Downtown Office Market Overview by Bryan Cole of NAI
The Downtown City of Readings 3rd Quarter overall office market was much like the similar period of 2011 and the first half of 2012.
The largest additions to the overall 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.
Overall Vacancy Rates for Class B/C buildings remained unchanged throughout 2012 however, various buildings previously tracked as Class B buildings were changed to Class C buildings, due to re-evaluating the assets and conditions.
There is over 523,000 sf. of vacant space located within Class A & Class B buildings and an additional 272,000 sf. available in Class C product.
Vacancy rates will continue to climb if Tenants continue to relocate out of the city into the suburbs.
In the event C.N.A relocates its entire operations., Another 80,000 sf. +/- will be added to the overall high vacancy.
Downtown City of Reading vacancy rates for Class A buildings are 22.96% with Class B building estimates at 22.08% and Class C vacancy rates at 20.35%
Concessions and Incentives including free rent, high tenant improvement allowances and moving allowances are some ways landlords are getting creative to assist in landing quality long-term tenants.
For additional reports visit http://bryan-cole.com/market-intel.html
Article Written and Assembled by:
NAI Keystone Commercial & Industrial, LLC