NAI Keystone Market Information

The emergence of Technology sectors, Financial Services, Plastics, and Food related businesses are rivaling the established Battery and Metal industries that have been the backbone of the local economy.

Municipal Comprehensive Plans have documented that Berks County is projected to grow 20% by 2030 which equates for 30,000+ new residential units that currently do not exist today. The $116 million dollar Route 222 south is complete and I-78 will see the majority of ‘07’s highway money.

Keystone Innovation Zone “KIZ” Status was recently granted to five areas surrounding local Colleges and Universities. This program provides for tax-credits for KIZ companies and “priority reviews” for DCED financing programs. Commonwealth training grant programs and the BFTDA’s investment program for early stage technology companies and access to innovation grants are also available. Watch for these areas to grow with emphasis on advanced materials and diversified manufacturing, professional and shared services and food processing industries.

Office Leasing is on the up-swing with significant deals in the Wyomissing / Spring Ridge area. New construction prices have crested the $200/PSF mark which will help raise rents in the market. Healthcare industries continue growth with St. Joseph’s Medical Center opening its new $150 Mil. / 40-acre campus in late 2006. The Reading Hospital & Medical Center added “N” Building which is 387,000 SF.

The Industrial market has been active with absorptions at an 8-year high. Vacancy rates are 12%+/- which is quite low considering two available properties (one being circa 1940’s) make up 2+ million feet of space. The Food industry is well established by names such as: Godiva, Palmer Chocolates, Berks Packing, Hershey’s, Sweet Street Desserts and Quaker-Maid. Heavy industry segments expanded last year with two metal fabricators adding over 250,000 SF of production space. These add to Carpenter Technology’s presence which produces high alloy and specialty steel. Deka continues its growth and position as the world’s leading battery producer employing over 3,900 workers in its 2+ mil SF Lyon’s Station facility.

The Buttonwood Gateway project is underway in the City with several hundred jobs resulting from recent deals. Several large blocks of office space are available in the City of Reading despite the area undergoing a renaissance. Most notable activity is along the Riverfront and Penn Street Corridor with investment totaling over $47 million occurring in 2006 with $54 million in proposed projects pending. The recent projects were anchored by the Goggle Works Center for the Arts, 95,000 SF Soveriegn Bank Plaza and Reading Area Community College facilities.

Retail is hot with a low 4% vacancy rate. Six new centers are in the municipal approval process. These are planned for Hamburg, Exeter, Muhlenberg, Wyomissing, Sinking Spring and Maxatawny.

Reading, Berks County At-A-Glance