· pdf file · 2011-03-100.5 gallons per minute, a very low flow rate that is...

contents

Harrisburg Commercial Real Estate Review 1

PeoPle Are PeoPle

People are people. Nothing has changed that in all the years we have been a civilized society. Even with all the problems we read about that abound as you look at Pennsylvania and beyond, including the Harrisburg incinerator issue, the School District’s problems, nuclear enrichment in Iran, the oil spill in the Gulf and weather related disasters worldwide, people are still people! In that regard people have their own set of problems causing them to narrow their focus closer to home, paying attention to what is happening to them, their families and their business communities on a continuous basis.

I would venture to say there are communities worldwide in which problem solving is prioritized in this manner. People narrow their focus to their immediate surroundings, especially in tough economic times and pay close attention to what is going on around them first before paying attention to what is going on worldwide. There is nothing wrong with that. As a professional, I do the same thing; I try to resolve my problems and those in my community with immediate input and active involvement. The world issues come after that and usually in the form of donations as opposed to active involvement. For me, listing, selling and leasing real estate is the same; a way of resolving issues for my clients. It is a means to an end.

If I list, sell and lease real estate, will it solve a problem? Is it a problem that needs to be solved in order for people to move on in a personal or professional capacity? Rather than attempting to list, sell or lease real estate, I prefer to provide a service - problem solving. If people ask me what my business is, I tell them I provide solutions to problems. My product happens to be real estate, but I am in a service business first. That is not any different than someone selling insurance, providing legal services, or tax accounting services. What we all have in common is we provide a service that can resolve problems, although our products are all different.

If we look at our business models in that light, our businesses will not only succeed in these difficult economic times but will give us distinct socially responsible opportunities to resolve problems presented daily that we may not have during less burdensome economies. These opportunities are of enormous importance for our businesses. We solve problems by providing solutions through our businesses and as a result of the higher level of service we provide, our businesses grow.

I am not sure we will get there, for as many theories that can be proposed such as this one, there are people who choose to follow different models with which they are most comfortable. I remain convinced that if all of us take the “service approach”, we would all remain profitably employed, earning respectable incomes based on the services we provide and growing our businesses through social responsibility. As that takes place on local levels, one by one, the level of intensity of the problems which we currently experience, locally or internationally, will reduce themselves. It is inevitable!

I firmly believe this is the way to approach business, today and into the future. This methodology can help make major strides in solving issues, the answers from which will benefit us all. And all this through a very simple mechanism – people simply being people!

William M. Gladstone, CCIM, SIOR

E N V I R O N M E N TPotable Water: Every Drop Counts. . . . . . 2

F I N A N C EManaging Borrowing Costs Across Time . . . . . . . . . . 4

D E V E L O P M E N TOvercoming Construction Inflation. . . . 8

L A WTax Assessment Appeal Season – Understanding the Property Assessment Appeal Process . . . . . . . 12

R E g I O N A L D A T ARetail/Commercial Market . . . . . . . . . . . . . . 16

R E A L E s T A T E L I s T I N g s Map/Locator . . . . . . . . 18 Commercial . . . . . . . . . 20 Industrial/Warehouse . . 24 Investment . . . . . . . . . . 26 Office . . . . . . . . . . . . . . 27 Land . . . . . . . . . . . . . . . 34

Summer 2010

Harrisburg Commercial Real Estate Review is produced three times yearly by the Bill Gladstone Group of NAI CIR to serve the region’s business, commercial and industrial real estate decision makers. Contact [email protected] for more information or advertising specifications.

©2010 The Bill Gladstone Group of NAI CIR. All rights reserved.

on the Cover: Bill Gladstone of NAI CIR and Donald Smith, President, Conewago Enterprises tour Conewago’s new LEED Gold Certified corporate headquarters in Adams County. See related story, page 8.

2 Harrisburg Commercial Real Estate Review

Potable Water: Every Drop Counts.

E N V I R O N M E N T

by David L. Sheridan

David L. Sheridan, PE, PhD, LEED® AP, and principal in Aqua Cura, was educated in civil and environmental engineering, earning a BS at the University of Pittsburgh and an

MS and PhD at Penn State University. In 2002, Dave formed Aqua Cura to focus his efforts on critical water issues facing the U.S. Dave served as the first chair of the LEED Water Efficiency Technical Advisory Group, from 2004 to 2008. Dave can be reached at [email protected] or 717-497-5768.

The Leadership in Energy and Environmental Design (LEED) Green Building Rating System™ developed by the U.S. Green Building Council, encourages potable water efficiency (potable water is water treated to drinking quality) in indoor plumbing fittings and fixtures subject to federal standards: water closets (toilets), urinals, faucets, and shower heads. The Uniform Plumbing Code (UPC) sets a lower flow limit for faucets in public restrooms (see Table 1 for a comparison).

LEED Building Design & Construction, the rating system for new construction or substantial renovation, includes a prerequisite that the project achieve potable water efficiency 20 percent better (lower) than the UPC. Points are achieved by measures that improve potable water efficiency as projected by a water use model (see Table 2 for a comparison).

Potable water efficiency can be achieved by decreasing the flush volume or flow rates of fittings and fixtures, or by offsetting potable water with water of lesser quality (for flushing toilets and urinals, for instance). Lower flush volumes can be achieved by opting for high-efficiency toilets and urinals. Toilets that use as little as about 1.2 gallons per flush are


available. Performance of these high-efficiency toilets can be reviewed on the WaterSense website maintained by the U.S. Environmental Protection Agency (http://www.epa.gov/WaterSense/). Based on typical toilet use, estimated to be three uses per day by each female building occupant and once per day by each male occupant, annual potable water savings of about 300 gallons per female occupant and 100 gallons per male occupant would be possible with 1.2 gallon per flush toilets.

Potable water use in urinals can be reduced to zero with no-water units or as low as 0.125 (one pint) gallons per flush for some very high-efficiency units. WaterSense has established 0.5 gallons per flush as a threshold for listing and labeling, indicating that this more efficient performance is readily achievable. Based on typical urinal use, estimated to be two uses per day by each male building occupant, annual potable water savings of about 250 gallons per male occupant would be possible with 0.5 gallon per flush urinals. One-pint units would produce annual savings of about 438 gallons, and no-water urinals would produce savings of about 500 gallons per male occupant.

Faucets do not offer significant potential for potable water efficiency. Public restroom faucets are already controlled to

0.5 gallons per minute, a very low flow rate that is adequate for hand washing. Faucets used to deliver a specific volume of water, such as kitchen sinks (filling a coffee pot), should not be constrained to less than UPC requirement.

Showerheads of less than 2.5 gallons per minute should be considered only with great care. Modern shower flow controls incorporate anti-scalding elements that may require a particular flow rate to function correctly. Lower flow showerheads should be chosen only if the flow control is expressly specified to function at the lower flow rate.

Another strategy to reduce potable water use in toilets and urinals is substitution of nonpotable water for flushing. Rainwater capture and storage systems can often provide most of the water needed for flushing. The effectiveness of these systems is determined largely by the size of the storage vessel. Rainwater captured from the building roof is relatively clean, and typically requires only filtration and disinfection prior to use for flushing.

By selecting low-flush and low-flow plumbing fittings and fixtures, and by offsetting potable water for flushing, one can reduce annual potable water use by as much as 1,000 gallons per building occupant.

reduction in potable water use (basis UPC) Points Achieved

30% 2

35% 3

40% 4

45% Eligible for an additional point

Water Closet

Urinal

Faucet (public restrooms)

Other Faucet

Showerhead

1.6 gallons per flush


2.2 gallons per minute








30%

35%

40%

45%

2

3

4

Eligible for an additional point

Federal StandardFitting or Fixture Points Achievedreduction in Potable Water Use

(basic UPC)

Table 1

Table 2

UPC Standard

F I N A N C E


As direct participants in the financial system, we (both lenders and borrowers) are living through some of the most turbulent times of our careers. In recent years, we have witnessed high-profile financial institution failures, mergers and acquisitions resulting from inadequate credit assessments and underwriting standards, and extraordinary government intervention. These forces have been on display globally (most recently in Europe), nationally with the failure of mortgage giants Fannie Mae and Freddie Mac, and locally as businesses adapt to a weakened economy. For many nations, companies, and individuals, the consequences of excessive leverage have become the current reality.

While interest rate cycles naturally occur over time, recent rate movements have been particularly dramatic. The charts below depict the magnitude of the volatility in interest rates over long periods of time (US Prime Rate) and over the past three years (US Treasury Yield Curve). Based on current events, it is reasonable to assume that interest rate volatility will continue indefinitely.

