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With the inauguration of President Trump fresh in our minds, it would be appropriate to discuss the impact of a new presidency on the retail real estate world. Will new tariffs impact retailers like Best Buy and Walmart, or could new manufacturing emerge that might lower costs? Instead of discussing these weighty issues, and because Colliers International | Pittsburgh has its priorities straight, we would prefer to talk about beer. Specifically the burgeoning microbrewery explosion we have seen in our region.
Combined with a hot restaurant scene, Pittsburgh’s food options have never been better.
The excitement in Pittsburgh’s food scene is headlined by the strong growth in regional micro-breweries. Just this past month Mindful Brewing opened their new location on Route 88 in Castle Shannon. At the same time Southern Tier Brewing Company opened on the North Shore and Helltown Brewing announced it is expanding to Bloomfield. By some count, no fewer than seventeen breweries are planned or expected to open in the region in 2017. While many might wonder if this could be too much of a good thing, Kyle Mientkiewicz of Grist House Craft Brewery, one of Pittsburgh’s first and most popular craft breweries disagrees. “In the grand scheme of things I don’t think the market is
saturated yet,” he said, “but if you do enter the market you better have a good product”. Grist House’s success has shown other entrepreneurs that people will seek out good
Local craft breweries are only a part of Pittsburgh’s strong restaurant scene. National and regional restaurant chains are expanding rapidly within the market and competing for real estate options. Restaurants active in the market include Firebirds, Bomba, Hello Bistro, Plaza Azteca, Choolah, Mission BBQ, Emiliano’s, and many others. By some counts there may be dozens of restaurant concepts competing for the same prime locations. The result is a lack of opportunities for smaller local restaurants and increasing rental rates. Restaurants that used to lease space for $15 or $18 per square foot are now forced to deal with market rents that range between $25 and $40 per square foot. Rising occupancy and labor costs create a conundrum for many restauranteurs. Joe Billhimer, a franchisee of multiple restaurant concepts said, “The implications of higher rents, coupled with increasing difficulty in finding quality workers and their ability to get to your location absent mass transportation services, has added another factor into deciding the right location for a restaurant to be prosperous. It has become very important to look at your location and the availability of workers.“
Some pundits believe that, nationally, there is an oversupply of restaurant uses and that there will be a market correction. In a recent poll by the National Restaurant Association, only 17% of restaurateurs believed that the market for restaurants will improve over the next year, while 29% see conditions worsening. Of course, we know that polls don’t always correlate with reality, so have a beer, leave the politics aside and enjoy the plethora a food options that Pittsburgh provides.
To read the full Q1 2017 Pittsburgh Retail Newsletter, click here.
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.
The Colliers International | Pittsburgh “Pinguins” stepped foot on the lanes this weekend for the Junior Achievement of Western Pennsylvania (JAWPA) Young Professionals Board (YPB) Bowl-A-Thon. Our team, named after Pittsburgh’s beloved hockey team, raised $1,400 for programming materials at Kelly Elementary School in Wilkinsburg.
Despite the group’s strong athletic ability, the record breaking numbers were not shown in the scores, but in the number of participants and funds raised. The YPB Bowl-A-Thon’s 55 participants raised over $10,000, an increase in $4,500 from last year.
This is the second year that Maria Hanson, Client Services Advisor at Colliers International | Pittsburgh and JAWPA Young Professionals Board member, organized Colliers participation in the event.
“I may not be proud of my bowling abilities, but I am proud of the part that my colleagues and I played in supporting Junior Achievement and making this year’s Young Professionals Board Bowl-A-Thon the most successful one yet!”
According to their website, Junior Achievement is the world’s largest organization dedicated to providing young people with the knowledge and skills they need to reach economic success, plan for the future and make smart academic and economic choices. JAWPA programs are delivered by corporate and community volunteers and provides relevant, hands-on experiences to over 72,000 students from kindergarten through high school.
The next JAWPA Bowl-A-Thon is sponsored by Range Resources and will take place on Tuesday, March 7th at the Meadows Casino. If your company would like to participate, please call Elizabeth Saraceno, Events & Marketing Sales Manager at (412) 208-4747, ext. 124 or e-mail her at firstname.lastname@example.org.
Smart Asset ranked Pittsburgh number 4 on their “Best Cities for Foodies” list.
Gregg Broujos, Managing Director & Founding Principal of Colliers International | Pittsburgh, isn’t surprised. “We hear comments frequently from out of town investors that Pittsburgh’s independent restaurant scene is well known throughout the United States. And some of those investors have pointed to our new reputation as a foodie town as one of the factors as to why they are looking to invest in Pittsburgh. ”
SmartAsset.com says, “Pittsburgh is climbing the culinary charts. Zagat even named it the best food city of 2015. One great thing about Pittsburgh – other than 43 restaurants per 10,000 residents (third-most in the country) and 5.5 community-supported agriculture and farmers’ markets per 100,000 residents (sixth-most in the country) – is the prices. Relative to other large cities, especially those in our top 10, you can get a good deal in Pittsburgh. Going out to eat with a friend at a mid-tier restaurant in the Steel City should only cost you about $50, on average.”
Broujos adds, “Personally, I’m intentionally not skinny so I take full advantage of our diverse and hip restaurant scene.”
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