2nd qtr. 2012 downtown report by bryan cole

7/28/2019 2nd Qtr. 2012 Downtown Report by Bryan Cole

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Downtown O ce Market ReportDowntown O ce Market Report -- Team ColeTeam Cole

2011 Year2011 Year -- End ReportEnd Report Reading, Berks County Pennsylvania

Downtown O ce Market ReportDowntown O ce Market ReportDowntown O ce Market Report

www.Bryanwww.Bryanwww.Bryan ---Cole.comCole.comCole.com


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Downtown O ce Market ReportDowntown O ce Market Report -- Team ColeTeam Cole

From the Authors Desk

Bryan E. Cole

Broker

[email protected]

610.370.8502 (direct)

610.370.8503 (e -fax)

This report provides an overview of the current o ce market condi ons in Suburban Berks CountyPennsylvania. NAI Keystone maintains a comprehensive list of all available proper es within theBerks County marketplace, including but not limited to; available space, number of facili es in mar-ket, asking rents, incen ves, extra costs, etc The informa on that NAI Keystone has assembled isseparated by Class A and Class B facili es and consists of market data such as, absorp on rates,vacancy rates, asking rents, etc...

The report will be available on a quarterly basis by emailing us at marke [email protected] andasking to subscribe to our mailing list.

Bryan E. Cole Resume

2012

Bryan joined NAI Keystone in July of 2004, but before joining NAI, Bryan Cole spent 4 years ac veduty in the U.S. Marine Corp, including a 6 month deployment in Afghanistan, a 4 month deploy-ment in Kuwait/Iraq, and a 7 month deployment in Japan. Prior to joining the military Bryan wasinvolved in the construc on of commercial and mul -unit proper es in the Philadelphia sub-urbs. Bryan has experience working with a diverse group of individuals in numerous countriesthroughout the world. During Bryans me at NAI, he has sold in the excess of $250 Million Dollarsworth of Commercial Real Estate, and leased hundreds of thousands of square feet of industrialand o ce/medical space. Because of this, Bryan earned NAI gold club status his rst year in thebusiness which is presented to approximately 75 - 100 brokers within the NAI Global network,which is comprised of over 8,000 Brokers. Bryan is currently working on earning both his CCIMdesigna on and SIOR designa on. Bryan has been NAI Keystone's Top Performer from 2006 - 2011.

NAI (New America Interna onal)

Veterans of Foreign Wars

PA Assoc. of Realtors

NAI O ce Council

CoreNet Global

Na onal Assoc. of Realtors

NAI Retail Council

Young Professionals Network

Commercial Industrial Council of Berks

CIC Board Member (2007)

Chapter President of Na onal MarineCorp Business Network

Berks Chamber of Commerce

NAI Gold Club

ICSC Member

NAI Corporate Services Council

Personal Memberships:


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NAI Keystone - Team Cole Downtown O ce Market Report End of 2011

OVERVIEW:

Downtown City of Reading has seen some new deals consum-mated, like the renewal of the United Way of Berks Countyand the Spanish Council of Berks County. However the mar-ket s ll remains at due tothese companies renewing leases rather than expandingtheir footprints. Buildings that have seen vacancy for some

me, including 645 Penn Street and 501 Washington Streetare star ng to show some signs of hope due to new manage-ment and ownership changes taking e ect. Owners and ten-ants are con nuing to struggle with high parking costs andsecurity concerns, which are con nuing to be addressed by a

commi ed City Administra on.

Downtown City of Reading vacancy rates con nue to increasein late 2011 with rates rising 20.70% to 21.00% in Class BProduct with much of the vacancy con nuing to surroundlarge blocks of con guous space. This also includes approxi-mately 20,000 sf. of vacant space which was not accountedfor in 2010s numbers at The Madison Building located at 400Washington Street., cont. on page 4

For Full Ar cle visit h p://bryan -cole.com/MarketIntel.html or seePage 4 of Market Report.