The key to successful capital management is to manage borrowing and equity costs over time through balancing cost, flexibility, and interest rate risk. For many companies, there is a tendency to focus primarily on the first objective – minimizing borrowing costs. However, such an approach sacrifices a certain degree of flexibility that is often necessary to exploit new opportunities or manage unforeseen future events.

by John Finley, CPA, CMA

John Finley serves as SVP, Director of Finance at Graystone Tower Bank and is responsible for interest rate risk management, investment portfolio, treasury, strategic

forecasting, and budgeting operations. He has over 29 years of professional experience spanning public finance, executive leadership, teaching, operations consulting, and public accounting. John has a B.S. degree in Accounting from Messiah College and an MBA from Shippensburg University of Pennsylvania. He can be reached at [email protected] or 717-724-4603.

Managing Borrowing Costs Across Time


One popular tool to minimize borrowing costs is the interest rate swap. In its simplest form, a swap is a derivative contract that establishes the exchange of payments between a borrower and a broker-dealer or bank (known as counter-parties). The cash flows being exchanged are typically the interest payments of a debt obligation. In the current environment, the typical swap structure involves locking in a fixed rate for a defined period of time through an interest rate swap that is executed in connection with an underlying loan that pays interest indexed to the London Interbank Offered Rate (LIBOR). Since there is no exchange of principal, the swap agreement is denominated at a notional amount that corresponds to the outstanding principal amount of the borrower’s debt, either in whole or in part. It is important to note that the obligations under both the swap agreement and the loan agreement are absolute regardless of what happens with the other agreement. The diagram below differentiates the obligations between the debt obligation and the swap agreement.

The use of an interest rate swap adds a layer of complexity that extends beyond the core business relationship between the lending team of the bank and its borrowing customer. In many instances, a bank enters into a corresponding swap with a separate third party to mitigate the risk of the swap with its borrower. Often a separate profit center within a bank, tasked with managing its own profitability and risk, structures the two swaps. If the borrower wishes to terminate the swap, the bank will likely elect to terminate or negate the second swap with its counter-party in order to cancel its swap risk.

Interest rate swaps carry both benefits and risks. The primary benefit of interest rate swaps, in the current market, is the ability to obtain longer term fixed rates than are typically offered by commercial banks that use consumer deposits as their principal funding source. This benefit should be considered within the context of the risks associated with interest rate swaps including, but not limited to:1. A swap is a derivative contract. As such, it has a value that is derived from the relationship of interest rates at a given point

in time. If the swap is terminated prior to its maturity, this value is settled between the counter-parties of the swap. This settlement, known as termination value, is based on the difference in the present values of the exchanged cash flows discounted at the then-current market rate and may result in a payment to the borrower or an additional obligation to be paid by the borrower. The termination value tends to be higher if the remaining term of the swap is longer. For example, the termination value of an interest rate swap with ten years of remaining term is generally higher than a swap with a remaining term of five years.

Swap Counter-Party

to Bank

Bank as Lender

Bank as Swap Counter-Party

to Borrower

BorrowerFixed Rate

LIBOR Plus Spread

Fixed Rate

Principal Plus Interest At LIBOR Plus Spread

LIBOR Plus Spread

US Prime Rate US Treasury Yield Curve12.0% 6.0%

5.0%

4.0%

3.0%

2.0%

1.0%

0.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

Sep-89Sep-91Sep-93Sep-95Sep-97Sep-99Sep-01Sep-03Sep-05Sep-07Sep-09 1 m

o3 m

o6 m

o1 yr2 yr3 yr5 yr7 yr

10 yr20 yr30 yr

6/1/2007 5/25/2010

Continued...


2. Since the value of most interest rate swaps are a function of the LIBOR interest rate swap curve, the borrower is exposed to risk when the slope or shape of the LIBOR curve moves in a way that disadvantages the borrower. Recent events have demonstrated that LIBOR is more volatile than the prime rate and is influenced by many international factors and events.

3. The value of the swap changes on a daily basis. As such, all or a portion of the change in value of the swap may be reflected in the income statement of the borrower when financial statements are prepared under generally accepted accounting principles, thereby creating earnings volatility for the borrower. While this volatility may be taken into account with respect to debt covenants, a borrower may have other constituencies that do not have the ability to ignore such earnings fluctuations.

4. Since the interest rate swap is a distinct agreement from the loan agreement (or in some instances, embedded in the loan agreement), restructuring debt requires addressing the obligations under the loan agreement and the swap agreement. Depending on interest rate movements, this additional layer of complexity may limit the flexibility to restructure debt.

5. The apparent risks of interest rate swaps when they are initiated may not be the actual risks, which only become evident in the future. For example, in the mid 2000’s, many Pennsylvania school districts, counties, and other public entities entered into interest rate swaps that eventually resulted in substantial losses because market factors and interest rate relationships were not consistent with historical experience.

Practical Considerations Regarding the Use of Interest Rate Swaps

1. What is the business purpose of the swap and how does a derivative solution help accomplish that objective?

2. Can other financial tools be used to accomplish that purpose without conceding debt restructuring flexibility and incurring the interest rate risks associated with swaps? For example, a single loan could be structured to include a combination of a fixed rate, a variable rate indexed to LIBOR, and a variable rate indexed to the prime rate. The fixed rate component exploits the historically low interest rate environment and the variable rate components provide flexibility should debt restructuring be needed. By indexing variable rate debt to both LIBOR and prime, the borrower minimizes its exposure to a single interest rate index.

3. Have you considered the option of applying the swap to a portion of the outstanding loan balance to partially mitigate the risks?

4. Do you understand the transaction well enough to explain it to others?5. Do you have a thorough knowledge of the accounting implications

of interest rate swaps and the potential impact on the income statement?

6. Is there an unusual level of enthusiasm for the use of an interest rate swap to structure the loan? It is important to note that banks and counter-parties receive fees when structuring the swap. While these fees compensate the parties for their work and the increased risk of the swap (banks do incur additional risks that the borrowing customer does not bear), there is the potential to generate fees that may be disproportionate to the related risk. Some financial institutions may link such fees to lender incentive plans which may not be disclosed to the borrower.

The interest rate swap is just one of several tools to manage borrowing costs over time. This is particularly true if the interest rate swap is applied only to a portion of the loan balance. Before selecting this option, lenders and borrowers should explore the relative risks and rewards of derivatives in relation to other tools in order to achieve the appropriate mix of capital management objectives that include managing cost, flexibility, and interest rate risk.

OVERCOMING

CONSTRUCTION

by Donald. B. Smith Jr.

Donald. B. Smith Jr., President of Conewago Enterprises, has developed a well earned reputation as an innovative leader within Central PA and the national construction

industry. Upon graduating from Widener University in 1991 with a Civil Engineering degree, Don set about transforming Conewago into a nationally lauded design build and general construction company. With great foresight, he built a 325 person team, and 165,000 sq. ft. of manufacturing facilities to support the precast concrete, ready-mix, and steel fabrication capabilities that fuel Conewago’s superior growth. You can reach Don at [email protected] or 717-632-7722.

The past eighteen months have provided businesses and investors with a golden opportunity to invest in existing real estate and build new – perhaps even a once-in-a-lifetime opportunity. Unfortunately, great investment moments come to an end, and the prospect of increased costs is the issue now facing our industry.

Construction inflation comes in many forms. Over the past three months we have seen crude oil prices reach an18-month high; dealt with a 34% increase in diesel fuel over the prior year (May 2010’s $3.20 vs May 2009’s $2.38); and seen liquid asphalt increase 21% over May 2009 prices. Energy cost increases not only affect petroleum based materials, but the manufacturing process and freight costs as well. The accompanying graph illustrates that we remain in a sustained period of high crude oil prices (Table 1).

Purchasing managers’ reports indicate that so far in 2010 price increases from 2% to 15% have occurred in plastic, copper, brass plumbing supplies, drywall gypsum board, metal studs, roofing shingles, and steel pipe fittings. Steel prices are nearing the pre-recession levels of 2004-2006. Steel production and capacity are clearly behaving as though a “V” recovery is underway, as seen in the second graph (Table 2).


D E V E L O P M E N T

A. Delivery Method: Design-build puts the owner at the table with the construction company and the team of professionals they have assembled. It has been our experience that design-build projects have great budget integrity, are not over designed, and have well developed schedules. In economic times like these it is even more important to have an aggressive delivery schedule to beat any potential inflation that is lurking around the next fiscal quarter.

