Pittsburgh Commercial Real Estate

New Pittsburgh Commercial Real Estate Blog

2011-03-02T16:24:00.002-05:00

We've moved to a new blog location.

NAI Pittsburgh Commercial is pleased to announce the launch of our new Pittsburgh Commercial Real Estate Blog, a central online gathering site for visitors interested in receiving commercial real estate industry news and articles on relevant issues.

Visit http://ublog.naiglobal.com/naipittsburgh/

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Pittsburgh’s Post Industrial Economy Shifts to a Change for the Better

2010-12-06T08:35:00.004-05:00

Source: Changing Gears Presents Reinventing Pittsburgh: Part 1

As December welcomes us with a crisp snowfall that blankets our city streets and rivers, we look forward to a promising new economy for Pittsburgh, where the manufacturing plants and industrial buildings have been reinvented to accommodate emerging healthcare, education and technology corporations.

Our smoky, dust filled skyline of yesteryear, now greets us with the fresh air of change. Changing Gears, a public media project about the future of the industrial Midwest, is spending the next few years looking at ways to reinvent the Midwest economy. Reinventing Pittsburgh is the start of their first week-long series.

Read the full article

The manufacturing hardships experienced in the early 1980’s left the future of the Steel City economy uncertain. Virtually overnight, 150,000 jobs were wiped out, the deindustrialization of the Pittsburgh region began, and the future was unclear.

But today, the economic horizon has made a shift, for the better. The steel industry, which was the muscle of our region in decades past, is a fraction of its former self today, and has evolved from basic industry to service industries in the region. Warehouses and industrial sites are being renovated for new uses, as the homes for corporations in biomedical research, multimedia production, computer gaming development, and even for use as condos, upscale retail, and more.

According to a recent Post-Gazette article article on Pittsburgh neighborhoods, a state tax-incentive for technology start-ups looped Pittsburgh’s Uptown into an innovation zone that includes part of Downtown and the North Side. Development proposals are piling up -- new restaurants in the Consol Energy Center, a residential "portal" project near the Birmingham Bridge, condos in the Fifth Avenue High School, renovation of a Fifth Avenue warehouse into apartments, and more.

“Pittsburgh has changed,” said Raymond Orowetz, P.E., LEED Green Associate of NAI Pittsburgh Commercial. “Whether it’s for the better or not depends on how one has been affected. Regarding the Uptown section of the City in particular, I can’t understand why it’s taken so long. There’s a major university (Duquesne), a major sports venue (the Mellon Arena, most recently replaced by the Consol Energy Center) and a major hospital (Mercy). They’ve been there “forever” and they’re located along the most highly travelled corridor in the city which joins our CBD with our educational/cultural hub coupled with excellent access to public transportation along the entire route. It should be rockin’ just like East Carson Street.”

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

Pittsburgh among 8 Cities that want your Business

2010-12-03T08:46:00.001-05:00

Source: CNNMoney.com

Pittsburgh has long been known for its winning sports teams and world class museums, but these days, Pittsburgh fares well as a top city becoming a hub for technology start-ups. Although we pale in comparison to heavy weights like Silicon Valley, New York, and Boston, the City of Pittsburgh offers compelling incentives to attract and retain the best talent in our region. First-rate universities and computer science departments, like our local Carnegie Mellon University, have attracted talented students from around the world, seeding technology professionals focused on developing startups that can help boost our local economy.

Pittsburgh has become a place where startups are succeeding, where investors want to live, and students want to stay following graduation. With mega tax breaks and innovative business incubators, the progression of local startups has enabled a cross generational, collaborative entrepreneurial community to develop. Talent retention and improved financial resources for entrepreneurs, are positioning us as a city for success.

“We are not a cookie cutter city,” said John Bilyak, CCIM, Principal & Director of Industrial Brokerage at NAI Pittsburgh Commercial. “With well-preserved neighborhoods, locally owned shops and restaurants, and a first class cultural district, Pittsburgh provides a down home personality within a growing business and technological community. It has become a city of renewal, where generations of people continue to live, work and grow together.”

Earlier this year, Forbes.com ranked Pittsburgh #64 for Best Places for Business and Careers. Pittsburgh’s biggest industries--health care, technology and education--are necessary regardless of the economic outlook.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

Team to study impact of 'green' buildings

2010-11-29T16:55:00.005-05:00

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."

Read the full story

David J. Thor, LEED AP, Associate of NAI Pittsburgh Commercial reacts, “The ability to capture measurable increases in human performance would be invaluable in defining the value proposition as we work with clients who are entertaining a variety of alternatives, including sites that have been developed in accordance with sustainable building standards.”

Advances made as a result of studies like the Life Cycle Assessment can be pivotal in changing attitudes towards environmental issues and setting new construction standards. The results can positively influence the local economy through emerging industries that create jobs. Even better, the results can assist commercial building owners with constructing more efficient and environmentally friendly office, retail and industrial properties, through improved building materials, energy and water efficiency and pollution control.

“The scope of the study is huge and hopefully the results will be meaningful in such a way as to pull together our concerns about the environment, the effects on user health and productivity and the economics of going green,” adds Raymond Orowetz, P.E., LEED Green Associate of NAI Pittsburgh Commercial. “Any undertaking that helps to more concretely substantiate how building in an environmentally conscious manner is beneficial in all regards will be useful and help to enhance the momentum that building in a sustainable fashion already enjoys.”

Pittsburgh has steadily grown into a globally recognized green initiative leader in energy and the environment. Just this year, the city of Pittsburgh was selected as the North American host city by the United Nations Environment Programme (UNEP) for World Environment Day 2010, as well as the location for The G-20 Summit, positioning the region as a thought leader in innovation, transformation and sustainable solutions.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

Pittsburgh is Stuffed with Thanksgiving Weekend Activities

2010-11-23T09:47:00.006-05:00

Sources: Pittsburgh Post-Gazette, National Retail Federation

From benefits featuring live music and comedic entertainment, to a downtown Trolley Tour, Thanksgiving Day Parade, the annual Turkey Trot, and more, the weekend is stuffed with plenty of activities that the whole family can enjoy together.

