berks county market data - eoy 2012
TRANSCRIPT
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7/28/2019 Berks County Market Data - EOY 2012
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Greater Reading Market Informaon -By Bryan Cole
Greater Reading-2012
Berks County Pennsylvania
Committed to
Connected to the W
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Bryan E. Cole
Broker
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 -
7/28/2019 Berks County Market Data - EOY 2012
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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.
Greater Reading Market InformaonBerks County Pennsylvania
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.
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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.
Greater Reading Market InformaonBerks County Pennsylvania
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)
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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.
Greater Reading Market InformaonBerks County Pennsylvania
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.
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Check Bryan Out on:Bryan E. Cole | Oce & Medical Specialist
610.370.8502 (d) | www.Bryan-Cole.com | [email protected]
Greater Reading Market InformaonBerks County Pennsylvania
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/ -
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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.
Check Bryan Out on:Bryan E. Cole | Oce & Medical Specialist
610.370.8502 (d) | www.Bryan-Cole.com | [email protected]
Greater Reading Market InformaonBerks County Pennsylvania
Suburban Oce Report
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7/28/2019 Berks County Market Data - EOY 2012
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Check Bryan Out on:Bryan E. Cole | Oce & Medical Specialist
610.370.8502 (d) | www.Bryan-Cole.com | [email protected]
Greater Reading Market InformaonBerks County Pennsylvania
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.
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Check Bryan Out on:Bryan E. Cole | Oce & Medical Specialist
610.370.8502 (d) | www.Bryan-Cole.com | [email protected]
Greater Reading Market InformaonBerks County Pennsylvania
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
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7/28/2019 Berks County Market Data - EOY 2012
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Check Bryan Out on:Bryan E. Cole | Oce & Medical Specialist
610.370.8502 (d) | www.Bryan-Cole.com | [email protected]
Greater Reading Market InformaonBerks County Pennsylvania
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
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Contact info:Bryan Cole
Oce & Medical Specialist
610.370.8502 (direct)
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
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