Tenant: Building: Size (SF): City

Reading Area CommunityCollege

201 Penn Street Greater than 10,000 sf Reading

BEP, GBDF, Chamber 201 Penn Street Greater than 10,000 sf Reading

Kadent 645 Penn Street Greater than 15,000 sf Reading

Berks Counseling 645 Penn Street Greater than 15,000 sf Reading

La no Chamber of Commerce

501 Washington Street Greater than 10,000 sf Reading

TRENDS Vacancy Rates

Class A Class B

Net Absorp on

Class A Class B

Asking Rents

Class A Class B

Construc on

Class A Class B

Major Lease Transac ons:- for detailed informa on contact Bryan Cole


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Downtown O ce Market ReportDowntown O ce Market Report -- Bryan ColeBryan Cole

Downtown Reading O ce Market Report - End of Year 2011 Report

Downtown City of Reading has seen some new deals consummated, like the renewal of the United Way of Berks Coun-

ty and the Spanish Council of Berks County. However the market s ll remains at due to these companies renewingleases rather than expanding their footprints. Buildings that have seen vacancy for some me, including 645 PennStreet and 501 Washington Street are star ng to show some signs of hope due to new management and ownershipchanges taking e ect. Owners and tenants are con nuing to struggle with high parking costs and security concerns,which are con nuing to be addressed by a commi ed City Administra on.

Downtown City of Reading vacancy rates con nue to increase in late 2011 with rates rising 20.70% to 21.00% in ClassB Product with much of the vacancy con nuing to surround large blocks of con guous space. This also includes ap-proximately 20,000 sf. of vacant space which was not accounted for in 2010s numbers at The Madison Building locatedat 400 Washington Street.

2012 downtown vacancy rates will have a major nega ve jump if CNA follows thru with their plan to vacate the260,000 sf. facility located at 401 Penn Street. Even if CNA decides to maintain its presence they are s ll only occupy-ing 80,000 of the 260,000 sf., so the impact is going to be felt regardless. A posi ve note is that 525 Lancaster Ave,Reading has been purchased by a mul -family developer who has decided to redevelopment from o ce to apart-ments. This will eliminate a 110,000 sf. o ce building which has been vacant for a number of years.

The City of Reading and economic development groups have been working hard to improve and revitalize Downtownwhich shows in the number of projects underway and/or completed. The new IMAX Theater and the completed addi-

on to the Reading Eagle Headquarters in the CBD are welcome entrants to the market and kick o a mul -million dol-lar main street corridor project that includes a new $67 million Doubletree hotel and garage project across from theSovereign Entertainment and Expo Center. This will help a ract a more vibrant restaurant and entertainment segmentwith increased ameni es and ul mately assist to bring tenants back downtown while decreasing vacancy rates and in-

creases in the tax base.

2012 is showing signs of hope, with new tenants entering the market place, and rental rates con nuing along a steadycourse.

Deals will con nue ge ng done because landlords are reac ng to current market condi ons, which means companiesare ge ng favorable incen ves, such as introductory rates, rent abatements and addi onal tenant improvements.Also, landlords are now o ering tenant improvements and incen ves to keep their exis ng tenants.

Check out my blog at www.Bryanecole.wordpress.com for more market informa on and updates within the GreaterReading O ce Sector along with checking our website at www.Bryan -Cole.com

Wri en and compiled by Bryan Cole of NAI Keystone Commercial & Industrial, LLC

www.Bryan -Cole.com | www.naikeystone.com | 610.779.1400 | [email protected]
http://www.bryanecole.wordpress.com/http://www.bryanecole.wordpress.com/http://www.bryan-cole.com/http://www.bryan-cole.com/http://www.bryan-cole.com/http://www.bryan-cole.com/http://www.bryan-cole.com/http://www.bryan-cole.com/http://www.bryan-cole.com/http://www.bryan-cole.com/http://www.naikeystone.com/http://www.naikeystone.com/mailto:[email protected]:[email protected]:[email protected]://www.naikeystone.com/http://www.bryan-cole.com/http://www.bryan-cole.com/http://www.bryanecole.wordpress.com/


