16C — July 31 - August 13, 2015 — Brokerage Directory — Mid Atlantic Real Estate Journal
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By Bryan Cole, SIOR, NAI Keystone Commercial & Industrial, LLC Greater Reading Office Market Overview 2nd Quarter 2015 Report
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from end of 1st quarter 2015, and it is a decrease from the same period in 2014. The av- erage rental rates remained unchanged at $12.50 - $15.50 per s/f Modified Gross from the End of 1st quarter 2015 to end of 2nd quarter of 2015 and that is a larger decrease from the same period in 2014, when average rental rates were $12.50 - $17.50 per s/f. And the class C suburban office market ended the 2nd quarter 2015 with a vacancy rate of 13.97%, which is a slight decrease from the
same period 2014 and the previous quarter. The outlook for the office market sector going into the 3rd quarter of 2015 is very optimistic due to the high level of continued interest in the marketplace. Various deals that are finalized, were completed in the beginning of the 3rd quarter including an 18,000 s/f. lease on Berkshire Blvd. which will could help 3rd quarter numbers. The opinions in the next two paragraphs below are from 1st quarter 2015 and remain unchanged.
Cap rates for investment grade office buildings re- mains low due to attractive financing. The most impor- tant variables are length of leases, credit of tenant(s), type of lease, and type of as- set (I.E. single tenant, multi- tenant, medical, back office). Overall activity continues to come fromwithin the local marketplace. The majority of the transactions taking place are companies that already call Greater Read- ing home. However, most of these deals have resulted in larger footprints and longer commitments. Downtown Overview TheGreaterReadingDown- town Office Market ended the 2nd quarter of 2015 with a vacancy rate for class A office buildings at 22.63%. It was a slight decrease in rates from the end of 1st quarter 2015. The average rental rates remained unchanged from 1st quarter 2015 thru 2nd quarter 2015 at $11.00 per s/f modified gross to $14.50 per s/f modified gross. The reason for the slight decrease in vacancy rates was due to the new location of an 11,000 s/f. Tenant at 501 Washington St. and ex- pansions of various tenants throughout the marketplace. The class A market noticed a benefit of the expansion of the large lease completed in the 1st quarter of 2015, however class B space is feeling the effect into the 2nd quarter of 2015 due to the large vacancy that was created by the move. The Class B Downtown Office Market ended the 2nd quarter of 2015 with a vacancy rate of 23.10%. This was an increase in vacancy rates from the end of 1st quarter 2015, and it was a smaller increase from the same period in 2014. The av- erage rental rates remained unchanged at $7.50 per s/f modified gross at the end of the 2nd quarter to $11.00 per s/f modified gross, this is similar to the rates from the same period 2014. Overall Vacancy Rates for Class C buildings remained unchanged at 23.62%. Check www.Bryan-Cole. com for a full and comprehen- sive Office Market Report. Bryan Cole, SIOR is a principal at NAI Keystone Commercial & Industrial, LLC. Subscribe at www. NAIKeystoneBlog.com n
from end of 1st Quarter 2015, and a decrease from the same period 2014 which was at 13.55%. The average rental rates remained unchanged at $17.50 - $22.50 per s/f Modified Gross, which is a decreases in the rates from the same period in 2014. The class B Suburban Of- fice Market ended the 1st quarter of 2015 with a va- cancy rate of 18.40% for existing and proposed sites. The vacancy rate for only ex- isting class B office buildings is 16.19%. This is a slight increase in vacancy rates
uburban Overview The Greater Read- ing Suburban Office
Market end- ed the 2nd quarter of 2015 with a vacancy rate for class A Office build- i n g s a t 10.93% per- cent which
Bryan Cole
includes existing and pro- posed sites. The vacancy rate for only existing class A office buildings is 4.57%. This is a decrease in vacancy rates
14,000 SF Manufacturing/Flex with docks and drive door. Includes 3,500 SF office with parking.
12,560 SF of office, retail and shop space w/ secondary 6,000 SF building. Just off Rt. 61 in Leesport.
40,804 SF Industrial flex for sale/lease. Expandable by 40,000 SF. Easy conversion to Comm./Office.
15,000+/- Class A office building for sale or lease. Prominent location in Spring Twp.
Riverfront investment property with redevelopment upside.
Iconic 13,000+/- commercial building, former Ronco’s Pharmacy.
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