www.marejournal.com
8C— February 27 - March 12, 2015 — Commercial Office Spotlight — Mid Atlantic Real Estate Journal
NAI K eystone By Bryan Cole, SIOR, NAI Keystone
Greater Reading office market overview end of 2014 report
S uburban Overview
Gross, which is a decrease in the rates from the same period in 2013. Deals of primary focus within the class A building sector were the newly con- structed National Penn Bank facility in Spring Ridge and the two proposed Office Pad sites at 835 Berkshire Blvd., Wyomissing. Although the to- tal square footage of the new National Penn Bank building was 48,000 s/f, it left three vacancies within the class B office product in the Berks County marketplace which remained vacant at the close of 2014.
The class B Suburban Of- fice Market ended 2014 with a vacancy rate of 18.35%. This is a slight increase in va- cancy rates from 3rd quarter of 2014, and it is a large in- crease from the same period in 2013. The average rental rates remained unchanged at $12.50 - $15.50 psf Modified Gross from the 3rd quarter of 2014 to 4th quarter of 2014 and that is a greater decrease from the same period in 2014, when average rental rates were $12.50 - $17.50 psf. Deals of primary focus within the class B building sector were two new leases,
including the 26,016 s/f lease at 1125 Berkshire Blvd. in Wyomissing, and the 16,000 s/f lease at 2001 State Hill Road in Wyomissing. The ac- tivity level for second genera- tion class B space has slowed in the 4th quarter; however, this is typical toward the holiday months. There were multiple sales completed within the class B office market including the sale of 1001 Hill Ave a 150,000 s/f mixed use facility in Wyomissing, a 30,000 s/f multi-story office building in Flying Hills, the former JC Ehrlich Facility in Wyomiss-
ing and a 25,000 s/f retail building converted to Medi- cal in Exeter Twp. All of the facilities described with ex- ception of 1001 Hill Ave were purchased by End Users. And the class C Subur- ban Office Market ended 2014 with a vacancy rate of 14.92%, which is a slight de- crease from the same period in 2013. The outlook for the office market sector going into the 1st quarter of 2015 is optimistic as activity levels continue to remain high. Downtown Overview The Great er Read ing Downtown Office Market ended 2014 with a vacancy rate for class A Office build- ings at 23.25%. This was a complete reverse in rates as it was a very highly negative change in vacancy rates from the same period 2013; it was however a steady 3rd to 4th qtr. 2014. The average rental rates slightly decreased from the 3rd to end of 4th quarter of 2013 at $11.00 psf Modified Gross to $14.50 psf Modified Gross. The reason for the large increase in vacancy rates was due to the sale of 401 Penn St. to I-Lead Charter School and the re-introduction of space to the market. Our initial understanding was I-Lead would be leasing some of the space out, but nothing has been clearly defined. The class B Downtown Of- fice Market ended 2014 with a vacancy rate of 19.96%. This was a slight decrease in vacancy rates from 3rd quarter of 2014, and it was a large decrease from the same period in 2013. The average rental rates remained un- changed at $7.50 psf Modified Gross in the 4th quarter of 2014 to $11.00 psf Modified Gross, this is similar to the rates from the same period 2013. Overall vacancy rates for class C buildings rose to 23.62%. This was due to a few class C tenants moving to higher tier properties and various buildings that were previously tracked as class B buildings being changed to class C buildings because of re-evaluating the assets and conditions. Bryan Cole, SIOR | NAI Keystone Commercial & Industrial, LLC, Office & Medical Specialist. n
The Greater Reading Suburban Office Mar-
ke t ended 2014 with a vacancy rate for class A office build- i n g s a t 1 5 . 0 1 % . There were no changes in vacan-
Bryan Cole
cy rates from 4th quarter of 2014 and a large increase in vacancy from same period in 2013. The average rental rates remained unchanged at $17.50 - $22.50 psf Modified
Downtown office/retail for lease Located adjacent to Santander Arena & new Doubletree Hotel
3,500 SF to 43,000 SF available On-site office provides maintenance Just off State Hill Road, near Rt. 422
Downtown office building for lease Low full-service rates Full value
Open floor plans with plug and play capabilities Mix of office and industrial
Prime downtown location DSL and cabling allow for up-to- date data lines and phone systems
Class “A” Office Up to 19,000 SF contiguous, 47,000 total for lease
Professional tenant mix New ownership and management Frontage on State Hill Road
Single story, direct access Large surface parking field Easy access to Routes 422 and 222
Made with FlippingBook HTML5