Vacancy remains below 5% as late-year availability rises

MECHANICSBURG, PA — January 12, 2026 — Lee & Associates of Eastern Pennsylvania, LLC, in partnership with Focus Central PA, announced the release of its North Central Pennsylvania Industrial Intel | H2 2025 report, offering a data-driven snapshot of industrial market conditions across the region.

Market Snapshot

North Central Pennsylvania ended Q4 2025 with vacancy at 4.90%, remaining below 5% as overall market activity continued at a measured pace. Net absorption was essentially flat for the quarter, reflecting stability in a smaller market where leasing decisions tend to be more concentrated.

Availability increased to 6.35% in Q4 2025, largely driven by two large facilities in DuBois (Clearfield County) coming online. The properties total 612,800 square feet and are expected to be fully vacant by the end of March 2026. As a result, vacancy could move higher in H1 2026 unless the space is absorbed ahead of the move-out.

Supply and Development

The region’s inventory totals approximately 53.1 million square feet across 295 buildings. Construction activity remains limited, with 193,300 SF under construction, and the broader development pipeline totals approximately 2.85 million SF.

Economic Development Momentum

The most encouraging forward signal for the region continues to come from manufacturing investment and job growth announcements, including multiple projects representing several hundred million dollars in planned investment, with new job creation and significant job retention tied to existing employers. The region is also seeing early-stage data center site interest, supported by the availability of land and power, though timelines remain dependent on project requirements and site planning.

“North Central Pennsylvania continues to hold steady, with vacancy remaining below five percent,” said Heather Kreiger, CCIM, Regional Principal and Regional Research Director for the Lee & Associates Pennsylvania offices. “Availability increased in the fourth quarter, and those new availabilities will be an important factor in where vacancy trends early in 2026.”

“The Central Pennsylvania region continues to see slow, steady growth from a diverse group of industries, with a strong pipeline of investment activity going into 2026.” said Lauren Bryson, Executive Director, Focus Central PA

About this report:

Lee & Associates of Eastern Pennsylvania and Focus Central PA have partnered to provide greater clarity on North Central Pennsylvania’s industrial market. This report delivers valuable insights for investors, developers, and community stakeholders looking to understand market trends and opportunities emerging in this region.

About Lee & Associates:

Lee & Associates is a leading commercial brokerage firm serving Pennsylvania and the surrounding region. Our offices in Pittsburgh, Central Pennsylvania, and Suburban Philadelphia provide full-service expertise across industrial, office, retail, land, and investment sales. With a strong local presence and a national platform, our team brings market intelligence, strategic guidance, and deep-rooted relationships to every assignment.

About Focus Central PA:

Focus Central PA is a nonprofit regional economic development marketing alliance, covering seven counties in Central PA including Mifflin, Centre, Union, Snyder, Northumberland, Montour, and Columbia Counties. The mission is to attract investment that cultivates economic growth in Central PA. This mission is accomplished by proactively marketing the region’s opportunities to support smart industrial investment projects searching for locations. Focus Central PA is a dedicated professional team of economic development professionals that collaborate from the local, regional, and statewide levels to provide support and resources to assist companies looking to grow and expand.

 

Media Contact:
Heather Kreiger, CCIM
Principal & Regional Research Director
Lee & Associates – Eastern Pennsylvania
hkreiger@lee-associates.com
(610) 590-1007