Downtown Reading Pennsylvania Office Market Report - by Bryan Cole of NAI Keystone

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Downtown Reading Pennsylvania Office Market Report - by Bryan Cole of NAI Keystone Powered By Docstoc
					Downtown Office Market Report - Team Cole




                                www.Bryan-
                                www.Bryan-Cole.com




2010 Year - End Report
Reading, Berks County Pennsylvania


Downtown Office Market Report
Suburban Office Market Report - Team Cole
                          From the Author’s Desk

                        January 2011

                        This report provides an overview of the current office market conditions in Suburban Berks County
                        Pennsylvania. NAI Keystone maintains a comprehensive list of all available properties within the
                        Berks County marketplace, including but not limited to; available space, number of facilities in mar-
                        ket, asking rents, incentives, extra costs, etc… The information that NAI Keystone has assembled is
                        separated by Class A and Class B facilities and consists of market data such as, absorption rates,
                        vacancy rates, asking rents, etc...


     Bryan E. Cole      The report will be available on a quarterly basis by emailing us at marketing@bryanecole.com and
Broker                  asking to subscribe to our mailing list.

Bcole@naikeystone.com
610.370.8502 (direct)   Bryan E. Cole Resume

610.370.8503 (e-fax)    Bryan joined NAI Keystone in July of 2004, but before joining NAI, Bryan Cole spent 4 year’s active
                        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 construction of commercial and multi-unit properties in the Philadelphia sub-
                        urbs. Bryan has experience working with a diverse group of individuals in numerous countries
                        throughout the world. During Bryan’s time at NAI, he has sold in the excess of $130 Million Dollars
                        worth of Commercial Real Estate, and leased hundreds of thousands of square feet of industrial
                        and office space. Because of this, Bryan earned NAI gold club status his first year in the business
                        which is presented to approximately 75 - 100 brokers within the NAI Global network, which is com-
                        prised of over 8,000 Brokers. Bryan is currently working on earning both his CCIM designation and
                        SIOR designation. Bryan has been NAI Keystone's Top Performer from 2006 - 2010.

                        Personal Memberships:

                        NAI (New America International)

                        Veterans of Foreign Wars                          Berks Chamber of Commerce

                        PA Assoc. of Realtors                             NAI Gold Club

                        NAI Office Council                                ICSC Member

                        CoreNet Global                                    NAI Corporate Services Council

                        National Assoc. of Realtors                       CCIM Candidate

                        NAI Retail Council                                SIOR Candidate

                        Young Professionals Network                       WERC

                        Commercial Industrial Council of Berks            TriState Board or Realtors

                        CIC Board Member (2007)                           Council of Supply Chain Management

                        Chapter President of National Marine Corp         NAIOP Member
                        Business Network
NAI Keystone - Team Cole
Downtown Office Market Report– End of 2010

     TRENDS           OVERVIEW:
Vacancy Rates
                      Downtown City of Reading, although has seen some new deals con-
 Class A   Class B    summated, like the Greater Reading Chamber of Commerce, Great-
                      er Berks Development Fund and Berks Economic Partnership leasing
                      space at 201 Penn Street, the market remains flat due to these
                      companies coming from existing space within the City. Buildings
Net Absorption        that have seen vacancy for some time, including 645 Penn Street
 Class A   Class B
                      and 501 Washington Street are starting to show some signs of hope
                      due to new management and ownership changes taking effect.
                      Owners and tenants are continuing to struggle with high parking
                      costs and security concerns, which are continuing to be addressed
                      by a committed City Administration.
 Asking Rents
 Class A   Class B    Downtown City of Reading vacancy rates continue to increase in
                      late 2010 with rates rising 15.6% to 20.7% in Class “B” Product with
                      much of the vacancy continuing to surround large blocks of contigu-
                      ous space.
 Construction
                      The City of Reading and economic development groups have been
 Class A   Class B
                      working hard to improve and revitalize Downtown which shows in
                      the number of projects underway. The new IMAX Theater and the
                      nearly completed addition to the Reading Eagle Headquarters in the
                      CBD are welcome entrants to the market and kick off a multi-million
                      dollar main street corridor project that includes a new $67 million
                      Doubletree hotel and garage project across from the Sovereign En-
                      tertainment and Expo Center.

