3rd Qtr. 2012 Suburban Report by Bryan Cole

7/28/2019 3rd Qtr. 2012 Suburban Report by Bryan Cole

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

20122012--

3rd Qtr. Update3rd Qtr. Update

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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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 facili-

es 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, absorp-

on rates, vacancy rates, asking rents, etc

This market report and data is assembled in house by Bryan Cole. All rights are reserved as this in-

formaon has not been obtained by Public Sources.

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/Sr. Associate

[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 busi-

ness 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.

Check Bryan

Bryan E. Cole | Oce & Medical Specialist

610.370.8502 (d) | www.Bryan-Cole.com | [email protected]

Dont forget to check:Dont forget to check:Dont forget to check:

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

Now Opmized for the IPad and IPhoneNow Opmized for the IPad and IPhoneNow Opmized for the IPad and IPhone


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Suburban Ofce Market Overview:The Greater Reading Suburban Oce Market ended the third quarter 2012 with a vacancy rate for

Class A Oce buildings at 18.48%. This is an Increase in vacancy from 2nd

quarter 2012 and an In-

crease in vacancy from same period 2011. The average rental rates remained unchanged for the

most part at $15.00 - $21.00 per square foot Modied Gross which is similar to that of rates from the

same period 2011.

The main deals of focus within Class A buildings were: The Sublease of Teleex's facility at 1 Meriden

Blvd. which added 66,000 sf. to the market along with newly built facilies at 1030 Reed Ave. which

were recently leased by two medical groups occupying approximately 30,000 sf

The Class B Suburban oce market ended the third quarter of 2012 with a vacancy rate of

20.57%. This is an Increase in vacancy from 2nd

quarter 2012 and an sharp increase from the same

period 2011. The average rental rates remained unchanged from 2nd quarter 2012 to $11.00 -

$15.00 per square foot modied gross opposed to that of rates from the same period 2011 which was$13.50 - $18.00 per square foot.

The main deals of focus within Class B buildings were the new vacancies at 965 Berkshire Blvd which

consists of 11,014 sf., and the vacancies opened up by the medical users moving to Reed Ave.

And the Class C Suburban oce market ended the third quarter of 2012 with a vacancy rate of 8.42%.

Our Outlook for the oce market at the closing of 2012 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.

New Construcon remained unchanged for the third quarter of 2012, with approximately 329,000 sf.

of proposed product sll available. The 4th Quarter 2012 into the 1st Quarter 2013 will see an in-

crease in new construcon with the newly proposed Naonal Penn Facility in Spring Township con-

sisng of approximately 48,000 sf. And the 30,000 sf. Spec building at the Wyomissing Corporate

Campus.

For Full Arcle visit hp://bryan-cole.com/MarketIntel.html

3rd Qtr. Trends

Vacancy Rates

Class A Class B

Net Absorpon

Class A Class B

Asking Rents

Class A

Class B

Construcon

Class A Class B

Other Trends

NAI Keystone -By Bryan ColeBy Bryan Cole

Suburban Oce Market Report 3rd Qtr. 2012

Tour Acvity

Concessions

Sales Volume

# of Properes

for Sale

Check Bryan



Non Classied buildings include Hospital and Large Governmental instuons. Although we track these facilies, it is our opinion

that we cannot accurately display vacancy rates when these facilies are used in the overall numbers.


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NAI Keystone -By Bryan ColeBy 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

vacancy in its Class A and B product and increased incenves/

concessions which have allowed Tenants to capitalize on the

current market condions.

Within the past 18 months Tenants have been able to lock in

favorable rates, while obtaining leases with early out clauses

in the event their long term commitments do not pan out.

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.

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 has brought numerous ten-

ants to the market place allowing landlords to get aggressive,

now that tenants are starng to commit rather then Kick

Tires.

Landlords understand the value of maintaining their tenant

base even in the event of reducing their base rents and oer-

ing addional TI dollars.

Overall the market has seen the majority of the acvity sur-

rounding Medical and Large Operaons centers.

Most recently Naonal Penn Bank announced they will be

construcng a 48,000 sf. facility in Spring Twp.

Although the market will most likely be a Tenants Market

through 2013. Increased acvity and deals being consummat-

ed are encouraging.

Check Bryan




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Tenant Address Submarket SF Type

The Reading Hospital & Medical Center 2101 State Hill Road Wyomissing Boro 16,364 Renewal

Digesve Disease Associates 1030 Reed Ave Wyomissing Boro 19,445 Relocaon w/ Expansion

Berks County Digesve Health 1030 Reed Ave Wyomissing Boro 12,135 Relocaon w/ Expansion

Holcomb Behavioral Health 1030 Reed Ave Wyomissing Boro 3,708 Relocaon w/ Expansion

Pennside Partners 1220 Broadcasng Road Spring Township 5,200 Relocaon

Address Submarket Buyer/Seller SF $ psf

210 George Street Muhlenberg Twp. Muhlenberg Township / Benecial Bank of PA 42,500 $27.06

1234 Penn Ave. Wyomissing Boro.Greater Reading Mental Health / Girard M.

Maryniak3,984 $149.35

850 N. Park Road Wyomissing Boro.Baldwin Goschalk Prop Inc / Jjc Capital Ptshp

Llc (Loomis Company)47,608 $34.45

2620 Westview Drive Spring Township Broadcasng Pointe Lp / Centre Avenue, LLC 9,850 $182.74

400 Spring Ridge Drive Spring Township Daniel E. Wozniak / RPA Properes I Llc 12,000 $116.67

Completed Lease Transacons in the MarketplaceCompleted Lease Transacons in the MarketplaceCompleted Lease Transacons in the Marketplace

Completed Sale Transacons in the MarketplaceCompleted Sale Transacons in the MarketplaceCompleted Sale Transacons in the Marketplace

3rd Quarter 2012 Deals Completed3rd Quarter 2012 Deals Completed3rd Quarter 2012 Deals Completed

Dont forget to check:

www.WyomissingOceSpace.com

for more properes for Lease in Spring

Township and Wyomissing Borough.

Check Bryan




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NAI Keystone -By Bryan ColeBy 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 2012

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




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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 -By Bryan ColeBy 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

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3rd Qtr. 2012 Suburban Report by Bryan Cole