NORTHEAST SNAPSHOT, JANUARY 2006
Harrisburg, Pennsylvania Industrial Market
Currently, the Harrisburg, Pennsylvania, industrial sector is seeing an influx of distributors moving to the area, and the most common type of development in the market is the distribution center. In general, the market would like to see more of an increase in manufacturing tenants, as those users tend to create more employment. While there are some outliers, the rental rates for industrial space in Harrisburg range from $3.25 per square foot to $5.75 per square foot. The vacancy rates have been changing so rapidly that a precise number cannot be determined at this particular time.
Several significant projects currently are underway in the Harrisburg industrial market. On Lewis Parkway in Mechanicsburg, Pennsylvania, Triple Crown Corporation is developing Golden Triangle Industrial Park. The project is a 400,000-square-foot, Class A warehouse facility that features dock and trailer capabilities. Situated 1 mile from Interstate 81, it retains immediate proximity to truck terminals. The development currently is under construction, with completion expected possibly as early as year-end, but in 2007 at the latest.
In addition, Conewago Contractors Incorporated is underway on Stoneridge Commerce Park, which is located in an established industrial area at the interchange of interstates 283 and 76 in Middletown, Pennsylvania. The 110-acre, Class A industrial park still is being leased, with plenty of availability remaining.
At the master-planned Fairview Business Park in Fairview Township near York, Pennsylvania, two Class A industrial facilities are offering extensive space for lease. Within 600 Industrial Drive, 900,000 square feet of cross dock space is available, which is slated for completion by this summer. An additional warehouse distribution center also is proposed for the industrial park that would include approximately 795,000 square feet and have the capability to encompass as much as 1.5 million square feet at total build-out.
Las Vegas-based DP Partners has been a significant addition to the development side of the Harrisburg industrial sector, making its mark by providing space for such companies as Pepsi-Co., UPS and Borders Books & Music throughout the entire region. In addition, while many recognizable names are absorbing industrial space in the Harrisburg region, NAI Commercial-Industrial Realty Company (CIR) represents a large number of properties in the market, and it consistently adds new tenants to the overall landscape. One of the most noteworthy leases signed in the Harrisburg industrial sector in recent months took place at 500 McCarthy Drive, where Amazon.com fully leased a 705,000-square-foot building in August 2005 for a distribution center.
Lately, the Interstate 81/83 corridor has been drawing the most focus for industrial development, as prospects are realizing the benefits of locating in areas that provide excellent highway and rail service. Taking advantage of this transportation hub, including advanced transportation systems and intermodal facilities, companies have easy access to major markets, as well as being within 1 day's drive to 40 percent of the United States' population and 60 percent of Canada's population.
— Joshua Skopp is an economic development specialist for the Capital Region Economic Development Corporation.
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