Flex Space with Office and
For Sale
$3,990,000
627-625 Spring St, Reading, PA 19610
The property combines office and medical suites with an attached warehouse on a substantial commercial parcel.
Property Size26,860 SF
Lot Size3.14 Acres
Price / SF$148.55
Days on Market693
Property Features for 627-625 Spring St
General Information
Standard status
Active
Size
26,860 SF
Lot size
3.14 Acres
Warehouse & Industrial
Warehouse Space
4,800 SF
Office Build-Out
22,060 SF
Taxes and HOA fees
Annual Taxes
$54,785
Building Details
Buildings
1
Building Size
26,860 SF
Tenancy
Multi
Listing Agency:
RE/MAX Of Reading
(610) 670-2770
Listed By:
Kent E Wrobel · License #AB067831
(610) 670-2770
Source:
Exprealty
Added: Oct 7, 2024
Changed: Aug 29
Last Checked: Aug 29 at 6:37PM
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 flex property at 625-627 Spring Street combines 22, 060 square feet of office and medical space with an attached 4, 800 SF warehouse. The improvements occupy 3.14 acres in the Borough of Wyomissing, providing a combined office, medical, and warehouse configuration within one property.
KPS and FMC have occupied their respective suites since August of 1996, and both tenants have extended their leases. The transaction is structured as a leaseback sale, with the current owner seeking to sell the property under that arrangement. The property is located in Wyomissing, Pennsylvania, with the office and medical component complemented by on-site warehouse space.
KPS and FMC have occupied their respective suites since August of 1996, and both tenants have extended their leases. The transaction is structured as a leaseback sale, with the current owner seeking to sell the property under that arrangement. The property is located in Wyomissing, Pennsylvania, with the office and medical component complemented by on-site warehouse space.
Key Highlights
- 22, 060 square foot office/medical component
- Attached 4, 800 SF warehouse
- 3.14‑acre property in the Borough of Wyomissing
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
$225,050
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
5.64%
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%
$4,501,000
$4.5M
Cap Rate 7%
$3,215,000
$3.2M
Cap Rate 9%
$2,500,556
$2.5M
Market Conditions
NOI Build-Up for 26,860 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
$348.1K $12.96/SF
− Vacancy
−$48.0K −$1.79/SF
EGI
$300.1K $11.17/SF
− OpEx
−$75.0K −$2.79/SF
NOI
$225.1K $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%
$4,501,000
Cap Rate 7%
$3,215,000
Cap Rate 9%
$2,500,556
Alternative Uses
Best Use
Office B
$3.21M
$2.81M – $3.75M
NOI $225,050 @ 7.0% cap · market cap 5.64%
Second Best
Healthcare Medical
$3.19M
$2.80M – $3.73M
NOI $223,610 @ 7.0% cap · market cap 5.60%
Theoretical Best
Office A
$4.41M
$3.86M – $5.14M
NOI $308,654 @ 7.0% cap · market cap 7.74%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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.
Similar Off Market Nearby
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- Big John's — 1316 Schuylkill Ave, Reading, PA 19601
Frequently Asked Questions
What type of property is this?
Flex space - The property combines office and medical suites with an attached warehouse on a substantial commercial parcel.
Where is this flex space located?
The property is located at 627-625 Spring St Reading, PA.
What is the asking price?
The asking price for this property is $3,990,000.
What are key features of this property?
This property features: 22, 060 square foot office/medical component; Attached 4, 800 SF warehouse; 3.14‑acre property in the Borough of Wyomissing
