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2008 Market Report York County, Pennsylvania


INTRODUCTIONS OUR MISSION To deliver unparalleled Commercial Real Estate Services by focusing on people, systems and service through a TEAM approach that cultivates relationships and increased opportunities for community improvement through the utilization of our real estate knowledge.

WAYS TO MEASURE THE MARKET This report will take a look back at 2008 vacancy and sale transactions highlighting the marketplace successes and failures. This report includes commercial real estate information used to evaluate economic strengths & weaknesses, supply & demand and demographic trends to analyze the York County market. This report is broken down into seven (7) regions that encompass York County, Pennsylvania. As defined by the York County Planning Commission, these regions are: •Greater York East •Greater York West •Northern •Southeastern •South Central •Southwestern •York City

2008 Market Report – York County, Pennsylvania


GREATER YORK EAST AREA HIGHLIGHTS Size:

Greater York East-Industrial Vacancy and Absorption

250,000 0 -250,000 -500,000

1Q 2009

2Q 2009

Vacant SF

3Q 2009

Population: Total Households: Average Household I ncome:

134 Sq. Miles 109,100 42,512 $66,785

Total Businesses: Total Employees:

3,972 57,758

Total Industrial Buildings: Total Office Buildings: Total Retail Buildings:

199 428 675

The Greater York East Region is located outside of York City and extends east to the Susquehanna River. It has a large mix of Retail, Industrial and Office space. There is approximately 19.2 million square feet of industrial space, 4.3 million square feet of office space and 9.6 million square feet of retail space.

Absorbed SF

Greater York East-Retail Vacancy and Absorption

2008 Sales-Dollar Volume

400,000 300,000

$7,445,949

200,000 100,000 0 -100,000

1Q 2009

2Q 2009

3Q 2009

-200,000 Vacant SF

Absorbed SF $40,450,250 $88,942,000

Greater York East-Office Vacancy and Absorption 600,000 500,000

Industrial

400,000

Number Sold

Dollar Volume

Industrial

12

$88,942,000

Office

12

$7,445,949

Retail

25

$40,450,250

300,000 200,000 100,000 0 -100,000

1Q 2009

2Q 2009 Vacant SF

3Q 2009 Absorbed SF

Retail

Office

2008 Market Report – York County, Pennsylvania


GREATER YORK WEST Area Highlights Size:

3,000,000

Greater York West-Industrial Vacancy and Absorption

1,500,000 1,000,000 500,000 0 -500,000 -1,000,000

1Q 2009

2Q 2009 Vacant SF

3Q 2009

4Q 2009

Population: Total Households: Average Household I ncome:

198.3 Sq. Miles 95,203 37,125 $59,780

Total Businesses: Total Employees:

2,632 35,159

Total Industrial Buildings: Total Office Buildings: Total Retail Buildings:

327 179 588

The Greater York West Region is located west of York City, extends south west to Adams County and north east to the Susquehanna River. It is comprised mostly of Industrial and Retail facilities. There is approximately 26 million square feet of industrial space, 1.3 million square feet of office space and 6.6 million square feet of retail space.

Absorbed SF

2008 Sales-Dollar Volume

Greater York West-Retail Vacancy and Absorption 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 -50,000 -100,000

1Q 2009

2Q 2009 Vacant SF

3Q 2009

4Q 2009

Absorbed SF $35,119,183

Greater York West-Office Vacancy and Absorption

Industrial

40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 -5,000 -10,000 -15,000 -20,000

$3,018,900

$4,033,000

1Q 2009

2Q 2009

Vacant SF

3Q 2009

Absorbed SF

4Q 2009

Retail

Office

Number Sold

Dollar Volume

Industrial

7

$3,018,900

Office

6

$4,033,000

Retail

28

$35,119,183

2008 Market Report – York County, Pennsylvania


SOUTH EASTERN Area Highlights Size:

South Eastern-Industrial Vacancy and Absorption

2,500,000 2,000,000 1,500,000 1,000,000 500,000 0

2Q 2009 Vacant SF

3Q 2009

Total Businesses: Total Employees:

339 1,509

Total Industrial Buildings: Total Office Buildings: Total Retail Buildings:

7 7 62

The South Eastern Region of York County starts in Chanceford Township and continues south east to the Susquehanna River and Maryland. It is comprised mostly of farmland. Currently there is approximately 172,000 square feet of industrial space, 37,000 square feet of office space, and 381,000 square feet of retail space.

