The commercial real estate (CRE) landscape is shifting in meaningful ways—both nationally and right here in Central Pennsylvania. From federal lease adjustments to the growing influence of artificial intelligence, these changes will shape how investors, tenants, and property owners make decisions in the years ahead. At The Bill Gladstone Group, we’ve been tracking these developments closely to better guide our clients in the Harrisburg region.
GSA Lease Terminations and Building Sales
Across the U.S., the General Services Administration (GSA) has been downsizing and consolidating office space. This trend is highlighted in NAIOP’s perspective on rightsizing the federal real estate portfolio For communities like Harrisburg—where federal agencies have historically occupied significant square footage—these decisions can create ripple effects. Owners may need to rethink long-term strategies, whether that means repositioning assets, exploring mixed-use opportunities, or preparing properties for private-sector tenants.
At the same time, the GSA is pursuing large-scale asset sales, with reports noting that it plans to sell hundreds of buildings across the country. Local owners and investors will want to monitor how these sales impact pricing and demand in secondary markets like Harrisburg.
The Rise of Necessity-Based Assets
Investors are increasingly focused on necessity-based properties such as healthcare facilities, grocery-anchored centers, and industrial assets. Here in the Greater Harrisburg area, strong demand for logistics and medical space continues to outpace other sectors. Proximity to major highways like I-81 and I-83 makes our region a natural hub for distribution, while Central PA’s growing healthcare footprint reinforces stability in medical office space.
Global Investment Shifts
International investors are reevaluating where to place capital, often prioritizing stable, mid-sized markets with long-term growth. In Central Pennsylvania, Harrisburg is well-positioned thanks to its affordability, strong workforce, and access to major transportation corridors. Reports from NAIOP and other industry sources highlight the appeal of secondary markets like Harrisburg, while our own listings showcase how investors are finding opportunities here.
Client Relationships: Smart Strategies in a Shifting Market
In uncertain times, relationships matter more than ever. Owners and tenants alike are looking for trusted advisors who can help them see around corners. At The Bill Gladstone Group, we emphasize proactive communication, transparency, and creative deal structuring to ensure clients feel supported through these transitions.
Navigating Insurance Risks
Insurance costs are rising nationally, and the Central PA market is no exception. Weather-related risks, replacement costs, and broader market volatility are driving premiums higher. For property owners in Harrisburg, this underscores the need for thorough due diligence and working with advisors who understand how to structure leases to mitigate risk.
Why Solar Still Isn’t Shining in Logistics
While renewable energy is gaining traction, solar adoption in logistics facilities remains slow due to upfront costs and structural limitations. Locally, industrial owners are exploring it, but many distribution centers in Central PA were built without the necessary infrastructure to easily accommodate large-scale solar installations.
AI’s Growing Role in CRE
Artificial intelligence is no longer a futuristic concept—it’s here, and it’s fundamentally reshaping how commercial real estate operates. In our blog post “How AI Is Transforming the Real Estate Industry”, we dive into multiple ways that AI is already influencing the market.
A Glimpse at International Trends
Globally, urban cores are being reimagined while suburban and secondary markets (like Central PA) are seeing renewed interest. As cities abroad experiment with mixed-use developments and flexible workspaces, we expect similar concepts to influence how developers approach projects here in Harrisburg.
Final Thoughts
The CRE industry is at an inflection point. National headwinds—from shifting federal leases to global investment priorities—are making their way into local markets, including Harrisburg. By staying ahead of these trends, The Bill Gladstone Group is committed to helping our clients adapt, seize new opportunities, and build strategies that last.