About Berks County, PA

2009 is shaping up to be a stable year for the Greater Reading office market for both vacancy and rental rates with pockets of growth in the Wyomissing and Spring Township areas of the county. Coming off a poor net absorption rate in the Third Quarter 2008 the fulfillment of a 52,000 square foot lease to the utility concern UGI at Stone Point Office Center along with steady overall demand throughout the county contributed to a strong last quarter 2008. The premier office building at One Meridian which has a GLA of 377,000 square feet had a net absorption of nearly 40,000 in 2008 and stands as the marquis office building in terms of amenities and services in the area which helps maintain positive demand at its facility. In addition to commitments for existing space, over 200,000 square feet of new office space is under construction with signed tenants and should be completed in 2009 or early 2010.
Still, the market faces challenges in these difficult times with overall Class "A" building vacancies increasing from 7.5% to 10% in the fourth quarter, mainly from increased development and softening demand at the higher price points, and stiff competition from aggressive landlords. Traditionally a safe sector in this marketplace due to low inventory, the Class "A" building space is moving toward oversaturation with several properties being repositioned to compete at the low end of this sector along with an additional 300,000 square feet of proposed space waiting to be built. Currently a 110,000 square foot facility located at 525 Lancaster Avenue and 40,000 square feet at 210 George Street are being upgraded to meet modern office standards and will only add to the pull from the Class "A" market.
Tenants are willing to pay higher base rental rates (ranging from $14.50 NNN to 16.50 NNN) for Wyomissing's central location with its easy access to major roadways and proximity to supporting services and amenities but some of the other suburban locations in the county such as Exeter Township and Muhlenberg Township are beginning to compete successfully on rental rates and amenities.

The Class "B" sector is experiencing a mixture of higher vacancy rates and lower rental rates, vacancy rates have slightly increased from 13.4% to 13.8% at the same time that rates have come down approximately 10%. Base rates for this sector are starting at $8-$9 per square foot and topping out at $12 - $13 per square foot and, with the decreased amenities generally provided, the gross rental rates struggle to get above $16 per square foot.
Downtown City of Reading vacancy rates continue to increase with rates rising from 14.5% to 16.5% with much of the vacancy surrounding larger blocks of contiguous space. Although difficult and costly to divide and transition to smaller users, owners are becoming much more flexible and finding ways to meet the market demands. Owners and tenants are struggling with high parking costs and security concerns, which are continuing to be addressed by a committed City Administration.

The City of Reading and economic development groups have been working hard to improve and revitalize downtown which shows in the number of projects underway. The new IMAX Theater and the nearly completed addition to the Reading Eagle Headquarters in the CBD are welcome entrants to the market and kick off a multi-million dollar main street corridor project that includes a new $67 million DoubleTree hotel and garage project across from the Sovereign Entertainment and Expo Center. This will help attract a more vibrant restaurant and entertainment segment with increased amenities and ultimately assist to bring tenants back downtown while decreasing vacancy rates and increasing the tax basis.

The suburban market has been flat on the sale side, due to the economic conditions and difficulty in obtaining financing. Most of the sales are occurring with owner/users with established and well capitalized businesses or from local organizations purchasing land to build. Utilities Credit Union and Reading Hospital are great examples of local organizations expanding their overall market presence. Downtown, the Reading School District has been the main driver in demand for building and land purchases to accommodate strong enrollment and replacement of obsolete facilities but otherwise the purchase market for office buildings remains flat.

The Greater Reading Area offers affordable rents with good amenities and a well educated work force. The residential market has remained stable even in these most troubling times with below average declines in home prices. The desirable bedroom communities along with excellent schools makes the area a good location to raise families and run businesses.

Written and compiled by Bryan Cole and John Buccinno who are the office specialists for NAI Keystone Commercial & Industrial, LLC in Reading PA.


www. OfficeSpaceinBerks.com ~ 610-779-1400

2533 PERKIOMEN AVENUE - MOUNT PENN, PA - 19606

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It was about a 40 minute drive from our home to the recreational area in Leesport, Pa., where Schuyllkill Valley Girls Softball Association would host a 10U (age 10 and under) girls softball tournament...!!!

It was a double elimination tournament beginning at 9 AM, and so you lose two games, and you're out...!!!

And so, the discussion in the car between my 8 year old daughter Emily and me on the way to this early morning sporting event revolved around self confidence, having fun, playing hard, and reminders that there are probably plenty of teams worse than ours, who, up until this point, hadn't won a game yet...

Heck, regardless, it would be a great Daddy/Daughter bonding event, and we'd probably be back home by 1 or 2 PM...

In true form, our team (The Thunder), lost the first game even though they showed brief flashes of brilliance...one more loss and we could head home and have some Saturday fun...

Well, we got a little lucky, and pulled the second game out in the last inning...our first win of the season...

Now the girls got a little taste of success, and you could tell by their facial expressions and general behavior that they liked this feeling...!!!

Long story short, they proceed to win the next two games...each game showing greater skills, enthusiasm, self confidence and team spirit...!

We end up finishing third in the tournament, and barely made it home in time to watch the Kentucky Derby winner Mine That Bird pull off an upset of immense historic proportions...

And so did The Thunder...!!!

Now that most of the Tea Parties are over...the next ALL AMERICAN event that signals the official arrival of Spring...

LITTLE LEAGUE BASEBALL OPENING DAY...Saturday, April 18, 2009...

I don't know how it's done in your area, but we make a big deal about it in Amity Township...

All the kids assemble together, including girls softball, and parade down onto the major league field...each player and coach introduced singly...

Capped off by a brief ceremony honoring last year's winners and runners up, then beginning a full slate of games on all fields in multiple locations all day long...!!!

I have two boys in Little League Majors and my daughter plays softball (Just as exciting)...!!!

The weather forecast is incredibly nice...

So here's hoping for a great family day for all...!!!

And just in case they forget...a moment of silence for Phillie's Major League Baseball Hall of Fame broadcaster Harry Kalas who passed away earlier this week...!!!

+++++++++

Harry, we'll miss you now that you're 'Outta here'...With you, every game was a 'Home Run'...!!!

Philadelphia Eagles Vs Daniel Boone Blazers Alumni & Faculty...2009...!!!

Every year for the past few years the Blazers Booster Club has sponsored this basketball game event as a fund raiser and a special event enjoyable by residents of all ages...!!!

It seems that each year the attendance increases to set new records for a sporting or amusement event...

I hope this year is no exception and the Boosters enjoy a successful fund raiser...!!!

My wife has used this occasion to set up a 'boys night out' for the males in our family, and an opportunity for the gentler gender to also take advantage of a 'girls only' night at some other local gathering place...

This year...Monkey Joes...!!!

I hope this day turns out well for all concerned...!!!