B. Fixed Price: If the output under your delivery method is correct, the use of a fixed price contract minimizes, and in many cases, eliminates change orders. The biggest single concern for owners is projects going over budget due to change orders. If the cost is fixed then the contractor must focus on creating value rather than maximizing project revenue through change orders.

C. Alternative Construction Techniques: In times of rapid or significant price fluctuations in materials, contractors are closer to the pulse of what’s happening in the industry. This is especially true if the contractor has the ability to self deliver up to 60% of the project, since their organization will have a better handle on market conditions across the construction spectrum. A design-build contractor can offer alternatives such as brick veneer set in precast concrete panels as a good quality, cost-efficient alternative to combat rising labor or material costs. Another example is tilt-up concrete construction, which offers great labor savings and allows for a well-built project to be completed with an aggressive schedule that saves carrying costs.

In conclusion, most professionals I am in regular contact with are concerned that inflation is creeping back into the construction industry. Labor inflation remains subdued due to current unemployment levels, but this is the only aspect of construction not affected right now. As the industry looks for ways to manage costs, there is growing interest in Integrated Project Delivery® (IPD). Similar in structure to design-build, IPD brings together contractor, architect and owner as a fully integrated team throughout the construction process, sharing both risks and rewards. IPD’s increased owner involvement has the potential for lessening waste, inefficiency and conflicts, thus contributing to overall project savings.


2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

132.8

104.2

75.7

47.1

18.5

14.8

Table 1: Crude oil, avg, spot price chart

10-year commodity price chart for Crude oil

Units: U.S. dollars per barrel

$/bbl

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

250

500

750

1,000

1,250

1,500

1,750

2,000

2,250

2,500

0

10

20

30

40

50

60

70

80

90

100

1,000 Tons/ Week Cap U %

Table 2: US Raw Steel Production and Capacity Utilization through March 27th (source AISI & AMM)

Production Tons / WeekCapacity utilization

Strategies To Overcome Construction Inflation In Today’s Environment

L A W


Tax Assessment Appeal Season

Understanding the Property Assessment Appeal Process

by John M. Coles, Esquire

John M. Coles is a partner in the Harrisburg law firm of Rhoads & Sinon LLP, and currently serves as chair of the firm’s Real Estate Practice Group. He has experience in a

wide range of commercial real estate transactions, including property sales and acquisitions, zoning and land development issues, tax assessment appeal litigation, commercial leasing, planned communities, condominiums, and the financing of all types of commercial transactions. He can be reached at [email protected] or 717-231-6640.

As we move through the summer months we approach the season for filing annual real estate tax assessment appeals in Pennsylvania. As commercial real estate professionals, this is a good opportunity to review the basic process and procedure for these appeals. Particularly given the current economic and market conditions, now may be a good time to consider appealing a real estate tax assessment.

In general, there are two opportunities for property owners to appeal the assessed value of their properties. First, if the property owner makes improvements to the property, including the construction of a new building or the renovation or modification of an existing structure, the county assessment office will generally issue a Notice of Change of Assessment setting forth the new assessed value for the tax parcel in question. The county tax assessment offices often use building permit records and approved and recorded land development plans to keep track of new construction in their jurisdictions. Upon the issuance of a Notice of Change of Assessment, property owners typically have forty days to appeal the new assessment to the county Board of Assessment Appeals.

In the absence of new construction, property owners have the opportunity to appeal the assessed value of any tax parcel on an annual basis, pursuant to procedures established by state statute and by local county rule. The appeal

deadlines for filing these annual appeals are typically in mid to late summer and vary from county to county. For example, the annual appeal filing deadline in Dauphin County is usually August 1. In Cumberland County it’s usually September 1 (although with Cumberland County’s ongoing countywide reassessment, different dates may apply this year depending upon when taxpayers receive their new assessment notices.) As a result, when contemplating an appeal, it’s very important to determine the appropriate filing date. If a property owner misses a filing date for one year, the appeal typically will be treated as an appeal for the succeeding year, so missing a deadline even by one day can delay receiving the benefits of an appeal for a full calendar year.

The process of filing an appeal is usually fairly simple, with most counties requiring only the completion and submission of an appeal form and a modest filing fee (generally around $100.00). Anyone interested in filing an appeal should check with an attorney or local county officials to ensure proper compliance with local procedures.

Once the appeal application has been submitted, a hearing is typically scheduled before the county Board of Assessment Appeals. These boards are most often comprised of three members, who are usually either the county commissioners (in many smaller counties) or separate appointees (in many of the larger counties). The hearing before the Board typically lasts about thirty minutes, and it is helpful to have legal representation at the hearing to present the sworn testimony of the applicable witnesses.

An appraiser tends to provide the majority of the testimony at the hearing. Most county boards require that original appraisal reports be submitted as part of any commercial property tax appeals and that the appraiser be present at the appeal hearing to present the findings from the report. As a matter of law, the existing assessment on the property set by the county assessment office is deemed to be correct unless proven otherwise by the taxpayer. Because the taxpayer has the burden of proof, it is critical that the appraiser present a qualified persuasive report and testimony.

At the appeal hearing, representatives from the county assessment office are usually in attendance to provide their testimony as to how they arrived at the assessed value of the property. In addition to the county assessment office and the taxpayer, the school district and municipality in which the property are located also receive notice of the appeal hearing and have the opportunity to be present and to question the taxpayer and any witnesses. School districts and municipalities have a vested interest in the outcome

of the appeal hearing, as any change in the assessed value of the property will impact those taxing jurisdictions’ tax bases, and therefore the tax revenue available to them. As

a result, especially in large commercial appeals, it is not unusual for the school district and the municipality to be present and to take an active

role at the hearing.

Following the hearing, the board will usually issue a decision order within several weeks. If the taxpayer is dissatisfied with this decision, the taxpayer has a statutory right to appeal the

decision to the county Court of Common Pleas. Unless the case is settled, a hearing will be scheduled before a judge and a trial will

then take place. Following the trial, the judge will issue a decision, and that decision is appealable through the appellate courts and

ultimately to the Pennsylvania Supreme Court.


It is more important than ever that commercial property owners understand the tax assessment appeal procedure and consider how and when they may want to avail themselves of the appeal process.

“

“

Continued...


In addition to the procedural aspects of tax assessment appeal hearings, it is also important for real estate professionals to be aware of the substantive aspects of the hearings. The county Board of Assessment Appeals will typically be familiar with the valuation methods utilized in a commercial appraisal report, including the sales comparison, cost, and income approaches. The more familiar an appealing taxpayer is with these appraisal methodologies, the more involved the taxpayer can be in the appeal hearing. If the case proceeds beyond the county board level and into the Court of Common Pleas, the school district and municipality typically will retain an appraiser as well, presenting the opportunity for a “battle of the experts” at the trial court level.

In addition to the appraisal methodologies, the county assessment statutes introduce a role for the common level ratio in the hearing process. While many real estate professionals may be familiar with the common level ratio and its application to realty transfer tax provisions, county assessment laws provide that once the ratio reaches certain thresholds, that ratio must be applied to the fair market value of the property (as determined by the Board of Assessment Appeals) so that the board may establish the assessed value for the property. Therefore it is important to monitor the common level ratio and to consult with an attorney or an appraiser to understand how the ratio may impact any pending or future tax assessment appeals. Particularly in counties that have not had countywide reassessments for some time, the application of the ratio, if required by statute, may result in an assessed value that is markedly lower than the actual fair market value of the property.

For all of these reasons, if a commercial property owner is contemplating a real estate tax assessment appeal, the property owner should consult an attorney, financial advisors and an appraiser to evaluate the implications of filing an appeal. It is also worth noting that while we usually associate assessment appeals with a lowering of a property’s assessed value, once a taxpayer files an appeal the Board of Assessment Appeals has a statutory obligation to find the fair market value of the property, and there is no legal reason why that finding could not result in an increase of the property’s assessed value if the evidence leads the board to that conclusion. In fact, the taxing jurisdictions (i.e., the school district and municipality), have the same right as the taxpayer to appeal any decision of the Board of Assessment Appeals to the Court of Common Pleas.

Particularly in light of the current economic climate, it is more important than ever that commercial property owners understand the tax assessment appeal procedure and consider how and when they may want to avail themselves of the appeal process. The amount of real estate taxes payable with respect to a property can be a critical factor in price and rent calculations for sale or lease transactions and, with some basic background information, property owners can carefully consider if and when to file an appeal.


