1B — February 22 - March 14, 2013 — Commercial Office Spotlight — Mid Atlantic Real Estate Journal
www.marejournal.com
Nai K eyStoNe C ommerCial & i NDuStrial , llC
By Bryan Cole, NAI Keystone Commercial & Industrial, LLC Greater Reading office market overview end of 2012 report
T
he Greater Reading Sub- urban Office Market ended 2012 with a va-
2011. Deals of primary focus within the class A building sector in 2012 were the 48,000 s/f Nation- al Penn Bank location proposed at the Spring Ridge Corporate Center, which will be leased 100% to Nat Penn, the new Fairfield Inn proposed along Meridian Blvd., the Fairfield Inn is purchasing three proposed office pad sites along Meridian Blvd, and the 30,000 s/f leased to Digestive Disease Associates and BCDH at the Wyomissing Corporate Campus. The class B Suburban of- fice market ended 2012 with a vacancy rate of 18.98%. This
is a decrease in vacancy from 3rd quarter 2012 by less than one percent; however it is an increase from the same period 2011 by almost four percent. The average rental rates remained unchanged from 3rd to 4th quar- ter 2012 at $11.00 - $16.50 psf modified gross opposed to that of rates from the same period 2011 which was $13.00 - $18.00 psf. Deals of primary focus within the class B building sector in 2012 were the purchase of 210 George Street in Muhlenberg Township, a building consisting of approximately 40,000 s/f and bought by the Municipality for their operations center, and the
purchase of 6 Commerce Drive consisting of approximately 30,966 s/f. which was purchased by Brentwood Industries and will be home to their new Head- quarters. The class C Suburban office market sector ended 2012 with a vacancy rate of 10.97% which was an increase from the 3rd quarter 2012 and similar to the same period 2011. Our outlook for the suburban office market going into 2013 is very optimistic with activity levels at new highs within the market place and owners offer- ing additional incentives and concessions to assist in getting
deals done. The Greater Reading down- town office market ended 2012 with a vacancy rate for class A Office buildings at 22.96%. There was no change in vacancy rates from 3rd quarter 2012; however it was a significant increase from the same period 2011. The average rental rates slightly decreased from 3rd to 4th quarter 2012 at $14.00 psf Modified Gross to $13.50 psf Modified Gross. The largest additions to the overall vacancies in class A fa- cilities were at 401 Penn Street and 201 Penn Street, which caused class A vacancy rates to sky rocket from 2011 into 2012. Due to the current economic climate and overall interest in the City, these buildings remain vacant and are still taking a toll on the overall vacancy rate within Downtown. The class B Downtown of- fice market ended 2012 with a vacancy rate of 22.08%. There was no change in vacancy rates from 3rd quarter 2012, and it was a slight increase from the same period 2011. The aver- age rental rates dropped from $11.50 psf Modified Gross in the 3rd quarter 2012 to $10.00 psf Modified Gross in 4th quar- ter 2012 this is also a slight decrease to the rates from the same period 2011. For full Office Market Reports please visit www.Bryan-Cole. com/Office-Reports.html Bryan Cole, NAI Keystone Commercial & Industrial, LLC. n continued from page 13B NAI Fennelly . . . class A Space. Education, Government, & Non-Profit: the education/gov- ernment expansion grew from 8% of the absorption to 22% of the growth. Eden Institute leased 17,000 s/f of office work space for their “Eden W.E.R.C.S Program” at 4 Crossroads in Hamilton. The GSA has leased 25,000 s/f in Lawrenceville. This sector will probably grow considering 73% of the national job growth this year is with state and local governments. The educational sector should also see growth as people have to retrain them- selves to get hired in the coming years. Educational institutions are gearing up for this by de- centralizing their campuses and creating satellite locations closer to their growing constitu- ency. n
cancy rate for class A Office buildings at 18.5%. This i s a s l i gh t i n c r e a s e i n va c anc y r a t e s f r om 3rd quarter 2012 and an
Bryan Cole
increase in vacancy from same period 2011. The average rental rates remained steady at $16.00 - $19.50 psf Modified Gross which is a slight decrease to the rates from the same period
Office Space for Sale and/or Lease in Greater Reading
Office Space for Lease 2230 Ridgewood Road - 11,000 sf. (Lease) 2240 Ridgewood Road - 1,600 sf. (Lease) 965 Berkshire Blvd. - 11,014 sf. (Lease)
Office Space for Sale or Lease (Sale or Lease) 5401 Leesport Ave, Muhlenberg (Sale of Lease) 501 Crescent Ave, Muhlenberg (Sale or Lease) 3970 Perkiomen Ave, Reading (Sale or Lease) Spring Corp. Campus, Spring Twp. (Sale or Lease) 315 E. 2nd St., Boyertown (Sale or Lease) 26 S. Whiteoak, Kutztown (Sale or Lease) Arrowhead Bus. Prk, Maxatawny (Sale or Lease) 2762 Century Blvd, Wyomissing
1210 Broadcasting Rd. - 718 - 2,400 sf. (Lease) 1 Meridian Blvd. - 1,500 - 60,000 sf. (Lease) 1125 Berkshire Blvd. - 3,500 - 50,000 sf. (Lease) Wyo Corporate Campus - 3,500 - 43,000 sf. (Lease) 2001 State Hill Road - 1,200 - 18,000 sf. (Lease)
www.WyomissingOfficeSpace.com
Bryan E. Cole |Office & Medical Bcole@naikeystone.com | 610.779.1400 x8502 3970 Perkiomen Ave, Suite 200 | Reading, PA 19606
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