The overall Suburban Office Market was extremely busy throughout 2019 with vacancy rates for class A Office product dropping to 4.83%, which is lower than the similar period of 2018, this large decrease can be attributed to the leasing of numerous spaces within the Wyomissing and Spring Ridge areas that were available for quite some time. In addition, the numerous facilities that are being built for Tenant Specific Uses, I.E. the UGI Energy Services Building, The Teleflex Facility, along with other buildings within the VF complex assisted in dropping the overall rate, due to the fact that those facilities were built or renovated specifically for its end user and not on a speculative basis.
The average rental rates remained flat from quarter to quarter, however they noticed an uptick from the same period in 2018. The rates being proposed for True Class A assets are in the $20.00 - $24.50 per s/f modified gross. We are noticing strong signs that the rates are beginning to increase within this sector due to the lack of product throughout the market.