Markets advanced in the Third Quarter of 2016 as absorption totaled 71,652 sq. ft. fueled by solid demand from the West Shore and Downtown Business Districts. Over 160,000 sq. ft. has been absorbed over the past three Quarters. During this period occupancy and rental rates have continued to firm and tenants have had fewer and fewer options to consider.
We feel measured speculative development and impressive tenant demand has been a health restoring event for the marketplace. We look for demand to continue over the weeks ahead and expect options for premier properties to dwindle further. We believe the potential exists for the Downtown Business District to gain even more traction throughout 2017 and remain impressed with the surge in acquisitions from that marketplace.
Going forward we expect continued firming of rates, steady demand and further modest improvement in most segments of the Greater Harrisburg marketplace.
THOMAS T. POSAVEC, SIOR, Senior Vice President