State of the Market -July 2005
by Bill Gladstone, CCIM, SIOR

Harrisburg 's land sale market and the West Shore flex space (for lease) market seem to be taking the lead in activity for the time being. Land sales are fast paced and at very high prices especially for residential development, but closely behind are the lots available for commercial and industrial development. Land close to the epicenter of activity is very hard to find, and as a result when a parcel does become available, the prices are being forced higher. For the first time, a multi-acre deal in which I was involved had commercial prices in excess of $450,000 per acre. However, applying capitalization ratios on commercial land that is being leased by financial institutions and convenience/gas stores, the land is already over $750,000 per acre.

Activity for smaller West Shore flex space (2,000-12,000 SF) for warehouse uses is increasing. Due to the demand for this type of product on the West Shore, one project of approximately 130,000 SF (two phases) in which I am involved has had very good activity while under construction. There is very limited flex warehouse product on the West Shore so the timing of this project is excellent.

Harrisburg is a very active market. Certain segments are outperforming others due to the demand for niche products. I think it will continue like this for at least the next 6-8 months. Harrisburg is traditionally a very stable market.

**Feature in the July 2005 edition of the "New Properties" email.

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