Click here for a list of Thanksgiving weekend activities

Following the Thanksgiving celebration, enjoy a fresh-air walk outdoors to work off the extra Holiday helpings. Thirty-six Pittsburgh neighborhoods rank as a "walker's paradise" or "very walkable" in a national analysis at walkscore.com. According to the Pittsburgh Post-Gazette article, Pittsburgh weighs in with 36 neighborhoods scoring 70 and above on a scale of 0-100. A walker's paradise score of 90-100 means residents do not need cars. The Central Business District, South Side Flats, North Oakland and Lower Lawrenceville received the highest scores.

This latest ranking gives us good reason to visit downtown Pittsburgh, participate in the Thanksgiving weekend activities, and start our holiday shopping on foot at local retailers in these business districts. More people plan on shopping over the Thanksgiving weekend this year than last, according to the National Retail Federation. The retail trade group is estimating that 138 million Americans plan on shopping during the holiday weekend, an increase of 4 million over last year’s projections.

Friday, November 26th, the traditional start of the Holiday Shopping season, known as “Black Friday,” is a great day to visit the shops and department stores of Downtown Pittsburgh. With many great restaurants and entertainment venues; shoppers can maximize their enjoyment by combining great shopping with fine dining and theatre.

“Thanksgiving weekend provides an opportunity for everyone to come together and enjoy the holiday,” said Ralph Egerman, Principal of NAI Pittsburgh Commercial. “I am particularly excited to introduce our city to family members from out of town, especially the downtown shopping experience at all of the wonderful stores in the Golden Triangle. Macy’s is a priority stop around the holidays.”

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

Founding Principal, Gregg Broujos, featured in the PA Real Estate Journal

2010-11-19T09:02:00.006-05:00

Source: Pennsylvania Real Estate Journal, Section C of the Mid Atlantic Real Estate Journal

Gregg Broujos, Founding Principal of NAI Pittsburgh Commercial, is featured in the November 12 – 25, 2010 issue of Pennsylvania Real Estate Journal for representing RKF Inc. in the sale of 5523 Walnut Street.

Click here to see the article

In October, NAI Pittsburgh Commercial announced the sale of 5523 Walnut Street in Shadyside for $950,000. This three story building with elevator service is located in Shadyside’s upscale retail and neighborhood corridor.

“The sale of 5523 Walnut Street again shows the strength of the Shadyside market and the entire East End submarket. Our firm entertained at least five offers on this property, which sold in a very short time period,” according to Gregg Broujos, Founding Principal at NAI Pittsburgh Commercial.

Mr. Broujos has an extensive background in Investment Property Sales and Commercial Property brokerage and has marketed over 800 properties for sale via the Real Estate Auction method. He has been in the real estate business for over 20 years.

He has handled numerous local and national retail assignments for restaurant, financial services, hotel and real estate clients, and, he has been appointed as the exclusive leasing agent for a 250,000 square feet retail center in Cranberry, PA.

For additional information on multi-family opportunities, please contact Gregg Broujos (ext. 206) at (412) 321-4200.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

Celebrate the 50th Anniversary of Pittsburgh’s Light Up Night

2010-11-18T08:42:00.010-05:00

Source: Pittsburgh Downtown Partnership

The concept of "Light Up Night" took root in Pittsburgh in 1960, and this year will mark its 50th Anniversary. For the first time ever, Light Up Night will be celebrated over two nights, Nov. 19 – 20, 2010. The Pittsburgh Downtown Partnership has planned a one-of-a-kind celebration for the 50th Anniversary of Light Up Night. Enjoy traditional elements from the past, like tree lightings and holiday exhibits, paired with new events, including Pittsburgh's first-ever Duquesne Light Horse-drawn Candlelight Carriage Parade and the Grand Pittsburgh Celebrate Santa! Stage Show in Market Square, which will be glimmering against a backdrop of over three miles of lights. The celebration continues with the Roberto Clemente Bridge Party and the Highmark March throughout Downtown. Two large performance stages will feature hours of entertainment, provided by CAPA choir, the Joe Negri Quartet, Donnie Iris, and many more. And the celebration would not be complete, without one of the region’s largest and most creative pyrotechnics displays, the PNC GRAND Fireworks Finale by Zambelli Internationale.

Click for a complete listing of Light Up Night activities.

Jessica Jarosz, Associate of NAI Pittsburgh Commercial, who was born and raised in Pittsburgh, reflects on her memories of Light Up Night. “Light Up Night is a holiday tradition that my friends and family have shared together since I was a child. Every year we look forward to the new festivities and the experience of seeing the city of Pittsburgh bright with holiday spirit. There is always something for everyone to enjoy, no matter your age - live entertainment, dining in the city, the official lighting of the tree, the reveal of the Macy’s store windows, a visit from Santa and spectacular fireworks, but most importantly, it is an indication that the commencement of the Christmas shopping season has finally arrived!”

Light Up Night attracts thousands of visitors to downtown Pittsburgh each year. Marking the start of the holiday shopping season, local retailers benefit from the annual celebration.

Join your family and friends at the 50th Anniversary Celebration of Light Up Night in downtown Pittsburgh, one of the best metropolitan cities to live, work, shop, dine, play, and do business.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

Western Pennsylvania finds 'right direction'

2010-11-16T08:50:00.003-05:00

Source: Pittsburgh Tribune-Review, Thomas Olson
Wednesday, November 10, 2010

The stubbornly sluggish economy has not stopped Western Pennsylvania's ability to attract businesses and jobs in the past year or so, economic development experts say. The region through October has attracted 33 new businesses compared to 30 that came into the region for full-year 2009, according to the Allegheny Conference on Community Development.

For instance, the number of private-sector jobs in the seven-county region in September was about 9,000 ahead of the same month last year, according to the Bureau of Labor Statistics. The region's 7.9 percent unemployment rate is significantly lower than the nation's 9.6 percent rate.

By another count, the region through October has attracted 33 new businesses compared to 30 that came into the region for full-year 2009, according to the Allegheny Conference on Community Development.

Read the Full Article

Recent announcements of new companies coming here, paired with the latest announcement that Pittsburgh has received a top ten job ranking, is solid proof that our region is moving in the right direction for economical growth.

