2nd Qtr. 2012 Suburban Report by Bryan Cole

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

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Suburban Oce Market ReportSuburban Oce Market Report -- By Bryan ColeBy Bryan Cole

2011 Year2011 Year--

End ReportEnd Report

Reading, Berks County Pennsylvania

Suburban Oce Market ReportSuburban Oce Market ReportSuburban Oce Market Report

Committed to Greater Reading.

Connected to the World.


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Suburban Oce Market ReportSuburban Oce Market Report -- Bryan ColeBryan Cole

From the Authors Desk

This report provides an overview of the current oce market condions in Suburban Berks County

Pennsylvania. 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 mar-

ket, 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...

The report will be available on a quarterly basis by emailing us at [email protected] and

asking to subscribe to our mailing list.

Bryan E. Cole

Broker

[email protected]

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 deploy-

ment 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 sub-

urbs. 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 $250 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 8,000 Brokers. Bryan is currently working on earning both his CCIM

designaon and SIOR designaon. Bryan has been NAI Keystone's Top Performer from 2006 - 2011.

NAI (New America Internaonal)

Veterans of Foreign Wars

PA Assoc. of Realtors

NAI Oce Council

CoreNet GlobalNaonal Assoc. of Realtors

NAI Retail Council

Young Professionals Network

Commercial Industrial Council of Berks

CIC Board Member (2007)

Chapter President of Naonal Marine

Corp Business Network

Berks Chamber of Commerce

NAI Gold Club

ICSC Member

NAI Corporate Services Council

CCIM CandidateSIOR Candidate

WERC

TriState Board or Realtors

Council of Supply Chain Management

NAIOP Member

Personal Memberships:


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NAI Keystone - Bryan ColeSuburban Oce Market Report End of 2011

OVERVIEW:The 2011 Greater Reading Oce Market experienced similar acvi-ty as the previous year; however unlike 2010 the market noted a

slight posive absorpon. This was mainly due to the majority of

the tenants in the local market maintaining their space rather than

reducing or relocang. The acvity level was sll there in the 1st

thru 3rd

quarters of 2011; however companies were nervous about

making decisions on moving or relocang from their exisng facili-

es. The posive absorpon came from some tenants taking ad-

vantage of the market by extending their lease terms to take ad-

vantage of the lower base rental rates and tenant incenves and

few slightly increasing their footprints.

New developed slowed in 2011 with only a few facilies being built

which includes the 33,000 sf. speculave project at The Wyomissing

Corporate Campus and the Reading Hospitals newly built MOB in

Cumru Township.

Class A rental rates in 2011 remained at with rates ranging from

$15.50 - $16.75 (Triple Net) on the high side; however there was

considerable downward pressure on pricing within this segment.

The Class B sector experienced the same in 2011 as did Class A,

starng at 13.6% and ending at 13.2%, however while vacancy rates

decreased, rental rates has a slight increase. Base rental rates

slightly increased within this sector ranging from $9-10 per square

foot and tops out at $13-14 per square foot with gross rates coming

in around $16-17 per square foot!

Tenant: Building: Size (SF): City

Reading Hospital &

Medical GroupGrings Hill Greater than 20,000 SF Cumru Township

Travelers Insurance 1105 Berkshire Blvd Greater than 50,000 SF Wyomissing

Origin Healthcare 1 Granite Point Less Than 10,000 SF Wyomissing

Dimensions Inc. 999 Berkshire Blvd Less Than 10,000 SF Wyomissing

Girls Scouts of America 210 George Street Less Than 5,000 SF Muhlenberg

TRENDS

Vacancy Rates

Class A Class B

Net Absorpon

Class A Class B

Asking Rents

Class A Class B

Construcon

Class A Class B

Completed Lease Transacons:


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Suburban Oce Market ReportSuburban Oce Market Report -- Bryan ColeBryan Cole

Greater Reading Oce Market Report - End of Year 2011 Report

The 2011 Greater Reading Oce Market experienced similar acvity as the previous year; however unlike 2010 the market noted a

slight posive absorpon. This was mainly due to the majority of the tenants in the local market maintaining their space rather

than reducing or relocang. The acvity level was sll there in the 1st

thru 3rd

quarters of 2011; however companies were nervousabout making decisions on moving or relocang from their exisng facilies. The posive absorpon came from some tenants tak-

ing advantage of the market by extending their lease terms to take advantage of the lower base rental rates and tenant incenves

and few slightly increasing their footprints.

These renewals included The Travelers insurance group who renewed their lease at 1105 Berkshire Blvd, Wyomissing which con-

sisted of approximately 60,000 +/- square feet, along with STV Inc., who renewed their lease at 205 W. Welsh Drive in Douglass-

ville, which was approximately 50,000 sf.

New developments slowed in 2011 with only a few facilies being built which includes the 33,000 sf. speculave project at The

Wyomissing Corporate Campus and the Reading Hospitals newly built MOB in Cumru Township.

The 4th

quarter 2011 into the 1st

quarter 2012 experienced an extreme level of acvity. There are approximately 200,000 sf. of new

and exisng tenants circulang the market; looking to move into the county or relocate from the exisng facilies within the coun-

ty.

Although the level of acvity has jumped, there have also been recent press releases of large tenants vacang large blocks of con-

guous space or looking to sub-lease their space. This includes the announcement of CNA looking to close down or downsize its

Reading facility which contains approximately 260,000 sf., along with Teleex markeng their 60,000 sf. for Sub -Lease at 1 Meridi-

an Boulevard in Wyomissing, IMS Healthcare reducing their footprint locally, and Sovereign Bank connuing to try and sub -lease

their 57,000 sf. oce building on Berkshire Blvd.

