Download - 4th Qtr. 2012 Suburban Report by Bryan Cole
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Suburban Oce Market Report -By Bryan Cole
2012-4th Qtr. Update
Reading, Berks County Pennsylvania
Committed to
Connected to the W
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Suburban Oce Market Report -By Bryan Cole
From the Authors Desk
This report provides an overview of the current oce market condions in Suburban Berks County
Pennsylvania. Bryan Cole of NAI Keystone maintains a comprehensive list of all available properes
within the Berks County marketplace, including but not limited to; available space, number of
facilies in the market, asking rents, incenves, extra costs, etc The informaon that NAI Keystone
has assembled is separated by Class A and Class B facilies and consists of market data such as,
absorpon rates, vacancy rates, asking rents, etc
This market report and data is assembled in house by Bryan Cole. All rights are reserved as this
informaon has not been obtained by Public Sources.
The report will be available on a quarterly basis by emailing [email protected] and
subscribing to our mailing list.
Bryan E. Cole
610.370.8502 (direct)
610.370.8503 (e-
fax)
www.Bryan-Cole.com
Bryan E. Cole Resume
2012
Bryan joined NAI Keystone in July of 2004, but before joining NAI, Bryan Cole spent 4 years acve
duty in the U.S. Marine Corp, including a 6 month deployment in Afghanistan, a 4 month
deployment in Kuwait/Iraq, and a 7 month deployment in Japan. Prior to joining the military Bryan
was involved in the construcon of commercial and mul-unit properes in the Philadelphia
suburbs. Bryan has experience working with a diverse group of individuals in numerous countries
throughout the world. During Bryans me at NAI, he has sold in the excess of $290 Million Dollars
worth of Commercial Real Estate, and leased hundreds of thousands of square feet of industrial and
oce/medical space. Because of this, Bryan earned NAI gold club status his rst year in the
business which is presented to approximately 75 - 100 brokers within the NAI Global network, which
is comprised of over 3,500 Brokers. Bryan is currently working on earning both his CCIM
designaon and SIOR designaon. Bryan has been NAI Keystone's Top Performer from 2006 - 2012.
Check Bryan Out on:Bryan E. Cole | Oce & Medical Specialist
610.370.8502 (d) | www.Bryan-Cole.com | [email protected]
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The Greater Reading Suburban Oce Market ended the 4th quarter 2012 with a vacancy rate for
Class A Oce buildings at 18.5%. This is a slight increase in vacancy rates from 3rd quarter 2012 and
an increase in vacancy from same period 2011. The average rental rates remained steady at $16.00 -
$19.50 per square foot Modied Gross which is a slight decrease to the rates from the same period
2011.
Deals of primary focus within Class A building sector were the 48,000 sf Naonal Penn Bank locaon
proposed at the Spring Ridge Corporate Center, which will be leased 100% to Nat Penn, and the new
Faireld Inn proposed along Meridian Blvd., is assisng to reduce the oce vacancies by
approximately 113,600 sf. The Faireld Inn is purchasing three proposed oce pad sites at 3
Meridian Blvd.
The Class B Suburban oce market ended the fourth quarter of 2012 with a vacancy rate of
18.98%.This is a decrease in vacancy from 3rd quarter 2012 by less then one percent, however it is
an increase from the same period 2011 by almost four percent. The average rental rates remained
unchanged from 3rd to 4th quarter 2012 at $11.00 - $16.50 per square foot modied gross opposed
to that of rates from the same period 2011 which was $13.00 - $18.00 per square foot.
Deals of primary focus within the Class B building sector were the new leases at 975 Berkshire Blvd. of
5,000 sf, and Stonepointe Center at 10,550 sf along with the recent purchase of 30,966 sf at 6
Commerce Drive by Brentwood Industries.
And the Class C Suburban oce market sector ended the 4th quarter of 2012 with a vacancy rate of
10.97% which was an increase from the 3rd quarter 2012.
Our outlook for the oce market going into 2013 is very opmisc with acvity levels at new highs
within the market place and owners oering addional incenves and concessions to assist in geng
deals done.
For Full Arcle visit hp://bryan-cole.com/MarketIntel.html
Vacancy Rates
Class A Class B
Net Absorpon
Class A Class B
Asking Rents
Class A
Class B
Construcon
Class A Class B
NAI Keystone -By Bryan Cole
Suburban Oce Market Report 4th Qtr. 2012
Tour Acvity
Concessions
Sales Volume
# of Properes
for Sale
Non Classied buildings include Hospital and Large Governmental instuons. Although we track these facilies, in our opinion
we cannot accurately display vacancy rates when these facilies are used in the overall numbers.
Check Bryan Out on:Bryan E. Cole | Oce & Medical Specialist
610.370.8502 (d) | www.Bryan-Cole.com | [email protected]
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NAI Keystone -By Bryan Cole
Suburban Oce Market Report 3rd Qtr. 2012
Tenant perspecve: (As a Tenant Representave)The Greater Reading market has experienced a high level of
interest within the 4th quarter 2012, although acvity is high
and deals are steadily coming forward the A and B product is
sll oering incenves/concessions which have allowed Ten-
ants to connue to capitalize on past market condions.
However moving forward especially in 2013, landlords will
begin to limit the concessions and negoate much harder on
higher base rates.
Tenants should begin to negoate any leases that are within
18 months of expiraon. This allows for enough room to ne-
goate and capitalize on the current condions.
Although the markets are improving and landlords will begin
to lock in beer terms, we feel the market will connue to be
a Tenants Market into the late stages of 2013 based on
current vacancies and leasing acvity.
Landlord perspecve: (As a Landlord Representave)
Greater Readings recent acvity will sway some landlords to
think the market has turned around. Be cauous as we feel
well into 2013 the market will maintain its Tenant Market
status.
