Downtown Reading Office Market Overview by Bryan Cole of NAI Keystone
The Greater Reading Downtown Office Market ended the 2nd quarter with a vacancy rate for Class A Office buildings at 21.47%. This was welcomed news as it was a positive change in vacancy rates from 1st quarter 2013; and it was also a decrease from the same period 2012. The average rental rates remained steady from 1st to 2nd quarter 2013 at $11.00 per square foot Modified Gross to $15.00 per square foot Modified Gross.
The largest contiguous blocks of 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 and are still taking a toll on the overall vacancy rate within Downtown. However 400 Washington Street added a few new tenants which helped the overall vacancy rates.
The Class B Downtown office market ended the 1st quarter with a vacancy rate of 21.86%. This was a slight decrease in vacancy rates from 1st quarter 2013, and it was a slight decrease from the same period 2012. The average rental rates remained unchanged at $7.00 per square foot Modified Gross in the 1st quarter 2013 to $11.00 per square foot Modified Gross, this is however a decrease to the rates from the same period 2012.
Overall Vacancy Rates for Class C buildings jumped from 1st quarter to over 23.21%, this was due to Class C tenants moving to higher tier properties and various buildings previously tracked as Class B buildings were changed to Class C buildings, due to re-evaluating the assets and conditions.
Bryan Cole Sr. Associate
NAI Keystone Commercial & Industrial, LLC
3970 Perkiomen Ave, Suite 200 Reading, PA 19606
Direct +1 610 370 8502