Office Medical Building with
For Sale
$3,750,000
625-627 Spring Street, Reading, PA 19610
Multi-tenant office/medical space with attached warehouse on 3.14 acres, with both tenants extending leases.
Property Size22,060 SF
Lot Size3.14 Acres
Price / SF$169.99
Days on Market699
Property Features for 625-627 Spring Street
General Information
Standard status
Active
Size
22,060 SF
Lot size
3.14 Acres
Property subtype
Commercial
Lease Term
[]
Building Details
Year Built
1975
Tenancy
Multi
Listing Agency:
RE/MAX Of Reading
Listed By:
Kent E Wrobel · License #AB067831
(610) 670-2770
Source:
Deepcreeklake
Added: Oct 7, 2024
Changed: Sep 4
Last Checked: Sep 5 at 9:15AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of RE/MAX Of Reading
Investment Insights
Based on property information with market context.
This offering presents an investment property featuring 22,060 square feet of office/medical space with an attached 4,800 square foot warehouse, situated on 3.14 acres in the Borough of Wyomissing, Pennsylvania. The building is currently occupied by two tenants, KPS and FMC, which have been in place since August of 1996.
According to the current owner, both tenants have recently extended their leases, reflecting continued commitment to the building and the area. The property includes an office/medical component along with the attached warehouse space, creating a combined layout for tenants with office and storage/handling needs.
The current owner is seeking a sale structured as a leaseback, aligning with an investment approach while maintaining the existing tenant occupancy.
According to the current owner, both tenants have recently extended their leases, reflecting continued commitment to the building and the area. The property includes an office/medical component along with the attached warehouse space, creating a combined layout for tenants with office and storage/handling needs.
The current owner is seeking a sale structured as a leaseback, aligning with an investment approach while maintaining the existing tenant occupancy.
Key Highlights
- 22,060 SF office/medical space plus an attached 4,800 SF warehouse on 3.14 acres in Wyomissing, PA
- Multi‑tenant setup with KPS and Fresenius Medical Care (FMC) tenants
- Both tenants have occupied their suites since August 1996
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$184,833
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
4.93%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$3,696,660
$3.7M
Cap Rate 7%
$2,640,471
$2.6M
Cap Rate 9%
$2,053,700
$2.1M
Market Conditions
NOI Build-Up for 22,060 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$285.9K $12.96/SF
− Vacancy
−$39.5K −$1.79/SF
EGI
$246.4K $11.17/SF
− OpEx
−$61.6K −$2.79/SF
NOI
$184.8K $8.38/SF
Area
Berks County, PA
Vacancy
13.80%
Lease Rate
$12.96 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$3,696,660
Cap Rate 7%
$2,640,471
Cap Rate 9%
$2,053,700
Alternative Uses
Best Use
Office B
$2.64M
$2.31M – $3.08M
NOI $184,833 @ 7.0% cap · market cap 4.93%
Second Best
Healthcare Medical
$2.62M
$2.30M – $3.06M
NOI $183,650 @ 7.0% cap · market cap 4.90%
Theoretical Best
Office A
$3.62M
$3.17M – $4.22M
NOI $253,496 @ 7.0% cap · market cap 6.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,296
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 19610, PA
16,024
Population
7,327
Households
2.2
Avg Household Size
46
Median Age
54%
College-Educated
98%
High-School Grad
7.1 sq mi
ZIP Area
2,257
Density / Sq Mi
$91,034
Median Household Income
$52,707
Median Earnings
$1,669
Median Rent
$320,100
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Flex space - Multi-tenant office/medical space with attached warehouse on 3.14 acres, with both tenants extending leases.
Where is this flex space located?
The property is located at 625-627 Spring Street Reading, PA.
What is the asking price?
The asking price for this property is $3,750,000.
What are key features of this property?
This property features: 22,060 SF office/medical space plus an attached 4,800 SF warehouse on 3.14 acres in Wyomissing, PA; Multi‑tenant setup with KPS and Fresenius Medical Care (FMC) tenants; Both tenants have occupied their suites since August 1996