“It is no surprise that Pittsburgh is near the top of the list of the nation’s biggest markets for job retention and creation,” stated Bill Leone, a Principal with NAI Pittsburgh Commercial, Pittsburgh’s premier commercial real estate firm. “Pittsburgh’s financial, healthcare and educational sectors continue to prosper; the velocity of new businesses this year, including those attracted by the development of energy sources; and the maturation of the technology industry, combined with the slight improvement in the economic climate, makes for a very positive direction for our region. We expect tremendous improvement in Pittsburgh’s employment data in what appears to be a bright future for Western Pennsylvania.”

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

Pittsburgh, Boston Share Winning Football Stats and Real Estate Markets

2010-11-15T16:56:00.008-05:00

Sources: The Providence Journal; FOX Sports; Mass. Market

As the city of Pittsburgh woke Monday morning to a blanket of fog, which reduced visibility in some places to just a few feet, we were reminded of the 39 – 26 defeat to the New England Patriots on Sunday night, and the anticipated matchup between quarterbacks. Brady (103-32, .763) and Roethlisberger (63-27, .700) rank 1-2 among active quarterbacks in regular-season winning percentage. Counting playoff games, Brady is 117-36 (.765) and Roethlisberger is 71-29 (.710). Six years later, Roethlisberger has won two Super Bowls himself, putting him only one behind Brady.

When it comes to winning, the Patriots and Steelers are the pinnacles of the NFL. The Patriots' .632 winning percentage since free agency began in 1993 is the NFL's best, and the Steelers are second at .627. Brady's .767 winning percentage coming in led all quarterbacks, and Roethlisberger's .700 was second.

Successful football statistics are not the only rankings both cities share. By comparison, neither city would be considered a concrete jungle. There is ample green space in both, and each is very neighborhood oriented, drawing opportunities in both residential as well as commercial real estate.

According to a recent blog post by Mass. Market, Zillow.com’s release of its latest quarterly residential home value report indicates that both Pittsburgh and Boston are the only two among the country’s 25 largest metro areas to see gains in home values from the second quarter of this year to the third. They are also the only two metro areas on the top 25 list where fewer than 10 percent of the single-family homes are underwater (it’s 6.3 percent in Pittsburgh, 9.5 percent in Boston). In the past year, home values have risen 1.6 percent in both the Boston and Pittsburgh markets, by Zillow’s calculations. The health of a local residential real estate market is inextricably linked to the health of the local commercial real estate sector. Fully occupied office buildings, hospitals and stores mean there are still plenty of jobs – and those jobs are the lifeblood of a city’s home values. And, while Pittsburgh and Boston have lost key corporate headquarters over the years, the cities maintain vibrant life sciences and education industries.

Paul Horan, Founding Principal of NAI Pittsburgh Commercial, and native of Boston, Massachusetts reacts, “I am pleased to hear about the similarities that both Pittsburgh and Boston share both on and off the field. I have always admired the city of Boston, its culture, and the economical advances it has made in education, healthcare and technology, but I am most proud to call Pittsburgh my home, because I have been able to be a part of a community that continues to grow and earn extraordinary achievements.”

Although the outcome of the football season remains unclear for both teams pursuing Super Bowl status, the fog has lifted from each city in regards to their winning real estate market statistics, and the outlook is very positive.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

Pittsburgh tenth on job rankings list

2010-11-15T09:59:00.005-05:00

Source: Pittsburgh Business Times
Thursday, November 4, 2010

Pittsburgh was among 44 of the nation's biggest markets that added jobs in September, according to figures released by the U.S. Bureau of Labor Statistics. Pittsburgh ranked 10th in number of jobs created with 9,000 jobs or .91 percent added in September compared to September 2009. The bureau recorded 1,001,600 million private sector jobs for the region in September, up from 992,600 jobs for the same month in 2009.

Read the full article

Pittsburgh has experienced a very stable labor market, and is working to attract and retain high-quality talent, including, young people. Talent attraction to our region can drive the economy. In fact, Pittsburgh has ranked in the top 10 for personal income growth. According to the Pittsburgh Business Times article, personal income has been on the rise in Pittsburgh over the past 25 years, so much so that a new study ranks it No. 6 among the nation’s 100 largest metropolitan areas in terms of income growth.

Portfolio.com, a national business news site affiliated with the Pittsburgh Business Times, examined federal income data covering the period from 1984 to 2009. The study focused on per capita income, a key indicator of earning power and economic vitality, and used a 25-part formula to create an overall score for income growth. Pittsburgh’s per capita income grew 212 percent in the 25 years from 1984 to 2009 and 22 percent in the five years from 2004 to 2009. Pittsburgh's per capita income in 2009 was $42,216.

Pittsburgh continues to climb rankings and improved its score on Moody's latest, of 60 commercial real estate markets during the third quarter, to move up from a tie for 10th place in the second quarter to a tie for fifth, according to Trib Total Media, Inc staff and wire reports. Pittsburgh ranked #1 in 2009 according to Moody’s Investors Services.

“These latest economic indicators bode well for the commercial real estate industry,” said Ralph Egerman, Principal of NAI Pittsburgh Commercial. “When organizations experience growth, they hire. As hiring opportunities improve, demand for office, warehouse and space of all types increase. Additionally; when employment trends upward, people have more disposal income which helps improve occupancy for all types of retail properties.”

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

NAI Pittsburgh Commercial is Pleased to Announce

2010-11-12T13:30:00.004-05:00

The Hiring of David J. Thor as Associate

PITTSBURGH, PA – (November 12, 2010) - NAI Pittsburgh Commercial is pleased to announce that David J. Thor has been named as an Associate of the firm. Specializing in Tenant Advisory Services and Agency Representation, David is responsible for assisting clients with strategy, site selection, proposals, financial analyses and lease negotiations, in addition to identifying and securing tenants and/or buyers. His responsibilities also include developing agency and tenant representation relationships and performing the associated client-related professional services in office, industrial, land and retail transactions.

