berks county market data - eoy 2012

7/28/2019 Berks County Market Data - EOY 2012

1/11

Greater Reading Market Informaon -By Bryan Cole

Greater Reading-2012

Berks County Pennsylvania

Committed to

Connected to the W


2/11

Bryan E. Cole

Broker

[email protected]

610.370.8502 (direct)

610.370.8503 (e-fax)

This report provides an overview of Greater Reading and Employment Informaon. NAI Keystone

maintains a comprehensive list of all available properes , and market condions within the Great-

er Reading marketplace, including but not limited to; available space, number of facilies in market,

asking rents, incenves, extra costs, etc The informaon contained in this report was courtesy of

The Greater Reading Economic Partnership (GREP), Bryan Cole of NAI Keystone.

Bryan Cole of NAI Keystone maintains a comprehensive list of all available properes within the

Berks County marketplace, including but not limited to; available space, number of facil ies in the

market, asking rents, incenves, extra costs, etc The informaon that NAI Keystone has assem-

bled is separated by Class A and Class B facilies and consists of market data such as, absorpon

rates, vacancy rates, asking rents, etc

This market report and data is assembled in house by Bryan Cole.

Bryan E. Cole Resume

2012

Bryan joined NAI Keystone in July of 2004, prior to joining NAI, Bryan Colespent 4 years acve duty

in the U.S. Marine Corp, including a 6 month deployment in Afghanistan, a 4 month deployment in

Kuwait/Iraq, and a 7 month deployment in Japan.

Prior to joining the military Bryan was involved in the construcon of commercial and mul-unit

properes in the Philadelphia suburbs. Bryan has experience working with a diverse group of indi-

viduals in numerous countries throughout the world. During Bryans me at NAI, he has sold and

leased in the excess of $290 Million Dollars worth of Commercial Real Estate. Because of this, Bry-

an earned NAI gold club status his rst year in the business. Bryan is currently working on earning

both his CCIM designaon and SIOR designaon. Bryan has been the Top Performer/Producer at

NAI since 2006 with an average of $30-$35 Million in producon annually, and over $64 Million in

2012.

Bryan has concentrated his eorts on medical/oce property along with Big Box industrial.

NAI (New America Internaonal)

Veterans of Foreign Wars

PA Assoc. of Realtors

NAI Oce Council

CoreNet Global

Naonal Assoc. of Realtors

NAI Retail Council

Young Professionals Network

Commercial Industrial Council of Berks

CIC Board Member (2007)

Chapter President of NMCBN

Berks Chamber of Commerce

NAI Gold Club

ICSC Member

NAI Corporate Services Council

CCIM Candidate

SIOR Candidate

WERC

TriState Board or Realtors

Council of Supply Chain Management

NAIOP Member

Greater Reading Economic Partnership

Personal Memberships:

Greater Reading Market InformaonBerks County Pennsylvania

Bryan E. Cole

The informaon contained herein has been given to us by the owner of the property or other sources we deem reliable. We have no reason to doubt its accuracy,

but we do not guarantee it. All informaon should be veried prior to purchase or lease.
http://bryan-cole.com/resume.htmlhttp://bryan-cole.com/resume.htmlhttp://bryan-cole.com/resume.html


3/11




Locaon

Few locaons on the East Coast oer a more central locaon than Greater Reading, with easy access to markets, hubs and major

cies in the Mid-Atlanc and Northeast. Philadelphia is just 50 miles to the southeast, and New York and Washington are a lile

more than 100 miles away.

Greater Reading is an aordable locaon too, with occupancy costs among the most aracve of any comparable area in the

eastern region.

Over 100 million people within an overnights drive

Class-A oce buildings, industrial parks, manufacturing sites and prime

retail locaons

Reliable electric grid

Good management relaons

Strong and pro-acve economic development groups

Road Systems: Routes 222, 61, and 422 are main state roads through Greater Reading, connecng Reading and its suburbs

with the Lehigh Valley (Allentown/Bethlehem/Easton) to the north and east and Central Pennsylvania )Lancaster/York/

Harrisburg) south and west. I-78, I-476, and I-76 are interstates connecng Greater Reading to the rest of the region. Greater

Reading is home to such companies as Carpenter Technologies, Penske Corp., East Penn Manufacturing, Godiva, and Boscovs

stores.

