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Posts tagged "list"

Home» Posts tagged "list"

10 Facts Any Commercial Real Estate Investor Should Know about Central PA’s Industrial Market

Posted on April 30, 2018 by Mike Kushner in Blog, Commercial Real Estate, Industrial, Local Market No Comments

10 Facts Any Commercial Real Estate Investor Should Know about Central PA’s Industrial Market

Central PA’s industrial real estate market is unique for a variety of different reasons. Taking into consideration its geographic, demographic and economic factors, we’ve compiled a list of what we feel are the most important facts worth knowing about our local industrial market.

If you are a commercial real estate investor, or simply someone who wants to know more about Central Pennsylvania’s commercial real estate market, you are sure to find this list of top 10 facts both valuable and interesting. Let’s take a look!

  1. Harrisburg-York-Lebanon CSA is 3rd most populous in PA and 43rd most populous in U.S.

The Harrisburg-York-Lebanon Combined Statistical Area (CSA) is made up of six counties and includes four metropolitan areas in Central Pennsylvania. In 2010, the CSA’s population was 1,233,708 people, making it the 3rd most populous CSA in PA and the 43rd most populous CSA in the U.S. The Harrisburg-York-Lebanon CSA includes the following Metropolitan Statistical Areas (MSAs): Harrisburg-Carlisle, Lebanon, Gettysburg and York-Hanover.

  1. Harrisburg area puts up strong competition against Lehigh Valley.

Though Lehigh Valley is commonly recognized as Pennsylvania’s leader in warehousing and distribution, Harrisburg delivered only 600,000 SF less than Allentown in 2017, while also generating roughly the same rent growth. Additionally, companies such as Whirlpool, Amazon, Ace Hardware, FedEx, Kohler, and Lindt Chocolates have set up large-scale warehouse and distribution centers in Harrisburg – and those tenants account for just a portion of more than 16 million SF of net absorption.

  1. Harrisburg-Carlisle and Lancaster Ranked Among Leaders in National Job Growth

Of the 25 metro areas with the fastest job growth, as of August 2017, both Harrisburg-Carlisle and Lancaster placed on this competitive list. Lancaster ranked number 24 for its steady growth as it diversifies its economy and renovates its downtown and industrial areas. In six months Lancaster added 3,100 new jobs, bringing its total employment to 252,400 and 2017 growth rate to 1.23%. Harrisburg-Carlisle ranked number 8 on the list with 6,200 new jobs added in the first two quarters of 2017, bringing total employment to 346,100 and 2017 growth rate to 1.82%. Noted was the area’s diverse group of healthcare, technology and biotechnology businesses.

  1. Prime location for warehousing and distribution.

Central Pennsylvania is a premiere market for industrial space for several compelling reasons. For businesses who need easy and affordability storing and shipping of products, the areas offers a great roadway system, an abundant work force, relatively inexpensive and available raw land, and the ability to reach 70 to 80 percent of the U.S. population in 24 hours. Additionally, our government regulations on warehousing and distribution are comparatively easy and straightforward compared to other nearby states or regions.

  1. Four of the 10 Select Top Industrial Leases in Q4 2017 took place in the Harrisburg market.

According to CoStar’s Q4 report for 2017, Harrisburg east and west markets represented the majority of top industrial leases signed that year. Prologis Carlisle (1,029,600 SF), Goodman Logistics Center Carlisle (1,007,868 SF), Prologis Harrisburg (623,143 SF) and Carlisle Distribution Center (575,000 SF) were all leased to different businesses who were looking to grow their industrial real estate space in Central Pennsylvania. This activity indicates economic growth and interest in Central PA’s industrial real estate market, both from businesses and real estate investors.

  1. Lancaster market has the highest quoted rental rate for industrial space in Central PA at $4.69 per SF.

Even though Lancaster’s quoted rental rate for industrial space decreased by $0.45 per SF than where it was at the end of Q4 2016, it still comes in higher than Central PA’s other surrounding submarkets. At $4.69 per SF, Lancaster is $1.41 per SF higher than Lebanon, $0.03 per SF higher than Harrisburg/Carlisle, $0.08 per SF higher than Gettysburg and $0.67 per SF higher than York/Hanover based on Q4 2017.

  1. Lancaster also has the lowest vacancy rate for industrial space in Central PA at just 2.0%.

Lancaster ended Q4 2017 with the lowest vacancy rate of all surrounding submarkets. Compared to Lancaster’s vacancy rate of 2.0%, Lebanon came in at 15.8%, Harrisburg/Carlisle at 6.8% and York/Hanover at 4.9% based on Q4 2017. Though Gettysburg did end 2017 with a vacancy rate of 0.4%, it’s important to note this submarket has just 78 buildings with a combined 4,372,179 SF of existing inventory which places it at a much different level than the other submarkets, comparatively.

