Downtown Reading Lot Slated for New Apartments and Shops
The proposed redevelopment of a Fifth Street lot would bring 24 new apartments and commercial space to downtown Reading.
Updated on Oct. 28, 2026 in Commercial
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The Reading Planning Commission recently reviewed a sketch plan to transform the city-owned parking lot at 29 S. Fifth St. into a mixed-use building. The proposal includes first-floor commercial space and 24 new apartment units on the upper levels.
Why it matters
This project aligns with the city's comprehensive plan to convert underutilized surface parking lots into more dense, functional developments. It reflects a broader shift toward maximizing land use in the downtown area for both housing and commercial activity.
The proposed 35,719-square-foot site at 29 S. Fifth St. would house 24 apartment units alongside new commercial space. This replaces a surface lot closed by the Reading Parking Authority in June.
The players
Reading Planning Commission
The local board responsible for reviewing development plans to ensure they align with city growth and infrastructure goals.
Reading Parking Authority
The agency that manages city parking infrastructure and oversees the transition of municipal lots into new developments.
Alan Shuman Development
The private development firm proposing the construction of the new commercial and residential mixed-use property.
The details
Alan Shuman Development submitted the sketch plan for the site, which formerly housed the City Hotel and city stables before the structure was razed in the 1960s. The plan is currently under review by the Planning Commission to provide recommendations before any formal submission. Developers are also exploring options to add angled parking along Cherry Street and potentially dedicate a portion of the site for public use.
Timeline
1960s: The City Hotel was demolished at the current parking lot location.
June 2026: The Reading Parking Authority officially closed the lot to drivers.
October 27, 2026: The Planning Commission held a review session for the project sketch plan.
The Home Front
The project follows the city's comprehensive plan and transit multimodal plan to convert underutilized land into dense, mixed-use assets. This signals a transition away from downtown surface parking in favor of new housing stock and commercial storefronts.
Residents who previously used the lot at 29 S. Fifth St. should plan to use the Fourth and Cherry Garage or the South Penn Garage for parking. Monitor the Planning Commission’s future public meetings for updates on the project’s timeline and potential impacts on local traffic patterns.
The takeaway
The proposed redevelopment marks a shift toward dense, mixed-use living in downtown Reading. Keep an eye on local planning commission agendas if you live near the Fifth Street corridor to stay informed about changes to neighborhood parking and construction schedules.
Further reading
Learn more about local business and development trends in the Reading Commercial section.
Live Poll
Should your city prioritize redeveloping surface parking lots into apartment complexes?
