Q4 Consistency Continues

The fourth quarter of 2013 finished in much the same way it began and maintained throughout the year; solid if unspectacular growth. The vacancy rate fell from 7.9 percent in the third quarter to 7.7 percent in the fourth quarter and dropped three basis points in total over the course of the year. The lack of quality Class A warehouse continues to be a factor with vacancy levels dropping to an astounding 2.97 percent.

The region’s confidence continues to spiral upward with fourth quarter projections from numerous economists that the manufacturing sector will continue to rebound. Optimism is the word heading into 2014. Pittsburgh should be especially bullish given the multitude of story lines that should positively impact the industrial market. These include CSX announcing that they will construct a $50,000,000 multi modal facility in McKees Rocks; the continued expansion of the Southwest Pennsylvania energy sector, and the much needed passage of the state transportation bill. Any of these alone are significant, but taken in total, insure that the region will continue to advance forward.

Click here to see the full Q4 2013 Industrial Market Report.