Northeastern Pennsylvania -
Colliers International has recently released its Northeastern Pennsylvania Office Market Report providing valuable intelligence on market inventory, asking rents, vacancy rates, new and notable transactions, and more. Here's what we're noting this spring in the region:
- The vacancy rate increased during the first quarter from an adjusted 6.8% to 8.0%.
- There was a lack of absorption as a gain in Class A occupancy was offset by additional Class B space returning to the market.
- The overall weighted average asking rent increased by 1.7% during the first quarter to $19.65 per square foot, full service. The Class A average increased by less than 1.0%, while the average Class B rent increased by 3.0%. This was due to the availability of more upper-tier Class B space.
- Geisinger Health Plan began moving into its new 79,000-square-foot administration building in Centerpoint Commerce & Trade Center, consolidating employees from Scranton, Plains and Wilkes Barre.
- The largest new lease transaction during the quarter actually landed in a flex building as Ubiquity Global leased 30,000 square feet in Hanover Industrial Estates for a call center location. Colliers brokered this transaction.
New Construction
- Construction is well underway at Coordinated Health's new hospital in Dickson City, expanding its current location at 330-334 Main Street with an additional 78,000 square feet of medical space. The healthcare company bought the Main Street properties and tenant Scranton Orthopaedic Specialists in September 2017.
- Coordinated Health's new medical campus and ambulatory surgical center at Humboldt Station in Hazle Township is nearing completion as a bigger building than the 42,000 square feet planned when construction started in late 2016.
- Brooklyn-based Augunloye Development & Construction is renovating the 36,000 SF, six-story, office and retail Thompson Building at 23 Centre Street in downtown Pottsville.
Investment Activity: New to the Market
- 315 Franklin Avenue in Scranton is on the market at an undisclosed price targeted to owner/users and investors. This 24,800 SF medical office building is 50% vacant.
- The 21,480 SF medical office building at 171 Red Horse Road in Pottsville is offered at $5,670,720 ($264/SF). This 1999-built asset is 50% leased to LVHN.
- The Courtyard at 300 Community Drive in Tobyhanna is listed at $3,200,000 ($174/SF). Completed in 2007, this mostly medical office building is 100% leased.
