Report: York County industrial market back to 2008 levels in Q3

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The third-quarter vacancy rate was 5.7 percent, according to new market reports from York-based Rock Commercial Real Estate LLC. The last time the industrial sector was below 6 percent was the fourth quarter of 2008.

In the third quarter, there were 20 new industrial leases totaling about 1.7 million square feet. This was the most active leasing period since the second quarter of 2010, according to Rock.

The average gross-square-foot lease increased 11 percent, to more than 83,700 square feet, from the second quarter.

York County industrial sales through three quarters have totaled nearly $99 million, with about 8.2 million square feet sold.

That included the Hanover Direct facility, a 124,000-square-foot building that sold in July for $895,000.

In September, Federal-Mogul Holdings Corp., the Michigan-based manufacturer of automotive products, began its lease of the First Logistics Center @ I-83 in Manchester Township. That is a 708,000-square-foot facility.

Office market

The York County office market has seen a vacancy decline for four straight quarters. Vacancy was 7.2 percent in the third quarter, according to Rock.

That is comparable with rates last witnessed in the second half of 2009.

Through three quarters, the county office market has posted $6.3 million in office building sales. There were nine sales in the third quarter totaling $2.9 million.

That included the July sale of 1 N. George St., a former bank building, to the York City Redevelopment Authority. The property was sold for $515,000.

The Loucks Plaza, a 6,300-square-foot office complex on Route 30, sold in August for $260,000.

Leasing activity also has been stable, with about 150,000 square feet leased since the beginning of the year, according to Rock. That was up from 97,000 square feet through three quarters of 2013.

Retail market

Retail vacancy increased slightly to 6.3 percent, which remains comparable to rates seen in 2008 and 2009, according to Rock.

There has been $63.6 million in retail sales so far this year. That has been driven primarily by increased levels of investment activity.

Olde Tollgate Village, a 40,000-square-foot neighborhood center on South Queen Street, sold in July for about $4.2 million.

Leasing has remained consistent with 2013. There has been about 120,000 square feet leased through three quarters compared to about 110,000 at this time last year, according to Rock.