OCCuPANCy

Existing Bldgs: 66 of 66 Number Spaces: 125 Existing RBA: 6,597,283 Vacant: <662.851> 10% Occupied: 5,934,432 90% Leased: 6,065,376 92%

AVAILAb IL ITy

Vacant Availability: 584,788 9% Total Availability: 806,185 12% Direct Availability: 641,921 10% Sublet Availability: 164,264 2% Average Time: 20.7 Months

LEAsINg ACTIVITy

Leasing YTD: 56,332 1% Net Absorption YTD: (33,031) (1%)

DIRECT gROss RENT

Retail range: $14.45-$76.75/yr Retail Avg: $20.70/yr

OCCuPANCy

Existing Bldgs: 589 of 589 Number Spaces: 458 Existing RBA: 15,097,028 Vacant: <1,521,993> 10% Occupied: 13,575,035 90% Leased: 13,630,293 90%

AVAILAb IL ITy

Vacant Availability: 1,484,811 10% Total Availability: 1,930,996 13% Direct Availability: 1,908,930 13% Sublet Availability: 22,066 0% Average Time: 29.5 Months

LEAsINg ACTIVITy


DIRECT gROss RENT


R E g I O N A L D A T A : O F F I C E M A R k E T

In an effort to bring our readers pertinent information regarding the commercial real estate market in the Greater Harrisburg Area, we are including the following graphs as part of Harrisburg Commercial Real Estate Review. This edition focuses on the office market in Dauphin and Cumberland County.

Absorption & Deliveries: The net absorption for Class A space was negative during the first quarter of 2010. The

deliveries that were provided in the third quarter of 2009 were buildings that already had pre-leased tenants moving

from elsewhere in the market. Thus, the net absorption was (slightly) negative (33,000 SF). The B space deliveries to the

market are at a minimum as the space was filling up and net absorption was negative (just about 37,000 SF) indicating

people moving from one space in the market to another, trying to obtain their best rents. 20072q

20073q

20074q

20081q

20082q

20083q

20084q

20091q

20093q

20092q

20094q

20101q

Curqtr

$20.80

$18.60

$20.60

$19.60

$19.80

$20.40

$19.40

$19.20

$19.00

$18.80

$20.20

$20.00

9.8%

9.6%

10.0%

10.2%

8.0%

9.4%

9.2%

8.8%

8.6%

8.4%

8.2%

9.0%

Class A Office – Vacancy & Rental Rates

Vaca

ncy

Rat

e

Average Rental R

ate (Est Gross)

VacancyRental Rate

20072q

20073q

20074q

20081q

20082q

20083q

20084q

20091q

20093q

20092q

20094q

20101q

$17.60

$16.20

$17.40

$17.20

$16.60

$16.40

$17.00

$16.80

11.5%

12.0%

8.5%

10.5%

10.0%

9.5%

9.0%

11.0%

Class B Office – Vacancy & Rental Rates

Vaca

ncy

Rat

e

Average Rental R

ate (Est Gross)

VacancyRental Rate

20072q

20073q

20074q

20081q

20082q

20083q

20084q

20091q

20093q

20092q

20094q

20104q

Curqtr

80

100

-60

60

0

20

-20

-40

40

Class A Office – Absorption & Deliveries

Thou

sand

s SF

20072q

20073q

20074q

20081q

20082q

20083q

20084q

20091q

20093q

20092q

20094q

20104q

Curqtr

250

300

-100

200

50

100

0

-50

150

Class B Office – Absorption & Deliveries

Thou

sand

s SF

Net AbsorptionDeliveries


20072q

20073q

20074q

20081q

20082q

20083q

20084q

20091q

20093q

20092q

20094q

20101q

Curqtr

$20.80

$18.60

$20.60

$19.60

$19.80

$20.40

$19.40

$19.20

$19.00

$18.80

$20.20

$20.00

9.8%

9.6%

10.0%

10.2%

8.0%

9.4%

9.2%

8.8%

8.6%

8.4%

8.2%

9.0%


Vaca

ncy

Rat

e

Average Rental R

ate (Est Gross)

VacancyRental Rate

20072q

20073q

20074q

20081q

20082q

20083q

20084q

20091q

20093q

20092q

20094q

20101q

$17.60

$16.20

$17.40

$17.20

$16.60

$16.40

$17.00

$16.80

11.5%

12.0%

8.5%

10.5%

10.0%

9.5%

9.0%

11.0%


Vaca

ncy

Rat

e

Average Rental R

ate (Est Gross)

VacancyRental Rate

20072q

20073q

20074q

20081q

20082q

20083q

20084q

20091q

20093q

20092q

20094q

20104q

Curqtr

80

100

-60

60

0

20

-20

-40

40


Thou

sand

s SF

20072q

20073q

20074q

20081q

20082q

20083q

20084q

20091q

20093q

20092q

20094q

20104q

Curqtr

250

300

-100

200

50

100

0

-50

150


Thou

sand

s SF




Vacancy & Rental Rates: The third quarter of 2009 had a similar pattern to the first quarter of 2010 in Class A office

space. During the third quarter of 2009 there was some lag time between vacancy and rental rate. As the vacancy

was decreasing, the rates did not go up (until the fourth quarter), at which point the lag occurred again as the vacancy

was also again headed up. In the first quarter of this year, the vacancy of Class B space was dropping slightly and the

rental rates were starting a slight increase. People then traded down to B buildings because of price sensitivity and as

vacancy continued to increase (only slightly) the rental rates proportionately moved right in step with no lag time. Class

B was more sought after in the market and subsequently there was no lag time between the vacancy and rental rate.

OCCuPANCy

Existing Bldgs: 66 of 66 Number Spaces: 125 Existing RBA: 6,597,283 Vacant: <662.851> 10% Occupied: 5,934,432 90% Leased: 6,065,376 92%

AVAILAb IL ITy

Vacant Availability: 584,788 9% Total Availability: 806,185 12% Direct Availability: 641,921 10% Sublet Availability: 164,264 2% Average Time: 20.7 Months

LEAsINg ACTIVITy


DIRECT gROss RENT


OCCuPANCy

Existing Bldgs: 589 of 589 Number Spaces: 458 Existing RBA: 15,097,028 Vacant: <1,521,993> 10% Occupied: 13,575,035 90% Leased: 13,630,293 90%

AVAILAb IL ITy

Vacant Availability: 1,484,811 10% Total Availability: 1,930,996 13% Direct Availability: 1,908,930 13% Sublet Availability: 22,066 0% Average Time: 29.5 Months

LEAsINg ACTIVITy


DIRECT gROss RENT


20072q

20073q

20074q

20081q

20082q

20083q

20084q

20091q

20093q

20092q

20094q

20101q

Curqtr

$20.80

$18.60

$20.60

$19.60

$19.80

$20.40

$19.40

$19.20

$19.00

$18.80

$20.20

$20.00

9.8%

9.6%

10.0%

10.2%

8.0%

9.4%

9.2%

8.8%

8.6%

8.4%

8.2%

9.0%


Vaca

ncy

Rat

e

Average Rental R

ate (Est Gross)

VacancyRental Rate

20072q

20073q

20074q

20081q

20082q

20083q

20084q

20091q

20093q

20092q

20094q

20101q

$17.60

$16.20

$17.40

$17.20

$16.60

$16.40

$17.00

$16.80

11.5%

12.0%

8.5%

10.5%

10.0%

9.5%

9.0%

11.0%


Vaca

ncy

Rat

e

Average Rental R

ate (Est Gross)

VacancyRental Rate

20072q

20073q

20074q

20081q

20082q

20083q

20084q

20091q

20093q

20092q

20094q

20104q

Curqtr

80

100

-60

60

0

20

-20

-40

40


Thou

sand

s SF

20072q

20073q

20074q

20081q

20082q

20083q

20084q

20091q

20093q

20092q

20094q

20104q

Curqtr

250

300

-100

200

50

100

0

-50

150


Thou

sand

s SF



20072q

20073q

20074q

20081q

20082q

20083q

20084q

20091q

20093q

20092q

20094q

20101q

Curqtr

$20.80

$18.60

$20.60

$19.60

$19.80

$20.40

$19.40

$19.20

$19.00

$18.80

$20.20

$20.00

9.8%

9.6%

10.0%

10.2%

8.0%

9.4%

9.2%

8.8%

8.6%

8.4%

8.2%

9.0%


Vaca

ncy

Rat

e

Average Rental R

ate (Est Gross)

VacancyRental Rate

20072q

20073q

20074q

20081q

20082q

20083q

20084q

20091q

20093q

20092q

20094q

20101q

$17.60

$16.20

$17.40

$17.20

$16.60

$16.40

$17.00

$16.80

11.5%

12.0%

8.5%

10.5%

10.0%

9.5%

9.0%

11.0%


Vaca

ncy

Rat

e

Average Rental R

ate (Est Gross)

VacancyRental Rate

20072q

20073q

20074q

20081q

20082q

20083q

20084q

20091q

20093q

20092q

20094q

20104q

Curqtr

80

100

-60

60

0

20

-20

-40

40


Thou

sand

s SF

20072q

20073q

20074q

20081q

20082q

20083q

20084q

20091q

20093q

20092q

20094q

20104q

Curqtr

250

300

-100

200

50

100

0

-50

150


Thou

sand

s SF



The information provided by Harrisburg Commercial Real Estate Review has been obtained from sources we believe to be reliable; however, no guarantee is made or implied with respect to its accuracy or completeness. This copyrighted report contains research licensed to NAI CIR - 271024.