Take advantage of a diverse workforceand a great lifestyle.

Greater Reading is naturally beauful and family oriented. Its diverse community lifestyle means theres something for every-

one. In addion, residents enjoy a much lower cost of living then those of neighboring metropolitan centers.


4/11




Market Data

Wage Informaon and Employee Availability in Greater Reading

The Greater Reading community obtained an assessment from a site selecon consultant on workforce availability, which con-

rmed a local CareerLink assessment and provided some addional empirical data.

According to their evaluaon:

The metro Reading labor market could accommodate another 4,100 custom-

er related posions (FTEs)

As a rule of thumb, labor saturaon is reached when call center employment

exceeds 3% of the civilian labor force

Metro Readings labor force is 202,300

At 3%, the market could likely sustain a call center base of 6,100

Looking over the employer roster, the best esmate is that current

call center employment approximates 2,000 FTEs.

This leaves excess capacity of about 4,100

A new call center paying market compeve wages would be able to sustain an HR level in at least the 750 FTE

range

The esmated white collar underemployed pool (employment in lower wage occupaons) is about

15,000+/-

A new employer would likely be able to nd 5% of that total to be well-qualied

This translates into 750 addional posions

As a buer, a new call center could also draw from:

The unemployed - 7.9% or 16,000 people

Annual college graduates

Two Year 700

Four Year 3,500

Total 4,200

Availability of a bilingual workforce

Populaon ages 16-64 is roughly 264,000

About 6% of metro populaon ages 16-64 is bilingual (English/Spanish according to the US Census)


5/11




Market Data cont.

At 6%, this equates to 15,800 bilingual working

age adults

Tapping only 1% of this pool would allow a newemployer to sta about 150 bilingual posions

The CareerLink is a one-stop workforce development system

comprised of a partnership of several public and private work-

force development agencies. They oer a variety of employer

and employee support services including:

Screening and referral of applicants to employer

specicaons

Informaon on hiring incenves such as tax credits

and new-hire training programs

Specialized recruitment, including management of

large recruitment campaigns

Recruitment facilies (meeng rooms and private

oce) for daily rental

WorkKeys Funconal and Personal Skill Assess-

ments for applicants and incumbent workers

WorkKeys Proling to beer assess skill needs of

specic jobs

The CareerLink partners assessed that an employer would need

to pay an $11/starng wage, with increases based on perfor-

mance. They believe that there will be second-income individu-

als and single parents applying for customer service posions.

For bilingual needs, the applicant pool will be strong. If a high

school diploma is not required, the applicant pool would be

even greater because there are very capable people in our com-

munity who lack that credenal but would be good employees.

The CareerLink website can act as one of the bases for re-

cruing as well as the physical oce if there is a desire to dopaper applicaons. CareerLink also oers pre-employment as-

sessments for example, providing a short script that they ask

folks to read.

Addionally, Greater Reading Economic Partnership conrmed

that students at the ve local colleges and universies could

play a role in lling 2nd, 3rd, and weekend shis at a call

center. Below are the current enrollment numbers for

each of our higher educaon instuons.

Albright College 2,358

Alvernia University 2,906

Kutztown University 10,634

Penn State University 2,759

Reading Area Community College 5,425

Wage and workforce availability conrmaon was also

obtained from one of the communitys premier employ-

ment agencies, Gage Personnel.

Lastly, employer surveys annually conducted by GreaterReading Economic Partnership of call center operaons

in Berks County, conrmed the following ranges:

Entry-Level: $11-12/hr

Mid-Level: $12-14/hr

Senior-Level: $15/hr

Pay rates for a supervisor in a call center

are in the $45-55K range.

