Key Leasing Trends
- The vacancy rate decreased from 7.5 to 6.6 percent at the end of the third quarter, well below the trailing five-year average of 9.1 percent.
- Annual absorption totaled just under 83,000 square feet, mainly from smaller tenant activity in Class B buildings.
- The weighted average asking rent decreased slightly during the third quarter to $16.43 per square foot. The average Class A rent increased by 2.8 percent, but Class B rents dipped by 1.9 percent. This was due to the lease up of higher-priced class B space and not an overall downward trend.
No new construction started this past quarter although several projects are proposed. Coordinated Health, a privately held, physician-owned acute care hospital network in eastern Pennsylvania and western New Jersey, with a current location at Church Hill Mall in Hazleton, will complete by year end its $15,000,000 42,000-square foot state-of-the-art medical campus and ambulatory surgical center in Humboldt Station at the intersection of Route 924 and Interstate 81 in Hazle Township.
Activity is forecast to increase during the fourth quarter following the typical summer slowdown. However, only modest improvements in vacancy and rent growth are anticipated.