Bryan Cole, SIOR

Principal

NAI Keystone Commercial & Industrial, LLC

875 Berkshire Blvd., Suite 102

Wyomissing, PA 19610

Bcole@naikeystone.com

www.Bryan-Cole.com

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What is SIOR?

NAI Keystone’s Bryan Cole and Steve Willems handle the sale of the former Morgantown Outlet Mall in Morgantown PA.

The property is a 336,000.00 SF Retail Building situated on 38.13 Acres.

The property fronts the PA Turnpike and Morgantown Expressway.

For More Information contact:

Bryan Cole, SIOR | Principal

NAI Keystone Commercial & Industrial, LLC
875 Berkshire Blvd., Suite 102
Wyomissing, PA 19610
Bcole@naikeystone.com

www.Bryan-Cole.com or www.WyomissingOfficeSpace.com

Happy Veterans Day – THANK YOU!

November 10, 1775 – Marine Corp Birthday – SEMPER FI

Bryan E. Cole, SIOR | Principal

NAI Keystone Commercial & Industrial, LLC
875 Berkshire Blvd., Suite 102
Wyomissing, PA 19610
Bcole@naikeystone.com

www.Bryan-Cole.com or www.WyomissingOfficeSpace.com

Suburban Berks County Overview – End of 3rd Quarter 2016

The Greater Reading Suburban Office Market ended the 3^rd Quarter 2016 with a vacancy rate for Class A Office Buildings at 8.94% which includes existing and proposed sites. The vacancy rate for only Existing Class A Office Buildings is 3.00%.  This is a negative in vacancy rates from the end of 2015, and an overall decrease from the same period in 2014.  The average rental rates went up slightly and are now at $19.50 – $24.50 per square foot modified gross, which is a larger increase in the rates from the same period in 2014.

The Class A Product has 185,120 sf. as being proposed within the market and another 28,165.00 sf. that is available for sub-lease.   There was a major reduction in proposed square footage after the Spring Township Corporate Office Campus; which is now being proposed for a different use.

The Class B Suburban Office Market ended 3^rd Quarter 2016 with a vacancy rate of 17.35% for existing and proposed sites.  The vacancy rate for only Existing Class B Office buildings is 15.11%.  This is a slight decrease in vacancy rates from the end of 2^nd Quarter 2016 and an increase from the same period in 2015.   The average rental rates had a much-needed increase in the 2^nd quarter of 2016; however they remained relatively flat ending out the 3^rd quarter of 2016 with rates at $15.00 – $19.50 per square foot modified gross.

The Class B Product has 73,000 sf. as being proposed within the market.  These are subject to change as well, since one of the office sites was on/off again for a hotel development.

The Class C Suburban Office Market ended the 3^rd Quarter with a vacancy rate of 14.99%, which is a larger drop from same period 2015 and a slight drop from 2^nd Quarter 2016.

The overall Suburban 3^rd Quarter Office Market noticed continued growth due to several lease renewals that contained expansions.  The majority of the growth has been from within the county.

The EOY report should contain positive news in an entire market review; however, going into 2017 the belief is, there will be large blocks of space added to the market which will affect the numbers, specifically the announcement by Teleflex to sell their facility.

Landlord concessions are being removed from offerings since the market has stabilized, which is also pushing rental rates upwards.

Cap Rates for Investment Grade Office Buildings remains low due to attractive financing.  The most important variables are length of leases, credit of tenant(s), type of lease, and type of asset (I.E. Single Tenant, Multi-Tenant, Medical, Back Office).  The primary issue within the investment market is the lack of quality product.

Overall activity continues to come from within the local marketplace.  The majority of the transactions taking place are companies that already call Greater Reading home.  However, most of these deals have resulted in larger footprints and longer commitments.

NAI Keystone Commercial & Industrial has successfully brokered the sale of 1245 Perkiomen Avenue, Reading, PA. The property, also known as Kesher Zion Synagogue, has been in use as a synagogue since its construction in 1950. Kyle A. McKechnie & Tammy Mitgang represented Kesher Zion in the sale of the 24,288 SF, 2.2 acre property located adjacent to City Park in the city’s Penn’s Common District.

The property was purchased by Volos Properties VI, LLC, and is to be repurposed into a 3^rd Berks County location for New Story. New Story is a privately licensed academic school that provides special education and behavioral health services to children. The buyer was represented by Eric Weiner of Cummings & Co. Realtors.

