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Q2 2013 Pittsburgh Office Market Report

Q2 2013 Pittsburgh Office Report The Pittsburgh market continued to outpace the national average in the second quarter of 2013    as the overall office vacancy decreased 0.1% to 8.0% compared to 17.0% nationally. Despite an average rental rate increase of $0.15 to $18.63 in the market, Pittsburgh remains a value to businesses in comparison to the nationwide average rental rate of $23.23 per square foot. Construction also continued to surge, with three buildings consisting of 358,000 square feet of office space delivered during the quarter and 1,376,855 square feet still under construction. Net absorption numbers were promising as well, with a positive 353,651 square feet in suburban markets and a positive 27,253 square feet in the Central Business
District.

Learn more about Q2 2013 activity in the Pittsburgh office market.

More than 1,500,000 square feet of Class “B” and “C” office space has been taken off the market for conversion into residential and hospitality uses in the past couple of years. During this time, the former state office building, the Clark Building, the former Alcoa Headquarters, the former Verizon Building and 526 Penn Avenue have all been sold and either converted into residential use, or are awaiting redevelopment.

“This residential trend has added vibrancy to Pittsburgh’s Central Business District, positively impacting both the office and retail sectors of our market.” said Paul Horan, Founding Principal at Colliers International | Pittsburgh.

Pittsburgh Continues Green Redevelopment with Pens’ Plan for 28-Acre Former Civic Arena site

Sources:  Commercial Property Executive, Pittsburgh Business Times ; Pittsburgh Downtown Partnership  

Green redevelopment in downtown Pittsburgh is growing. The Pittsburgh Business Times has reported that the former Civic Arena 28-acre site is poised to become a mixed-use “live-work-play community” that includes 1,200 units of housing, 600,000 square feet of office space and 250,000 square feet of retail space. As the developer, the Penguins plan to pursue LEED For Neighborhood Development certification. LEED stands for Leadership in Energy and Environmental Design, an internationally recognized green building certification system providing third party verification that a building or community was designed and built using strategies aimed at energy savings, water efficiency, atmospheric protection, indoor air quality and stewardship of materials and the environment in general.

Jones Lang LaSalle was selected by the Pittsburgh Penguins as its owner’s representative to help lead the redevelopment of the Civic Arena site. J.C. Pelusi, Jones Lang Lasalle’s market director for the Pittsburgh region, told Commercial Property Executive that there are few examples of such a sizable parcel in a major city setting and noted that the proposed mix of uses is tentative. The eventual configuration, over a buildout period of probably five to 10 years, he said, will be shaped by how the market evolves over that time.

Completed in 1961, the Civic Arena, later known as Mellon Arena, was the Penguins’ home from 1967 through 2010, when the team, and the arena’s other users, moved across the street to CONSOL Energy Center. Nicknamed “The Igloo,” the arena reportedly was the first of its size in the world to boast a retractable roof. Demolition began last September and was recently finished.

“While one may or may not agree with the decision to raze the Mellon Arena, redevelopment of the site represents a truly rare opportunity for Pittsburgh to show the world, on a grand scale, its commitment to sustainable design and development,” said Raymond Orowetz P.E., LEED Green Associate, Associate Broker at Colliers International Pittsburgh.

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Green Building Alliance searching for green-minded building owners

Sources: Pittsburgh Business Times, Green Building Alliance, Eco Home Magazine, Architecture 2030

The Green Building Alliance (GBA) is on the lookout for ambitious, green-minded building owners Downtown, and perhaps in parts of the North Shore, to be founding members of a pilot program they are developing to commit to the goals of the national Architecture 2030 challenge.

Architecture 2030 is encouraging progress within the Building Sector toward reaching the carbon-reduction goals outlined in the organization’s 2030 Challenge.  According to data released from the U.S. Energy Information Administration (EIA), the agency’s Annual Energy Outlook (AEO) projections to the year 2030 show estimates of residential and commercial building energy use in 2030 have been dropping since 2005–and are projected to reach a 70% reduction due to improved design and performance measures, even with a 38.6% projected increase in U.S. building floor area within the same period.

The Architecture 2030 Challenge sets a target goal of achieving carbon-neutral performance in 2030.  That means no fossil-fuel, greenhouse gas-emitting energy needed to operate for any newly constructed building. For existing buildings, it’s a bit tamer but not by much.

The primary purpose of the local effort, presently coined “Pittsburgh 2030 District” on GBA’s website, will be to prove investments in energy efficiency, water efficiency and occupant satisfaction result in cost savings. GBA will build a collaborative to develop and share best practices, innovative products and techniques, and alternative financing options.

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Team to study impact of ‘green’ buildings

Source:  Pittsburgh Post-Gazette

Increasingly, everyone from new home builders to major companies like PNC Bank have embraced the green credo of buildings that are not only energy efficient but use environmentally sustainable products.

But exactly what environmental impact those buildings have over the life of their existence from construction to operation to demolition and disposal is not fully understood.

A team of Pittsburgh engineers and architects will try to get at that very notion — known as “life cycle assessment.”

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