3,000,000

1Q 2009

Population: Total Households: Average Household I ncome:

171.4 Sq. Miles 21,715 7,626 $61,899

4Q 2009

Absorbed SF

2008 Sales-Dollar Volume

South Eastern-Retail Vacancy and Absorption 50,000 40,000 30,000

$310,116

20,000 10,000 0

1Q 2009

-10,000

2Q 2009 Vacant SF

3Q 2009

4Q 2009 $928,100

Absorbed SF

South Eastern-Office Vacancy and Absorption Industrial

3,000,000

Retail

Office

2,500,000 2,000,000

Number Sold

Dollar Volume

Industrial

1

$310,116

Office

0

$0

Retail

4

$928,100

1,500,000 1,000,000 500,000 0

1Q 2009

2Q 2009 Vacant SF

3Q 2009 Absorbed SF

4Q 2009

2008 Market Report – York County, Pennsylvania


SOUTH CENTRAL Area Highlights Size:

South Central-Industrial Vacancy and Absorption 375,000 300,000 225,000 150,000 75,000 0 -75,000 -150,000

1Q 2009

2Q 2009

3Q 2009

4Q 2009

-225,000 -300,000 Vacant SF

Population: Total Households: Average Household I ncome:

112.7 Sq. Miles 34,302 12,660 $71,362

Total Businesses: Total Employees:

1,031 8,284

Total Industrial Buildings: Total Office Buildings: Total Retail Buildings:

58 62 160

The South Central Region are the municipalities east and west of Interstate 83 from Jacobus and Seven Valleys on the north to New Freedom, Stewartstown and the Maryland line on the south. There has been industrial, office and retail growth near I-83 in the past 5-10 years. There is approximately 2.5 million square feet of industrial space, 446,000 square feet of office space and 2.1 million square feet of retail space.

Absorbed SF

South Central-Retail Vacancy and Absorption

2008 Sales-Dollar Volume

200,000 150,000

$675,000

100,000 50,000 $3,332,613

0 -50,000 -100,000

1Q 2009

2Q 2009

3Q 2009

4Q 2009

-150,000 -200,000 Vacant SF

$5,352,500

Absorbed SF

South Central-Office Vacancy and Absorption Industrial

100,000

Retail

Office

75,000 50,000

Number Sold

Dollar Volume

Industrial

3

$3,332,613

Office

2

$675,000

Retail

8

$5,352,500

25,000 0 -25,000 -50,000

1Q 2009

2Q 2009

3Q 2009

-75,000 -100,000 Vacant SF

Absorbed SF

4Q 2009

2008 Market Report – York County, Pennsylvania


SOUTH WESTERN Area Highlights Size:

South Western-Industrial Vacancy and Absorption 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 -50,000

1Q 2009

2Q 2009 Vacant SF

3Q 2009

4Q 2009

Population: Total Households: Average Household I ncome:

108 Sq. Miles 46,072 17,923 $61,741

Total Businesses: Total Employees:

1,868 22,775

Total Industrial Buildings: Total Office Buildings: Total Retail Buildings:

128 174 388

The South Western Region of York County begins with Codorus and Heidelberg Townships and heads south west to Adams County, and Maryland. It has a large amount of retail space mostly located near the Hanover Area. There is approximately 10.1 million square feet of industrial space, 940,000 square feet of office space and 5.1 million square feet of retail space.

Absorbed SF

2008 Sales-Dollar Volume

South Western-Retail Vacancy and Absorption 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 -50,000 -100,000 -150,000 -200,000

$761,000 $13,305,250

1Q 2009

2Q 2009

Vacant SF

3Q 2009

4Q 2009

Absorbed SF $37,295,000

South Western-Office Vacancy and Absorption 100,000 75,000 50,000 25,000 0 -25,000 -50,000 -75,000 -100,000

Industrial

1Q 2009

2Q 2009

Vacant SF

3Q 2009

Absorbed SF

4Q 2009

Retail

Office

Number Sold

Dollar Volume

Industrial

5

$37,295,000

Office

2

$761,000

Retail

14

$13,305,250

2008 Market Report – York County, Pennsylvania


YORK CITY Area Highlights Size:

York City-Industrial Vacancy and Absorption 1,050,000 900,000 750,000 600,000 450,000 300,000 150,000 0 -150,000 -300,000 -450,000 -600,000

1Q 2009

2Q 2009

Vacant SF

3Q 2009

4Q 2009

Population: Total Households: Average Household I ncome:

5.35 Sq. Miles 41,015 16,032 $37,872

Total Businesses: Total Employees:

1,958 30,439

Total Industrial Buildings: Total Office Buildings: Total Retail Buildings:

162 183 264

York City is located in the central part of York County and is bordered by the Greater York East Region and the Greater York West Region. York City is comprised of a balanced mix of industrial, office and retail properties. There is approximately 7.9 million square feet of industrial space, 2.9 million square feet of office space and 2.3 million square feet of retail space.