Prior to joining NAI Pittsburgh Commercial, David represented the interests of his clients, while serving as a Product Manager for Accenture, a global management consulting and technology services outsourcing organization. Additionally, David has played an integral role in various local real estate-intensive ventures, cultivating relationships and serving in both Project Management and Operational Management capacities. Mr. Thor is a native of the Pittsburgh area and has over 12 years of professional experience, with a focus on client service. He is a LEED Accredited Professional.

Patrick Sentner, Founding Principal at NAI Pittsburgh Commercial, said that Mr. Thor will be a great asset to the firm and its commitment to providing the highest level of service to its clients. “Mr. Thor’s impressive work experience coupled with his stronger work ethic will help NAI Pittsburgh Commercial to provide our clients with an even higher level of service to our current and future clients.”

NAI Pittsburgh Commercial, locally owned company and established leader of Western Pennsylvania’s Commercial Real Estate Industry, provides results-oriented brokerage, consulting, marketing and research services to businesses and investors throughout the world.

About NAI Global

NAI Global is one of the leading commercial real estate services providers worldwide. Headquartered in Princeton, New Jersey, NAI Global manages a network of 5,000 commercial real estate professionals and 325 offices in over 55 countries, and completes over $45 billion in annual transaction volume. Since 1978, NAI Global clients have built their businesses on the power of NAI’s expanding network. NAI Global’s extensive services include corporate real estate services, brokerage and leasing, property and facilities management, real estate investment and capital market services, due diligence, global supply chain consulting and related advisory services. To learn more, visit www.naiglobal.com.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

NAI Pittsburgh Commercial Sends Thanks and Appreciation to Our Veterans

2010-11-11T11:41:00.004-05:00

In November 1919, President Wilson proclaimed November 11 as the first commemoration of Armistice Day with the following words: "To us in America, the reflections of Armistice Day will be filled with solemn pride in the heroism of those who died in the country’s service and with gratitude for the victory, both because of the thing from which it has freed us and because of the opportunity it has given America to show her sympathy with peace and justice in the councils of the nations…"

Learn more about the history of Veterans Day

In honor of our nations’ veterans we send our thanks and appreciation to the millions who have served our country throughout history. The city of Pittsburgh will honor our local veterans during the annual Veterans Day Parade, starting today at 10:30am in Downtown Pittsburgh.

“Everyone here at NAI Pittsburgh Commercial continuously thinks about our women and men in the armed forces throughout the world, and the tremendous sacrifices that are made by them and their families. Personally, my father is a Colonel in the Marine Corps and my father-in-law is a General in the Army so our family knows very well how difficult the situation is for the members of the U.S. military. To our brave soldiers, their families, and the brave military personnel that have died protecting our freedom, NAI Pittsburgh thanks you and prays for you,” said Gregg Broujos, Founding Principal at NAI Pittsburgh Commercial.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

Downtown Pittsburgh a magnet for new restaurants

2010-11-05T11:12:00.003-04:00

Source: Pittsburgh Post-Gazette, Mark Belko
November 3, 2010

New restaurants are popping up all over the place, a surge attributed in part to Downtown's office, residential and student growth and the deals landlords are willing to offer to fill vacant space.

Overall, at least 15 food establishments, from full-service restaurants to coffee shops, opened Downtown in 2009, according to the Allegheny County Health Department. So far this year, at least 11 more have opened.

Local real estate experts say one of the biggest factors in the restaurant boomlet Downtown and elsewhere was the willingness of landlords, pinched by the recession, to cut deals to fill vacant space.

They are getting deals from developers and the federal government for tenant improvement dollars that previously had been reserved for only the top national chains. It has helped that the chains have been the most cautious about expanding in the current economy.

Another factor is availability of so-called "second generation" opportunities -- new establishments that take over vacant space once occupied by restaurants that fell victim to the recession or other woes.

Not to be overlooked is the burgeoning Downtown residential development; the student population, including the Art Institute of Pittsburgh and Point Park and Duquesne universities; and the influx of new office tenants, such as UPMC and EQT Corp.

All provide potential diners, whether for fast food or fine cuisine.

Read the full article

Restaurants hungry for commercial real estate opportunities, are seeking value in Pittsburgh as a business location. ““It is wonderful to see all of the new and exciting restaurants that are opening in the downtown area. From the owners of Sonoma Grill opening in Market Square; the Penn Avenue Fish Company’s new location in the Golden Triangle; and the Nine on Ninth folks settling in on Liberty Avenue, it’s a great time to be a resident, worker, or visitor in the downtown district. And it’s further proof that residential is the ultimate driver of commercial activity,” said Gregg Broujos, Founding Principal at NAI Pittsburgh Commercial.

Pittsburgh is on the value menu when it comes to a prime location for the restaurant industry. From fine dining to grab and go, Pittsburgh is drawing recognized names and specialty eateries.

Hungry for more? NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

NAI Pittsburgh Commercial is Pleased to Announce

2010-11-04T10:37:00.005-04:00

John Bilyak, Principal & Director of Industrial Brokerage, Awarded Prestigious CCIM Designation

PITTSBURGH, PA – (November 4, 2010) - NAI Pittsburgh Commercial is proud to announce John Bilyak, Principal & Director of Industrial Brokerage, has successfully completed a comprehensive examination to earn the prestigious Certified Commercial Investment Member (CCIM) designation by the CCIM Institute, one of the nation’s leading commercial real estate associations in the world. A CCIM is a recognized expert in the disciplines of commercial and investment real estate. The designation was awarded during Institute examinations held in Orlando, Florida.

The CCIM designation is awarded to real estate professionals upon successful completion of a graduate-level education curriculum and presentation of a portfolio of qualifying industry experience. The curriculum addresses: financial analysis, market analysis, user decision analysis and investment analysis – the cornerstones of commercial investment real estate.

Only 6 percent of the estimated 150,000 commercial real estate practitioners nationwide hold the CCIM designation, which reflects not only the caliber of the program, but also why it is one of the most coveted and respected designations in the industry.

Bilyak has over twenty (20) years of commercial real estate and business experience. His career in real estate has been primarily focused on the disposition and leasing of land and industrial oriented property. He also concentrates on the sale of income producing office and industrial buildings. Bilyak is a member of the National Association of Realtors (NAR) and the National Association of Industrial and Office Properties (NAIOP).