NAI Keystone Commercial & Industrial, which maintains a prominent market share in Berks and Schuylkill Counties, Pennsylvania, specializes exclusively in commercial and industrial properties. In addition to property management and Receiverships, NAI Keystone provides brokerage services such as Tenant/Landlord and Buyer/Seller representation, lease administration, commercial financing, consultation services, 1031 Tax Exchange, environmental surveys, and investment sales.

NAI Keystone’s John Buccinno & Bryan Cole represented the Seller of 4634 Penn Avenue.  The property was a 9,750.00 sf. Free Standing Retail/Flex Facility located along Penn Ave in Sinking Spring.  The building was previously utilized as a showroom and warehouse distribution center for ProSource.

Bryan E. Cole, SIOR | Principal

NAI Keystone Commercial & Industrial, LLC
875 Berkshire Blvd., Suite 102
Wyomissing, PA 19610
Bcole@naikeystone.com

www.Bryan-Cole.com or www.WyomissingOfficeSpace.com

NAI Keystone’s Bryan Cole and Steve Willems are pleased to present a prime 31′ Clear Height Industrial Building for Lease in Lebanon PA.  The property has 150,000.00 sf. for Lease with an optional 8,560 sf. of office.  Multiple Docks and a Overhead door provide easy access to the space.

Property Brochure Click Here

Call for Details

Bryan E. Cole, SIOR | Principal

NAI Keystone Commercial & Industrial, LLC
875 Berkshire Blvd., Suite 102
Wyomissing, PA 19610
Bcole@naikeystone.com

www.Bryan-Cole.com or www.NAIKeystone.com 

NAI Keystone’s Bryan Cole and Steve Willems are pleased to offer a Free Standing 28′ Clear Height Industrial Building for Lease.  The facility has 12 Truck Docks & 3 Drive In Doors, along with 1,300 sf. of Office Space.  The building is equipped with an ESFR Sprinkler System

Property Brochure Click Here

Call or Email for Details

Bryan E. Cole, SIOR | Principal

NAI Keystone Commercial & Industrial, LLC
875 Berkshire Blvd., Suite 102
Wyomissing, PA 19610
Bcole@naikeystone.com

www.Bryan-Cole.com or www.NAIKeystone.com 

NAI Keystone’s Bryan Cole assisted a local organization in its expansion into a 20,000 sf. Industrial Building in Muhlenberg Township Berks County.

The Water Guy is a locally owned and operated bottling company.  The facility is a free-standing 20,000 sf. industrial building along Tuckerton Road in Muhlenberg Township formally occupied by Goodman Vending Machines.

To learn more about Industrial Real Estate or deals taking place in the area, give us a call.

NAI’s Bryan Cole provides local market reports.

Call or Email for Details

Bryan E. Cole, SIOR | Principal

NAI Keystone Commercial & Industrial, LLC
875 Berkshire Blvd., Suite 102
Wyomissing, PA 19610
Bcole@naikeystone.com

www.Bryan-Cole.com or www.NAIKeystone.com 

Check out our New Ad in Commerce Quarterly Winter 2017 – http://www.KeystonePropertyMgmt.com

Bryan Cole and John Buccinno of NAI Keystone are excited to be part of the rapid progress in West Reading and Wyomissing and are involved in a number of large public projects along with a few projects that sometimes fall below the radar. These projects consist of both existing buildings and future redevelopment opportunities and have contributed considerably to the areas growth.

Completed projects in just the past few years:

• the Sale of the Former Arrow International Building in Wyomissing
• the Sale of the Former Narrow Fabric Building along Hill Ave in West Reading
• the Leasing of the Martins Flooring Space along Park Road
• the Leasing of the A to Z Vacuum Space along Park Road
• the Leasing of Rentokil’s corporate offices along Berkshire Blvd.
• the Leasing of up to 95,000 sf. of Office Projects within the former Glen Gery Site now known as the Wyomissing Corporate Campus
• the Leasing of 40,000 sf. of Office / Medical deals along State Hill Road
• the Leasing of 67,000 sf of Office to C.N.A. Insurance at 1 Meridian Blvd.
• the Lease of 15,000 sf. To UGI Utilities Inc. at 1 Meridian Blvd.
• nearly 100,000 sf. of lease renewals in Wyomissing and Spring Twp.
• and most notable the representation of UGI Energy Services into their new HQ at the VF Outlets which is being led by Buccinno

We are excited to be part of these projects and look forward to watching the market continue to grow during these exciting times.  The projects outlined above and the future projects shown below proves Berks County has a lot going on, especially when you have local municipalities that work together to make the area business friendly and understand the need for redevelopment projects.

