YORK COUNTY INDUSTRIAL | VACANCY CONTINUES TO DECLINE, ADDITIONAL 1.95 MSF UNDER CONSTRUCTION TO MEET DEMAND
- After peaking in 2020, vacancy has continued to decline in Q2. High demand will continue to push vacancy down in Q3 as 1.95 MSF of spec projects are not due for completion until later this year and into 2022.
- Harley Davidson Motor Company, Inc. has leased 352,000 SF at 693 North Hills Rd, York.
- Spec construction continues in the Greater York West region including Core5 Logistics Center at Codorus Creek –Bldg 1, Core5 Logistics Center at Laughman Farms –Bldg C and 405 Busser Rd Bldg 1. 405 Busser Rd, York has been pre-leased to Hill’s Pet Nutrition.
- The ROCK Demand Index (RDI) reveals that 64% of industrial demand is comprised of new businesses or startups.
YORK COUNTY OFFICE | RELOCATIONS AND DOWNSIZING DRIVE DEMAND, LEASED SQUARE FEET SET TO EXCEED PRE-PANDEMIC LEVELS BY YEAR-END
- With leased square feet already exceeding total square feet leased in 2020, the market is on track to meet or exceed pre-pandemic levels by year-end.
- Lease activity continues to escalate with relocations and downsizing continuing to drive demand
- Despite early speculation that office demand could be negatively impacted by the pandemic, vacancy is at a five year low of 4.32%.
- The ROCK Demand Index (RDI) reveals that 46% of office demand is comprised of new businesses. The remaining 54% are existing businesses relocating or acquiring an additional location
- 87% of office leases were signed in Greater York East, an area rich in Class A and Class B product.
YORK COUNTY RETAIL | VACANCY FALLS TO PRE-PANDEMIC LEVELS, LEASE RATES CONTINUE UPWARD TREND
- Vacancy fell for the fourth consecutive quarter since peaking at 7.97% in Q2, 2020. Vacancy is at 5.27%, a 270 basis points (bps) decrease since Q2, 2020.
- Absorption remains positive year-to-date with more inventory leased than made available on the market.
- The ROCK Demand Index (RDI) indicates that 48% of retail space demand is comprised of entrepreneurs starting a new business. This is down 10 basis points (bps) from Q1, 2020.
- Big box redevelopment remains in the pipeline at the York Galleria. The former Sears space remains under construction to become a Hollywood Casino due to open in Q3, 2021.
- The ratio of demand for durable goods will see a shift to service oriented spending as workers return to offices with consumers patronize restaurants and venturing out of town for vacation.