RETAIL MOVE OVER! OFFICE MARKET SHINES IN 4TH QUARTER; INDUSTRIAL SOFTENS SLIGHTLY
Office Market Sees Big New Construction Numbers
The Office Market in the 4th quarter saw an 8.1% overall vacancy rate, improving from the 3rd quarter’s 8.4% rate, with a positive absorption rate of 868,224 SF. Better yet, the overall asking rate when from $19.97 PSF in Q3 to $20.61 PSF, a 3.2% increase. Two new buildings were delivered totaling 556,643 SF, with another 2,324,245 SF under construction. Two of the high profile projects under construction include the 800,000 SF Tower at PNC Plaza and 250,000 SF at Zenith Ridge III. Notable office leasing transaction include: UPMC Health Plan, represented by Colliers International in Pittsburgh, taking 140,967 SF at Heniz 57 Center, and Wesco International Charitable Foundation’s 82,018 SF at Commerce Court in Station Square. Two new buildings were delivered in the quarter with 186,000 SF at 1 Southpointe Boulevard and 174,000 SF at the Wexford Medical Mall, both of which are 100% occupied. For the quarter, Class A space improved to a 7.6% vacancy and $26.56 PSF in asking rates; Class B space had an improved 8.7% vacancy rate and an $18.57 PSF rate; and Class C space saw the vacancy decrease to 7.5%, with a $14.49 PSF asking rate. The overall CBD vacancy rate improved to 9.2% in vacancy, while the Suburban market continued to improve and ended with a 7.7% vacancy rate.
Click here to see the full Q4 2014 Pittsburgh Investment Newsletter.
The Pittsburgh market continues to live up to the national hype, posting strong gains in all product types while sales continue to remain solid.
The OFFICE MARKET for the Third Quarter of 2013 saw an overall vacancy rate of 8.1% with a quoted rental rate at $18.84. While the vacancy rate ticked up just .1% over the Second Quarter of 2013, the quoted rental rate surged 21 cents per square foot from $18.63. As compared to the Second Quarter of 2012, the vacancy remained the same while the quoted rental rate is up 11 cents per square foot. The Oakland Market near the Universities continues to shine with an effective zero percent vacancy rate. The Class A market in the CBD enjoys a 6.8% vacancy rate with a quoted rate of $24.77 psf, while the Greater Downtown market is even better with a 2.5% vacancy rate and a $22.43 psf average for the Third quarter of 2013.
Colliers International | Pittsburgh Brokers Honored at the Western Pennsylvania Chapter SIOR Awards Luncheon
Colliers Brokers Receive Top Honors in Several Award Categories for 2012 Deals of the Year from the Society of Industrial and Office Realtors (SIOR)
Colliers International | Pittsburgh is pleased to announce that it has received several top honors in multiple commercial real estate categories at the annual Western Pennsylvania Chapter SIOR Luncheon, held Wednesday, May 15, 2013 at the Duquesne Club in Downtown Pittsburgh, honoring the Region’s Top Brokers and Deals for 2012.
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For the first time in the last four quarters, the Pittsburgh office market vacancy has increased. The Pittsburgh office market vacancy
rate for the first quarter of 2013 was 8.0%; 10 basis points above the prior quarter and 380 basis points lower than the national average of 11.8%. Class A office space vacancy remained unchanged from the prior quarter at a rate of 6.3%. Class B office space reported a vacancy rate of 9.3% which is a 30 basis point increase from the prior quarter. Class C office space increased by 10 basis points to a rate of 7.3%. As expected from the ascending vacancy trend, the average asking price per square foot dropped 1.4% to a rate of $18.49.
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