A Pennsylvania industrial real estate market experienced unprecedented growth in 2024, with year-to-date sales volume hitting $740.6 million.
This amount for the Harrisburg area is already more than double last year's total of $328.1 million, setting a new record for the market. Recent performance builds upon a decade of steady growth, transforming the region into a major Northeast distribution hub.
Over the past decade, industrial sales averaged over $330 million annually, notably outpacing office, retail and multifamily properties by significant margins.
The upward trajectory of industrial growth reflects Harrisburg's geographic advantages. Located at the intersection of major highways, including interstates 81 and 83, the region offers superior access to Northeast population centers while maintaining operating costs lower than primary markets.
The area's extensive transportation infrastructure, including Norfolk Southern's intermodal facility and major ports, also draws in national and international capital.
In August, EQT Exeter acquired Building 1 at Core5 in Middletown for $170.5 million. The single-tenant, 1.2 million-square-foot distribution facility built in 2023 was occupied by Amazon at the time of sale. The company's lease expires in October 2034.
And last month, EQT Exeter acquired a portfolio consisting of three buildings at Carlisle Distribution Center for $210 million. The two single-tenant buildings, constructed in 2006 and 2009, were fully occupied by decor retailer At Home and supply chain specialist Geodis. Meanwhile, the multitenant building was 55.5% leased at the time of the sale. This portfolio sale is Harrisburg’s largest industrial acquisition in history.
Recent sales volumes indicate a shift in market perception, with institutional investors increasingly viewing Harrisburg as a prime industrial market rather than a secondary location. The region's success in attracting major distribution facilities has created a network effect, drawing additional industrial users and investors to the market.
With year-to-date volume already exceeding the combined total of office, retail and multifamily sales, industrial has become the defining feature of Harrisburg's commercial real estate market.
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