14C — February 28 - March 13, 2014 — 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 2013 report
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Gross, which is also an increase in the rates from the same pe- riod in 2012.
uburban Overview The Greater Reading Suburban Office Mar-
reduction of around 50,000 s/f. of space previously slated for office buildings being converted
fice Market ended 2013 with a vacancy rate of 16.12 percent. This is a large decrease in va- cancy rates from 3rd quarter of 2013, and it is a decrease from the same period in 2012. The average rental rates increased $14.50 - $18.50 psf Modified Gross from the 3rd quarter of 2013 to 4th quarter of 2013 and that is an increase from the same period in 2012, when av- erage rental rates were $11.00 - $16.50 psf. Deals of primary focus within the class B building sector were two new leases, including the 26,016 s/f. lease at 1125 Berk-
shire Blvd. in Wyomissing, and the 15,000 s/f. Lease at 6 Com- merce Drive in Wyomissing. The activity level for second generation class B space has slowed in the 4th quarter, how- ever, this is typical toward the holiday months. And the class C Suburban Office Market 2013 with a vacancy rate of 13.07 percent, which contained no change from the 3rd quarter of 2013. Our outlook for the office mar- ket sector going into the 1st quarter of 2014 is continued optimism as activity levels continue to remain strong. Downtown Overview The Greater Reading Down- town Office Market ended 2013 with a vacancy rate for class A Office buildings at 5.45 per- cent. This was welcome news as it was a very large positive change in vacancy rates from 3rd quarter of 2013; it was also a large decrease from the same period in 2012. 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 drop in vacancy rates was due to the sale of 401 Penn Street to I- Lead Charter School. Although the public’s understanding is they will be leasing some of the space out, nothing has been clearly defined. Due to the sale, the large block of available space has been removed from the market, causing vacancy rates to significantly drop. The class B Downtown Of- fice Market ended 2013 with a vacancy rate of 25.59 percent. This was an increase in vacancy rates from 3rd quarter of 2013, and it was a large increase from the same period in 2012. The average rental rates remained unchanged at $7.50 psf Modi- fied Gross in the 4th quarter 2013 to $11.00 psf Modified Gross, this is however a slight decrease to the rates from the same period 2012. Overall Vacancy Rates for class C buildings jumped to more than 23.35 percent. This was due to class C tenants moving to higher tier proper- ties 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. By Bryan Cole is a office & medical specialist with NAI Keystone Commercial & Industrial, LLC. n
k e t e n d e d 2013 with a vacancy rate for class A Office build- ings at 12.71 percent. This is a large de- crease in va- cancy rates
The Greater Reading Suburban Office Market ended 2013 with a vacancy rate for Class A Office buildings at 12.71 percent.
Bryan Cole
Deals of primary focus within classAbuilding sector were the 53,000 s/f. lease at 1 Meridian Blvd, in Wyomissing, which was a relocation from another area of Berks County, and the
to a hotel. The lease outlined, along with other market fac- tors, helped to reduce vacancy rates and increase overall ab- sorption. The class B Suburban Of-
from 3rd quarter of 2013 and a larger decrease in vacancy from same period in 2012. The average rental rates increased to $17.50 - $22.50 psf Modified
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