Colliers International | Pittsburgh Announces Lease of Lockamp Plaza
– The 15,000 SF Flex Building Located on Babcock Boulevard is Projected to be Newly Renovated and Fully Occupied by 3rd Quarter 2013 –
Colliers International | Pittsburgh is pleased to announce the successful leasing assignment of Lockamp Plaza located at 3221 Babcock Boulevard in Pittsburgh’s North Hills. The 15,000 SF flex building will be newly renovated and fully occupied by projected 3rd Quarter 2013. John Bilyak SIOR, CCIM, Principal, and Jessica Jarosz, Vice President at Colliers International | Pittsburgh represented the landlord in the marketing and leasing efforts.
Lockamp Plaza will be the new home of Aramark Refreshment Services.
“We were able to effectively lease the property within six (6) months of listing the building and implementing our marketing strategy,” stated Jessica Jarosz.
“It helped that the northern market is really tight, but the key to successfully leasing the building, was the owners creativity,” added John Bilyak SIOR, CCIM. “By removing the front building, they reduced their total rentable square footage, but dramatically increased the efficiency and access to the remaining 15,000 SF. It takes a certain amount of courage and conviction to embrace that approach, but it proved very effective.”
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Pittsburgh’s Overall Vacancy Rate Dips Below 8%
Source: Q4 2012 Pittsburgh Office Market Report
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.”
HDS Marketing Leases 34,000 SF in West Pittsburgh Business Park at 1000 Napor Boulevard
HDS Marketing has leased 34,230 square feet at 1000 Napor Blvd. in Pittsburgh, PA. Occupancy is set for later in the first quarter of 2013. +/- 26,000 SF remains available for lease.
The original building was 190,000 SF with several out buildings, and was constructed in 1970. The Sampson Morris Group purchased the property and subsequently subdivided the main building and sold it to Cellones bakery which left a 50,000 SF high bay building and two out buildings. The park was rebranded as the West Pittsburgh Business Park, and there are future plans for two more buildings. Click here to learn more about the West Pittsburgh Business Park.
John Bilyak and Paul Horan of Colliers International | Pittsburgh represented the landlord, Mangrove Cay LP. Amy Brocato and Matt Virgin of Langholz Wilson Ellis represented HDS Marketing.
“Colliers International | Pittsburgh is tremendously excited by the redevelopment of the former WRS building, which is now the West Pittsburgh Business Park. The vision of the Sampson Morris Group is being realized as evidenced by the commitments by Cellone’s Bakery and most recently HDS Marketing,” said John Bilyak SIOR, CCIM, Principal at Colliers International | Pittsburgh. “With a little over 26,000 SF of existing buildings remaining and the ability to add two additional buildings, we look forward to more leasing activity in 2013.”
For more information regarding space available at 1000 Napor Boulevard, or to schedule a property tour, please contact John Bilyak SIOR, CCIM or Paul Horan of Colliers International | Pittsburgh at 412 321 4200.
Demand for Office Space is Excellent in Downtown Pittsburgh
Sources: Colliers International | Pittsburgh Q3 2012 Pittsburgh Office Market Report
Pittsburgh office market performance continues to be strong, with an increased amount of activity and tenant movement. The office vacancy rate is steadily declining on a quarter over quarter basis, as Class A buildings continue to fill with new leases, expansions and renewals. Plans of new construction are on the horizon, employment rates are improving, and there is solid momentum in absorption. Pittsburgh is performing well ahead of the US average, and is expected to continue in a positive direction into the next quarter. Under-utilized Class B and C properties are being converted into residential use, and demand for a mixed-use “live-work-play” community continues to be the focus for adding vibrancy to downtown Pittsburgh and lifting occupancy rates. The total number of city residents has increased from 1,000 seven years ago, to over 7,000 today. High performance banking, healthcare, energy and education sectors are driving positive growth, along with favorable trends in housing recovery and residential opportunities downtown.
Click here for the full report.
“The Pittsburgh commercial office market continues to be strong. While some local companies are still waiting to see what the upcoming “Fiscal Cliff” will mean to their businesses, others are moving forwarded with planned relocations and expansions,” said Patrick Sentner SIOR, Founding Principal at Colliers International | Pittsburgh.
“We remain encouraged in the strengthening of Pittsburgh’s commercial real estate market, and are poised to assist our clients through leveraging our breadth of knowledge and world leading Colliers platform and personnel,” added Paul Horan, Founding Principal at Colliers International | Pittsburgh.