Research/Market Beats

Pittsburgh Office Snapshot – Q1 2018

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The number of new construction projects breaking ground in Q1 2018 was up 13.2%, even though the overall vacancy rate dropped 110 basis points (bps) year-over-year. Developers continue to focus on the Greater Downtown submarket for a variety of speculative office and mixed-use projects.

Pittsburgh Industrial Snapshot – Q1 2018

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With more than 5.2 million square feet (msf) of industrial leasing activity recorded over the past 24 months, it was no surprise that net absorption in Q1 2018 was nearly double that of the same period 2017. Few speculative projects remain vacant within the Pittsburgh region, and though construction starts year-to-date lag those of the same period 2017, several new developments were announced.

Pittsburgh Office Snapshot – Q4 2017

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Though year-over-year construction completions within the office sector ended 2017 down 13.1% from 2016, posting just shy of 800,000 square feet (sf) of new inventory, new development announcements dominated the news cycle throughout the second half of the year.

Pittsburgh Industrial Snapshot – Q4 2017

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Though year-end 2017 vacancy was down 0.3 basis points from the same period 2016, both leasing activity and construction deliveries also declined. Construction completions for Pittsburgh’s industrial sector reached just over 1.4 million square feet (msf) in 2017, while leasing activity for the year hit 2.5 msf, down 240,000 square feet from 2016. In similar fashion, rental rates dipped slightly from an average rate of $7.84 per square foot (psf) triple net (NNN) in Q4 2016 to $7.58 psf NNN at year-end 2017.

Pittsburgh Industrial Snapshot – Q3 2017

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Economy Reshoring and foreign direct investment by companies that have returned U.S. production or sourcing from offshore operations brought 77,000 new jobs to the country last year and more than 338,000 jobs since 2010, according to the Reshoring Initiative 2016 Report. This job growth has trickled into Pennsylvania: the PA Manufacturers’ Association reported manufacturing output in the state increased to $86 billion in 2016 up from $82 billion the year…

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Pittsburgh Office Snapshot – Q3 2017

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Economy Median household income increased locally over the past 10-year period while the national average stayed flat, according to the U.S. Census Bureau. The City of Pittsburgh reported an increase of 18.2% from 2006 to 2016 while Allegheny County was up 8.0%. In addition, the City of Pittsburgh grew its population by more than 11,000 residents during the same period. Among the most popular city neighborhoods experiencing growth are East…

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Pittsburgh Office Snapshot – Q2 2017

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Economy Pittsburgh was ranked fifth among SmartAsset’s Top Cities for College Grads survey released in Q2 2017, which could explain why the region also was first among North American small tech markets in millennial population growth – posting a 17.7% increase between 2010 and 2015 – besting popular competitors Austin, TX, Charlotte, NC, and Cleveland, OH. Pittsburgh’s technology sector grew 12% over the past two years, ranking the region fourth…

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Pittsburgh Industrial Snapshot – Q2 2017

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Economy Life sciences could battle energy for the top sector driving the Pittsburgh region’s economy. In 2016, the life sciences and healthcare sector experienced the largest capital investment since 2011 – $150 million – and it contributed 10% to the region’s GDP, employing more than 133,000 people. Pittsburgh’s robust network of incubators, R&D centers and high-profile universities earned the area 18 new deals resulting in 2,983 new jobs with 154…

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Pittsburgh Industrial Snapshot – Q1 2017

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The unemployment rate in the seven-county Pittsburgh metro rose 0.6 percentage point year-over-year in Q1 2017, hitting 5.4%. The labor force decreased by 8,600 jobs during the same period while the number of unemployed rose by 3,000 from Q1 2016 to Q1 2017, according to the Pennsylvania Department of Labor Center for Workforce Information and Analysis. Total job growth for 2016 fell just short of 0.5%, landing Pittsburgh in the…

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Pittsburgh Office Snapshot – Q1 2017

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Though the region added just 4,400 new jobs in 2016, Pittsburgh remains poised for growth in its strongest economic sectors. Citizens Bank announced that it would remain a tenant in 525 William Penn Place, where it occupies approximately 150,000 square feet (SF), citing its view of Pittsburgh as a growth driver for the company. Ford Motor Company inked a $1.0-billion deal with Argo AI, a Pittsburgh start-up that focuses on…

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