York County CRE market remains resilient across industrial, office and retail sectors in Q2 2026

ROCK Commercial Real Estate

YORK, PA — York County’s commercial real estate market continued to demonstrate resilience during the second quarter of 2026, with industrial, office and retail sectors each showing signs of stability despite ongoing economic headwinds, according to ROCK Commercial Real Estate’s Q2 2026 Market Reports. Strong industrial leasing, improving office fundamentals and heightened demand for restaurant space highlighted a market adapting to changing occupier and investor priorities.

Industrial remained York County’s strongest-performing asset class. Vacancy declined to 3.19% while positive absorption surpassed 1.23 million s/f during the first half of the year, extending a five-year streak of positive absorption. Active leasing generated more than 1.4 million s/f during the first six months of 2026, with more than 200,000 s/f leased in the second quarter alone. Investors also continued shifting toward class B and C industrial properties as limited class A inventory constrained acquisition opportunities.

The report notes that although class A industrial sales have slowed since their 2023 peak, steady transaction activity involving class B and C properties has pushed year-to-date sales beyond $50 million while stabilizing average pricing. Local manufacturers also continued investing in the market. Airborne Contamination Identification Associates (ACIA) celebrated the opening of its renovated 40,000 s/f warehouse in York City, while advanced nuclear technology company Oklo Inc. expanded its regional presence through the acquisition of Creative Engineers Inc. and its New Freedom warehouse.

York County’s office market also showed encouraging signs of stabilization. Vacancy held at 3.63% as second-quarter absorption improved modestly, while average sale prices reversed a four-year decline and increased across all property classes. Although ongoing restructuring within the office sector continued to temper overall absorption, leasing activity remained steady and average asking rents settled at $12.95 psf, remaining close to the market’s long-term average.

Healthcare continued to drive office demand throughout the county. Blueprints for Addiction Recovery signed a lease for a new 5,915 s/f medical office in York, while UPMC and the Orthopedic Institute of Pennsylvania expanded healthcare services through a new orthopedic clinic. WellSpan also partnered with regional organizations to open a 24/7 behavioral health crisis center, reinforcing healthcare’s role as one of the market’s most active office users.

Retail fundamentals were led by restaurant users, who generated the strongest leasing momentum of any retail category. Average restaurant rents increased 8% from the previous quarter and have climbed 49% over the past two years. Nama Sushi signed a lease at York City’s newest boutique hotel redevelopment at 1 S. George St., while restaurant-related sales also accounted for roughly 22% of year-to-date retail transactions.

Retail investment activity strengthened during the quarter as sales volume exceeded $11.4 million, more than doubling year-to-date totals to more than $20 million. Although average sale prices declined for a third consecutive quarter, median pricing remained stable near $550,000 for six consecutive quarters. The sale of the former Fulton Bank branch in Hallam to a Dunkin’ franchisee highlighted continued investor interest in adaptive reuse opportunities. Downtown York also received its second Main Street America accreditation, reflecting ongoing revitalization efforts supporting business growth throughout the city.

Across all three sectors, York County continues to benefit from a diverse economy, healthy leasing activity and targeted investment in industrial facilities, healthcare properties and retail destinations. While broader economic conditions continue to influence transaction activity, the reports indicate the market remains well positioned for continued stability through the second half of 2026.