Author Archives: Colliers International | Pittsburgh
The Pittsburgh retail real estate market continues to be strong. The vacancy rate across all retail property types dropped to 3.5% during the last quarter, although the numbers are skewed upward by large vacancies in a few submarkets. The market for prime anchored shopping center space is extremely tight and the effective vacancy rate for most quality centers is between 1-2%. Absorption for the period was 208,000 square feet. The total retail market is 138,741,180 square feet, including 32,945,052 of shopping center space. Low vacancy rates and high absorption has pushed lease rates up.
Overall lease rates increased by .2% over the previous quarter to an average of $12.03 per square foot. High quality retail locations now typically lease in the low to mid $30 range, with some leases coming in as high as $55 per square foot. Small shop space in fringe market anchored space is usually near $15 per square foot. New construction typically requires a lease rate no less than $22.50.
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Colliers International | Pittsburgh Represents Big Heart Pet Brands in Prominent North Shore Sublease
There is a new sublease opportunity in town, one with an iconic riverfront address and prominent signage opportunity that everyone south of the Allegheny can see. The former Big Heart Pet Brand space at 375 North Shore Drive offers 103,747 square feet of Class A office space with a training/meeting facility, full fitness center with locker rooms, and a high end dining area. The views of the Point, Allegheny River and Heinz Field aren’t so bad, either.
“As market conditions remain extremely tight, large blocks of Class A space are limited in the downtown and greater downtown Class A office market,” Paul Horan, Founding Principal at Colliers International | Pittsburgh explains.
The sublease, ending January 31, 2021, includes three full floors (2nd-4th) totaling 98,000 square feet and 5,747 square feet on the fifth floor. Two parking spaces per 1,000 square feet leased are available along with a number of parking and public transit options within walking distance of the building.
Ed Lawrence, Principal at Colliers International | Pittsburgh continues, “The opportunity at 375 North Shore is a unique and rare solution for sizable tenants, as it provides the potential for prominent exterior signage and world class views of our beautiful city while offering existing upscale furniture and abundant parking.”
If you’re still not convinced, several entertainment facilities, hotels, bars and restaurants surround the building, including Burgatory, which opened directly across the street.