The Pittsburgh region's office real estate market remained stable in 2009 with a vacancy rate of 15.5 percent, almost unchanged from 15.4 percent at the end of 2008, according to a report Friday.
The region showed an increase in new occupancy last year, said Grubb & Ellis in its Fourth Quarter 2009 Office Trends Report. The increase came from tenants moving from older buildings into new buildings, such as Three PNC Plaza, where about 326,000 square feet was occupied by the law firm Reed Smith and by PNC.
Besides Three PNC Plaza -- the first new Downtown office complex in over 20 years -- other new buildings occupied during the year were the 160,000-square-foot Bridgeside Point II in Oakland and the 70,000-square-foot Cranberry Business Park Building 110 in Cranberry.
Asking rental rates in Class A1 buildings Downtown ended 2009 at $26.97 per square foot, essentially unchanged from the third quarter of 2009. ClassA2 asking rental rates settled at $20.95, up 38 cents from the third quarter.
Notable leases signed in 2009 include Duquesne Light's 86,000 square feet at 411 Seventh Ave.; ANH Refractories Co., 63,182 square feet at Cherrington Corp. Center, Moon; Koppers Industries 59,000 square feet in Koppers Building, Downtown; and 40,000 square feet each at Bakery Square, Larimer-East Liberty, by Google Inc. and University of Pittsburgh and VA of Pittsburgh.
In the region's industrial real estate market, 2009 continued the trend of low vacancy rates, ending the year at 8.3 percent, down from 8.6 percent from the third quarter.
Tenants occupied an additional 570,859 square feet last year, primarily in new buildings at Clinton Commerce Park, near Pittsburgh International Airport. These included 210,000 square feet for Flabeg Corp. and 205,000 square feet for FedEx Smart-Post.
In the retail real estate market, store closings contributed to a decline in space occupied, with the vacancy rate rising to 8.2 percent from 6.6 percent at end of 2008. Even so, several new developments opened or were started.
Opened was Settlers Ridge, a 600,000-square-foot lifestyle shopping center in Robinson that is 94 percent leased, and started was McCandless Crossings, a 130-acre development in McCandless. Big Lots opened a 36,000-square-foot store in the former Kuhn's Quality Food store along McKnight Road, and SouthSide Works will add a 15,000-square-foot Toby Keith's I Love This Bar & Grill this year.
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