NAI Keystone
Market Information
Growth sectors include Food Processing, Plastics, Specialty Metals and Battery Manufacturing. Medical and institutional services are key drivers in the office sector with technology based businesses quickly emerging. Private/Public partnerships are effectively linking the Penn Corridor from Reading to Wyomissing.
Medical and Institutional users are key office drivers with less than .5% growth coming from new construction. This is the 3rd year of overall negative absorption, 2% in 2010. The downtown market accounts for most of this with Wyomissing/Spring Ridge outperforming all other areas. Overall rates have slid a modest $0.75/ SF and quality downtown space can be found at $10 / SF gross which should bring deals in from the suburbs. Developers have 600,000 SF of office space planned and approved just waiting for demand.
Industrial vacancies have risen for the 3rd year with 6.8 million SF currently available. Only 86,000 SF of new product was added and the market had a negative absorption of 789,000 SF comparing with a neg of 1,072,000 SF in the prior year. Lease rates are down slightly with landlord concessions routine. Leasing activity is up as many users cannot obtain financing to purchase. Gross sale of Industrial product was down $8 million over prior year to $15 million total. Sale prices were down only slightly with a range of $49 to $22 per foot for Class A to C respectively.
The number of Residential units sold is up 9% but average sale prices down 6% from prior year. Developers continue to sit on projects with over 2,000 approved, but unimproved lots ready.
Notable retail projects include the 61,000 SF Spring Market Center (82% leased) and the 400,000 SF / $75 Mil Super Wal-Mart anchored Tilden Center (55% leased). Planning has slowed for large centers but continues for pharmacies and convenience stores. Bank branch growth has been flat. The BOSS 2020 program is projected to enhance the traffic flow and boost retail / commercial development in Sinking Spring.
Reading, Berks County At-A-Glance
| |
Low Rental Rates
|
High Rental Rates
|
Effective Average
Rental Rates
|
Vacancy Rate
|
| Downtown
Office
|
|
|
|
|
| New Construction
(AAA)
|
15.00 |
18.00 |
17.00 |
N/A |
| Class A (Prime)
|
11.00 |
15.50 |
13.25 |
3.00% |
| Class B (Secondary)
|
7.00 |
12.50 |
11.00 |
25.5% |
| |
|
|
|
|
| Suburban
Office
|
|
|
|
|
| New Construction
(AAA)
|
18.00 |
21.00 |
17.74 |
N/A |
| Class A (Prime)
|
16.00 |
21.00 |
16.00 |
12.4% |
| Class B (Secondary) |
13.50 |
18.00 |
14.50 |
13.6% |
| |
|
|
|
|
| Industrial
|
|
|
|
|
| Bulk Warehouse
|
2.75 |
4.10 |
3.25 |
23.1%
|
| Manufacturing
|
2.75 |
4.00 |
3.29 |
23.1% |
| High Tech (R&D)
|
4.75 |
7.95 |
6.35 |
3.0% |
| |
|
|
|
|
| Retail
|
|
|
|
|
| Downtown
|
8.00 |
15.00 |
12.25 |
15.5% |
|
Neighborhood
Service
Center
|
18.00 |
30.00 |
24.50 |
12.0% |
| Community Power
Centers (Big Box)
|
11.00 |
15.00
|
13.00 |
15.5% |
| Regional Malls |
12.25 |
16.67 |
14.00 |
15.2% |
| |
|
|
|
|
|
Development
Land
|
Low Price/Acre
|
High Price/Acre |
|
|
| Office in CBD (per buildable ft)
|
6.00 |
8.00 |
|
|
| In Office Park
|
130,000 |
250,000 |
|
|
| In Industrial Park
|
50,000 |
85,000 |
|
|
| Office/Industrial
Non-park
|
45,000 |
160,000 |
|
|
| Retail/Commercial
|
155,000 |
1,225,000 |
|
|
| Residential
|
22,000
|
50,000
|
|
|
| |
|
|
|
|
|