Overall the end of year 2011 showed a slight decrease in Suburban Class A building Vacancies starng at 12.4% in late 2010 and

closing at 12.2%, mostly due to a new build to suit for the Reading Hospital and Medical Group, along with companies increasing

their footprints at 1 Granite Point, and 1105 Berkshire Blvd. Class A buildings have typically been a safe sector in the market-

place because of low inventory; however with new developments coming on line, and companies sll looking for lower rents theClass A sector has seen less demand. This will and has changed in 2012 with a great deal of the acvity surrounding this type of

product.

Class A rental rates in 2011 remained at with rates ranging from $15.50 - $16.75 (Triple Net) on the high side; however there

was considerable downward pressure on pricing within this segment.

The Class B sector experienced the same in 2011 as did Class A, starng at 13.6% and ending at 13.2%, however while vacancy

rates decreased, rental rates has a slight increase. Base rental rates slightly increased within this sector ranging from $9-10 per

square foot and tops out at $13-14 per square foot with gross rates coming in around $16-17 per square foot!

2012 is showing signs of hope, with new tenants entering the market place, and rental rates connuing along a steady course.

Deals will connue geng done because landlords are reacng to current market condions, which means companies are gengfavorable incenves, such as introductory rates, rent abatements and addional tenant improvements. Also, landlords are now

oering tenant improvements and incenves to keep their exisng tenants.

Check out my blog at www.Bryanecole.wordpress.comfor more market informaon and updates within the Greater Reading Oce

Sector along with checking our website at www.Bryan-Cole.com

Wrien and compiled by Bryan Cole of NAI Keystone Commercial & Industrial, LLC
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.bryanecole.wordpress.com/


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NAI Keystone - Bryan ColeCompeve Set - Conguous Blocks of Space

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

Exisng

Stone Ponte Center

Muhlenberg

19605

279,000

229,000

$10.00 NNN

Proposed Three Meridian Blvd Wyomissing 19610 67,290 67,290 $16.75 NNN

Exisng Berkshire Knoll Wyomissing 19610 57,346 57,346 $15.75 NNN

Proposed Spring Oce & Medical Campus - Bldg. 1 Sinking Spring 19607 53,160 53,160 $16.00 NNN

Exisng Meridian Building Wyomissing 19610 372,900 111,070* $19.50 Grs

Proposed Wyomissing Corporate Campus Building C Wyomissing 19610 43,000 43,000 $13.85 NNN

Proposed Wyomissing - Proposed Bldg. Wyomissing 19610 40,000 40,000 $.00



Exisng 730 Hemlock Road Morgantown 19543 34,491 34,491 $.00

Proposed Wyomissing Corporate Campus Building D Wyomissing 19610 33,500 33,500 $15.85 NNN

Exisng 2001 State Hill Road Wyomissing 19610 50,154 25,000 $13.00 NNN

Proposed Carlino Pad Site - Spring Ridge Wyomissing 19610 30,000 30,000 $.00


Proposed Alcon Building Wyomissing 19610 30,000 30,000 $.00

Exisng 965 Berkshire Blvd. Wyomissing 19610 11,014 11,014 $11.00 NNN

Exisng 210 George Street Muhlenberg 19605 37,500 27,500 $12.50 NNN

Exisng Wyomissing Corporate Campus Building E Wyomissing 19610 27,200 27,200 $15.85 NNN

Exisng Exeter Ridge Corporate Center Exeter 19606 38,000 25,100 $16.50 NNN

Exisng 601 Heisters Lane Muhlenberg 19605 23,040 23,040 $4.00 NNN

* 10,000 SF coming on line 1st qtr. 2013 and 60,000 SF is currently being subleased.

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

For Lease

3 Buildings Exisng with 2 addional

buildings proposed

Spring Corporate Campus

167,000 Total Square Feet

Located in Spring Twp. PA 19609

For Lease or Sale

6 buildings proposed with the smallest

calculated at 6,000 sf.


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NAI Keystone - Bryan ColeTerritorial Markets

South Eastern BerksSouth Eastern BerksWestern BerksWestern Berks

Southern BerksSouthern BerksNorthern BerksNorthern Berks

Eastern BerksEastern Berks

Central BerksCentral Berks


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Absorpon (Net)

The change in occupied space in a given me period.

Available Square Footage

Net rentable area considered available for lease;

excludes sublease space.

Average Asking Rental Rate

Rental rate as quoted from each buildings owner/

management company, For oce space, a full service

rate was requested;

for retail, a triple net rate requested; for

industrial, a NN basis.

Building Class

Class A Product is oce Space of steel and concrete

construcon, built aer 1980, quality tenants, excel-

lent amenies & premium rates. Class B product is

oce Space built aer 1980, fair to good nishes &

wide range of tenants.

Direct Vacancy

Space currently available for lease directly with the

landlord or building owner.

Market Size

Includes all exisng and under construcon oce

buildings (oce, oce condo, oce lo, oce med-

ical, all classes and all sizes, both mul-tenant and

single-tenant, including owner-occupied build-

ings) within each market.

Overall Vacancy

All unoccupied lease space, either direct or sublease.

SF/PSF

Square foot/per square foot, used as a unit of measurement.

Sublease

Arrangement in which a tenant leases rental property to another,

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 ab-

sorpon numbers

-only direct leases are included.

Sublease Vacancy

Space currently available in the market for sublease with an

exisng tenant within a building acng as the landlord.

NAI Keystone - Bryan ColeMethodology/Denions/Sub Market Map


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Contact info:Bryan Cole

Oce & Medical Specialist

610.370.8502 (direct)

[email protected]

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

Quarterly Monthly Weekly

Newsleers

Specic Industry

Emails Brochures & Market Reports

E-Brochures E-News Flyers Oce Report

One of the many ways we Market Real Estate

Documents

2nd Qtr. 2012 Suburban Report by Bryan Cole