A Snapshot of Lancaster's Office and Industrial Market (May 2022)

Much has been said about the housing market being completely bonkers for quite some time now. They are not the only ones. Commercial and Industrial has seen its share of crazy too, albeit in different ways.

There seems to be no truly accurate barometer, except perhaps hindsight, to know when things will end or settle out from the pandemic. Everyone with ears has heard that interest rates are rising, everything, including money, is more expensive and that people are still working from home which means they are not working from work. Consumer goods are very high in demand and making them out of their assorted pieces and parts, storing them and distributing them is all the more difficult. That is the basis for the current Commercial and Industrial climate, lots of office that few need and not much industrial that everyone wants.

Let’s show what the numbers say in a snapshot of time from Bright MLS and LoopNet:

BRIGHTMLS.com on May 20, 2022 

Search Area: LANCASTER COUNTY, PA

Search Criteria: Office and Industrial 2000+ square feet.

FOR SALE OFFICE: 12 offerings 2,000-43,672 Square feet. Prices $100K-$4.95M

FOR SALE INDUSTRIAL:  3 offerings- 1 in Lancaster City, 1 in suburban Lancaster and 1 in a County Borough location. Prices: $1.9M-$5,750,000  

FOR LEASE OFFICE: 97 offerings 2000-80,000* square feet $5.00-$27.95 per square foot

FOR LEASE INDUSTRIAL: 30 offerings 2,000-121,000* square feet $4.95-$9.50 per square foot

*Note: Some spaces listed are only To-Be-Built

Note: Some buildings/spaces are doubly listed in the categories of both Office and Industrial if they contain a strong mixed-use component of having both office and industrial 

LOOPNET.com (a public searchable site) on May 20, 2022

Search Area: LANCASTER COUNTY, PA

Search Criteria: Office and Industrial 2000+ square feet.

FOR SALE OFFICE: 9 offerings 4,698 Square feet to 26,890 Square Feet Prices $94,900-$4,950,000

FOR SALE INDUSTRIAL:  3 offerings 17,000-50,000 Square feet $1.9-$4.95M

FOR LEASE OFFICE: 39 offerings 2,000-46,000* Square feet Prices $5.50-$27.95 per square foot

FOR LEASE INDUSTRIAL:  9 offerings 2,000-228,648* square feet $5.00+ many with no price listed per square foot

*Note: Some spaces listed are only To-Be-Built

Note: Some buildings/spaces are doubly listed in the categories of both Office and Industrial if they contain a strong mixed-use component of having both office and industrial 

Office choices abound in terms of size, location, amenities, condition, and class of space. Please understand that “Class” of space is not just how a property looks but is actually based more in how it functions. Industrial space is quite limited and a good portion of what is listed ‘on the market’ is not yet constructed. Industrial users struggle to get space in a timely way if they have a dilemma and/or need space quickly. Office rates have declined, and Industrial rates have increased to the point that in some cases, where it is possible, conversion of office space to industrial makes sense.

Facts, opinions and information expressed in the Blog represent the work of the author and are believed to be accurate, but are not guaranteed. The Lancaster County Association of Realtors is not liable for any potential errors, omissions or outdated information. If errors are noted within a post, please notify the Association. Posts represent the author's opinion and are not necessarily the opinion of the Association.