For additional information on industrial, land and investment opportunities, please contact John Bilyak (ext. 209) at
412 321 4200.

About NAI Global
NAI Global is one of the leading commercial real estate services providers worldwide. Headquartered in Princeton, New Jersey, NAI Global manages a network of 5,000 commercial real estate professionals and 325 offices in over 55 countries, and completes over $45 billion in annual transaction volume. Since 1978, NAI Global clients have built their businesses on the power of NAI’s expanding network. NAI Global’s extensive services include corporate real estate services, brokerage and leasing, property and facilities management, real estate investment and capital market services, due diligence, global supply chain consulting and related advisory services. To learn more, visit www.naiglobal.com.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

Pittsburgh Ranked No. 1 for relocating

2010-11-03T12:30:00.006-04:00

Source: CNBC.com
October 2010

Pittsburgh has made a major transformation - from an industrial steel town into a hub for education, health care and the arts. Yet, it’s still surprisingly affordable. The cost of living is 12.2 percent below the national average and the average home price is $116,400, well below the national average of $171,700.

It’s repeatedly ranked as one of the most livable cities: The crime rate is low, it ranks high on both arts and colleges, and it’s at low risk for a natural disaster such as an earthquake, hurricane or tornado.

It’s also repeatedly ranked as one of the best sports cities, with the six-time Super Bowl champion Pittsburgh Steelers, the Pittsburgh Pirates baseball team and the Pittsburgh Penguins hockey team. You would be hard-pressed to find a city with more loyal sports fans – a fact that should not be underestimated when it comes to quality of life.

The unemployment rate is 7.8 percent, well below the national average of 10.2 percent. Indeed.com has named it the No. 18 job market, with two applicants for every job available.

Read the full article

This latest rating pairs nicely with a resume that already includes Best City for Commercial Real Estate, Best Places To Live, Best Housing Market, Best Place to Raise a Family, and Most Bike-Friendly Cities, among other wonderful rankings.

“These favorable statistics, along with our top tier universities and colleges, are among the reasons more and more firms, both nationally and internationally, are committing to do business in Pittsburgh,” said Gregg Broujos, Founding Principal at NAI Pittsburgh Commercial.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

Pittsburgh real estate market moves up in rating

2010-11-01T13:43:00.012-04:00

Saturday, October 23, 2010
Source: Trib Total Media

Pittsburgh continues to climb rankings and improved its score on Moody's latest, of 60 commercial real estate markets during the third quarter, to move up from a tie for 10th place in the second quarter to a tie for fifth, according to Trib Total Media, Inc staff and wire reports.

The region ranked first in the nation at year end of 2008.

The region scored an 84 in the multi-family market, aided by having the lowest vacancy rate at 2.4 percent. Its next highest total was 74 in the limited service hotel group, followed by a 68 in the Downtown office category.

Read the full article

This latest rating pairs nicely with a resume that already includes Best City to Relocate, Best Places To Live, Best Housing Market, Best Place to Raise a Family, and Most Bike-Friendly Cities, among other wonderful rankings.

Gregg Broujos, Founding Principal at NAI Pittsburgh Commercial, reacts to this latest ranking, “This latest ranking of our city confirms that Pittsburgh’s well-known and consistent reputation as a historically stable commercial real estate market keeps us in the upper tier of the United States. We are the Pittsburgh Steelers of the Multi-Family market – either number one, or close to it.”

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

NAI Pittsburgh Commercial is Pleased to Announce

2010-10-26T13:39:00.011-04:00

The Hiring of Sara Boehm as Administrative Assistant

PITTSBURGH, PA – (October 26, 2010) - NAI Pittsburgh Commercial is pleased to announce that Sara Boehm has been named as Administrative Assistant.

Her responsibilities include: designing marketing materials; updating information on various websites; and assisting brokers in researching property data.

Prior to joining NAI Pittsburgh Commercial, Ms. Boehm worked in Account Service for several local advertising agencies, coordinating projects with team leaders and agency executives.

Bill Leone, Founding Principal at NAI Pittsburgh Commercial, said that Ms. Boehm will be a great asset to the firm and its commitment to providing the highest level of service to its clients. “The entire NAI Pittsburgh Commercial team is pleased that Sara has joined our organization. Sara brings with her a wealth of marketing and project coordination experience which will be of great benefit to our valued clientele. NAI Pittsburgh Commercial’s mission is to provide our clientele with the highest level of results-oriented service; recruiting top level professionals makes this possible. Each member of our staff brings unique attributes to NAI Pittsburgh Commercial.”

NAI Pittsburgh Commercial, locally owned company and established leader of Western Pennsylvania’s Commercial Real Estate Industry, provides results-oriented brokerage, consulting, marketing and research services to businesses and investors throughout the world.

About NAI Global
NAI Global is one of the leading commercial real estate services providers worldwide. Headquartered in Princeton, New Jersey, NAI Global manages a network of 5,000 commercial real estate professionals and 325 offices in over 55 countries, and completes over $45 billion in annual transaction volume. Since 1978, NAI Global clients have built their businesses on the power of NAI’s expanding network. NAI Global’s extensive services include corporate real estate services, brokerage and leasing, property and facilities management, real estate investment and capital market services, due diligence, global supply chain consulting and related advisory services. To learn more, visit www.naiglobal.com.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

NAI Pittsburgh Commercial Announces the Sale of 5523 Walnut Street in Shadyside

2010-10-19T17:06:00.007-04:00

PITTSBURGH, PA – (October 18, 2010)

NAI Pittsburgh Commercial is proud to announce the sale of 5523 Walnut Street in Shadyside for $950,000. This three story building with elevator service is located in Shadyside’s upscale retail and neighborhood corridor.

Gregg Broujos, Founding Principal at NAI Pittsburgh Commercial, represented the seller, RKF Inc. The buyer was Penn-Wilkins Assoc.

“The sale of 5523 Walnut Street again shows the strength of the Shadyside market and the entire East End submarket. Our firm entertained at least five offers on this property, which sold in a very short time period,” according to Gregg Broujos, Founding Principal at NAI Pittsburgh Commercial.

