12C — November 22 - December 12, 2019 — Commercial Office Properties — M id A tlantic www.marej.com NAI K eystone C ommercial & I ndustrial , LLC By Bryan Cole, SIOR, NAI Keystone Commercial & Industrial, LLC Greater Reading office market overview end of 3rd Quarter 2019 office report uburban Overview Real Estate Journal
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In addition, the numerous fa- cilities that are being built for Tenant Specific Uses, I.E. the UGI Energy Services Building, The Teleflex Facility, along with other buildings within the VF complex assisted in drop- ping the overall rate, due to the fact that those facilities were built or renovated specifically for its end user and not on a speculative basis. The average rental rates remained flat from quarter to quarter, however they noticed an uptick from the same period in 2018. The rates being pro- posed for True Class A assets are in the $20.00 - $24.50 per s/f
A number of sites have re- moved from the tracking due to the property’s condition or other variables that have caused them to remain vacant; there have been large blocks of space that have been absorbed in recent months including the Teleflex Facility along Rte. 183 which equates to 167,000 total s/f. Although they are few and far between there are a few build- ings that have large blocks of vacant space which causes the class B vacancy rates to skew a little bit higher. This includes the 66,400 s/f facility along N. Park Rd., and the Stone Pointe
facility in Muhlenberg Twp., in addition there is 25,000 s/f. available at 2001 State Hill Rd. in Wyomissing. The rates and terms dis- cussed are primarily for back office or general office type uses. Healthcare Real Estate Rates are in the high $20’s to low $30’s psf. This is due to the amount of fit out required for these types of operations; and most of the deals have many of the improvements amortized over the length of the lease. We have even found transac- tions that are creeping into the high $30’s due to site costs and increasing costs of construction. As I have mentioned in most updates, which continues to hold true, the financial sector has seen significant growth locally with various financial institutions looking to increase their footprints and amenities to attract a younger workforce and embrace the change in technology. The Medical Sector is another part of the industry which is on fire and continues to grow. The proposed Drexel School in Wyomissing will also become a focal point with future growth in that immediate area, and the hope is that it will drive additional, work, live, play type development into the Wyomiss- ing and West Reading area. Bryan Cole, SIOR is a principal with NAI Key- stone Commercial & Indus- trial, LLC . NAI Mertz’s Riggs brokers lease in Cherry Hill, NJ CHERRY HILL, NJ — NAI Mertz announced Joe Riggs, senior vice president, closed a 3,600 s/f office lease on behalf of Grimley Financial at 1415 Rte. 70 East in Cherry Hill (shown above). Markeim Chalmers, Inc. , represented the building owner in this transaction. “My clients spent over two de- cades at their previous location in Haddonfield, and were look- ing for a new location as they prepare to hand the business down to the next generation of family,” said Riggs. Known as Cherry Hill Plaza, this building features 100,000 s/f of class A office space .
modified gross. We are noticing strong signs that the rates are beginning to increase within this sector due to the lack of product throughout the market. The class B office sector no- ticed a drop in its vacancy rate as well. The vacancy rate for class B buildings have been hovering around 19.00% for 2017-2018. However, due to some blocks of space being absorbed by local users along with the removal of numerous sites that were being proposed for office but now have been repositioned for alternative uses, the rate has dropped to around 14.60%.
The overall Suburban Office Market was ex-
tremely busy throughout 2 0 1 9 w i t h vacancy rates for class A Of- fice product dropping to 4.83%, which is lower than the similar
Bryan Cole
period of 2018, this large de- crease can be attributed to the leasing of numerous spaces within the Wyomissing and Spring Ridge areas that were available for quite some time.
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