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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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

[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

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.




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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.




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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.




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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




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including

market.

-

NAI Keystone -By 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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4th Qtr. 2012 Suburban Report by Bryan Cole