NAI Pittsburgh Commercial, locally owned company and established leader of Western Pennsylvania’s Commercial Real Estate Industry, provides results-oriented brokerage, consulting, marketing and research services to businesses and investors throughout the world.

For additional information on multi-family opportunities, please contact Gregg Broujos (ext. 206) at (412) 321-4200.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

Respironics Leases 78,000 SF in Greensburg

2010-09-23T15:51:00.002-04:00

Takes Former Delallo Food Distribution Center

Respironics Inc., producer of electronic medical products, has leased the 77,980-square-foot building at 1592 Roseytown Road in Greensburg, PA.

Located in the Westmoreland County Industrial submarket, the former Delallo Food Distribution Center features 3,530 square feet of office space and sits on five acres of land. Renovated in 1996, it offers 13 loading docks, seven drive-in bays and a clear height of 23 feet.

Rob Blackmore of CB Richard Ellis represented the tenant. Jeff Adams and John Bilyak represented the landlord, Francis X Delallo.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

Gas drilling sparks real estate windfall

2010-09-13T11:27:00.005-04:00

Pittsburgh Tribune Review
by: Sam Spatter

September 13, 2010

The natural gas-rich Marcellus shale has created a surge in real estate activity in Southwest Pennsylvania.

It's not confined to leasing acres of land for natural gas drilling operations, but extends to the rental of housing and the leasing of office, industrial and warehouse space since the boom in gas exploration in the mile-deep shale began here two years ago.

"I estimate at least 400,000 square feet of new and existing warehouse space has been leased or purchased — and that's probably a low figure," said Dan Petricca of Coldwell Banker Commercial, who has been actively leasing space to companies.

Dan Adamski, executive vice president, Jones Lang LaSalle Americas Inc., has an even larger estimate. "There is in excess of 1.1 million square feet of office/warehouse space leased by the firms involved in the Marcellus Shale," he said.

That approaches a whole year's worth of leasing activity for the entire Pittsburgh region, figures show. Reports from Grubb & Ellis Pittsburgh show that in 2009, total office and industrial space leased in the region was 1.26 million square feet. Suburban locations — including Southpointe, Washington County, which has seen much of the shale-related growth — contributed significantly to that total.

As for housing, about 80 percent of the activity in Washington and adjoining counties has been in rentals, said Betsy West, president of the Washington-Greene County Association of Realtors. The boom in shale gas exploration, however, has not had a major impact on home sales, she said.

The industrial and residential real estate boom has come from new companies bringing jobs and people to the region, West said.

There has been no exact count of jobs created in Southwest Pennsylvania from the natural gas boom, but one estimate has 44,000 jobs being added statewide.

A survey by the Marcellus Shale Coalition, a trade group representing gas companies, found that 10 companies with operations in Southwest Pennsylvania now have 2,076 employees, and they expect to add 5,185 new jobs through 2011.

Moon-based Atlas Energy Inc., has been on a hiring spree since it announced in April a $1.7 billion joint venture with Reliance Industries Ltd. of India. Atlas has added 158 people to its roster this year, bringing its total to 677 in Pennsylvania, said spokeswoman Claudia Koloski. Most of the hires have come from this region, she said.

Kelley Hoover, director of brokerage services at Burns & Scalo Real Estate, said nearly 70 percent of her recent leases have been with companies that drill for natural gas or support them. She has worked with about 11 who have leased more than 50,000 square feet of space in local office buildings, with more than 33,000 square feet alone in the Southpointe 1 complex in Washington County.

A combined 21,000 square feet has been leased in areas such as Neville Island, Montour Business Park and Bridgeville, she said.

There are at least 50 companies involved locally in shale operations, and more are coming here, she said. "Every week I hear from another company, usually located in the nation's southwest, who wants to locate an office here," she said.

Hoover said a shortage of leasable space may be developing at Southpointe. "It depends on the amount of space the company needs for its office, but currently it's difficult to find 2,000 square feet available," she said. That's about the size of a GetGo station and pumps.

Because of the influx of natural gas companies into the Southpointe area, the office vacancy rate there is about 8 percent, said Adamski. And some companies are considering adding more space.

Universal Pegasus, based in Houston, Texas., opened an office with 10,000 square feet five months ago at 601 Technology Dr., Southpointe. The company, which employs 15 engineers, project managers and surveyors, expects to add between 50 and 70 mostly local employees over the next 18 months and double its space, said CEO John Jameson. The company provides energy consultation services to the oil and gas industry.

"Southwestern Pennsylvania is projected to be our fastest-growing area in the years to come," Jameson said.

Range Resources Inc. is planning to build its own building, as are others. Developer Horizon Properties has proposed a 180,000-square-foot building for Range in the Southpointe II complex, also in Washington County.

Besides Washington County, other areas are seeing activity. Examples are:

• Megnablend Inc., of Waxabachie, Texas, purchased the former Mars Petcare warehouse in Everson, Fayette County, from Everson Development LLC for $1.25 million.

"The reason we moved here was because of the Marcellus Shale operations, but that was not the only reason," said spokewoman Theresa Taylor.

Megnablend supplies custom chemical blends to the gas and oil industry, and has products for agricultural companies, with several customers here, she said. Megnablend will open its warehouse with six employees, and expects to employ 30 within three to five years.

• Talisman Energy Corp. of Calgary, Canada, decided to relocate its U.S. headquarters from Long Island, N.Y., to Pittsburgh because of the shale boom. The company leased a 50,142-square-foot building at Pennwood Commons, a two-building complex located in Thorn Hill Industrial Park, Cranberry. It is on track to hire 60 employees.

Many of Talisman's employees transferred to the area and buying homes here or renting apartments, said Hoover of Burns & Scalo.

• Allied Technology Inc., which serves the oil and natural gas industry with equipment used from the wellhead to the refinery, plans to build a $7.5 million facility at the Industrial 70 Park at Fitz Henry, South Huntingdon Township, in Westmoreland County. The company anticipates creating about 100 jobs at the plant within three years.

Allied Technology selected the site about a mile off Interstate 70 because of its proximity to the drilling that is occurring in Western Pennsylvania and West Virginia, and the easy access, said CEO Wendell Brooks. "We did a pretty careful search," he said.