Rates have been low over the past few years, so by oering
free rent on the front end while maintaining higher base rates
will not only provide tenants the ability to get into the space
on a lower inial cost for year 1, it will allow landlords to
maintain higher valuaons on their assets since most Free
Rent is outside the term. This allows landlords to sll geteecve 3, 5, or 7 year terms while liming their exposure
long-term.
Interest rates will probably remain low well into 2013. This
will allow tenants to nance TI themselves at somemes
beer rates then landlords. This makes the Free Rent on the
front end even more appealing to some tenants.
Check Bryan Out on:Bryan E. Cole | Oce & Medical Specialist
610.370.8502 (d) | www.Bryan-Cole.com | [email protected]
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Suburban Oce Market Report -By Bryan Cole
Tenant Address Submarket SF Type
Naonal Penn Bank Spring Ridge Corporate Ctr Spring Township 48,000 Relocaon / Consolidaon
Anderson Insurance Brokers 1150 Berkshire Blvd. Wyomissing Boro 2,732 Renewal
Regional Orthopedic Associates 975 Berkshire Blvd. Wyomissing Boro 5,200 Relocaon
A to Z Vacuum 220 N. Park Road Wyomissing Boro 10,000 Relocaon w/ Expansion
Inspiritek 1030 Reed Ave. Wyomissing Boro 2,200 New Locaon
Address Submarket Buyer/Seller SF $ psf
6 Commerce Dr. Cumru Twp. Sherri of Berks / Brentwood Industries 30,929 $50.11
1235 Penn Ave. Wyomissing Boro. Irmgard H. Barre / EJ Penn Associates 35,414Not Yet
Disclosed
10 - 12 Wingo Lane Muhlenberg Twp. Wingco Development / Silveroak Properes 21,000 $54.04
1065 Woodland Road Wyomissing Boro. Pen Trust / Wywood Realty Associates, LP 23,500 $78.72
Dont forget to check:
www.WyomissingOceSpace.com
for more properes for Lease in Spring
Township and Wyomissing Borough.
Check Bryan Out on:Bryan E. Cole | Oce & Medical Specialist
610.370.8502 (d) | www.Bryan-Cole.com | [email protected]
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NAI Keystone -By Bryan ColeProposed Oce Projects
Status Property Name City Zip Gross Bldg. SF Vacant SFExp. Delivery
Date
Proposed
Spring Corporate Campus-
Building A
Spring Twp.
19609
53,000
53,000
2013
Proposed Spring Corporate Campus - Building B Spring Twp. 19609 8,000 8,000 2013
Proposed Spring Corporate Campus - Building C Spring Twp. 19609 6,000 6,000 2013
Proposed Spring Corporate Campus - Building D Spring Twp. 19609 35,000 35,000 2013
Proposed Spring Corporate Campus - Building E Spring Twp. 19609 35,000 35,000 2013
Proposed Spring Corporate Campus - Building F Spring Twp. 19609 35,000 35,000 2013
Proposed 1001 James Drive Leesport 19533 12,300 12,300 TBD
Proposed Wyomissing Corporate Campus - Building C Wyomissing 19610 43,000 43,000 TBD
Proposed Wyomissing Corporate Campus - Building E Wyomissing 19610 30,000 30,000 2013
Proposed 520 Van Reed Road Wyomissing 19610 40,000 40,000 TBD
Proposed White Pines Professional Center Flying Hills 19607 5,400 5,400 TBD
Proposed Hearthstone Court Exeter 19606 9,000 9,000 TBD
Proposed Spring Commons Sinking Spring 19608 14,000 14,000 TBD
Proposed Wyomissing Professional Center Wyomissing 19610 30,000 30,000 TBD
Proposed Spring Ridge Corporate Campus Spring Twp. 19610 48,000 0 2013
Proposed Berkshire Court Wyomissing 19610 30,000 30,000 TBD
Proposed Meridian Blvd. - Building A Spring Twp. 19610 23,250 0 2013
Proposed Meridian Blvd. - Building B Spring Twp. 19610 23,800 0 2013
Proposed Meridian Blvd. - Building C Spring Twp. 19610 18,550 0 2013
Proposed Meridian Blvd. - Building D Spring Twp. 19610 13,300 13,300 TBD
20 Total Sites w/16 Available 512,600 sf. 399,000 sf.
Large Scale Developments
Meridian Condos
67,692 +/-
sf of Single Story
Oce Condos.
Located in Spring Twp. PA
Total of 4 Buildings Proposed
For Sale or Lease
Wyomissing Corporate Campus
169,000 Total Square Feet
Located in Wyomissing PA 19610
3 Buildings Exisng with 2 addional
buildings proposed
For Lease
Spring Corporate Campus
167,000 Total Square Feet
Located in Spring Twp. PA 19609
6 buildings proposed with the smallest
calculated at 6,000 sf.
For Lease or Sale
Check Bryan Out on:Bryan E. Cole | Oce & Medical Specialist
610.370.8502 (d) | www.Bryan-Cole.com | [email protected]
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including
market.
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NAI Keystone -By Bryan ColeMethodology/Denions/Sub Market Map
Check Bryan Out on:Bryan E. Cole | Oce & Medical Specialist
610.370.8502 (d) | www.Bryan-Cole.com | [email protected]
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Contact info:Bryan Cole
Oce & Medical Specialist
610.370.8502 (direct)
www.Bryan-Cole.com
Check Us Out on:
Look for our marketing material
Bryan Cole
NAI Keystone Commercial & Industrial,
LLC
Exeter Ridge Corporate Center
3970 Perkiomen Avenue
Suite 200
Reading, PA 19606
www.Bryan-Cole.com
www.NAIKeystone.com
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