In addition, we are pleased to have a number of available sites within the same areas outlined above.

• a 66,000 sf. building for sale or lease directly across from the VF Outlets at 200 N. Park Rd
• a 12,000 sf. two story office building for lease at 420 N. Park Road
• various suites for lease at 2001 State Hill Road including prime 1st floor area
• various suites for lease within the Wyomissing Professional Center, Wyomissing Corporate Campus, and the Spring Ridge Corporate Campus
• a large open lot within Berkshire Court and another office pad site along Meridian Blvd.
• a 11,000 sf. retail building along State Hill Road for Sale or Lease
• up to 9,000 sf. of new space available at Granite Point
• various suites available along the Berkshire Blvd. corridor

We look forward to any individual or companies interest in learning more or wanting to become part of the exciting times in Berks County and we welcome any questions.  We at NAI provide a market report on a quarterly basis which is published by the Reading Eagle Newspaper via the Business Weekly section and can be obtained from our website at www.Bryan-Cole.com or www.NAIKeystoneBlog.com

Thank you to all of our partners who have had a hand in getting these deals across the finish line.

Call or Email for Details

Bryan E. Cole, SIOR | Principal

NAI Keystone Commercial & Industrial, LLC
875 Berkshire Blvd., Suite 102
Wyomissing, PA 19610
Bcole@naikeystone.com

www.Bryan-Cole.com or www.NAIKeystone.com 

Suburban Overview

The overall Suburban Office Market was relatively flat thru the 1^st quarter of 2017 with vacancy rates for Class A Office product at 5.56% which is a higher than Year End 2016 and a few percentage points higher than the same period in 2016.  There were several lease renewals which were good for the market, however it did not attribute to the absorption rate as most leases were renewed as is with little to no expansions.

The total proposed sites tracked, equates to 93,100 sf. which when added to the existing product and sublease space pushes the vacancy rates up to 8.22%.

The average rental rates also remained flat from the previous quarter at $19.50 – $24.50 per square foot modified gross, however they are a few dollars per square foot higher than the same period in 2016.

The Class B office sector continues to be the driver of most absorption within the County, however it also remained flat in the 1^st quarter of 2017.  The overall vacancy rates increased to 15.01% from the end of 2016 which is exactly where the rates were in the same period of 2016.

The rental rates were flat from the end of 2016 to the end of the 1^st quarter of 2017 with rates in the $15.50 – $19.50 per square foot modified gross range.  However, the rates are much higher than the same period in 2016.

The 2017 Office market as described in the end of year 2016 report seems to be poised for strong growth in the Financial Sector and the Medical Sector.

The description from the End of Year 2016 report remains true:

The financial sector has seen significant growth locally with various financial institutions looking to increase their footprints and amenities to attract a younger workforce and embrace the change in technology.  The Medical Sector is another part of the industry which continues to see growth.  Several smaller, less efficient medical buildings have been placed on the market for sale or lease, however these facilities are becoming outdated and too small to benefit or attract the larger health systems.  The growth pattern seems to indicate larger, better located facilities, with easy access to customers and better technology.

Overall activity was concentrated on Lease Renewals rather than new deals.  This is a common pattern in the 1^st quarter as leases expiring towards the middle or end of the given year result in early negotiations.

Downtown Overview

The Reading Central Business District (CBD) ended the 1^st quarter of 2017 with a vacancy rate of 5.02% which is slightly higher than the same period in 2016.  As previously outlined, we currently track eight (8) buildings which are classified as Class A Office Buildings in Downtown Readings CBD.  These variables are location, infrastructure, and overall appeal.  The Reading Class A CBD is below National Averages for CBD related markets, as well as the Philadelphia CBD.

The Class A sectors rental rates remain unchanged from the end of 2016 at $11.00 – $15.50 psf. modified gross.

The Class B Downtown Office Market ended the 1^st quarter of 2017 with a vacancy rate of 27.89%.  This was a slight decrease in vacancy rates from the previous quarter.  The vacancy rate is slightly higher than the same period in 2016.  The average rental rates for downtown product is very low compared to the other CBD markets at $8.50 – $12.00 per square foot modified gross.