The influx of workers has had a significant impact on local rental apartments in the past 18 month, said Northwood's West. Most available rental space has been leased. Some workers are knocking on house doors, asking if the owner would they like to rent a room there, she said.

Another phenomenon is the use of mobile homes leased to workers, she said.

"We are seeing an influx of families coming from Texas, Oklahoma, Wyoming, Virginia and Kentucky," she said. "These individuals, who usually have families and homes in their hometown, aren't interested in buying here unless they are able to sell their current home and relocate their family."

"We have seen several workers pool their resources and purchase a small house when rentals could not be found," she said.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

Luke Hingson is taking a One Year Sabbatical

2010-09-03T09:20:00.003-04:00

NAI PITTSBURGH COMMERCIAL IS PLEASED TO ANNOUNCE

Luke Hingson is taking a one year sabbatical to pursue a Masters of Real Estate Finance at Georgetown University.

PITTSBURGH, PA (September 2, 2010)

NAI Pittsburgh Commercial is pleased to announce that Investment Sales Associate, Luke Hingson will be taking a one year sabbatical to pursue his Masters Degree in Real Estate Finance at Georgetown University in Washington, DC. Following his completion of the program, he will be returning to NAI Pittsburgh Commercial.

Luke has been with NAI Pittsburgh for two years and has specialized in investment sales and retail leasing. Earning a Masters in Real Estate Finance from one of the top universities in the country will allow Mr. Hingson to better serve his clients in the investment real estate arena, both locally and nationally.

Gregg Broujos, a Founding Principal and Head of the Investment Services Group at NAI Pittsburgh said “NAI Pittsburgh Commercial places a high priority on quality education and training for its Associates. Luke will return from Georgetown better equipped to assist our valued clients.”

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

Downtown vacancy rate drops

2010-07-28T11:11:00.003-04:00

By Sam Spatter, FOR THE PITTSBURGH TRIBUNE-REVIEW
Wednesday, July 28, 2010

Retail activity Downtown improved this year, with a number of new restaurants moving in, resulting in a lower vacancy rate, a report shows.

Downtown's retail vacancy rate for its 1.8 million square feet of space declined to 9.7 percent at the end of June from 10.3 percent rate at the end of 2009, according to Grubb & Ellis' Retail Trends Report -- Mid-Year 2010.

However, the overall retail vacancy rate for the Pittsburgh region increased to 8.4 percent from 7.9 percent at the end of 2009, the report said.

"Retail activity Downtown has picked up over the past 18 months, with a number of new restaurants moving into vacant space," said David Glickman, vice president of Grubb & Ellis' Retail Group.

Glickman cited a newcomer named Elements, which will occupy the former Palomino space in Four Gateway Center, along with Walnut Grove, a Sharp Edge on Penn Avenue, a new Subway, and soon to enter the Downtown market, Massburgher.

Total available retail space in the region increased in the mid-year report to 56.9 million square feet from 56.4 million square feet at the end of 2009.

Additions included Settlers' Ridge in Robinson and Bakery Square in Larimer, while subtractions included a former Builders Square building in the Braddock Hills Shopping Center (now a charter school) and demolition of the West Hills Shopping Center for a new Wal-Mart in Moon.

New retailers in the market, include Crate and Barrel and California Pizza Kitchen at Ross Park Mall, Ross; and Cadillac Ranch at Settlers Ridge.

A Lowe's Home Improvement is under construction along with LA Fitness and Fidelity Bank at McCandless Crossing in McCandless; Target will open in East Liberty; Red Robin Gourmet Burgers opened in South Hills Village and Saks Fifth Avenue opened Off 5th at Tanger Outlet Center in South Strabane.

On the industrial front, the report showed that for the first time since the end of 2004, vacancy levels increased during the April-June period.

The industrial vacancy rate rose to 10.8 percent at the end of June from 8.6 percent at the end of 2009. The new biggest vacancy is the 2.3 million-square-foot former Sony television assembly plant in Westmoreland County, which closed.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

Several Downtown Pittsburgh landmarks up for sale

2010-07-26T10:51:00.002-04:00

Friday, July 23, 2010
By Mark Belko, Pittsburgh Post-Gazette

The way things are going, the Golden Triangle just might become one gigantic "for sale" sign.

All over Downtown, buildings are going up for sale almost as fast as LeBron James jerseys in Cleveland.

And not just any old building. Some of Pittsburgh's signature real estate is on the block -- from Macy's (formerly Kaufmann's) department store to Gateway Center, the linchpin of the city's first renaissance.

Others up for sale include the Henry W. Oliver Building; the Regional Enterprise Tower, formerly the Alcoa building; EQT Tower, once known as Dominion Tower; and the American Red Cross of Southwestern Pennsylvania building.

And that doesn't even count some of the smaller properties that have hit the market recently.

What's next? The County Courthouse? PPG Place? U.S. Steel Tower?

The surge in sales has made newspaper headlines and even attracted the attention of City Hall. Aides to Mayor Luke Ravenstahl have consulted with local real estate brokers seeking to determine what is driving the phenomenon.

Yarone Zober, Mr. Ravenstahl's chief of staff, said officials have been assured that, overall, the jump in listings is more a sign of the market's vibrancy than anything else.

"By and large, when I talk to people in the industry, the answer is that people are selling in Pittsburgh because they want to sell high," he said.

Experts appear to be divided on just what is fueling the sales binge. Some, like Mr. Zober, believe it is a sign of a robust real estate market. One contrarian sees owners cashing in before the bottom falls out because of fears of a prolonged recession.

Others see it as almost coincidence, with a variety of factors at work rather than a single motivating force.

"There's nothing in the water, if you will. There's logic behind each of these," said Aaron Stauber, the president of New York-based Rugby Realty, which has extensive property holdings in Pittsburgh.

Mr. Stauber believes that in the case of Gateway Center and the EQT Tower, the owners are looking to cash in after upgrading their properties.

Both the Gateway Center complex, with four buildings, and EQT Tower, now the headquarters of utility EQT, have high occupancy rates and are well positioned for a sale, he said.