Summary

The wage rates contemplated throughout the enre evalu-

aon was a salary of $11.50 as a starng point for employ-

ees. This salary would be compeve and aract a stable

employee base for these type of posions. A bilingual

workforce will be available in Greater Reading due to the

large Lano populaon and correspondingly available

workforce.

The Commonwealth of Pennsylvania, the PA Career-

Link oce, and the Greater Reading Economic Partnership

and its workforce partners can oer support and substan-

ve resources for new employee recruitment and training.


6/11

Check Bryan Out on:Bryan E. Cole | Oce & Medical Specialist

610.370.8502 (d) | www.Bryan-Cole.com | [email protected]


Oce Report for the End of 2012

Greater Reading Office Market Overview

End of 2012 Report

The Greater Reading Suburban Office Market ended 2012 with a vacancy rate for Class A Office buildings at 18.5%. This is a slight increase in va-

cancy rates from 3rd quarter 2012 and an increase in vacancy from same period 2011. The average rental rates remained steady at $16.00 -

$19.50 per square foot Modified Gross which is a slight decrease to the rates from the same period 2011.

Deals of primary focus within the Class A building sector in 2012 were the 48,000 sf National Penn Bank location proposed at the Spring Ridge

Corporate Center, which will be leased 100% to Nat Penn, the new Fairfield Inn proposed along Meridian Blvd., the Fairfield Inn is purchasing

three proposed office pad sites at 3 Meridian Blvd, and the 30,000 sf leased to Digestive Disease Associates and BCDH at the Wyomissing Corpo-

rate Campus.

The Class B Suburban office market ended 2012 with a vacancy rate of 18.98%. This is a decrease in vacancy from 3rd quarter 2012 by less than

one percent; however it is an increase from the same period 2011 by almost four percent. The average rental rates remained unchanged from

3rd to 4th quarter 2012 at $11.00-

$16.50 per square foot modified gross opposed to that of rates from the same period 2011 which was $13.00-

$18.00 per square foot.

Deals of primary focus within the Class B building sector in 2012 was the purchase of 210 George Street in Muhlenberg Township, a building con-

sisting of approximately 40,000 and bought by the Municipality for their operations center, and the purchase of 6 Commerce Drive consisting of

approximately 30,966 sf. which was purchased by Brentwood Industries and will be home to their new Headquarters.

The Class C Suburban office market sector ended 2012 with a vacancy rate of 10.97% which was an increase from the 3rd quarter 2012 and simi-

lar to the same period 2011.

Our outlook for the suburban office market going into 2013 is very optimistic with activity levels at new highs within the market place and owners

offering additional incentives and concessions to assist in getting deals done.

The Greater Reading Downtown Office Market ended 2012 with a vacancy rate for Class A Office buildings at 22.96%. There was

no change in vacancy rates from 3rd quarter 2012; however it was a significant increase from the same period 2011. The average

rental rates slightly decreased from 3rd to 4th quarter 2012 at $14.00 per square foot Modified Gross to $13.50 per square foot

Modified Gross.

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 and are still taking a toll on the overall vacancy rate within Downtown.

The Class B Downtown office market ended 2012 with a vacancy rate of 22.08%. There was no change in vacancy rates from 3rdquarter 2012, and it was a slight increase from the same period 2011. The average rental rates dropped from $11.50 per square

foot Modified Grossin the 3rd quarter 2012 to $10.00 per square foot Modified Gross in 4th quarter 2012 this is also a slight de-

crease to the rates from the same period 2011.

By Bryan Cole, NAI Keystone Commercial & Industrial, LLC

www.Bryan-Cole.com
http://www.bryan-cole.com/http://www.bryan-cole.com/http://www.bryan-cole.com/http://www.bryan-cole.com/http://www.bryan-cole.com/


7/11

The Greater Reading Suburban Oce Market ended the 4th quarter 2012 with a vacancy rate for

Class A Oce buildings at 18.5%.

This is a slight increase in vacancy rates from 3rd quarter 2012 andan increase in vacancy from same period 2011. The average rental rates remained steady at $16.00 -

$19.50 per square foot Modied Gross which is a slight decrease to the rates from the same period

2011.

