ROCK Commercial Releases 2022 Q3 Market REPORT

Jan 4, 2023 | Blog Posts

YORK COUNTY INDUSTRIAL | VACANCY DECLINE SLOWS FOR SECOND CONSECUTIVE QUARTER

  • York County vacancy remains on decline contrary to nationwide vacancy which ticked up 20 basis points.
  • 36% of new inventory was immediately absorbed upon completion.
  • Absorption is positive but down 89.75% compared to last year.
  • Average lease rate continues to climb, up 21% since 2021.


YORK COUNTY OFFICE | LOW VACANCY AS LEASE RATES REMAIN ELEVATED

  • Although economic downturn looms, positive indicators are found in a low trending unemployment rate and five-year low in vacancy.
  • Phase I of Westgate, an office complex adjacent to UPMC Memorial Hospital, is now complete.
  • WebFX, a digital marketing provider from Harrisburg, leased 3,370 SF at 316-320 North George St, York.


YORK COUNTY RETAIL | YORK COUNTY RETAIL UNWAVERING TO ECONOMIC PRESSURES

  • Vacancy fell 28 basis points in Q3 to 4.06%.
  • Sales volume is at a five-year high exceeding $160M year-to-date. Pennmark Management Company, Inc. purchased 31 Wilson Dr, Hanover (Gateway Hanover Shopping Center) for $28.75M. The property is 100% occupied.
  • Over 78,000 SF has been absorbed year-to-date while lease volume already exceeds total square feet leased in 2021.
"York County industrial vacancy remains on decline contrary to nationwide vacancy which ticked up 20 basis points."

LANCASTER COUNTY INDUSTRIAL | LEASING MARKET REMAINS EXTREMELY TIGHT, GROWTH IN SALE PRICES SLOWING

  • Lack of inventory continues to drive down vacancy and increase lease rates.
  • 1.59 MSF is under construction with 1.13 MSF expected for completion in Q2 2023. 1.17 MSF is proposed.


LANCASTER COUNTY OFFICE | 324,000 SQUARE FEET PROPOSED FOR FUTURE DEVELOPMENT

  • Absorption continues to undulate positive and negative this year illustrating an even match of supply with demand.
  • Penn State Health Medical Center at 2160 State Road in East Hempfield Township is complete. The project added 341,000 SF of medical office space to Lancaster County.
  • Clio Health has formally withdrawn from its 152,000 SF development at 1250 Marshall Avenue, Lancaster. The building remains partially constructed.


LANCASTER COUNTY RETAIL | DEMAND FOR RETAIL DEFIES RISING CONSUMER COSTS

  • Vacancy has declined a further 64 basis points, now below 3%.
  • Positive absorption illustrates a continued demand for retail space despite economic headwinds.
  • Sales volume is currently $86.7M year-to-date with potential to exceed last year’s total of $89.1M.
  • Average sale price has doubled since 2017.

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