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18

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226

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7

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13

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3

5

17

6

7

8

9

18

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1015

11

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12

1

14

21

22

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67

8

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16

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Grow your business by expanding into one of these listings for Commercial, Industrial, Land or Office space.

Commercial City Marker415 Market Street Harrisburg 11222–1224 N. Third Street Harrisburg 25660-5670 Lancaster Street Harrisburg 31727 N. Second Street Harrisburg 4105 S. Main Street Biglerville 5640 S. Enola Drive Enola 68 Tristan Drive Dillsburg 71 N. Hanover Street Carlisle 8407 N. Queen Street Littlestown 9420 Market Street Lemoyne 10310 N. Hanover Street Carlisle 111701 N. Third Street Harrisburg 12843 W. Trindle Road Mechanicsburg 135221 Simpson Ferry Road Mechanicsburg 14321 N. 2nd Street Harrisburg 15 Linden Centre Middletown 16 Loudoun Centre Mechanicsburg 17 Westporte Centre Middletown 18 7050 Carlisle Pike Carlisle 19 1161 Harrisburg Pike Carlisle 20 250 N. 8th Street Lebanon 21 2985 E. Prospect Road York 22

Industrial/Warehouse City Marker4700–4750 Westport Drive Capital West Business Center Mechanicsburg 1151 Allendale Road Mechanicsburg 22410 Gettysburg Road Camp Hill 34425 Chambers Hill Road Harrisburg 4491-493 Blue Eagle Avenue Harrisburg 55340 Jaycee Avenue Harrisburg 6841 W. Trindle Road (rear) Mechanicsburg 7516 Industrial Road Lewisberry 8 532 E. Emaus Street Middletown 9 801-806 S 28th Street Harrisburg 10 101 S 17th Street Harrisburg 11 2200A Woodview Drive Harrisburg 12

Investment City Marker1889 Old State Road Dauphin 15620–5650 Derry Street and 5650–5670 Lancaster Street Harrisburg 2 597 Salem Road Etters 3

Office City Marker101 N. Second Street Harrisburg 1126–128 Walnut Street Harrisburg 2Cliffdale Office Park, Cedar Cliff Drive Camp Hill 3 3425 Simpson Ferry Road Camp Hill 44201 East Park Circle Harrisburg 5 900 Century Drive Mechanicsburg 6 156 Cumberland Parkway Mechanicsburg 7 3600 Vartan Way Harrisburg 82579 Interstate Drive Harrisburg 9

Office City Marker 4076 Market Street Camp Hill 10141 S. 32nd Street Camp Hill 11470 Friendship Drive Harrisburg 1230 N. Third Street Harrisburg 134242 Carlisle Pike Camp Hill 1427 Miller Street Lemoyne 15 121 Locust Street Harrisburg 16 24 Northeast Drive Hershey 17 4400 Deer Path Road Harrisburg 18 920 Linda Lane Camp Hill 19 3401 N. Front Street Harrisburg 20 1170 Harrisburg Pike (Front) Carlisle 21 1170 Harrisburg Pike (Rear) Carlisle 22 2400 Park Drive Harrisburg 23 2408 Park Drive Harrisburg 24 100 Colonial Road Harrisburg 25 415 Market Street Harrisburg 26 104 S. Sporting Hill Road Mechanicsburg 27 3780 Trindle Road Camp Hill 28 608 Market Street New Cumberland 29 818 Reese Avenue Hershey 30 2151 Linglestown Road Harrisburg 31 4109 Derry Street Harrisburg 32 210 Walnut Street Harrisburg 33 208 N. Third Street Harrisburg 34

Land City MarkerSt. Johns Road Camp Hill 17700 Derry Street, Lots 1–8 Harrisburg 2Clover Hill Business Park Harrisburg 3Route 743 (Hershey Road) Elizabethtown 4Wildwood Park Drive Harrisburg 5E. Cumberland Street (Rt. 422) Lebanon 6Route 11 and PA Turnpike (I-76) Carlisle 7Lena Drive Mechanicsburg 85140 Jonestown Road and 4 Carolyn Street Harrisburg 9Route 15 and N. Baltimore Street Dillsburg 106325 Chelton Avenue Harrisburg 11100 N. Hershey Road Harrisburg 12638 Alricks Street Harrisburg 13 Eisenhower Boulevard Harrisburg 14Summit View Commerce Park, Lots 16 and 17 Hummelstown 15 501 Harrisburg Pike Carlisle 16Stoverdale and Middletown Roads Hummelstown 17Route 11 and PA Turnpike, Lots 4-5 Carlisle 18Rose Hill Farm, Gettysburg Pike Dillsburg 19 1205 Harrisburg Pike Carlisle 20 Waterford Square, Carlisle Pike (Rt.11) Mechanicsburg 21 Hockersville Road and West Areba Avenue Hershey 22NWQ Union Street & Rt. 441 Middletown 23


20 Harrisburg Commercial Real Estate ReviewInformation concerning these offerings comes from sources deemed reliable, but no warranty is made as to the accuracy thereof, and they are submitted subject to errors, omissions, change of price or other conditions, prior sale or lease, or withdrawal without notice. All sizes approximate. NAI CIR, 1015 Mumma Road, Wormleysburg, PA 17043 - PA License #RB024320A

C O M M E R C I A L

s LEAsE: 415 Market street, Harrisburg7,395 SF of first floor retail/office space available. Accessible from the historic, grand lobby of the Harrisburg Transportation Center Enterprise Zone.

s sALE: 1222-1224 N. Third street, Harrisburg21,736 SF historic six-story building; great redevelopment opportunity. Now in a KOZ zone with tax abatement options available.

s sALE: Jonestown Road, Harrisburg5,337 SF freestanding building on well-situated site. Current business is relocating, real estate only for sale. Adjacent to Paxton Towne Centre and surrounded by an abundance of commercial/retail neighbors.

s LEAsE: 5660-5670 Lancaster street, Harrisburg5,220 SF of lower level space in three-story building used for dormitories to Kaplan Career Institute. Space is self-contained with its own exclusive entrance.

s sALE: Carlisle Pike, Mechanicsburg2,870 SF building with an office/showroom and shop/warehouse space. Well-situated site on Route 11; over 30,000 cars daily. Convenient to the I-81 interchange at Route 114. Surrounded by major retail uses.

s LEAsE: 1727 N. second street, Harrisburg1,200-1,500 SF of light commercial/retail space in mid-town Harrisburg. Space adjoins Classic Dry Cleaners at Second and Kelker Streets. On-site parking and private entrance available. Great untapped opportunities for commercial/office ventures.

s sALE: Carlisle Pike, MechanicsburgTwo commercial buildings; main building is 9,765 +/- SF and auxiliary building is 2,750 +/- SF. Sits at signalized corner at one of the busiest intersections on the Carlisle Pike. Convenient to full interchange of Route 581 with over 40,000 cars passing daily. Over two acres of commercial ground which can be redeveloped or used as a restaurant with liquor license.

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PENDINg PENDINg

Harrisburg Commercial Real Estate Review 21Information concerning these offerings comes from sources deemed reliable, but no warranty is made as to the accuracy thereof, and they are submitted subject to errors, omissions, change of price or other conditions, prior sale or lease, or withdrawal without notice. All sizes approximate.

