As 2024 comes to a close, the commercial real estate market has demonstrated remarkable adaptability in the face of evolving trends and economic challenges. At The Bill Gladstone Group, we’ve analyzed these developments to better understand their impact on our clients and the Greater Harrisburg market. Let’s dive into the highlights of the year, with additional resources to explore these topics further.
Office Sector: Evolving, Not Declining
The office market continues to transform as hybrid work reshapes how businesses utilize space. Smaller, more collaborative layouts are becoming the norm, with landlords adapting to meet these demands. Greater Harrisburg saw particular interest in flexible office spaces, often tied to mixed-use developments.
For a deeper look into how office spaces are evolving, read The Quiet Revolution: Transforming Office Spaces Post-Pandemic.
Industrial Sector: The Powerhouse of 2024
The industrial real estate sector remained a cornerstone of the market, fueled by the resurgence of e-commerce and ongoing supply chain realignment. Warehousing and logistics properties near key transit hubs, such as I-83 in Harrisburg, maintained strong demand and low vacancy rates.
Curious about why industrial properties continue to thrive? Check out our blog post,, Why Is the Industrial Market So Hot?
Retail Sector: Resilient Amid Economic Pressures
Despite economic challenges, the retail sector demonstrated impressive resilience in 2024. The rise of experiential retail, paired with mixed-use developments, drove tenant retention and foot traffic. Retail locations in high-density neighborhoods saw significant interest, particularly in Greater Harrisburg.
We explore myths and truths about retail real estate in Debunking Common Myths About Commercial Real Estate.
Multifamily Market: The Bright Spot
Strong rental demand continued to drive the multifamily sector, with developers focusing on sustainability and amenity-rich properties. Rising interest rates pushed more potential buyers into the rental market, solidifying multifamily real estate as a top-performing asset.
For insights into why multifamily investments remain a strong choice, read Benefits of Commercial Real Estate Investment for Small Businesses
Economic Challenges: Navigating High Interest Rates
High interest rates dominated discussions in the commercial real estate market this year, increasing the cost of financing and requiring investors to rethink strategies. However, markets like Greater Harrisburg stood out as more stable and affordable, attracting cautious yet determined investors.
For strategies to weather economic uncertainty, explore Future-Proofing Your Real Estate Portfolio: Strategies for Long-Term Success.
Technology and Sustainability Take Center Stage
From smart building technology to renewable energy initiatives, 2024 saw a continued emphasis on sustainability in commercial real estate. Tenants increasingly sought environmentally conscious spaces, and developers responded by integrating green solutions.
Discover how sustainability is shaping the future of CRE in Sustainable Development: The Future of Commercial Real Estate.
Looking Ahead
As we turn toward 2025, the commercial real estate market is poised to continue adapting to shifting dynamics and new opportunities. The Bill Gladstone Group remains dedicated to helping our clients navigate these changes and achieve their goals.
Whether you’re looking to buy, sell, or lease commercial real estate, our team is here to provide expert guidance tailored to your needs.
Whether you’re looking to buy, sell, or lease commercial real estate, we’re here to support your goals. Let’s make 2025 your year of real estate success.