As outlined in the 2016 End of Year Report and as shown below remain true:

The positive spin is that there are a few local investors who have been trying to resurrect some of the outdated facilities, and the hope is they are successful at attracting new companies that can take advantage of the workforce and bring some business back to downtown.  The City and the local business leaders need to continue to work together to make this a reality; and remove the obstacles to help business succeed in downtown.  Other nearby markets, such as Lancaster and Allentown have had local companies take larger buildings and convert them into residential and higher end updated office facilities.

Commercial Space Overall

As I have mentioned in every quarterly article that I have written, the key elements that will be critical to all sectors of commercial real estate, is the need to work with dedicated, educated, and willing township officials and boards that can assist in getting approvals expedited and incentives obtained.  This will be an absolute critical element in all deals moving forward.  Greater Reading is fortunate to have these types of organizations and people in place.  The hope is that municipalities will learn the successes from one another and incorporate that into their areas.  Berks County is also fortunate to have strong local business leaders that are willing to spend their time and resources to assist their respective areas, and it is critical that municipalities lean on those individuals for guidance.

www.WyomissingOfficeSpace.com

Check www.Bryan-Cole.com for a full and comprehensive Office Market Report.

By Bryan Cole, SIOR | Principal

NAI Keystone Commercial & Industrial, LLC | www.Bryan-Cole.com

NAI Keystone’s Bryan Cole has been hired to represent a 5,045 usf. sublease at 30 Commerce Drive in Wyomissing PA.  Due to the expansion needed by the current tenant, this prime single story office building is available for lease.  The suite is set up for a financial user and has higher end interior finishes with large offices and open workspace.

Call for Details.

Kyle McKechnie of NAI Keystone Commercial and Industrial, LLC has secured the sale listing of 606 Court Street, a 26,360 SF office building located in the heart of downtown Reading, immediately adjacent to Berks County Courthouse and the Berks County Services Center.

The property underwent significant renovations and improvements less than 2 years ago. The building is ideally suited for law firms, non-profits and companies routinely doing business in the courthouse or services center. The main entrance is off Court Street with the rear of the building having multiple entrance points via the common courtyard.  The property is fully handicapped accessible to all floors, adjacent to a public parking garage, and nearby to all downtown amenities. The sale of this asset is an opportunity to purchase a rare class A office building in downtown Reading.

NAI Keystone Commercial & Industrial, which maintains a prominent market share in Berks and Schuylkill Counties, Pennsylvania, specializes exclusively in commercial and industrial properties. In addition to property management and receiverships, NAI Keystone provides brokerage services such as Tenant/Landlord and Buyer/Seller representation, lease administration, commercial financing, consultation services, 1031 Tax Exchange, environmental surveys, and investment sales.

For more information, please contact

Kaitlyn Tothero

Marketing Director

NAI Keystone Commercial & Industrial, LLC

610.370.8533

ktothero@naikeystone.com

Tompkins VIST Bank hires Bryan Cole to handle lease negotiations.

Bryan Cole, a Principal at NAI Keystone, worked alongside Tompkins VIST Bank and their corporate real estate team to renew one of their leases.  The site was a free-standing retail building with great access and visibility.  By providing supporting market data and handling direct negotiations with the landlord, Bryan was able to reduce the rent costs by thirty percent.  Overall, Tompkins VIST Bank attained over $420,000 in total savings over seven years.

For More Information about Bryan Cole visit bryan-cole.com

NAI Keystone Commercial & Industrial, which maintains a prominent market share in Berks and Schuylkill Counties, Pennsylvania, specializes exclusively in commercial and industrial properties. In addition to property management and receiverships, NAI Keystone provides brokerage services such as Tenant/Landlord and Buyer/Seller representation, lease administration, commercial financing, consultation services, 1031 Tax Exchange, environmental surveys, and investment sales.

NAI Keystone’s Bryan Cole represented Penn State Health St. Joseph in leasing a new facility in Robesonia PA.  NAI’s John Buccinno represented the Landlord, Mr. Vince Giannotti.  The site was home to Giannotti’s Italian Kitchen restaurant.

The site is a 6,000 sf. Free Standing Building at a lighted intersection in the heart of Robesonia at 410 E. Penn Ave.

For More Information call:  Bryan Cole @ 610.370.8502 or Bcole@naikeystone.com.