NAI CIR, 1015 Mumma Road, Wormleysburg, PA 17043 - PA License #RB024320A

s sALE: 1 N. Hanover street, Carlisle 4,824 SF former bank facility. Vaulted ceilings in the lobby. Located at the square, two blocks from Dickinson College and close to the Army War College. Parking available at market rates in lot behind building.

s LEAsE: 105 s. Main street, biglervilleChance to lease an existing 1,568 SF former service and gas station, with some equipment that can stay. Sits on the corner of W. Hanover Street (Route 394) and S. Main Street (Route 34), about 6.5 miles from Route 15.

s sALE/LEAsE: 640 s. Enola Drive, Enola1,700 SF freestanding commercial building. Small office/counter with open shop space and three overhead doors. Easily accessible to all West Shore locations and a full I-81 interchange.

s LEAsE: 8 Tristan Drive, Dillsburg2,260 SF available in newly constructed building; divisible to 1,130 SF. Shell condition and finished to suit tenant’s specifications. Easy access and some exposure to Route 15.

s sALE: 407 N. Queen street, Littlestown 1,508 SF single-story brick building. Former bank facility with three drive-thru lanes. On the corner of N. Queen Street and Windsor Street. On-site parking available.

s LEAsE: 420 Market street, Lemoyne1,085 SF store front space with large window lines. Over 150’ of frontage in high traffic corridor. Large illuminated pole sign along Market Street available for tenant’s use. Open floor plan allows for a variety of office and retail uses.

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sOLD


C O M M E R C I A L

sOLD

s sALE: 310 N. Hanover street, Carlisle3,750 SF freestanding building. Located within a few blocks from the historic downtown area where the County Courthouse is located. Zoning permits retail stores, financial institutions, daycares, laundromats, restaurants, convenience stores and community service centers.

s sALE: 1701 N. Third street, Harrisburg4,800 SF building in the expanding mid-town area. Redevelopment opportunity with a $25,000 buyers credit. Located two blocks from the new HACC Midtown Campus and new 72,000 SF mixed-use Campus Square Building.

s LEAsE: 843 W. Trindle Road, Mechanicsburg1,800 SF freestanding building. Beautifully renovated house already converted for office/commercial use. Ideal for personal service shops and small commercial or retail stores. Property is well-situated between Camp Hill and Carlisle with many affluent neighborhoods nearby.

s LEAsE: 5221 simpson Ferry Road, Mechanicsburg1,585 – 3,293 SF available. Two adjacent suites, can be leased separate or combined. Surrounded by commercial and retail uses; neighbors two shopping centers. Convenient to Route 15, Rossmoyne Business Center and PA Turnpike (I-76).

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s sALE: 321 N. 2nd street, Harrisburg20,000 SF four level restaurant bar-nightclub with the only balcony on Second Street. Located on restaurant row in downtown Harrisburg. Great turn-key opportunity for entrepreneurs. Building completely remodeled and upgraded in 2006. Building is adaptive for office, commercial, personal service or mixed-uses. A fifth floor can be added on.

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s LEAsE: Linden Centre, MiddletownCompletely redesigned and redeveloped retail center just off Route 283.Anchored location due to the proximity of Harrisburg International Airport and Penn State Harrisburg. Inline spaces, pad sites and freestanding store opportunities available. Join Sharp Shopper, Dollar General, Radio Shack, CVS/pharmacy, PA Wine & Spirits and many others.

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LEAsED



s LEAsE: Loudoun Centre, MechanicsburgCompletely redeveloped neighborhood retail center in an excellent location with high income demographics. Great visibility and easy access to US Route 15. Anchor tenants include Planet Fitness, Gehman Furniture and a newly built CVS/pharmacy. Inline space available from 1,600 SF and one pad site.

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s LEAsE: 7050 Carlisle Pike, Carlisle5,500 SF functional flex commercial building. Easily accessible from I-81 and US Route 11. Large oversized drive-in door, outdoor storage, and large showroom windows. Zoning permits medical/scientific labs, manufacturing and wholesales, contractor supply wholesale, machine shops, sign maker shops, office uses, and other similar industrial uses. Ample on-site parking with room to expand.

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s sALE: 250 N. 8th street, Lebanon8,400 SF historic train station converted to professional office. The ornate interior finishes and grand slate roof make this building a charming option for many users.

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s sALE/LEAsE: 1161 Harrisburg Pike, Carlisle 3,024 SF freestanding retail/commercial building. Located just off the Carlisle (Route 11) exit of the PA Turnpike (I-76). Ground-level basement access in rear.

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s LEAsE: Westporte Centre, MiddletownGreat leasing opportunities in a well positioned retail center located in the middle of town. Site has been redesigned for more inline space and pad sites. Tenants include Hardee’s, US Post Office, Family Dollar and a pharmacy.

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s sALE: 2985 E. Prospect Road, york CountySale includes real estate only; 30,000 SF structure with more than 4 acres of land. Furniture, fixtures and equipment are available for sale separately. Building has an open floor plan allowing for easy adaptation to many uses. Ideal for schools, churches, daycares, health clubs or night clubs. Easily accessible from I-83 and Route 30.

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s LEAsE: 4700-4750 Westport Drive, Mechanicsburg Capital West business Center Only 45,000 SF remaining, divisible from 2,200-25,000 SF. Located at Route 15 and PA Turnpike (I-76). Dock and drive-in combinations available with standard 4,800 SF bay.

s LEAsE: 151 Allendale Road, Mechanicsburg77,000± SF industrial commercial building. Functional space with good loadingfacilities making it ideal for warehousing or distribution. Easy access to Route 15, Route 581 and I-81. Owner will consider subdividing.

s LEAsE: 2410 gettysburg Road, Camp Hill33,600 SF freestanding warehouse on 3.21 acres. Direct access to Route 15 and Route 581, quick connections to all major PA highways. 5 docks, small office area. Very clean look.

s LEAsE: 4425 Chambers Hill Road (rear), Harrisburg11,600 SF functional, clean warehouse space. Space has 2 drive-in docks and a dock door. Central to all PA highway networks. Large 3+ acre lot. For certain uses, outside storage can be made available.

s LEAsE: 491-493 blue Eagle Avenue, HarrisburgModern office/warehouse flex facility. Great exposure along I-81 with easy access and less than one mile to a full interchange. 18’ clear ceiling height. 6,000 SF with one dock and two drive-in doors. 10,000 SF with two docks and two drive-in doors. 1 Month Free Per Lease Year.

s LEAsE: 5340 Jaycee Avenue, Harrisburg16,848 SF in modern flex facility. Can accommodate 3,400-9,500 SF contiguous. Easy access off Route 22 and quick connection to I-81. 16’ clear ceiling height. 1 Month Free Per Lease Year.

I N D u s T R I A L / W A R E H O u s E

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s LEAsE: 841 W. Trindle Road (rear), Mechanicsburg1,833 SF available in pole building (half). Other half can be made available. Great for contractor storage uses. Located between Carlisle and Harrisburg.

s sALE/LEAsE: 516 Industrial Road, Lewisberry10,100± SF freestanding building. Easily accessible to I-83. Building currently has 3,735± SF of warehouse/storage space, two drive-in doors and a small fenced outside storage area. Building can accommodate additional warehouse space.

s LEAsE: 532 E. Emaus street, Middletown36,000 SF functional and inexpensive warehouse space with secured access and yard. Site is rail served, ideal for storage of chemical waste, non-perishable products or equipment.

s LEAsE: 101 s. 17th street, Harrisburg 20,611 SF functional, clean and inexpensive warehouse space just off I-83. 4 dock doors and 1 drive-in. Fully fenced yard.

s LEAsE: 2200 Woodview Drive, Harrisburg10,325 SF of functional flex space in a convenient east shore location. Equipped with dock and drive-in, plus air conditioned warehouse. Divisible into 5,000 SF units.

s sALE: 801-806 s. 28th street, HarrisburgTwo industrial/warehouse buildings available separate or together. 5,310 SF clear span metal panel warehouse. 8,332 SF masonry warehouse with fenced dock area and convenient location with easy access from I-83. Zoning permits automotive body and repair shops, warehousing and storage, light manufacturing and assembly, contractor offices, and other similar uses.

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I N V E s T M E N T

sOLDs sALE: 1889 Old state Road, DauphinExcellent visibility and great access. Eight-unit motel and one house on 10.74 acres just off heavily traveled Route 22/322. Zoning allows for both residential and commercial uses. Development potential on vacant acreage.

s sALE: 5620-5650 Derry street and 5650-5670 Lancaster street, HarrisburgFour property portfolio; three buildings and vacant 3 acre parcel. All buildings leased to Kaplan Career Institute. Third building also has 16 apartments; ten are used for dorms to Kaplan and six are apartments.

s sALE: 597 salem Road, EttersGreat investment opportunity at 10.7% CAP rate for 100%-leased warehouse/industrial site. The property consists of two buildings on about 5.8 acres of land. The current NOI is approximately $87,232; there are two tenants on the property each with NNN leases. Price Reduced.

