Industrial Market Snapshot.
The industrial markets deteriorated in 2007 – 2010 having vacancy rates increasing from 4.2% -23% over the 3 year span. In 2011 into 2012 the industrial market has seen a large increase in users looking to expand and relocate into Reading, Berks County. Most of the activity has surrounded the big box distribution and manufacturing facilities which made up the large portion of the vacancies. The majority of the large existing facilities in which fell victim to the economic markets has since been back filled and created a number of jobs in the surrounding area. In addition there have been two large big box distributionon sites purchased and will be home to PetSmart and Dollar Generals distribution centers.
Activity is starting to pick up for users in the 20,000 – 50,000 sf. Range. The financing market has also see some positive signs with deals started to push thru and get finalized. Regardless of the pick-up in activity the Industrial market in Berks County is still a Tenant’s market with lease deals being finalized well below the intended market values of $3.50 – $4.00 per square foot. Owners are willing to offer incentives including free rent, large tenant improvement dollars, and lower rental rates to assist in competing with the relative small user bases looking for less than 50,000 sf.
The Overall industrial market is seeing signs of high occupancy levels which could translate into new sites being needed to supply the growth for smaller users.
By Bryan Cole, NAI Keystone Commercial & Industrial, LLC
Bryan E. Cole | NAI Keystone Commercial & Industrial, LLC
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About Bryan Cole and NAI Keystone