Suburban Berks County End of 3rd Quarter Office Market Report – By Bryan Cole
Suburban Office Market Overview:
The Greater Reading Suburban Office Market ended the third quarter 2012 with a vacancy rate for Class A Office buildings at 18.48%. This is an Increase in vacancy from 2nd quarter 2012 and an Increase in vacancy from same period 2011. The average rental rates remained unchanged for the most part at $15.00 – $21.00 per square foot Modified 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 Teleflex’s facility at 1 Meriden Blvd. which added 66,000 sf. to the market along with newly built facilities at 1030 Reed Ave. which were recently leased by two medical groups occupying approximately 30,000 sf
The Class B Suburban office 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 a 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 modified 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 office market ended the third quarter of 2012 with a vacancy rate of 8.42%.
Our Outlook for the office market at the closing of 2012 is very optimistic with activity levels at new highs within the market place and owners offering additional incentives and concessions to assist in getting deals done.
New Construction remained unchanged for the third quarter of 2012, with approximately 329,000 sf. of proposed product still available. The 4th Quarter 2012 into the 1st Quarter 2013 will see an increase in new construction with the newly proposed National Penn Facility in Spring Township consisting of approximately 48,000 sf. And the 30,000 sf. Spec building at the Wyomissing Corporate Campus.
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Article Written and Assembled by:
NAI Keystone Commercial & Industrial, LLC
www.Bryan-Cole.com & www.WyomissingOfficeSpace.com