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O F F I C E

LEAsED

s LEAsE: 101 N. second street, Harrisburg12,330 SF available above Metro Bank; divisible from 2,260-6,165 SF. CBD location, convenient to Capitol, courthouses and restaurants. Adjacent 12,600 SF could be made available. Free Parking Now Available.

s sALE/LEAsE: 126-128 Walnut street, Harrisburg9,000 SF historic building located in the Central Business District. Space can be subdivided from just private offices to full floors to separate buildings. Parking available at market rates in nearby garage, plus 6 on-site spaces. 3 Months Free Rent.

s LEAsE: 3425 simpson Ferry Road, Camp Hill1,690 SF available on second floor. Professional finishes throughout; good window lines with high ceilings. Plenty of free on-site parking. Convenient to Route 15 and Route 581.

s LEAsE: 4201 East Park Circle, Harrisburg7,500 +/- SF available in beautifully restored, professional office building. Owner will subdivide. High visibility, quick access and signage exposure to I-83. Free on-site parking in excess of five spaces per 1,000 SF.

s LEAsE: 900 Century Drive, MechanicsburgTwo-story building with high-end finishes and great window lines. 1,584 SF suite in shell condition on first floor; ready to accept build-out. Easy access to Route 15 and PA Turnpike (I-76). 3 Months Free Rent.

s LEAsE: 156 Cumberland Parkway, Mechanicsburg 1,845-4,948 SF of Class A office space available on first floor. Easy access to Route 15 and PA Turnpike (I-76). 46 parking spaces; all in common. Great window lines. Highly visible. 3 Months Free Rent Plus Breakfast!

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s LEAsE: Cliffdale Office Park, Cedar Cliff Drive, Camp HillProfessional office park with four identical buildings. Office suites available from 372-1,506 SF. Immediate access to I-83 and the PA Turnpike (I-76). Competitive rates, flexible leases and on-site management.

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O F F I C E

s LEAsE: 470 Friendship Drive, Harrisburg1,100-2,067 SF available. Convenient location with nice window line in TecPort, Harrisburg’s Premier Technology Park at the Eisenhower Interchange (I-83, I-283 and Route 322). Storage can be made available for additional fee.

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s sALE: 141 s. 32nd street, Camp Hill1,400 SF high visibility building for easy conversion to an office. Daily exposure to 42,000+ vehicles along Route 11/15. Convenient access to Route 581 interchange with easy connections to major PA highways.

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s LEAsE: 4076 Market street, Camp Hill Multiple suites available in beautiful architecturally enhanced building. Quick connections to all major PA highway networks. Suite sizes range from 350 SF-1,495 SF contiguous. Great on-site parking. High profile building.

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sOLD

s sALE/LEAsE: 2579 Interstate Drive, HarrisburgRare opportunity to purchase or lease a 10,000 SF freestanding office building in prominent East Shore business park. Conveniently located in Commerce Park off Progress Avenue and I-81. Easy access to all major highways and plenty of amenities.

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s LEAsE: 3600 Vartan Way, Harrisburg 27,500 SF available; can be subdivided to 2,000± SF. Two-story brick building with wraparound glass window lines. 203± parking spaces on-site. Easy access to I-81 and all major PA highways.

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s LEAsE: 4400 Deer Path Road, Harrisburg773 SF available. Class A, suburban high profile two-story office building at signal controlled intersection. Close proximity to I-81 and downtown Harrisburg. Close to the new shopping center, Blue Mountain Commons. On-site management.

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s sALE: 121 Locust street, Harrisburg6,200 SF three-story office building. Located in the Central Business District with 11+- on-site parking spaces. Excellent proximity to Capitol Complex, River Front Park, Federal & County Administrative Offices & City Government Center. Elevator and many private offices.

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s sALE: 27 Miller street, Lemoyne15,000 SF remodeled office building with plenty of open space for adaptation to many users. Building lends well for subdivision to create a multi-tenant office property. On-site parking for 30± vehicles plus street parking available. Close to I-83 and Route 581 and the City of Harrisburg.

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s LEAsE: 4242 Carlisle Pike, Camp HillUp to 9,637 SF in this professional, high profile office building. Suites range from 745-5,631 SF on first and second floors. Convenient to all amenities with easy access to Route 581. Free, secure on-site parking; 5 parking spaces per 1,000 SF.

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s LEAsE: 30 North Third street, Harrisburg3,302-20,112 SF contiguous available in Class A office building. Can accommodate up to 34,000 SF user. Skywalk to Strawberry Square, Harrisburg Hilton and parking. Directly across from the Capitol Complex. One parking space per 700 SF in Walnut Street and Locust Street garages at market rates.

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s LEAsE: 24 Northeast Drive, Hershey13,600 SF functional, single-story office building in prominent Hershey location. Perimeter window line can be expanded to suit tenant’s specs. Subdivision from 2,635 SF is possible. Excellent parking ratio. Near downtown Hershey, Hersheypark and Hershey Hotel. 1 Year Rent Free Plus $1,000 Staples Gift Card.

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O F F I C E

LEAsED

s LEAsE: 1170 Harrisburg Pike (Front), Carlisle58,554 SF (subdividable) two-story building; fully finished basement and attic. Great for a regional office, call center, college, university or other large office users; easy access to all major PA highway systems. Situated along Route 11 at the PA Turnpike (I-76) interchange. Easily accessible from two signalized intersections. Five parking spaces per 1,000 SF. Two hotels adjacent and restaurants just across the Harrisburg Pike.

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s LEAsE/sALE: 2408 Park Drive, Harrisburg1,500 SF of vacant office space and 4,000 SF of warehouse space available in this well-maintained and very functional 8,000 SF office/warehouse flex building. Two small suites already leased makes this a good investment for a user-owner. The business park is situated right off Progress Avenue at the I-81 interchange with hotels, restaurants and shopping nearby.

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s LEAsE: 2400 Park Drive, Harrisburg9,100 SF available in professional building; subdividable to 2,064 SF. Located in Commerce Park. Easy access to all major highways including I-81 and convenient to all amenities. On-site parking at four spaces per 1,000 SF. 1 Month Free Per Lease Year – Rate Reduced.

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s LEAsE: 3401 N. Front street, Harrisburg1,814-11,539 SF available in first class, prestigious, well-located building along Harrisburg’s River Front Park. Grand lobby with exquisite finishes: beautiful hardwood trim and encasings; all offices have accent windows. Good on-site parking. Quick, easy access to full interchange of I-81.

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LEAsED

s LEAsE: 1170 Harrisburg Pike (Rear), Carlisle13,500 SF freestanding building; can be subdivided to 2,000+ SF. Easy access to major PA highway systems. Situated along Route 11 at the PA Turnpike (I-76) interchange. Easily accessible from two signalized intersections. Five parking spaces per 1,000 SF. Clean, functional flex office building.

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s LEAsE: 920 Linda Lane, Camp Hill3,700 SF nicely finished office suite. Can be subdivided. Property sits in the SWQ of the Route 15 and Route 581 interchange with sign exposure to each highway. Property will be accessible from a full signalized intersection upon completion of Route 15/Route 581 project. 3 Months Free Rent.

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s LEAsE: 100 Colonial Road, Harrisburg1,900 SF first floor suite with competitive lease terms. Functional floor plan allows for a variety of professional and medical uses. Convenient Colonial Park location with high visibility. Location is convenient to many amenities and a full I-83 interchange.

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s sALE: susquehanna Township, HarrisburgGreat opportunity to purchase a 5,000 SF office building in central suburban East Shore location. Many recent improvements and an easily adaptable floor plan.

s LEAsE: 104 s. sporting Hill Road, Mechanicsburg 3,465 SF building on an off-corner location with great visibility to the Carlisle Pike. Wide open floor plan can be converted to office or commercial use. Zoned Commercial Limited and permits day care, offices, medical and dental clinics, personal services, restaurants and more. 15± on-site parking spaces available.

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s LEAsE: 415 Market street, Harrisburg8,155 SF available; 277 to 2,738 contiguous SF. Various spaces available on second floor. Reserved parking below deck at lower level; metered spaces in front of building. Located in the Enterprise Zone which permits professional offices, personal services and other common office uses. 3 Year Deal: 1.5

Months Free Rent; 5 Year Deal: 3 Months Free Rent.

