Mechanicsburg, PA - Lee & Associates of Eastern Pennsylvania, LLC, in partnership with Focus Central PA, announced the release of its North Central Pennsylvania Industrial Intel | H1 2026 report, offering a data-driven snapshot of industrial market conditions across the region.

The report shows overall vacancy edged higher to 5.17% at the end of the second quarter, driven in part by four new vacancies totaling approximately 173,000 square feet. Even with that increase, conditions remain relatively tight for a smaller market with a significant amount of legacy industrial product, with less than 3.0 million square feet available across North Central Pennsylvania.

"While North Central Pennsylvania doesn't experience the same volume of activity as larger industrial markets, the data continues to point to a fundamentally stable market," said Heather Kreiger, CCIM, Regional Research & Marketing Director and Principal with Lee & Associates of Eastern Pennsylvania. "Small changes in occupancy or leasing activity can have a meaningful impact on the statistics, but the broader story continues to be one of a stable industrial market supported by ongoing investment and reinvestment.”

Leasing activity totaled just under 250,000 square feet during the first half of 2026, down from roughly 370,000 square feet in the second half of 2025. Two of the largest transactions were sale-leaseback deals, including Hoeganaes Corporation's approximately 147,500-square-foot lease in Watsontown and Altor Solutions' 54,000-square-foot lease in Bloomsburg.

Sales activity also remained active, with six industrial properties sold during the first half of the year for just under 800,000 square feet in aggregate. The largest transaction was the 300,000-square-foot former Cabinetworks Group manufacturing facility in Mifflinburg, which was acquired by John Brothers Holdings, LLC and is expected to support the company's vertically integrated manufacturing operations in Union County.

Recent sales activity also points to continued reinvestment in legacy industrial assets across the region. In addition to the Mifflinburg transaction, Berwick Industries' purchase of the former Berwick Offray bow and ribbon production facility is expected to revive manufacturing operations at the site, supported by state funding incentives and planned job creation.

"Central Pennsylvania's industrial market continues to build steady momentum, supported by a healthy mix of expansion among existing industries, new business investment, and strategic development opportunities," said Lauren Bryson, Executive Director of Focus Central PA. "Regional collaboration is helping drive smart, sustainable growth, and this report provides valuable market intelligence that strengthens our ability to position the region as a premier location for industrial investment and business expansion."

 

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.