Deals of primary focus within Class A building sector were the 48,000 sf Naonal Penn Bank locaon

proposed at the Spring Ridge Corporate Center, which will be leased 100% to Nat Penn, and the new

Faireld Inn proposed along Meridian Blvd., is assisng to reduce the oce vacancies by

approximately 113,600 sf. The Faireld Inn is purchasing three proposed oce pad sites at 3

Meridian Blvd.

The Class B Suburban oce market ended the fourth quarter of 2012 with a vacancy rate of

18.98%.This is a decrease in vacancy from 3rd quarter 2012 by less then one percent, however it is

an increase from the same period 2011 by almost four percent. The average rental rates remained

unchanged from 3rd to 4th quarter 2012 at $11.00 - $16.50 per square foot modied gross opposed

to that of rates from the same period 2011 which was $13.00 - $18.00 per square foot.

Deals of primary focus within the Class B building sector were the new leases at 975 Berkshire Blvd. of

5,000 sf, and Stonepointe Center at 10,550 sf along with the recent purchase of 30,966 sf at 6

Commerce Drive by Brentwood Industries.

And the Class C Suburban oce market sector ended the 4th quarter of 2012 with a vacancy rate of

10.97% which was an increase from the 3rd quarter 2012.

Our outlook for the oce market going into 2013 is very opmisc with acvity levels at new highs

within the market place and owners oering addional incenves and concessions to assist in geng

deals done.

For Full Arcle visit hp://bryan-cole.com/MarketIntel.html

Vacancy Rates

Class A Class B

Net Absorpon

Class A Class B

Asking Rents

Class A Class B

Construcon

Class A Class B

Tour Acvity

Concessions

Sales Volume

# of Properesfor Sale

Non Classied buildings include Hospital and Large Governmental instuons. Although we track these facilies, in our opinion

we cannot accurately display vacancy rates when these facilies are used in the overall numbers.




Suburban Oce Report


8/11




Suburban Oce Report

Tenant perspecve: (As a Tenant Representave)The Greater Reading market has experienced a high level ofinterest within the 4th quarter 2012, although acvity is high

and deals are steadily coming forward the A and B product is

sll oering incenves/concessions which have allowed Ten-

ants to connue to capitalize on past market condions.

However moving forward especially in 2013, landlords will

begin to limit the concessions and negoate much harder on

higher base rates.

Tenants should begin to negoate any leases that are within

18 months of expiraon. This allows for enough room to ne-

goate and capitalize on the current condions.

Although the markets are improving and landlords will begin

to lock in beer terms, we feel the market will connue to be

a Tenants Market into the late stages of 2013 based on

current vacancies and leasing acvity.

Landlord perspecve: (As a Landlord Representave)

Greater Readings recent acvity will sway some landlords tothink the market has turned around. Be cauous as we feel

well into 2013 the market will maintain its Tenant Market

status.

Rates have been low over the past few years, so by oering

free rent on the front end while maintaining higher base rates

will not only provide tenants the ability to get into the space

on a lower inial cost for year 1, it will allow landlords to

maintain higher valuaons on their assets since most Free

Rent is outside the term. This allows landlords to sll get

eecve 3, 5, or 7 year terms while liming their exposurelong-term.

Interest rates will probably remain low well into 2013. This

will allow tenants to nance TI themselves at somemes

beer rates then landlords. This makes the Free Rent on the

front end even more appealing to some tenants.


9/11




Downtown Oce Report

Total Blocks of Space (Can be Demised)

Size

# of Bldgs.

Class

A

Class

B

Class

CTotal

0 - 4,999 2 1 3 6

5,000-

9,999

5

4

9

10,000 - 19,999 1 2 3

20,000 - 39,999 1 3 1 5

40,000 - 74,999 1 1 2

75,000 - Greater 1 1 1 3

The Greater Reading Downtown Oce Market ended the 4th quarter 2012 with a vacancy

rate for Class A Oce buildings at 22.96%. There was no change in vacancy rates from 3rd

quarter 2012., however it was a signicant increase from the same period 2011. The

average rental rates slightly decreased from 3rd to 4th quarter 2012 at $14.00 per square

foot Modied Gross(1) to $13.50 per square foot Modied Gross(1).

