Category Archives: market

Q4 2020 Industry Market Reports

Click here to view the Q4 2020 Office Report.

Click here to view the Q4 2020 Retail Report.

Click here to view the Q4 2020 Industrial Report.

Shadow Space: What is it and What does it Indicate?

One definition of “shadow” is as follows: a reference to proximity, ominous oppressiveness, or sadness and gloom.

It is a common misconception that the term “vacant space” or “vacancy rate” is an indicator of all the space available in a given market or property.  “Vacancy” simply refers to space that is not leased.  However, “available space” or “availability rate” is a more accurate indicator of all the space available or will be available soon.  The difference between vacant and available space is often referred to as “shadow space.”  Shadow space is space that is currently occupied but is still being marketed for lease.  The tenant does not have to physically occupy the space, they simply must be paying rent and have a lease on the space.  A recent example of this is marked by Dollar Bank having announced they will be moving from Gateway Center to 20 Stanwix Street.  The owner of Gateway Center knows of this upcoming vacancy and of its availability in the future, i.e. “shadow space.”  This is different than sublease space in that shadow space can be directly marketed by the landlord.

At the end of Q3 2020 there was 4,402,254 square feet (SF) of available space either for lease or sublease in Pittsburgh’s Central Business District (“CBD”). Of this square footage, 3,731,808 SF is vacant.  The difference of 670,446 SF is shadow space.

The amount of shadow space can be an indicator of economic conditions.  Similar to sublease space, if there is more shadow space available, it is a sign that current tenants do not plan on renewing their leases or are downsizing.  Typically, this is due either to a reduction in business or a downsized workforce. 

At the end of 2019, the CBD had 684,308 SF of shadow space available. The availability was significant and represented 16.8% of all the available space on the market. Yet, as COVID-19 emerged over the next six months, the amount increased by a staggering 32.3% to represent 19.9% of the available space at 905,231 SF.

Going forward, as the COVID-19 pandemic continues, more shadow space is expected to come onto the market.  At the same time, some of this space will turn vacant.  It is very hard to predict or track shadow space because, by definition, the space is occupied.  Just like any other market indicator or statistic, the variables are very fluid.  Availability numbers are not to be confused or deceived by vacancy statistics.  The true story lies in a vital combination of simple vacancy rates and the often overlooked yet very critical shadow space.

Q3 2020 Industry Market Reports

Click here to view the Q3 2020 Office Report.

Click here to view the Q3 2020 Retail Report.

Click here to view the Q3 2020 Industrial Report.

Colliers Pittsburgh Secures the Leasing for Two Pennsylvania Malls

Colliers International | Pittsburgh’s retail team of Mark Anderson and Jonathan Levinson recently secured the listings of two Pennsylvania malls: The Galleria at Pittsburgh Mills and Beaver Valley Mall.

In addition to the two malls, Colliers Pittsburgh Retail team will also assist Mason Asset Management with the leasing of 40,000 SF in the Big Lots Center at 7005 Clairton Road in West Mifflin.

After Anderson and Levinson assisted ScareHouse in the process of finding a new home at the Galleria at Pittsburgh Mills, Jack Bassal of Mason Asset Management, Inc. felt they would be a great fit to lease additional available space within the two malls.

“Mark and Jon had been a pleasure to work with on our deal with ScareHouse at the Galleria at Pittsburgh Mills. They were very transparent on what their clients’ needs were and their dedicated attitude helped make the deal move very smoothly,” stated Bassal,  “It is a pleasure to have them on board working on the landlord side with us and looking forward to their continued success.”

The Galleria in Pittsburgh Mills in Tarentum, PA (736 – 166,000 SF available) and Beaver Valley Mall (175 – 25,000 SF available) both have anchor, in-line and pad space available for lease. These malls include anchor tenants such as Macy’s, Dick’s Sporting Goods, JoAnne Fabrics, Boscov’s and JCPenney’s.

Anderson is excited about the opportunity to fill some of the existing vacant suites within the two shopping centers.  “The Galleria at Pittsburgh Mills is a beautiful facility with excellent access and demographics.  Beaver Valley Mall is the epicenter of Beaver County.  With the construction of the Shell Cracker plant Beaver Valley Mall’s position will only improve.”

For more information about availabilities at the Galleria at Pittsburgh Mills and Beaver Valley Mall, contact Mark Anderson at marke.anderson@colliers.com or Jonathan Levinson at jonathan.levinson@colliers.com.