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s LEAsE: 3780 Trindle Road, Camp Hill Up to 1,526 SF of nicely finished office space available above Mountz Jewelers. Great visibility and excellent access to Rt. 581 and Rt. 15. On-site parking available. Competitive leasing rates.

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s sALE: 608 Market street, New Cumberland 13,000 SF all brick, one-story office building on West Shore. Close to I-83, PA Turnpike (I-76) and many amenities. Location is easy access from both West Shore and East Shore. On-site parking available.

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s LEAsE: 208 N. 3rd street, Harrisburg 1,031-4,371 SF office suites. Prime CBD location facing the Capitol. Multiple parking garages within 1 block. Suites are turn-key condition, ready to move in.

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O F F I C E

s LEAsE: 2151 Linglestown Road, Harrisburg2,023 SF first floor medical office suite. Located in a densely populated area with varying age demographics. Nearby amenities include Blue Mountain Commons and Beaufort Plaza.

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s sALE: 818 Reese Avenue, Hershey 600 SF office building for office uses with three to five employees. The location is easily accessible and highly visible to US Rt. 422 – plus an on-site billboard.

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s LEAsE: 4109 Derry street, Harrisburg 1,260 SF freestanding, newly renovated office space. Accessible directly from I-83 ramp on Derry Street. Driveway features a signalized intersection with private sensor.

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s LEAsE: 210 Walnut street, Harrisburg 5,000 SF of turn-key space available on the second floor with functional floor plan. Garage parking included with 1 space per 1,000 SF. Just a few steps from the Capitol Complex, Strawberry Square and Restaurant Row. Priced competitively.

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L A N D

s sALE: st. Johns Road, Camp Hill3.05 acres zoned for commercial or office use. 400+ feet of frontage. Convenient location to Capital City Mall, Route 15 and PA Turnpike. Very close to the new interchange at the Capital City Mall.

s LEAsE/sALE: 7700 Derry street, Lots 1-8, HarrisburgEight lots of commercial land in a high traffic area with frontage on Derry Street at signalized intersection. Located between Hershey and Harrisburg with easy access to Route 322 and all other major highways. Highly visible. Suitable for both office and commercial uses.

s sALE: Clover Hill business ParkAllentown blvd. and N. Hershey Road, Harrisburg 7.7 acres remaining in this 44-acre park. Lots delivered ready-to-go from 1 acre up. Zoned for office and commercial uses with excellent central location between Hershey and Harrisburg. Join Highmark, CBHNP, PA State Police and Ciocca Honda in this Class A business park.

s sALE: Route 743 (Hershey Road), Elizabethtown 1.5 acres zoned Commercial. Located just 0.5 mile south of full I-283 interchange with public utilities available at the site.

s sALE: Wildwood Park Drive, Harrisburg 2.0± acres for commercial use adjacent to Farm Show Complex and Harrisburg Area Community College with quick access to I-81, I-83 and Route 322. Staybridge Inn is adjacent. Close to the downtown and other area businesses.

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PRICE REDuCED

s sALE: E. Cumberland street (Route 422), Lebanon2.2 acres available at Route 422 and Narrows Drive intersection. Storm water management plan and driveway permits approved by Township. Level topography; Holiday Inn Express hotel adjacent.

s LEAsE: Route 11 and PA Turnpike (I-76), Carlisle2.66 acres for lease just off the Carlisle PA Turnpike interchange at Route 11. Excellent visibility at traffic light; adjacent to brand new Rutter’s Farm Store. High transient traffic pattern; ideal for retail and commercial uses.

s sALE: Westport business Center, Lena Drive, Mechanicsburg6.92 acres for office development in a prominent location off Route 15 on Rossmoyne Road. Convenient to full interchange of Route 15 and PA Turnpike (I-76). Also zoned for hotel use.

s sALE/LEAsE: 5140 Jonestown Road and 4 Carolyn street, Harrisburg 1.230 acres; combination of two parcels. 190’± of frontage on Route 22. Sits at the corner of a signalized intersection along the high traffic retail stretch of Route 22. Daily traffic count exceeds 23,000. Adjacent to Colonial Commons and just east of the Paxton Towne Centre.

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s sALE: Route 15 and N. baltimore street, Dillsburg2.29 acres for retail or office development. Well-situated parcel with high visibility to Route 15; surrounded by commercial development. Located in expanding commercial corridor.

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L A N D

s sALE: 638 Alricks street, Harrisburg1.32 acre site just off the 6th Street industrial corridor. Easy access to I-81, Route 22/322 and Route 39. Industrial land site suitable for a flex warehouse or office building. Zoned Heavy Manufacturing; permits almost any business; industrial and commercial uses.

s sALE: Eisenhower boulevard, Harrisburg10± acre site with public utilities available. Easy access to Route 283, I-83 and PA Turnpike (I-76). Surrounded by commercial, retail and industrial development. Daily traffic count: 14,300 vehicles.

s sALE: 6325 Chelton Avenue, Harrisburg3.75 acres of office land sites with potential signage exposure to over 57,000 cars daily on I-81. Less than one mile from Route 22 and I-81. Can be subdivided to 1.0+ acre lots.

s sALE: 100 N. Hershey Road, Harrisburg34± acre commercial land site. Situated on a rapidly expanding area along Route 39. Located one mile from a full I-81 interchange and a quarter mile from Route 22 intersection. Approved plans on 12 acres, 54 townhomes included.

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PENDINg



s sALE: summit View Commerce Park, Lots 16 and 17, HummelstownTwo lots available; Lot 16 - 1.92 acres and Lot 17 - 1.72 acres. Central location between Hershey and Harrisburg with immediate access to Route 322. Both lots will be graded and suitable for commercial and office uses. Lot 17 also available for lease.

s LEAsE: stoverdale and Middletown Roads, Hummelstown5 acres available in an expanding commercial corridor between Hershey and Harrisburg. Sits at a signalized intersection one mile from the Route 322 interchange and 1.5 miles from the Route 283 interchange. Average household income of $86,602 within one mile radius. Preliminary plans for two pad sites and a 16,000 SF retail/strip center building.

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s sALE: 1501 Harrisburg Pike, Carlisle2.08 acres available; over 350’ of frontage along Route 11. Across from the Flying J Travel Plaza at signalized intersection. High transient traffic corridor with immediate access to full I-81 interchange. Site is level and zoned for commercial/retail uses.

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s LEAsE: Route 11 and PA Turnpike, Lots 4-5, Carlisle Two lots available: Lot 4 - 1.536 acres and Lot 5 - 1.379 acres. Located along Route 11 at the PA Turnpike (I-76) interchange. Situated at a traffic light which provides excellent visibility. High transient traffic pattern along the “Miracle Mile.” Average household income over $76,000 within one mile radius.

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PAD sITE PENDINg


L A N D

s sALE: Waterford square, Carlisle Pike (Rt. 11), Mechanicsburg19.5 acres of commercial land. Well-situated commercial land located in rapidly expanding area. Great lot for a large development project. PennDot approved plans to widen Route 11 and install a traffic light. Zoning permits a large number of commercial uses.

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s sALE: Rose Hill Farm, gettysburg Pike, Dillsburg 47 acre tract for residential development. Public utilities available nearby. Many neighborhood conveniences/amenities surround site, especially grocery, pharmacy and gas. Easily accessible from Route 15. Allows for multi-family cluster development.

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s LEAsE: 1205 Harrisburg Pike, CarlisleGreat corner site at signalized intersection along the Miracle Mile. High profile location situated between the PA Turnpike and I-81 interchanges along Route 11. More than 20,000 vehicles pass this site daily.

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s sALE: Hockersville Road and West Areba Avenue, Hershey 2.77 acres available for redevelopment in prime downtown Hershey location. Within minutes of everything Hershey offers visitors and residents year around, including; five star Hershey Hotel & Gardens; world famous Hersheypark, and Hershey’s Chocolate World. The site directly neighbors a shopping center and sits adjacent to a pharmacy. High traffic area with strong demographics.

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PENDINg

s sALE: NWQ union street & Rt. 441, Middletown 24.82 acres of commercial land in fast growing community. Situated across from Middletown Area School District campus. Priced to sell in today’s market!

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bill gladstone, CCIM, sIORP.O. Box 8910Camp Hill, PA 17001-8910Tel. 717-761-5070Fax 717-975-0752www.naicir.comwww.billgladstone.com

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