventory on hand to meet immediate needs and are instead actively expanding their industrial and warehouse spaces.

The information in this report is based on CoStar’s Fourth Quarter 2013 Market Report.

Central PA Real Estate, commercial lease, Commercial Real Estate, Commercial Realtor, CRE, decline, Harrisburg east market breakdown, industrial, Mike Kushner, office lease, Office Space, office space camp hill, office space Harrisburg, office space in central pa, Omni Realty Group, rent office space, vacancy rates

Tax Benefits: Another Central Pennsylvania Specialty

Posted on September 5, 2013 by admin in Feature, Featured Opportunities No Comments
Tax Benefits: Another Central Pennsylvania Specialty

Central Pennsylvania is taking strides to become more accommodating to new businesses and just one example is the Keystone Opportunity Zone (KOZ). Taxes can stifle many new business ventures, but KOZ is providing a once-in-a-lifetime opportunity to develop land with greatly reduced state and local taxes and has been called “the number one economic development strategy in the nation.”

Designed to boost development and purchases in underdeveloped areas, KOZ’s reduce or eliminate specific taxes to investors.  Those who purchase or lease within the Keystone Opportunity Zones are eligible to participate in these beneficial programs simply with the completion of an application.  This program encourages both expansion and economic growth within the Central Pennsylvania region.

The first KOZ was developed in 1999 by Pennsylvania Governor Tom Ridge.  In 2001, another round of Keystone Opportunity Zones was approved, extending the areas available for benefits.  A third round was authorized in 2003.  The program has been quite successful in the Central Pennsylvania area, providing jobs and increasing real estate investments.

In order to qualify for the tax benefits, the property must be purchased within the designated zones.  The zones chosen by the city are often vacant industrial land and vacant outdated industrial buildings throughout the region.  No existing businesses have been chosen by the Commonwealth for participation in the KOZ program.

An example of a local property in the Central Pennsylvania area is  815 Market Street in Harrisburg, Pennsylvania.  Weighing in at 250,000 square feet and seated on 11 acres, this particular building was previously owned by the U.S. Postal Service where it was used as a sorting facility.  The property is considered to be ideal for a manufacturing or distribution operation, given the proximity to major markets in the Northeast region.

Tax breaks are an invaluable resource for both new and established businesses.  In addition to the tax reductions or eliminations, KOZ’s are breathing new life into under-utilized areas.  Keystone Opportunity Zones are emerging as a breakthrough idea, and being met with great success and further expansion.  New properties and subzones are also being added as the success of the program continues.

Don’t miss out on this opportunity!  Keystone Opportunity Zone properties are another one of the reasons I am proud to make central Pennsylvania my home base.  For questions regarding office space in Central Pennsylvania, please contact me by email: mkushner@omnirealtygroup.com or by phone at 717-657-5833.  As a practiced commercial real estate broker, I can help you find the property that suits your needs.

Central PA Real Estate, commercial lease, Commercial Real Estate, Commercial Realtor, CRE, Harrisburg east market breakdown, industrial, Mike Kushner, office lease, Office Space, office space camp hill, office space Harrisburg, office space in central pa, Omni Realty Group, rent office space

Central Pennsylvania Featured Property: The Murata Business Center

Posted on September 5, 2013 by admin in Feature, Featured Opportunities No Comments
Central Pennsylvania Featured Property: The Murata Business Center

Dedicated to growing an Entrepreneurial Ecosystem in Central PA, the Murata Business Center provides startups with the office space and essential programs needed to help them flourish. This property is owned and operated by the Capital Region Economic Development Corporation (CREDC) and acts as an incubator for aspiring businesses in the area.

Operating as a subset of the Murata Center, the Ben Franklin TechCelerator Program offers startup programs designed to help a small business launch successfully.  Program features include shared workplace, marketing research tools and use of standard office equipment to enhance productivity.

The Murata Center also offers mentoring programs with one-on-one guidance from experienced professionals that were once in a start-up phase themselves.  This program will assist you in avoiding some of the pitfalls commonly associated with small businesses.  Their weekly group sessions specialize in writing business plans and understanding core marketing principles.  Past tenants also offer informative presentations to allow members to learn from their experience.

Another distinguishing feature of the Center is the Incubator Program.  Inside this program, a team of professionals determine what a company needs to succeed and will offer two-way communication to support those needs.

The Murata Center is seated in beautiful Carlisle, PA.  With Amtrak services and Harrisburg International Airport within a short distance, the office space is close enough to get you wherever you need to go.

All businesses within the Murata Center are provided with reasonably priced office space, business support services, and resources tailored to emerging small businesses.  Tenants also have access to an Advisory Board consisting of leaders in business, education, economic development, finance and entrepreneurship.  The function of the board is to offer guidance, counsel and mentorship to all businesses within the Center.

This commercial real estate property is just one of the many features that make me proud to call Central Pennsylvania home. For information about office space in Central PA, please contact me by email: mkushner@omnirealtygroup.com or by phone: 717-657-5833. As an experienced commercial real estate broker, I can assist you in finding the property to fit your needs.

