PepsiCo is vacating the Fulling Mill Road distribution center,which now has a total of 500,000 sf, on March 1, and ProLogisexpects to complete a 150,000-sf addition to the facility by thisAugust or September, according to Michael Hess of the Harrisburgoffice of CB Richard Ellis. Hess, Rob Weber and Mark Pasquella ofCBRE represented APC in negotiating the leases at Fulling Mill Roadand Capital Business Center, which aggregate slightly more than 1.1million sf.

"APC occupies space in several buildings where it has operatedthrough a third-party logistics supplier," Hess tells GlobeSt.com.That includes the space in Capital Business Center where the newleases are now under its own signature. Hess says the companyexpects to phase operations from that location to 201 Fulling MillRd. this third quarter.

Hess says the Central Pennsylvania industrial market "continuesto grow as a hub for super-regional distribution centers. Tenantslike APC have chosen this area because of its close proximity toEast Coast population centers, interstate highway systems, and thatit provides a lower cost alternative to other regions." He declinesto disclose APC's rental rate, but says it is comparable to ratesin the area. According to a fourth-quarter 2007 CBRE report, theaverage minimum asking rate for such facilities in CentralPennsylvania is $4 per sf.