Monthly Archives: May 2013
During the first quarter of 2013 the Pittsburgh commercial real estate market continued to be one of the stronger markets in the United States. Net absorption was relatively flat. This was due primarily to a number of larger growing tenants in the marketplace taking a bit more time than normal to make real estate decisions. Simultaneously there was an uptick in the vacancy rate (8%), but this still represents a very stable marketplace.
What has been a pleasant surprise is the fact that all submarkets within the seven county Pittsburgh market area have vacancy rates under 11%. The highest vacancy rate can be found in the Parkway East corridor at 10.6%. Historically this particular submarket has seen vacancy rates in the 14-16% range.
Learn more about Q1 2013 activity in the Pittsburgh office market.
The economy in Western Pennsylvania has diversified dramatically over the last several decades, but the Energy sector continues to lead economic activity and subsequently drive demand for commercial real estate throughout the region. Western Pennsylvania is poised to become a petrochemical and manufacturing world leader. The chemical industry is already seeing a boom nationally due to shale gas drilling as the industry shifts from oil to natural gas as a raw material. “Our firm has been very active in the local and national energy sector, said Patrick Sentner SIOR, Founding Principal at Colliers International | Pittsburgh, “and our enthusiasm in this business sector is reinforced by the activity we are seeing at
the local level.”
– Secures 15,516 RSF for relocation to new office at Seven Parkway Center in Greentree –
Colliers International | Pittsburgh is proud to announce Provident Funding will be consolidating its Noblestown Road and Eleven Parkway Center offices in Greentree to a new 15,516 square foot office space in Greentree, located at Seven Parkway Center, 875 Greentree Road in the Parkway West Corridor, to accommodate their growing organization.
Patrick Sentner, Founding Principal, and Edward Lawrence, Vice President of Office Brokerage at Colliers International | Pittsburgh, were engaged as the exclusive tenant representatives to Provident Funding, securing the 15,516 square foot office lease.
Frank W. Gustine, Jr., Managing Principal of FWG Real Estate represented the landlord in this transaction.
“The relocation to a larger space at Seven Parkway Center reflects Provident Funding’s growing presence, not only in the Western Pennsylvania market, but throughout other parts of the country,” said Sentner. “The new location will serve to support seven separate divisions of Provident Funding and provide for potential expansion needs in both the short and long term.”
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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.”
PITTSBURGH, May 8, 2013 – Colliers International | Pittsburgh is proud to announce Hefren-Tillotson, Inc. will be moving from its Upper St. Clair Branch in the South Hills to a new 7,339 square foot office space in Southpointe, located at 121 Champion Way in Cecil Township, to accommodate their growing organization.
Paul Horan, Founding Principal, and Edward Lawrence, Vice President of Office Brokerage at Colliers International | Pittsburgh, were engaged as the exclusive tenant representatives to Hefren-Tillotson, Inc., securing the 7,339 square foot office lease.
Mike Swisher, Principal of Horizon Properties Group, LLC represented the landlord in this transaction.
“The new 121 Champion Way suite provides for a convenient first floor presence with prominent lobby signage,” said Horan. “Southpointe is a highly recognized and prestigious business address which reflects Hefren-Tillotson’s well earned reputation as one of the region’s most respected and top performing investment advisory and financial planning firms.”
“This new and expanded office will be instrumental in continuing to grow Hefren-Tillotson’s ability in the Pittsburgh area to serve our clients based on trust and personal values, just as we have for 65 years,” said Kim Tillotson-Fleming, Chief Executive Officer of Hefren-Tillotson. “Having a local presence will allow us to provide convenient client service in a manner that a more demanding, time sensitive marketplace requires.”