Q1 2013 Pittsburgh Industrial Market Report
Slow Start to 1st Quarter 2013
It’s a marathon, not a sprint – We hope!
The Pittsburgh Industrial Market got off to a slow start coming out of the gate in 2013. The 1st Quarter saw very few transactions of significance as buyers and tenants consider the impact of a soft economy, and lingering concerns surrounding the federal budget.
The Greater Pittsburgh vacancy rate changed little from 4th Quarter 2012 with a slight drop to 7.9% from 8.1% the previous quarter. Available Class A product continues to remain scarce, and at the risk of beating the proverbial dead horse, no relief is in sight in the form of new speculative product. That said, the market is anticipated to give back two large blocks of space of existing product. Flabeg recently announced that they are ceasing operations at their four year old solar glass manufacturing plant in Findlay Township. This 228,000 SF facility would represent the largest block of Class A product in the market when it is made available. In the north, United Stationers will be vacating their 124,000 SF Cranberry building.
Looking forward, we believe the 2nd Quarter will prove more robust than the 1st Quarter. Unless there is additional unanticipated negative news on the economic front, the pent up demand from companies already kicking tires in the market is sure to result in more transactions.
“Colliers International | Pittsburgh is pleased to present the 1st Quarter 2013 Industrial Market Report,” said John Bilyak SIOR, CCIM, Principal at Colliers International | Pittsburgh. “We look forward to your feedback and trust that this information will prove insightful as you evaluate your current real estate and requirements going forward. As always, please contact us at 412 321 4200 if we can be of service.”
Posted on May 9, 2013, in Economy, Industrial and tagged Colliers International, Commercial Development, Industrial outlook, Pittsburgh Commercial Real Estate. Bookmark the permalink. Comments Off on Q1 2013 Pittsburgh Industrial Market Report.