Posted by Colliers International | Pittsburgh
Pittsburgh’s retail real estate market continued to perform well during the third quarter of 2014. The vacancy rate decreased slightly from 3.9% last quarter to 3.8% during the current quarter. The market has a total inventory of 135,568,879 square feet of which 47,306,165 is considered shopping center or power center space. The asking lease rates increased by .04% over the previous quarter to $12.27 per square foot, a year over year increase of 1.47%. Top quality locations lease for as high as mid $40’s per square foot, while value oriented box spaces could be had for as little as $7.00 per square foot. Total absorption during the quarter was a healthy 360,561 square feet, continuing a trend from the previous three quarters. Absorption year to date comes in at 957,369 square feet. With so much space coming off the market, tenants searching for anchored shopping center space with stop light access have few options from which to choose.
Restaurants and other food uses continue to aggressively pursue prime corner locations, while standard retailers are more inclined to accept in-line space. Primanti Bros, Maggiano’s, The Outback, Piada’s and First Watch are just some of the many restaurant concepts searching the market. Other retailers who have been active include Busy Beaver, Harbor Freight and Planet Fitness. Single price point retailers like Dollar General and Dollar Tree continue to actively pursue new locations. Those value oriented retailers are typically priced out of new retail developments.