  1. Within the MSA, Harrisburg/Carlisle has the largest SF of industrial space under construction at 1,813,468 SF.

Two significantly large industrial projects will soon result in the addition of 1,813,468 SF to the Harrisburg/Carlisle submarket. Comparatively, Lebanon has three buildings under construction with a combined 1,310,195 SF of space, Lancaster has two buildings under construction with a combined 76,486 SF of space, York/Hanover has two buildings under construction with a combined 895,000 SF of space and Gettysburg has no new industrial space under construction. For Central PA as a whole, that equals 4,095,149 SF of new industrial space that will soon be delivered to the market.

  1. Harrisburg/Carlisle’s ended 2017 with a positive net absorption of 2,700,108 SF.

According to CoStar’s Q4 2017 industrial market report, Harrisburg/Carlisle ended the year with the highest, positive net absorption we’ve seen since prior to 2014. At 2,700,180 SF, this is significantly higher than any other quarter that year, especially Q2 where the net absorption dropped to negative 499,576 SF. Additionally is Q4 2017, one new building was delivered to the market, adding 1,100,000 SF of space. Even with this influx of inventory, the net absorption rose by 2,083,756 SF. The new building that was delivered is Whirlpool’s new distribution facility located at 100 Fry Drive, Mechanicsburg.

  1. Influx of State and Federal dollars will continue to improve transportation in and around Central PA.

The Trump administration has recently been touting a $1.5 trillion, 10-year public-private plan to improve roads, bridges, ports and other infrastructures across the nation. Central Pennsylvania has plans to utilize some of this federal funding to bolster its priority projects which include fixing structurally deficient bridges and widening interstates. Improvement to our roadways and infrastructure will improve public safety, create construction jobs and make Central PA an even more attractive location for warehousing and distribution.

After reading through these top 10 facts any commercial real estate investor should know about Central PA’s industrial market, you are likely to have some comments or questions of your own.

Start a discussion by leaving a comment below!

 

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Top 10 Most Shared Commercial Real Estate Articles of 2015

Posted on May 1, 2016 by Mike Kushner in Blog, Commercial Real Estate No Comments

Top 10 Most Shared Commercial Real Estate Articles of 2015

Commercial real estate is a hot topic, with authors from all across the globe sharing their expertise and insights in the form of online articles and blogs. Among the white noise of content being shared, there are a few articles that have risen to the top and earned their place on the list of “Top 10 Most Shared Commercial Real Estate Articles of 2015.

Among the thousands of most shared commercial real estate articles published in 2015 (according to www.buzzsumo.com), these are the topics that took social media by storm!

1. 5 Words Developers Dread (National Real Estate Investor)

This article dives into why we should expect real estate development to become less profitable and real estate development loans to become more expensive. One of the main catalysts? Regulated institutions are now required to set aside increased capital for High Volatility Commercial Real Estate (HVCRE) loans and as a result of these new rules, lenders are reporting increased related costs in the range of 40 to 150 basis points, depending on their specific situation. Read the original article here.

2. Foreign Money is Pouring into US Real Estate, and It’s Not Just Houses (Bloomberg)

Commercial real estate transactions jumped 45 percent by dollar volume in the first quarter of 2015, an increase driven by sales of multiple buildings or entire companies! This article goes on to explain why Blockbuster real estate deals are back and breaking records as cash from around the globe pours into U.S. office buildings, apartment complexes and other investment properties. Read the original article here.

3. The Mother of All Mega Projects (Crain’s)

The story of Hudson Yards epitomizes the trials, tribulations and triumphs of development in New York City, where grandiose ideas are often blown off course by the shifting winds of politics or economics, but sometimes come together in spectacular fashion. Read the original article here.

4. Four Trends that are Reshaping the Commercial Real Estate Industry (Forbes)

While much of the world has embraced technology innovations like the cloud, mobility and big data, commercial real estate (CRE) is still managed out of Excel spreadsheets and 20-year-old technology platforms. This article examines how the commercial real estate industry will be reshaped and redefined by four key trends. Read the original article here.

5. A Marketing Guide for Filling Vacant Income Properties (Entrepreneur) 

Vacancies mean that you’re on your own to pay the mortgage, utilities and other expenses until you can find a new tenant. This article shares some sound advice on filling your vacant rental properties as soon as possible through strategic marketing! Read the original article here.

6. 44 Commercial Real Estate Experts You Need in Your Life

From data transparency and client relationships to new sources of commercial funding and content delivery, this article highlights a few of the most influential and forward thinking commercial real estate experts that are blazing their own trail. Read the original article here.

7. 5 Commercial Real Estate Marketing Trends You Can Bank On (National Real Estate Investor)

This article cuts right to the chase and outlines the five biggest commercial real estate marketing trends we can look forward to seeing in 2016 and beyond! Read the original article here.

8. 5 Lessons From Commercial-Real-Estate Financing for Entrepreneurs Seeking Funding (Entrepreneur) Raising capital in the commercial real estate (CRE) world is a different game than early-stage fundraising for startup businesses. However, there are some valuable takeaways that startup businesses can learn from how CRE projects raise their funding. Read the original article here.

