MicroNet Template

ROCK Commercial Real Estate Releases 2020 Q1 Market Reviews

  • Share:
May 12, 2020

YORK/LANCASTER, PENNSYLVANIA – May 6, 2020 – ROCK Commercial Real Estate publishes quarterly market reviews designed to survey and gauge the state of commercial real estate conditions in Central Pennsylvania. The publications offer thoughtful, forward-looking insight into trends in the local office, industrial, and retail markets.

VIEW FULL REPORTS

YORK COUNTY INDUSTRIAL | INDUSTRIAL SALES EXCEED $178M, RENTAL RATES REMAIN STABLE

  • York County continues to attract attention of investors as a prime distribution hub with over 4.3 MSF sold and more than $178M in sales volume.

  • Q2 statistics will help shed light on possible trends resulting from the COVID-19 pandemic as quarantine measures and widespread economic disruptions occurred late in Q1.

  • 660,984 SF of inventory remains under construction with an additional 4.8 MSF of warehouse proposed to be built.

  • The most popular unit size this quarter was between 3,500 SF and 7,500 SF, comprising 33% of Class A & Class B industrial leases.

YORK COUNTY OFFICE | VACANCY AND LEASE RATES HOLD STEADY

  • Vacancy and lease rates hold steady despite late quarter disruptions from the COVID-19 pandemic. Ramifications of these disruptions will become more evident in Q2 and beyond.

  • Medical office continues to drive office sales in the York market with 68% of sales volume attributed to medical users.

  • The most popular unit size among office tenants in Q1 were spaces less that 1,500 SF, accounting for 53% of all office leases.

  • 74% of available office space can be found in Greater York East.

  • The first phase of York City’s Innovation District remains planned to break ground in June 2020 and be completed by late 2021. Phase 1 will deliver 60,000 SF of flex office space geared to attracting a line up of high tech tenants including York Exponential, a York based robotics manufacturer.

YORK COUNTY RETAIL | RETAIL FOOTPRINTS DECREASE, 44% SMALLER THAN THIS TIME LAST YEAR

  • Traditional retail locations continue to adapt in an age of evolving consumer preferences. Plans for experiential retail and mixed-use town centers must adapt once more with a health conscious mindset in a post COVID-19 world.

  • Physical stores will remain. However, we have witnessed preference in layout and size requirements of retailers change to maximize efficiency and consumer experience.

  • 59% of retail leases this quarter took place in suburban markets (outside a city or borough).

  • The most popular unit sizes this quarter were between 1,000 and 1,500 SF. 39% of all retail leases were in this size range.

LANCASTER COUNTY INDUSTRIAL | CLASS B & CLASS C DOMINATE SALES ACTIVITY, VACANCY INCREASES 0.49%

  • 86% of sales in Q1 attributed to Class B & Class C facilities.

  • Q2 statistics will help shed light on possible trends resulting from the COVID-19 pandemic as quarantine measures and widespread economic disruptions occurred late in Q1.

  • 36% of industrial leases took place in Greater Lancaster East, a region encompassing the U.S. Route 30 and New Holland Pike corridors and Greenfield Corporate Center.

  • A 0.49% increase in vacancy this quarter may be attributed to the influx of available product in addition to sustained vacancy at large industrial facilities. Two large properties account for 36% of vacant industrial square feet in Lancaster County.

LANCASTER COUNTY OFFICE | LOW VACANCY REMAINS INTACT, AVERAGE RENT AT FIVE YEAR HIGH 

  • Infill development in prominent, accessible and convenient locations in Lancaster City continues to increase average lease rates.

  • Preference in unit size decreased from Q4 2019. Units 1,800 SF or less were the unit size of choice this quarter and accounted for 73% of leases.

  • Net absorption continued its downward trend from last quarter dipping negative to -35,811 SF, a five year low. With possible economic disruptions due to COVID-19, Q2 and beyond will help to indicate if demand remains for available office space.

LANCASTER COUNTY RETAIL | LEASE RATES REMAIN HIGH, VACANCY CONTINUES TO RISE

  • Lancaster County continues to deliver on its stellar reputation as a cool, innovative, vibrant area to grow a business. The region’s resiliency to economic downturns is fixed to its array of mixed-use projects fueling the small city vibe of the region.

  • Traditional retail locations continue to adapt in an age of evolving consumer preferences. Plans for experiential retail and mixed-use town centers must adapt once more with a health conscious mindset in a post COVID-19 world. Adoption of technology to reach consumers will continue to be helpful.

  • Lease rates continue to climb, fueled by premium rate space in high demand locations. Whether these increases are here to stay will become more apparent in Q2 and beyond as results of any economic slow downs from COVID-19 will be reported.

ROCK Commercial Real Estate
ROCK is an industry leader in commercial real estate that focuses on Brokerage Advisory, Property Management, Lease Administration, and Consulting.  Our mission is to deliver unparalleled commercial real estate services through a team of professionals that builds strong relationships, provides comprehensive knowledge, and focuses on solutions that are right for you.



Contact
Becky Murphy, Marketing Director
ROCK Commercial Real Estate, LLC
717.854.5357 ext: 103 | bmurphy@rockrealestate.net