Central PA Real Estate, commercial lease, Commercial Real Estate, Commercial Realtor, CRE, Harrisburg east market breakdown, industrial, Mike Kushner, office lease, Office Space, office space camp hill, office space Harrisburg, office space in central pa, Omni Realty Group, rent office space

Another Central Pennsylvania Hot Spot: The Hershey Center for Applied Research

Posted on September 5, 2013 by admin in Feature, Featured Opportunities No Comments
Another Central Pennsylvania Hot Spot: The Hershey Center for Applied Research

The Hershey Center for Applied Research (HCAR) provides Central Pennsylvania with a state of the art facility for medical research and technology. This booming industry is a valuable part of our community. HCAR helps to give both local and global tenants access to advanced technology and other research resources, immersing them in a climate of innovation.

The facilities at HCAR contain the only fully-prepared wet and dry lab space in the Mid-Atlantic region.  Tenants of the facility are given access to the tools required for success and advancement in the research industry.   The strategic partnership with Pennsylvania State University and the Penn State Milton S. Hershey Medical Center provides HCAR with competitive access to advanced technology and research resources.

HCAR is a Wexford Science and Technology property, a company committed to supporting growth and strengthening the surrounding community.  HCAR is part of a large network of thriving research based businesses dedicated to advancement in their respective fields.  Tenants at HCAR are working on some of the world’s most cutting-edge scientific projects, making them part of a burgeoning community for life science and technology based business in Central Pennsylvania.

Located in Hershey, Pennsylvania, HCAR is conveniently located near many major cities including Philadelphia, Washington D.C., Pittsburgh and Baltimore.  HCAR is just over 10 miles from Harrisburg, Pennsylvania’s state capital that was recently named 12 of the 50 smartest places to live by Kiplinger’s Personal Finance Magazine.  Hershey’s local high school was named in the top five percent of public schools in the country by Newsweek Magazine.  Hershey is an emerging hot spot in the Central Pennsylvania area as it’s home to ample entertainment options and valued real estate.

HCAR consists of a three-story, 80,000 square foot and multi-tenant facility with plans for future growth.  The buildings were designed and built to adhere to environmentally-friendly construction standards.  There are shared resources for tenants including conference rooms and building security.  HCAR facilities are also fully customizable to suit each individual tenant.  The building houses businesses already specializing in medical science, nanotechnology and life sciences.

HCAR is ready to provide services for businesses in the science and technology sector from emergence to maturity.  It also allows for the creation of new businesses through the transfer of technology among many different types of businesses, including nonprofit organizations.  The staff at HCAR will work with businesses to provide the services necessary for competition in their specific field.

The Hershey Center for Applied Research is another reason why I’m a proud Central Pennsylvanian.  For more information on commercial real estate in the area, please contact me by email: mkushner@omnirealtygroup.com or by phone at 717-657-5833.  As an experienced commercial real estate broker, I can assist you in finding the property you need.

Central PA Real Estate, commercial lease, Commercial Real Estate, Commercial Realtor, CRE, Harrisburg east market breakdown, industrial, Mike Kushner, office lease, Office Space, office space camp hill, office space Harrisburg, office space in central pa, Omni Realty Group, rent office space

Harrisburg East Retail Vacancy Rates Decline, Sales Remain Stagnant in the Third Quarter 2012

Posted on November 7, 2012 by mike.kushner in Blog, Commercial Real Estate, Local Market, Trends No Comments

The Harrisburg East retail market experienced a lower vacancy rate during the third quarter of 2012.The rate ended at 5.9% compared to the previous quarter when vacancy was 6.4%. The third quarter represented the first time in 2012 where the retail vacancy rate was below 6%.

So far in 2012, the largest retail lease signing in the Harrisburg East submarket was the 31,436-square-foot lease signed by Ross Dress for Less at the Cedar Shopping Centers, Inc. followed by the 18,120-sqare-foot lease signed by Variety Store by NAI/CIR. Both occurred in the first quarter 2012.

The average dollar amount per square foot continues to slightly fluctuate. The average lease rate for retail space in the Harrisburg East submarket is now at $11.94 per square foot, compared to $12.20 per square foot and $12.00 per square feet in the second and first quarters, respectively.

For the second consecutive quarter, there were no new sales for the Harrisburg East retail market. During the first quarter 2012, there were two sales totaling $102.1 million. The largest retail sale occurred at the Outlets at Hershey. The 237,618 square foot outlet center was sold from its previous owner, the LMS Commercial Real Estate to the Tanger Factory Outlet Centers for $56 million. The second largest retail sale occurred at Colonial Commons in Harrisburg. The 419,978 square foot shopping center was sold from its previous owner, The Blackstone Group to the CSC Colonial Commons Partnership L.P. for 46.1 million.

Central PA Real Estate, commercial lease, Commercial Real Estate, Commercial Realtor, CRE, Harrisburg east market breakdown, industrial, Mike Kushner, office lease, Office Space, office space camp hill, office space Harrisburg, office space in central pa, Omni Realty Group, rent office space, warehouse

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