Suburban Office Market Overview by Bryan Cole of NAI Keystone
The Greater Reading Suburban Office Market ended the second quarter 2013 with a vacancy rate for Class A Office buildings at 15.60%. This is a decrease in vacancy rates from 1st quarter 2013 and an increase in vacancy from same period 2012. The average rental rates increased to $16.50 – $21.50 per square foot Modified Gross which is an increase in the rates from the same period 2012.
Deals of primary focus within Class A building sector were the 6,863 sf. lease at 1220 Broadcasting Road, which was a relocation and expansion for the already Wyomissing based organization, and the new Amity Professional Center which Amity Dentistry leased space in the new building located at 957 Ben Franklin Highway, these leases along with a few other assisted in reducing vacancy rates and increasing overall absorption.
The Class B Suburban office market ended the second quarter of 2013 with a vacancy rate of 19.46%. This is a slight increase in vacancy from first quarter 2013 by less than one percent, and it is a slight decrease from the same period 2012. The average rental rates had an increase from 1st quarter 2013 to 2nd quarter 2013 at $12.50 – $17.50 per square foot modified gross opposed to that of rates from the same period 2012 which was $11.00 – $17.50 per square foot.
Deals of primary focus within the Class B building sector were the new leases at 965 Berkshire Blvd. of 11,014 sf, and 2001 State Hill Road of 3,500 sf. The activity level for second generation Class B space has slowed into the second quarter, however this is typical towards the summer months. We expect an increase within the 3rd quarter 2013.
And the Class C Suburban office market sector ended the 2nd quarter of 2013 with a vacancy rate of 13.0% which was an increase from the 1st quarter 2013.
Our outlook for the office market going into 3rd quarter 2013 is continued optimism as activity levels continue to remain strong. There are over 200,000 sf. of new lease deals within the Berks County market.
Bryan Cole Sr. Associate
NAI Keystone Commercial & Industrial, LLC
3970 Perkiomen Ave, Suite 200 Reading, PA 19606
Direct +1 610 370 8502