Jun 3, 2022 5 min read

COVID-19 has wrought global havoc for more than two years, killing millions, compromising the health of others, disrupting lives, and devastating countless businesses and industries.

Vaccines, boosters and its own healthy resolve have not prevented Southpointe from being affected by the coronavirus. The outbreak has forced some businesses to close or shut down in the mixed-use park, and compelled many corporate tenants to allow employees to work remotely or adopt a hybrid schedule, with occasional trips to the office for meetings or work shifts.

Southpointe, abuzz with activity pre-pandemic, where an estimated 13,000 were employed, has been comparatively dormant during much of the pandemic. Traffic has been greatly reduced and parking lots have been mostly empty. Leasing activity decreased for a while, dropping to concerning levels.

That is changing, however, according to several officials operating in Southpointe. Heading into June, despite another COVID surge, they said the Cecil Township park along Interstate 79 was beginning to percolate again. That leasing had returned to a healthier level, that workers were returning, that vehicular traffic – for better or worse – was increasing.

Mike Swisher has been at Southpointe since it opened in 1993. He is the principal of Horizon Properties Group LLC, which develops, owns, operates and manages mixed-use developments, offices, retail, apartments and hotels. Horizon is the lead developer of the gargantuan 806-acre park, where the leasing level – he maintains – is solid.   

“In our world, there is always an occupancy issue. We want it to be 100%,” Swisher said with a wry smile.

He added that “a vacancy rate below 20% is fairly acceptable,” and estimated Southpointe’s mid-May level at 12% to 17%. “That’s pretty healthy, all things told.”

A report months earlier, according to Swisher, listed vacancy in the park at 34%. “But that was absolutely not the case. Some market reports were confusing subleases with regular leases.”

Kelly Hoover Heckathorne likewise has been working in Southpointe for more than a quarter-century. She is director of broker services at Burns & Scalo Real Estate Services, based in Green Tree.

“I’ve done a lot of leasing at Southpointe since 1996,” Hoover Heckathorne said. As of mid-May, pandemic be damned, she was still busy.

“When COVID started (in this region in March 2020), I did nine new leases and two renewals for a total of 71,700 square feet, which was a lot. In 2021, there were seven new leases and one renewal for almost 52,000 square feet – not big-size properties, but still good for COVID. I’ve done six leases so far in 2022, and eight are out for signature.”

Hoover Heckathorne said that despite a quantum leap in employees working remotely, “there’s still a need for space. Companies are still growing and leasing. They’re trying to retain and attract employees back to the office.

“We’re having a lot of activity, and groups touring and looking for expansion. Our industry is doing well.”

Don Hodor has detected an uptick in activity in a park where more than 300 businesses and corporations function, including CNX Resources, Ansys, Consol Energy, Viatris and Range Resources.  

“You drive around and you see the lots are filling up more,” said Hodor, executive director of the Southpointe Chamber of Commerce. “You see people coming back, companies paying their leases.”

Like many officials and planners, Hodor anticipates companies shifting to or continuing with hybrid work models, where employees would split the week between toiling at home and in the office. “The business culture is that a company can blend the two together. There are still meetings you have to have (at a work site).” 

Hodor said a few new businesses have moved into Southpointe and that Jackson’s Restaurant & Bar, closed since a fire last August, is expected to reopen – date pending.

Hoover Heckathorne envisions the work model changing as well, along with spacing and amenities.

“A lot of people are working from home who don’t want to work at home,” she said. “They want to get out of their home. So a lot of companies are evaluating how many days you would work at home, how much space you would need. Companies are even looking at smaller spaces, and looking at making them more appealing.”

Swisher agreed, saying, “some tenants are downsizing a little.”

It is difficult to determine how the future of work will play out, but Hoover Heckathorne is detecting one trend. “I’ve talked with some managers and they want to get people back into the office.”

Swisher anticipates a similar movement – with variations. “One thing that is changing rapidly is the workplace is going to be closer to looking like what the workplace used to look like. Companies have some people working at home part time, but they still need that physical space to bring folks together.

“Employees will be looking for more home-type amenities (at worksites), and I think we’ll be seeing a transformation of the office building having these amenities. We’re doing that in multiple buildings. We’re not far from seeing swimming pools at buildings.”

As for the pool of tenants at Southpointe, Swisher assures the park is not merely treading water. “Some people say Southpointe is not doing well. That’s not the case. A golf course, four hotels and major corporations are here.”