The largest addions to the overall vacancies in Class A facilies 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 sll taking a toll on the overall vacancy rate within Downtown.

The Class B Downtown oce market ended the fourth quarter of 2012 with a vacancy rate

of 22.08%. There was no change in vacancy rates from 3rd quarter 2012, and it was a slight

increase from the same period 2011. The average rental rates dropped from $11.50 persquare foot Modied Gross(1) in the 3rd quarter 2012 to $10.00 per square foot Modied

Gross(1) in 4th quarter 2012 this is also a slight decrease to the rates from the same period

2011.

Overall Vacancy Rates for Class C buildings remained unchanged throughout 2012 however,

various buildings previously tracked as Class B buildings were changed to Class C buildings,

due to re-evaluang the assets and condions.

For Full Arcle visit hp://bryan-cole.com/MarketIntel.html

(1) = Modied Gross is a rate that includes CAM, Taxes, Insurance. However typically Ulies are separate as well

as in-suite janitorial.

Vacancy Rates

Class A Class B

Net Absorpon

Class A Class B

Asking Rents

Class A Class B

Construcon

Class A Class B

Tour Acvity

Concessions

Sales Volume

# of Properes

for Sale


10/11




Downtown Oce Report

Current Rental Rates

Year

Class A

Class B

2011 $13.00 - $15.00 MG(1) $10.00 - $13.00 MG(1)

1st Qtr. 2012 $13.00 - $15.00 MG(1) $9.00 - $13.00 MG(1)

2nd Qtr. 2012 $13.00 - $15.00 MG(1) $9.00 - $13.00 MG(1)

3rd Qtr. 2012 $13.00 - $15.00 MG(1) $10.00 - $13.00 MG(1)

4th Qtr. 2012 $12.00 - $15.00 MG(1) $8.00 - $12.00 MG(1)

Local Resources

Greater Reading Economic Partnership

www.GreaterReading.com

Greater Reading Chamber of Commerce

www.GreaterReadingChamber.org

Greater Berks Development Fund

www.ReadingPA.com

Reading Redevelopment Authority

www.ReadingRedevelopmentauthority.com

NAI Keystone Commercial & Industrial, LLC

www.Bryan-Cole.com

City of Reading Tax Rates

Earned Income Tax (Resident) 3.4%

Earned Income Tax (Non-City Resident) 1.1% Max

Local Services Tax $52.00 annually

City Real Estate Tax 14.334 Mills

Per Capita Tax $15.00 Annually

Business Privilege Tax Service 2.25 Mills

Commission

2.25 Mills

Rental 2.25 Mills

Retail 1.5 Mills

Wholesale 1.0 Mills

Real Estate Transfer Tax 5%

(1) MG - Modied Gross is a form of Lease Rate. This typically

includes CAM, Taxes, and Insurance.

Largest Blocks of Space Vacant SF Building Class

401 Penn Street

180,000

Class A

201 Penn Street 40,690 Class A

400 Washington Street 35,579 Class A

35 N. 6th Street 75,000 Class B

501 Washington Street 46,595 Class B

443 Penn Street 37,740 Class B

230 N. 5th Street 30,000 Class B

645 Penn Street 24,889 Class B


11/11

Contact info:Bryan Cole

Oce & Medical Specialist

610.370.8502 (direct)

[email protected]

www.Bryan-Cole.com

Check Us Out on:

Look for our marketing material

Bryan Cole

NAI Keystone Commercial & Industrial,

LLC

Exeter Ridge Corporate Center

3970 Perkiomen Avenue

Suite 200

Reading, PA 19606

www.Bryan-Cole.com

www.NAIKeystone.com

Quarterly Monthly Weekly

Newsleers

Specic Industry

Emails Brochures & Market Reports

E-Brochures E-News Flyers Oce Report

One of the many ways we Market Real Estate

berks county market data - eoy 2012

Documents