Office Building with Attached
For Sale
$3,750,000
625627 SPRING STREET, Reading, PA 19610
Office and medical suites with an attached warehouse, central air, and private handicap-accessible parking.
Property Size26,860 SF
Lot Size3.14 Acres
Price / SF$139.61
Days on Market705
Property Features for 625627 SPRING STREET
General Information
Standard status
Active
Size
26,860 SF
Lot size
3.14 Acres
Property subtype
Office
Warehouse & Industrial
Warehouse Space
4,800 SF
Office Build-Out
22,060 SF
Taxes and HOA fees
Annual Taxes
$54,785
Amenities
Central Air
3
Built Up, Rubber
Parking.
Lighted, Private, Handicap Parking, Lot.
0.00 x 0.00
Building Details
Year Built
1975
Tenancy
Multi
Listing Agency:
RE/MAX Of Reading
Listed By:
Kent Wrobel · License #AB067831
(610) 670-2770
Source:
Xome
Added: Oct 4, 2024
Changed: Sep 6
Last Checked: Sep 7 at 5:32AM
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.
Built in 1975, the property combines 22,060 square feet of office and medical space with an attached 4,800-square-foot warehouse. The improvements sit on 3.14 acres and include central air, a built-up rubber roof, and lighted private parking with handicap spaces.
KPS and FMC have occupied suites at the property since August 1996, and both tenants have recently extended their leases. The owner is seeking a sale-leaseback transaction, offering an established occupancy profile across the office and medical component.
The property contains 26,860 square feet of total building area and is located in the Borough of Wyomissing.
KPS and FMC have occupied suites at the property since August 1996, and both tenants have recently extended their leases. The owner is seeking a sale-leaseback transaction, offering an established occupancy profile across the office and medical component.
The property contains 26,860 square feet of total building area and is located in the Borough of Wyomissing.
Key Highlights
- 22,060 SF of office and medical space
- Attached 4,800 SF warehouse
- Situated on 3.14 acres
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
6.00%
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 6.00%
Second Best
Healthcare Medical
$3.19M
$2.80M – $3.73M
NOI $223,610 @ 7.0% cap · market cap 5.96%
Theoretical Best
Office A
$4.41M
$3.86M – $5.14M
NOI $308,654 @ 7.0% cap · market cap 8.23%
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
406
Businesses Nearby
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
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Frequently Asked Questions
What type of property is this?
Office building - Office and medical suites with an attached warehouse, central air, and private handicap-accessible parking.
Where is this office building located?
The property is located at 625627 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 of office and medical space; Attached 4,800 SF warehouse; Situated on 3.14 acres
