EO 2nd Quarter Office Market Report for Downtown Greater Reading
Downtown Reading Office Market Overview by Bryan Cole of NAI Keystone
The Greater Reading Downtown Office Market ended the 2nd quarter with a vacancy rate for Class A Office buildings at 21.47%. This was welcomed news as it was a positive change in vacancy rates from 1st quarter 2013; and it was also a decrease from the same period 2012. The average rental rates remained steady from 1st to 2nd quarter 2013 at $11.00 per square foot Modified Gross to $15.00 per square foot Modified Gross.
The largest contiguous blocks of vacancies in Class A facilities were at 401 Penn Street and 201 Penn Street, which caused Class A vacancy rates to sky-rocket from 2011 into 2012. Due to the current economic climate and overall interest in the City, these buildings remain vacant and are still taking a toll on the overall vacancy rate within Downtown. However 400 Washington Street added a few new tenants which helped the overall vacancy rates.
The Class B Downtown office market ended the 1st quarter with a vacancy rate of 21.86%. This was a slight decrease in vacancy rates from 1st quarter 2013, and it was a slight decrease from the same period 2012. The average rental rates remained unchanged at $7.00 per square foot Modified Gross in the 1st quarter 2013 to $11.00 per square foot Modified Gross, this is however a decrease to the rates from the same period 2012.
Overall Vacancy Rates for Class C buildings jumped from 1st quarter to over 23.21%, this was due to Class C tenants moving to higher tier properties and various buildings previously tracked as Class B buildings were changed to Class C buildings, due to re-evaluating the assets and conditions.
Bryan Cole Sr. Associate
NAI Keystone Commercial & Industrial, LLC
3970 Perkiomen Ave, Suite 200 Reading, PA 19606
Direct +1 610.370.8502