Category Archives: Industrial
This edition of the Investment Newsletter contains 1st quarter 2017 market indicators, market statistics, sales transactions and an investor spotlight interview with Bill Hunt of the Elmhurst Group based in Pittsburgh, Pennsylvania.
Click here to view the entire report.
Colliers International | Pittsburgh won four awards at the Western Pennsylvania Chapter of the Society of Industrial and Office Realtors (SIOR) Annual Awards Luncheon last week at the Rivers Club. The awards presented by David Ruppersberger, President of the Pittsburgh Regional Alliance, honor the region’s top brokers and deals of 2016.
Paul Horan, Founding Principal at Colliers International | Pittsburgh, and Edward Lawrence, Principal at Colliers International | Pittsburgh along with Jason Stewart at JLL won “Office Lease of the Year – Fringe” for representing 375 Northshore Drive in the 133,244 square foot People’s Natural Gas transaction.
Colliers International | Pittsburgh SIOR members Patrick Sentner, Founding Principal, and John Bilyak, Principal, won “SIOR Co-Broker of the Year – Pittsburgh Industrial” for their 148,000 square foot transaction at 405 Keystone Drive. Sentner and Bilyak represented the buyer in the $9.3 million deal.
“Colliers International | Pittsburgh was very proud to have so many of our transactions recognized at the recent SIOR Awards Luncheon,” Bilyak commented. “It is a tribute to the experience, depth and team approach within our office and a honor to receive these awards among the highest peer group within our industry.”
Justin Kline, Associate at Colliers International | Pittsburgh, was the only member of the firm to take home two awards. The first was for “Investment Sale of the Year – Industrial – Multi-tenant” on the sale of 460 Nixon Road. He represented the seller in the $20.3 million transaction. Kline also won “Emerging Broker – Seller Representative” for the sale of Center City Tower, a 300,000 square foot $21.5 million transaction.
Commercial Real Estate professionals from several Colliers International offices convened in Pittsburgh last week for two days of networking, meetings, and presentations. The Pittsburgh Regional Alliance, Civil & Environmental Consultants, and Oxford Development sponsored this inaugural Colliers Regional Meeting at PNC Park.
Brokers and service line leaders from Colliers International travelled from California, Connecticut, Illinois, Maryland, New Jersey, Ohio, Virginia, Washington D.C., and across Pennsylvania on Wednesday for dinner and networking on the rooftop deck at the Blue Line Grille, directly across the street from Consol Energy Center.
“The Colliers Regional Conference brought together market leaders, brokers and service line experts to strengthen internal relationships and expand our ability to service clients, whether they are building owners, large corporations, law firms, banks or health care institutions across the state and throughout the region,” explained Joseph Fetterman, Executive Vice President of Strategic Initiatives for Colliers International offices in Eastern Pennsylvania and Delaware.
Thursday began with breakfast in the Lexus Club and a Pittsburgh-themed trivia contest and presentation by the Pittsburgh Regional Alliance. Industrial, Office, Retail, and Investment break-out sessions followed, which included collaboration meetings; presentations on energy, healthcare, ADA compliance, corporate solutions, and capital markets; and a panel discussion from some of the area’s largest office users.
Fetterman added, “The highlight was a panel of Pittsburgh based clients who spoke to challenges they face and initiatives they have underway for their respective real estate portfolios.”
“The Colliers International Regional Meeting was a huge success from many perspectives, especially corporate service business development and broker-to-broker networking,” commented Gregg Broujos, Managing Director & Founding Principal of Colliers International | Pittsburgh. “We were also able to show off our great city and the presentation by the Pittsburgh Regional Alliance was an incredibly valuable resource in showing our out-of-town brokerage professionals why they should bring their corporate clients to Pittsburgh.”
The long day ended with a view of the downtown skyline from the bleacher seats at PNC Park as the Pirates took on the Nationals and an amazing display of Zambelli Fireworks.
“The Pittsburgh Pirates were so gracious with their venues and everyone one of their staff members showed the utmost professionalism with every detail of the event,” Broujos added. “And the icing on the cake was the Pirates smacking the Nationals around on Thursday night!”
Q4 2014 Static Finish to the Year
The fourth quarter of 2014 finished without the anticipated flourish that it was trending toward. Vacancy actually crept up three basis points from 7.2% to 7.5% while absorption for the quarter experienced a negative 591,656 square feet. This is the largest negative quarter since 2009 and all others, with the exception of the second quarter of 2014, were positive. Even with the market giving back close to 600,000 square feet in the fourth quarter and 300,000 square feet in the second quarter, the year end absorption number was still a rosy 675,000 square feet.
At least a portion of the negative absorption in the fourth quarter of 2014 can be attributed to American Eagle officially bringing their 440,000 square foot distribution facility in Thorn Hill Industrial Park to market. It would be remiss not to credit a portion of the slow down to the sudden and unexpected drop in oil prices with prices under $60.00 per barrel, and for a brief time under $50.00, suddenly uncertainty spread into the previously teflon-coated energy sector. While this is anticipated to be a minor blip on the radar, it is fully expected to bleed into the first quarter of 2015, negatively impacting deal volume although not necessarily slowing advancement of projects by larger players in the sector.
Deals of significance in the fourth quarter include the sale of 367 Morganza Road, a Colliers International | Pittsburgh listing, in Washington County to National Rubber. The 65,700 square foot building traded at $52.00 per square foot. Edward Marc Brands leased 50,000 square feet in the Lawrenceville section of Pittsburgh and R&N Steel Manufacturing leased 70,000 square feet at 3401 Grand Avenue on Neville Island. Evidence of the trend noted on the back page of this report, 6500 Hamilton Avenue a 60,000 square foot multistory building in the red hot east side sold for $14.00 per square foot. The new owner plans to convert the former warehouse building to a higher and better use.
Evidence of the trend noted on the back page of this report, 6500 Hamilton Avenue a
60,000 square foot multistory building in the red hot east side sold for $14.00 per square
foot. The new owner plans to convert the former warehouse building to a higher and
Click here to see the full Q4 2014 Pittsburgh Industrial Market Report.