Absorbed SF

2008 Sales-Dollar Volume

York City-Retail Vacancy and Absorption 150,000 125,000 100,000 75,000 50,000 25,000 0 -25,000 -50,000 -75,000 -100,000

$4,429,000 $3,295,000

1Q 2009

2Q 2009

Vacant SF

3Q 2009

4Q 2009

Absorbed SF $6,714,043

York City-Office Vacancy and Absorption 300,000 250,000 200,000 150,000 100,000 50,000 0 -50,000 -100,000

Industrial

1Q 2009

2Q 2009

Vacant SF

3Q 2009

Absorbed SF

4Q 2009

Retail

Office

Number Sold

Dollar Volume

Industrial

9

$3,295,000

Office

7

$4,429,000

Retail

14

$6,714,043

2008 Market Report – York County, Pennsylvania


NORTHERN REGION Area Highlights Size:

Northern-Industrial Vacancy and Absorption 250,000 200,000 150,000 100,000 50,000 0 -50,000 -100,000 -150,000 -200,000

1Q 2009

2Q 2009

Vacant SF

3Q 2009

4Q 2009

Absorbed SF

Population: Total Households: Average Household I ncome:

179.7 Sq. Miles 56,075 20,990 $73,225

Total Businesses: Total Employees:

1,409 10,567

Total Industrial Buildings: Total Office Buildings: Total Retail Buildings:

65 77 178

The Northern Region is comprised of the 12 municipalities that encompass the northern tip of York County. It is bordered by Adams County to the west, Cumberland County to the north west and Dauphin County to the north east. The Northern Region mostly consists of farm land and residential communities. There is approximately 4.2 million square feet of industrial space, 650,000 square feet of office space, and 1.7 million square feet of retail space. 2008 Sales-Dollar Volume

Northern-Retail Vacancy and Absorption 150,000 125,000

$871,000 $2,380,000

100,000 75,000 50,000 25,000 0 -25,000 -50,000

1Q 2009

2Q 2009 Vacant SF

3Q 2009

4Q 2009

Absorbed SF $8,908,571

Northern-Office Vacancy and Absorption 50,000 40,000 30,000 20,000 10,000 0 -10,000 -20,000 -30,000 -40,000 -50,000

Industrial

1Q 2009

2Q 2009

Vacant SF

3Q 2009

Absorbed SF

4Q 2009

Retail

Office

Number Sold

Dollar Volume

Industrial

2

$871,000

Office

4

$2,380,000

Retail

6

$8,908,571

2008 Market Report – York County, Pennsylvania


SUMMARY York County Summary York County is located in south central Pennsylvania on the border of Maryland. It is surrounded by Adams, Cumberland, Dauphin and Lancaster Counties in Pennsylvania as well as Frederick, Carroll, Baltimore and Hartford Counties in Maryland.

Area Highlights Demographics: Population: Total Households: Average Household Income: Business: Total Businesses: Total Employees: Highest Employment Sector: Transportation: Major Roadways:

421,049 174,062 $55,047

York County is approximately 910 square miles (906 square miles of land and 6 square miles of water) and is made up of 36 boroughs, 35 townships and 1 city.

15,732 218,421 Manufacturing I-83, I-76, Rte 30, Rte 462, Rte 15, Rte 94, Rte 194, Rte 74

The 2007 census reported that the estimated population in York County was 421,000 which was a 10.3% increase from 2000 and a 24% increase from 1990.

York County has been recognized for it’s strong manufacturing and distribution base. There are currently 946 Industrial buildings totaling approximately 70.2 million square feet. 7 of York’s top 10 private employers are manufacturing or distribution companies which include Defense Distribution Center, Harley-Davidson Motor Company, BAE Systems, and Utz Quality Foods. York also has 2,315 retail buildings consisting of approximately 27.8 million square feet and 1,104 office buildings totaling approximately 10.53 million square feet. 2008 Notable Sale Transactions: Type

Location

Sale Date

Sale Price

Industrial

York Business Center-601 Memory Lane

February 2008

$70,000,000

Office

1690 Kenneth Road

January 2008

$2,800,000

Retail

Queensgate Shopping Center

January 2008

$19,676,250

Land

Commerce Park-Commerce Drive Ext.

September 2008

$15,000,000

2008 Market Report – York County, Pennsylvania


DEFINITIONS COMMERCIAL REAL ESTATE TERMS Retail • • •

Free Standing: A single tenant retail building. Shopping Center: 4+ units being occupied/marketed for retail uses that is planned, developed, owned & managed as a single property with on-site parking. Mall: A building or a set of buildings which contain retail units, with interconnecting walk-ways enabling visitors to easily walk from unit to unit.

Office • • •

Class A: Buildings with excellent locations and access, high quality building materials and rents are competitive with other newer office buildings. Class B: Buildings with good locations, newer construction and very little functional obsolescence and deter ioration. Class C: Buildings over 15 years of age. Spaces are generally “walk up” office spaces or are above retail or other service businesses. Rents are lower than Class A and Class B buildings.

Industrial • • •

Class A: Buildings with excellent locations and access, high ceilings, feature newer technology and amenities and demand h igher rents. Class B: Buildings with good locations, medium to high ceilings, and feature some new amenities. Rents are generally lower than Class A buildings. Class C: Buildings over 25 years of age with low ceilings,old construction materials and lower rents.

REFERENCES Our information is compiled through a variety of different resources to include: •York County Tax Records •York/Adams County MLS •Loopnet.com

2008 Market Report – York County, Pennsylvania


2008 York County Market Report_2