9. Soaring Commercial Real Estate Market is Now Bigger than it was in 2006 (Yahoo! Finance)

This article examines how a thriving commercial real estate market may be decelerating as we move into 2016 and beyond. Learn what major markets made the greatest strides and how they will be impacted in the years to come. Read the original article here.

10. A Millennial’s Perspective on Commercial Real Estate (National Real Estate Investor)

The not-so-new story is that Millennials are the next home buyers and we’ve all got to keep up with the technology in order to close those imminent sales. But how is Gen Y going to use technology to affect the industry’s brokerage side? Read the original article here.

Among these top 10 most shared commercial real estate articles, which one did you find to be most valuable? Share your thoughts by commenting below!

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Central Pennsylvania’s Largest Retail, Industrial and Office Lease Deals in 2014

Posted on January 14, 2015 by mike.kushner in Blog, Local Market No Comments

We’ve officially closed the books on 2014 and now is the perfect time to take a look back at some of the most notable real estate transactions for the year. Not only does this give us full insight into the trends of 2014, but it also helps shape the predictions of future trends we may see coming our way in 2015.

Join us as we take a closer look at the largest lease deals that occurred in Dauphin, Cumberland, York, Lancaster and Lebanon counties for the retail, industrial and office markets.

Largest Retail Lease Deals

1. Giant Food located at 848-852 E Main Street, Ephrata signed into a lease for a 66,472 square-foot space in April 2014.

Giant Food located at 848-852 E Main Street, Ephrata

Giant Food located at 848-852 E Main Street, Ephrata

2. Regal Cinemas located at Manor Shopping Center, 1246 Millersville Pike, Lancaster signed into a lease for a 51,450 square-foot space in December, 2014.

3. GIANT located at Cumberland Market Place, 6560 Carlisle Pike, Suite 100, Mechanicsburg signed into a 45,000 square-foot space in May, 2014.

4. White Oak Furniture located at North Londonderry Square, 2-22 N Londonderry Square, Suite 300, Palmyra signed into a 38,869 square-foot lease in June, 2014.

5. Halloween Adventure located at Colonial Commons, 5070-5082 Jonestown Road, Suite 1510, Harrisburg signed into a 31,436 square-foot space in April 2014.

retail

Largest Industrial Lease Deals

1. Georgia-Pacific located at ProLogis Shippensburg, 234 Walnut Bottom Road, Shippensburg signed into a 1.4 million square-foot lease.

Georgia-Pacific located at ProLogis Shippensburg, 234 Walnut Bottom Road, Shippensburg

Georgia-Pacific located at ProLogis Shippensburg, 234 Walnut Bottom Road, Shippensburg

2. Federal-Mogul Corporation located at First Logistics Center @ I-83, 20 Leo Lane, York signed into a 708,000 square-foot lease in September, 2014.

3. Cardinal Logistics located at Building 1, Key Logistics Park, 950 Centerville Road, Newville signed into a 570,000 square-foot lease in August 2014.

4. Lindt and Sprungli located at Bldg 4, Carlisle Distribution Center, 40 Logistics Drive, Carlisle signed into a 421,200 square-foot lease in December 2014.

5. School Specialty located at 1156 Four Star Drive, Mount Joy signed into a 400,000 square-foot lease in September, 2014.

industrial

Largest Office Lease Deals

1. Comcast located at 2801 Valley Road, Harrisburg signed into a 141,778 square-foot lease in August, 2014.

Comcast located at 2801 Valley Road, Harrisburg

Comcast located at 2801 Valley Road, Harrisburg

2. Golden State Fruit located at 515 N Reading Road, Ephrata signed into a 25,841 square-foot space in October, 2014.

3. RMS located at 1910 Harrington Drive, Lancaster signed into a 16,000 square-foot space in February, 2014.

4. Coventry Health Care located at 3721 Tecport Drive, Harrisburg signed into a 14,566 square-foot space in September, 2014.

5. EHD.located at Greenfield Corporate Center, 1857 William Penn Way, 201-203, Lancaster signed into a 12,627 square-foot space in August, 2014.

office

What this means for 2015

The Largest Deals of 2014 give us some insight into what to expect in 2015.  In the retail sector, owners of power centers and grocery anchored retail properties continue to rethink how they will use space to fill vacancies. Halloween Adventure and White Oak Furniture are great examples of creative re-use.

Central Pennsylvania continues to be a dominant player among major logistics markets.  Industrial buildings will continue to set new records for scope, as distribution centers greater than one million square feet become more prevalent.

The office market is benefiting from market fundamentals that continue to move in a positive direction.  Comcast, Golden State Fruit, and RMS are fast growing companies that have expanded operations in Central Pennsylvania.  The combination of measured new construction, tenant expansion and lessening office contractions will continue to contribute to restoring health to the Central Pennsylvania office market.

Do you have an additional thoughts or questions about the largest lease deals for 2014? Join in the conversation by commenting below!

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