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.