YORK COUNTY INDUSTRIAL | INSTITUTIONAL INVESTORS BOOST SALE VOLUME IN Q4, LEASED SQUARE FEET AT HISTORIC HIGH, VACANCY AT HISTORIC LOW
- A record 4,101,266 SF was leased in 2021, a 135% increase from 2020 and a 24% increase from 2019.
- Vacancy plummets to a historic low of 2.86%.
- Absorption was positive for the year at 2.6 MSF illustrating high demand. This is a record for the county.
- 300 S Salem Church Rd, York, sold for an estimated $60M as part of merger between VEREIT, Inc. and Realty Income Corporation. The portfolio, valued at $11 billion, contained 3,918 properties nationwide consisting of industrial, retail and office product.
- REIT acquisitions accounted for over $190M of sales volume in Q4.
- Industrial expansion projects account for 47% of active construction.
- 903,599 SF is under construction with over 6 MSF proposed.
YORK COUNTY OFFICE | LEASED SQUARE FEET ENDS AT 3-YEAR HIGH, VACANCY REMAINS BELOW 5%
- Leased square feet continues to climb and exceeds pre-pandemic levels. Vacancy remains at a five-year low.
- 50% of office sale transactions were attributed to medical use in Q4 and 39% of transactions for 2021.
- Average unit size continues to decrease, though 2021 witnessed an uptick in due to several transactions for units greater than 10,000 SF.
- York County’s positioning as a tertiary market has thus far been insulated from large influxes of vacancy that affect larger metros.
- York County office continues to remain stable boasting low vacancy and elevated lease rates.
YORK COUNTY RETAIL | LEASED SQUARE FEET EXCEEDS 2020 TOTAL, AVERAGE LEASE RATE UP 11.4% SINCE 2017
- Absorption slipped further negative in Q4 but supply remains evenly matched with demand.
- The ROCK Demand Index (RDI) reveals that in the past 12 months, 55% of retail space demand is comprised of businesses seeking an additional location.
- Small shopping centers (4-5 units) containing a strong tenant mix of national retailers remain popular among investors.
- Old Navy is to occupy 12,569 SF at Gateway Shopping Center, Hanover in Q1 2022.
- Vacancy increased 22 basis points to 5.66%.