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NAI Keystone - Team Cole Compe ve Set - Con guous Blocks of Space

Status Property Name City Zip Gross Bldg. SF Vacant SF Lease Price

Exis ng 515 Canal Street Reading 19602 175,000 150,000 $20.00 GrossExis ng 525 Lancaster Avenue Reading 19601 110,000 110,000 $11.00 NNN

Exis ng 520 Willow Street Reading 19601 84,000 84,000

Exis ng 437 Penn Street Reading 19601 120,000 72,600 $9.00 + E

Exis ng 645 Penn Street Reading 19601 106,302 40,000 (NV) $11.50 Gross

Exis ng 35 North 6th Street Reading 19601 90,000 80,000 $12.00 MG

Exis ng 230 North 5th Street Reading 19601 42,000 30,000 $10.00 MG

Exis ng 501 Washington Street Reading 19601 108,000 28,154 $9.50 Gross

Exis ng 201 Penn Street Reading 19601 95,000 25,000 (SL) $15.50 Gross

Exis ng 126 North 5th Street Reading 19501 20,000 20,000

Exis ng 505 Penn Street Reading 19601 33.000 16,500 $12.00 MG

Exis ng 400 Washington Street Reading 19601 75,000 15,000 $12.50 MG

Exis ng 50 North 4th Street Reading 19601 20,000 15,000 $7.00 NNN

Exis ng 147 North 5th Street Reading 19601 15,000 15,000 $9.50 Gross

Exis ng 1215 North 11th Street Reading 19604 15,000 15,000

Exis ng 62 S. 6th Street Reading 19602 10,000 10,000

Exis ng 525 Penn Street Reading 19601 9,292 9,292

Exis ng 500 Penn Street Reading 19602 17,200 8,600 $9.00 Gross

Exis ng 108 S. 5th Street Reading 19601 8,000 5,000 $12.00 Gross

Exis ng 811 William Lane Reading 19603 25,000 7,400 $7.50 NNN

Reading Pennsylvania Maps

Maps were obtained from www.GreaterReading.com - which is powered by Berks Economic Partnership


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NAI Keystone - Bryan Cole Territorial Markets

South Eastern BerksSouth Eastern Berks

Western BerksWestern Berks

Southern BerksSouthern Berks Northern BerksNorthern Berks

Eastern BerksEastern Berks Central BerksCentral Berks

Downtown ReadingDowntown Reading


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NAI Keystone - Bryan Cole Parking


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Absorp on (Net)

The change in occupied space in a given meperiod.

Available SquareFootage

Net rentable area considered available for lease;excludessubleasespace.

Average Asking RentalRate

Rental rate as quoted from each buildingsowner/managementcompany, For o ce space, a full servicerate wasrequested; for retail, a triple net rate requested; for

industrial,a NNbasis. Building Class

Class A Product is o ce Spaceof steel and concreteconstruc on, built a er 1980, quality tenants, excel-lent ameni es & premium rates. Class B product iso ce Spacebuilt a er 1980, fair to good nishes &wide range of tenants.

DirectVacancy

Space currently available for lease directly withthelandlord or buildingowner.

Market Size

Includesall exis ng and under construc on o cebuildings(o ce, o ce condo, o ce lo , o ce med-ical, all classes and all sizes, both mul-tenant andsingle-tenant, including owner-occupied build-ings) within eachmarket.

OverallVacancy

All unoccupied lease space, either direct or sublease.

SF/PSF

Square foot/per square foot, used as aunit of measurement.

Sublease

Arrangement in which a tenant leases rental property to anoth,and the tenant becomes the landlord to the subtenant.

Sublease Space

Total square footage being marketed for lease by the tenant.Sublease space is not considered in the overall occupancy or asorp onnumbers - only direct leases areincluded.

SubleaseVacancy

Space currently available in the market for sublease withanexis ngtenant within a building ac ng as the landlord.

NAI Keystone - Team Cole Methodology/De ni ons/Sub Market Map


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2nd qtr. 2012 downtown report by bryan cole

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