Elmhurst Group broke ground December 6, 2013 on Schenley Place, a 105,000 square foot “Class A” office building with seven stories and three levels of underground parking. Schenley Place is located on Bayard Street and Ruskin Avenue in Oakland. Elmhurst Group signed a long-term land lease with First Baptist Church of Pittsburgh for this project, which is estimated to be completed by March of 2015.
The First Baptist Church of Pittsburgh in 2004 hired Paul Horan, Founding Principal, and Ralph Egerman, Principal, of Colliers International | Pittsburgh for assistance in increasing its cash flow and providing funds to improve the 100 year old church building.
Mr. Horan and Mr. Egerman suggested to the Board of Trustees that their parking lot had significant value as a development site, and they were retained exclusively by the Board to develop a Request For Proposal and conduct interviews with carefully chosen developers. The Board of Trustees selected the Elmhurst Group to be the developer for the project and a long term ground lease was executed to improve the Church’s finances.
“Paul and I feel very privileged to have had an opportunity to work with the Church and Elmhurst, on this exciting project. Colliers International | Pittsburgh is proud of our work on behalf of non-profits and our role in the growth of our city,” said Ralph Egerman, Principal at Colliers International | Pittsburgh.
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, March 6, 2013 – Colliers International | Pittsburgh is proud to announce that NCS Services, Inc. will be moving its headquarters from Cranberry to a new 10,200 square foot office space in The ONS Building, located at 125 Enterprise Drive in the Parkway West Corridor of Pittsburgh.
Jessica Jarosz, Vice President of Tenant Advisory Services at Colliers International | Pittsburgh, was engaged as the Exclusive Tenant Representative to NCS Services, Inc., securing the new 10,200 square foot office lease.
Adam Viccaro & Jeremy Kronman of CBRE represented the landlord in this transaction.
“While working with NCS to identify potential office solutions along the Parkway West corridor, it became evident the submarket had limited options for a 10,000 square foot user, a reflection of the tightening office market and why demand for more buildings and larger blocks of contiguous space exists,” said Jarosz. “Due to market conditions, it was a challenge to find suitable Class “A” options for my client, but I was able to secure space for them in a building that compliments their business model and image.”
“Jessica Jarosz was instrumental in helping us find a new headquarters location,” added Doug Wright, President/CEO of NCS Services, Inc. “The facility meets all of our needs and market requirements, and the lease execution was performed in an efficient and timely manner. All of us at NCS Services are very anxious to move into our new Class “A” facility, the former headquarters for Dicks Sporting Goods. We look forward to the benefits this location will bring; it will better equip us to expand upon our vision, while offering quality, customer service for life, and innovative solutions for the non-profit marketplace now, and for many years to come.”
During the fourth quarter of 2012, Pittsburgh’s overall office vacancy rate decreased to 7.9%, continuing an ongoing positive trend. Behind the stability of Pittsburgh’s banking sector, the strength of local health insurance companies and the under-the-radar growth of many high-tech companies, Pittsburgh continues to be one of the strongest office markets in the United States.
The strength of the overall Pittsburgh office market is not limited to just a few submarkets. While most of the focus has been on the Central Business District, Cranberry and Southpointe, the other submarkets continue to perform well. The Parkway West is as tight as it has been since the “dot-com” days due to growth in both energy and mortgage service companies. In addition, the Parkway East/Monroeville area, while the weakest of the various submarkets, with a 10.5% overall vacancy rate, is actually strong compared to historical levels.
“The Pittsburgh office market is as strong as we have seen it since the dot-com days of the late 1990’s,” said Patrick Sentner SIOR, a founding principal at Colliers International | Pittsburgh. “Only this time the overall fundamentals appear to be much more sound.”