By Bryan Cole, SIOR | Principal

NAI Keystone Commercial & Industrial, LLC | www.Bryan-Cole.com

Bcole@naikeystone.com

Established by Ted & Edith Ludwig in 1937, the Shillington Farmers Market has

enjoyed a long history as a pillar of the Shillington community. The tradition was

carried on by their daughter Eileen and her husband Jim Daley through the move

from the original market location to its location today at 10 S. Summit Avenue.

The market now passes to the next chapter of ownership with the announcement

of Hamid Chaudhry officially placing the market under contract for sale. As a local

entrepreneur and business owner, Hamid has high expectations for the future of

the market, the continued success of its vendors and the quality of products they

supply to their loyal customers. “I will do my best to make the Shillington Farmers

Market great again!”, said Chaudhry. An official date of settlement has not yet been

determined; however, it is expected in the coming weeks.

This transaction is being brokered by Steve Willems & Kyle McKechnie of NAI

Keystone Commercial & Industrial.

For more information, please contact

Kaitlyn Tothero

Marketing Director

NAI Keystone Commercial & Industrial, LLC

610.370.8533

ktothero@naikeystone.com

Tammy Mitgang and Kyle McKechnie of NAI Keystone have facilitated the sale of 1310

Perkiomen Avenue, a 12,946 SF Special Purpose/Religious Facility in Downtown

Reading. The property was owned by Olivet Boys & Girls Club, which ceased use of the

facility several years ago. Prior to Olivets, the property was built and operated as a

synagogue known as Temple Oheb Sholom. It was donated to Olivets in 1998.

Built in 1921, the multi-level building includes a large meeting space, balcony and social

hall with a stage area and kitchen. The building was designed by the notable architect,

James Vickson, who is also responsible for other prominent buildings including the

Reading Public Museum, Luden Mansion and Wyomissing High School.

NAI Keystone Commercial & Industrial, which maintains a prominent market share in

Berks and Schuylkill Counties, Pennsylvania, specializes exclusively in commercial and

industrial properties. In addition to property management and receiverships, NAI

Keystone provides brokerage services such as Tenant/Landlord and Buyer/Seller

representation, lease administration, commercial financing, consultation services, 1031

Tax Exchange, environmental surveys, and investment sales.

Bryan Cole of NAI assisted UGI in relocating its operations to a 11,000 SF flex

building along Front Street in Whitehall Township. Cole worked alongside UGI to

find a suitable location for their operations.

UGI UTILITIES INC. currently has a 12,000 SF office sublease opportunity along

Medical Center Circle in Allentown PA.

For more information about Bryan Cole, this transaction,

or availabilities visit bryan-cole.com or call 610.370.8502.

NAI Keystone Commercial & Industrial, which maintains a prominent market share in

Berks and Schuylkill Counties, Pennsylvania, specializes exclusively in commercial and

industrial properties. In addition to property management and receiverships, NAI

Keystone provides brokerage services such as Tenant/Landlord and Buyer/Seller

representation, lease administration, commercial financing, consultation

For more information, please contact

Bryan Cole, SIOR

Principal

NAI Keystone Commercial & Industrial, LLC

bcole@naikeystone.com

About 18 months ago, Baker College announced it was opening its first school outside of Michigan in Reading. Shortly after, moving vans pulled up outside the Baker College building at 606 Court Street to begin moving the school out.

Campus Director, Tony Vuckovich, said that Baker was optimistic in contributing to the education of Reading and Berks County students when they arrived here last year. Baker College chose Reading as its first campus outside Michigan due to their specialized curriculum for retraining displaced autoworkers for careers in education, information and technology, medicine, business and other growing disciplines.

Baker bought the building for approximately $1 million in 2015. The property then underwent significant renovations and improvements less than 2 years ago when the college put $2.5 million into the building.

With the building now vacant, Kyle McKechnie is in search of a new owner for the 26,360 SF office building located in the heart of downtown Reading.

“While it is disappointing to see a strong organization such as Baker College leave town, this also creates opportunity for an investor or company to acquire a Class A asset in the downtown Reading market. The property’s optimal placement adjacent to the courthouse, the Berks County Services Center and the Court Street parking garage makes this a coveted location.”, stated McKechnie regarding the situation.

The building is ideally suited for law firms, non-profits and companies routinely doing business in the courthouse or services center. The main entrance is off Court Street with the rear of the building having multiple entrance points via the common courtyard.

The property is fully handicapped accessible to all floors, adjacent to a public parking garage, and nearby to all downtown amenities.

For more information on this listing please contact Kyle McKechnie by phone at 610.370.8522 or email at kmckechnie@naikeystone.com