8C — July 26 - August 15, 2013 — Brokerage Directory — Mid Atlantic Real Estate Journal
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By Bryan Cole, NAI Keystone Commercial & Industrial, LLC Greater Reading 2nd Qtr. 2013 Report an increase in the rates from the same period 2012.
T
he Greater Reading Suburban Office Mar- ket ended the second
fice market ended the second quarter of 2013 with a vacancy rate of 19.46%. This is a slight increase in vacancy from first quarter 2013 by less than one percent, and it is a slight decrease from the same pe- riod 2012. The average rental rates had an increase from 1st quarter 2013 to 2nd quarter 2013 at $12.50 - $17.50 psf modified gross opposed to that of rates from the same period 2012 which was $11.00 - $17.50 psf. Deals of primary focus with- in the class B building sector were the new leases at 965
Berkshire Blvd. of 11,014 s/f, and 2001 State Hill Rd. of 3,500 sf. The activity level for second generation Class B space has slowed into the second quarter, however this is typical towards the summer months. We expect an increase within the 3rd quarter 2013. And the class C Suburban office market sector ended the 2nd quarter of 2013 with a vacancy rate of 13.0% which was an increase from the 1st quarter 2013. Our outlook for the office market going into 3rd quarter 2013 is continued optimism
as activity levels continue to remain strong. There are over 200,000 s/f. of new lease deals within the Berks County market. Downtown Reading Office Market Overview The Greater Reading Down- town Office Market ended the 2nd quarter with a vacancy rate for class A Office build- ings at 21.47%. This was welcomed news as it was a positive change in vacancy rates from 1st quarter 2013; and it was also a decrease from the same period 2012. The average rental rates re- mained steady from 1st to 2nd quarter 2013 at $11.00 psf Modified Gross to $15.00 psf Modified Gross. The largest contiguous blocks of vacancies in Class A facilities were at 401 Penn St. and 201 Penn St., 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 with- in Downtown. However 400 Washington St. added new tenancies which helped the overall vacancy rates. The class B Downtown office market ended the 1st quarter with a vacancy rate of 21.86%. This was a slight decrease in vacancy rates from 1st quar- ter 2013, and it was a slight decrease from the same pe- riod 2012. The average rental rates remained unchanged at $7.00 psfModified Gross in the 1st quarter 2013 to $11.00 psfModified Gross, this is how- ever a decrease to the rates from the same period 2012. Overall Vacancy Rates for class C buildings jumped from 1st quarter to over 23.21%, this was due to Class C tenants moving to higher tier properties and various buildings previously tracked as class B buildings were changed to class C buildings, due to re-evaluating the assets and conditions. Tenant perspective: (As a Tenant Representative) The Greater Reading mar- ket has experienced a high level of interest within the 2nd quarter 2013, although activity is high and deals are steadily coming forward; the A and B product is still of- fering incentives/concessions continued on page 28C
Deals of primary focus with- in class Abuilding sector were the 6,863 sf. lease at 1220 BRd.casting Rd., which was a relocation and expansion for the already Wyomissing based organization, and the newAm- ity Professional Center which Amity Dentistry leased space in the new building located at 957 Ben Franklin Highway, these leases along with a few other assisted in reducing vacancy rates and increasing overall absorption. The class B Suburban of-
quarter 2013 with a va- cancy rate f o r C l a s s A O f f i c e buildings at 15.60%. This is a decrease in vacancy rates from1st
Bryan Cole
quarter 2013 and an increase in vacancy from same period 2012. The average rental rates increased to $16.50 - $21.50 psf Modified Gross which is
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Medical & Office Real Estate for Sale or Lease NAI Keystone’s Medical & Office Brokerage Division
Call Bryan Cole at 610.370.8502
Bcole@naikeystone.com
www.Bryan-Cole.com www.WyomissingOfficeSpace.com
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NAI Keystone Commercial & Industrial, LLC | 3970 Perkiomen Ave, Suite 200 | Reading, PA 19606 | 610 779 1400 | 610 779 1985 (f)
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