                      For Full Article visit http://bryan-cole.com/MarketIntel.html




Major Lease Transactions: - for detailed information contact Bryan Cole
         Tenant:               Building:                 Size (SF):                  City
Reading Area Community   201 Penn Street          Greater than 10,000 sf   Reading
College

BEP, GBDF, Chamber       201 Penn Street          Greater than 10,000 sf   Reading


Kadent                   645 Penn Street          Greater than 15,000 sf   Reading


Berks Counseling         645 Penn Street          Greater than 15,000 sf   Reading


Latino Chamber of        501 Washington Street    Greater than 10,000 sf   Reading
Commerce
NAI Keystone - Team Cole
Competitive Set - Contiguous Blocks of Space

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

Existing           515 Canal Street                            Reading          19602      175,000        150,000      $20.00 Gross
Existing           525 Lancaster Avenue                        Reading          19601      110,000        110,000      $11.00 NNN
Existing           520 Willow Street                           Reading          19601      84,000          84,000
Existing           437 Penn Street                             Reading          19601      120,000         72,600       $9.00 + E
Existing           645 Penn Street                             Reading          19601      106,302       40,000 (NV) $11.50 Gross
Existing           35 North 6th Street                         Reading          19601      90,000          80,000      $12.00 MG
Existing           230 North 5th Street                        Reading          19601      42,000          30,000      $10.00 MG
Existing           501 Washington Street                       Reading          19601      108,000         28,154      $9.50 Gross
Existing           201 Penn Street                             Reading          19601      95,000        25,000 (SL)   $15.50 Gross
Existing           126 North 5th Street                        Reading          19501      20,000          20,000
Existing           505 Penn Street                             Reading          19601      33.000          16,500      $12.00 MG
Existing           400 Washington Street                       Reading          19601      75,000          15,000      $12.50 MG
Existing           50 North 4th Street                         Reading          19601      20,000          15,000      $7.00 NNN
Existing           147 North 5th Street                        Reading          19601      15,000          15,000      $9.50 Gross
Existing           1215 North 11th Street                      Reading          19604      15,000          15,000
Existing           62 S. 6th Street                            Reading          19602      10,000          10,000
Existing           525 Penn Street                             Reading          19601       9,292          9,292
Existing           500 Penn Street                             Reading          19602      17,200          8,600       $9.00 Gross
Existing           108 S. 5th Street                           Reading          19601       8,000          5,000       $12.00 Gross
Existing           811 William Lane                            Reading          19603      25,000          7,400       $7.50 NNN



                                                    Reading Pennsylvania Maps




                Maps were obtained from www.GreaterReading.com - which is powered by Berks Economic Partnership
NAI Keystone - Team Cole
Methodology/Definitions/Sub Market Map

Absorption (Net)
The change in occupied space in a given time period.

Available Square Footage
Net rentable area considered available for lease;
excludes sublease space.

Average Asking Rental Rate
Rental rate as quoted from each building’s owner/
management company, For office 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 office Space of steel and concrete
construction, built after 1980, quality tenants, excel-
lent amenities & premium rates. Class B product is          SF/PSF
office Space built after 1980, fair to good finishes &      Square foot/per square foot, used as a unit of measurement.
wide range of tenants.

Direct Vacancy                                              Sublease
Space currently available for lease directly with the       Arrangement in which a tenant leases rental property to another,
landlord or building owner.                                 and the tenant becomes the landlord to the subtenant.

Market Size                                                 Sublease Space
Includes all existing and under construction office         Total square footage being marketed for lease by the tenant.
buildings (office, office condo, office loft, office med-   Sublease space is not considered in the overall occupancy or ab-
ical, all classes and all sizes, both multi-tenant and      sorption numbers
single-tenant, including owner-occupied build-              - only direct leases are included.
ings) within each market.
                                                            Sublease Vacancy
Overall Vacancy                                             Space currently available in the market for sublease with an
All unoccupied lease space, either direct or sublease.      existing tenant within a building acting as the landlord.

				
DOCUMENT INFO
Description: This is a office market report for Downtown Reading Pennsylvania. Information was obtained and compiled by Bryan E. Cole of NAI Keystone Commercial and Industrial, LLC.
Bryan Cole Bryan Cole Sales Broker www.Bryanecole.com
About Bryan joined NAI Keystone in July of 2004, but before joining NAI, Bryan Cole spent 4 year’s active 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 construction of commercial and multi-unit properties in the Philadelphia suburbs. Bryan has experience working with a diverse group of individuals in numerous countries throughout the world. During Bryan’s time at NAI, he has sold and leased in the excess of $130 Million Dollars worth of Commercial Real Estate. Because of this, Bryan earned NAI gold club status his first year in the business. Bryan is currently working on earning both his CCIM designation and SIOR designation. Bryan has recently been named Top Performer for 2006 - 2009.