New warehouse debated while dozens of sites sit vacant - abc27 WHTM

New warehouse debated while dozens of sites sit vacant

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As residents in Fairview Township go head-to-head with developers to put the brakes on a proposed trucking terminal, abc27 asked the question, "Why build another massive warehouse in the Midstate, when so many existing ones along I-81 and I-83 are vacant?"

It turns out that there are two words at the center of all of this:

Overnight. Delivery.

"If they can do 'store replenish' from the East Coast here and reach two-thirds of the Canadian and US populations in a day's truck drive, then Harrisburg is where you want to be," said Jason Grace, the VP of Corporate Brokerage at Landmark Realty.

Is the metro area really where businesses want to be? Because a plethora of signs from York to Chambersburg advertising leasing options of large buildings might suggest otherwise.

"I think right now there is about 10 to 12 million square feet of deals in the market," said Grace.

Landmark will work to fill the building in Fairview Township if the permit is granted to developer Goodman Birtcher.

For a home buyer, it wouldn't seem right to build in a neighborhood full of empty houses, but what if those existing homes had three bedrooms and your family needed...12?

"A lot of the super regional supply chain models are having the buildings sized at 750,000 thousand sq/ft or bigger," adds Grace of the increasing demand for size.

He says it works like a puzzle. New businesses that require more space partner with smaller businesses that can occupy those existing smaller structures.

"I think the fact that they are getting financing and getting lenders to help them build speculative projects is a good sign of where the market is going," he said.

So for some, leasing signs aren't symbols of vacancy, but economic recovery—and perhaps the race towards the almighty "same day" delivery.

"I expect that there will be more projects coming out of the ground without users in tow," said Grace. "Just preparing for the demand."

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