"The properties are at a position where the highest value can be gained [in a sale]," he said.

Mr. Stauber said some sellers may have held off in listing their real estate over the last few years because of the recession and the credit crunch. With the financial markets stabilizing, he said, now might be a good time to sell.

"For those properties, it's like a pent-up demand situation. They may have come to the market three years ago under normal circumstances," he said.

The fact that the buildings are for sale may be an indication that "we're finally starting to see the market open up," he said.

In a recent interview, Gary Horwitz, president of Los Angeles-based Hertz Investment Group, the owner of Gateway Center, said the firm believes it is an "opportune time" to go to the market and turn a profit because of the demand for quality assets and the strength of the local real estate market.

He called Pittsburgh one of the top five real estate markets in the country right now. Hertz purchased the buildings in Gateway Center for $55 million in 2004. The occupancy rate is now about 85 percent. Mr. Horwitz would not disclose an asking price.

"I think nationally there's a shortage of quality buildings on the market. There's a tremendous amount of cash sitting on the sidelines waiting for quality. This building is going to be well received. It's in a quality city and a quality asset," he said.

Macy's is another which has said it is seeking to capitalize on the strong market Downtown while at the same time looking for someone to better use some of the empty space in the landmark building at Fifth Avenue and Smithfield Street. Even with a sale, the department store is expected to remain in the building.

On the other hand, Mr. Stauber believes the Oliver Building and the Regional Enterprise Tower, with lower occupancy rates, face different issues. One factor that may be driving the sale of the Oliver Building, he said, is the loss of the K&L Gates law firm, which moved to One Oliver Plaza, now K&L Gates Center, in March.

"Those are properties where something needs to happen. They need to be repositioned. Either the current owners will reposition them or the new owners will reposition them," he said.

Mr. Stauber, who has made a living turning around underachieving properties, said he will "take a look" at both buildings. Whether he has any further interest, he said, is "subject to further review."

At the same time, Rugby Realty may put the Manor Building on Forbes Avenue on the market again, he noted. The firm offered the 11-story structure for sale in 2008, but ended up pulling it off the market because of the recession.

Herky Pollock, an executive vice president for real estate brokerage CB Richard Ellis/Pittsburgh, said the central business district has seen an increase in rental rates and net absorption over the last few years.

That, he added, "bodes well for future potential investors and it allows owners to reap the benefits of these increases."

"You'd be hard pressed to find a city outside of Chicago, New York or Boston that has experienced the stability and growth that Pittsburgh has experienced in the last five years," he said.

According to CB Richard Ellis, the office vacancy rate Downtown in the first quarter was 12.2 percent, one of the lowest in the Pittsburgh market. The average lease rate for Class A office space was $23.70, the highest in the market.

While some see the wave of buildings for sale as a good indicator, Tom Sullivan, a commercial broker for Pennsylvania Commercial Real Estate, isn't one of them.

He maintained that some owners may be selling because they are worried about a prolonged recession and see rental rates plunging and occupancy dipping over the next few years.

"I don't believe it is because it's such a robust market. I think these people see it as it's not going to get much better than it is today," he said.

Mr. Sullivan believes a proposal to sell off city parking authority garages and city meters to help stabilize the city pension fund would only make matters worse, since parking rates would increase dramatically over the next five years. That could deter people from wanting to work Downtown and cause businesses to look for locations in the suburbs.

He said that, in his experience, one of the biggest issues in trying to land tenants for buildings Downtown is the cost of parking.

"If they do anything close to what they're talking about, there's going to be a greater exodus Downtown," he said.

But Mr. Zober said the parking authority owns only 25 percent of the spaces Downtown. The rest are in private hands and generally charge higher daily rates than the city.

"This is a way for us to get even with the private market," he said. "Hopefully, it will have a negligible effect rather than a great effect. If we controlled 100 percent of the parking Downtown, I would understand the concern."

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

Commercial real estate activity in Pittsburgh region beats U.S.

2010-07-22T15:25:00.002-04:00

By Pittsburgh Tribune-Review
Thursday, July 22, 2010

The volume of sales of commercial real estate in the five-county Pittsburgh area is fairing better than such property sales around the United States, according to a report Wednesday from RealStats, a real estate research firm on the South Side.

The $396 million worth of transactions through June 2010 represented 59.3 percent of the annual average over the previous five years. The comparable figure for the nation, however, was 26 percent.

Allegheny County accounted for almost $278 million of the region's first-half 2010 sales, and Westmoreland accounted for $45 million. First-half sales of offices and other commercial properties in the Pittsburgh area peaked at $907 million in 2006 and fell to $257 million in first-half 2009.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

NAI Pittsburgh Commercial Announces the Sale of Sharon Hill Apartments

2010-07-21T09:53:00.004-04:00

PITTSBURGH, PA – (July 20, 2010)

NAI Pittsburgh Commercial is proud to announce the sale of Sharon Hill Apartments for $1,850,000. Sharon Hill Apartments is a 39 unit apartment complex in Moon Township.

Luke Hingson of NAI Pittsburgh Commercial represented the buyer and Gregg Broujos, also of NAI Pittsburgh Commercial, represented the seller. The buyer is Sharon Hills LLC., a local investment group.

“The sale of Sharon Hill Apartments is a prime example of how strong Pittsburgh’s multi-family market sector is performing in a time of economic turmoil” according to Luke Hingson, investment sales associate at NAI Pittsburgh Commercial.

NAI Pittsburgh Commercial, locally owned company and established leader of Western Pennsylvania’s Commercial Real Estate Industry, provides results-oriented brokerage, consulting, marketing and research services to businesses and investors throughout the world.

For additional information on multi-family opportunities, please contact Gregg Broujos (ext. 206) or Luke Hingson (ext. 208) at (412) 321-4200.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

NAI Pittsburgh Commercial Announces the Sale of Heritage Meadows Apartments

2010-07-21T09:51:00.004-04:00

PITTSBURGH, PA – (July 20, 2010)

NAI Pittsburgh Commercial and Coldwell Banker Commercial are proud to announce the sale of Heritage Meadows Apartments for $2,250,000. Heritage Meadows is a 36 unit apartment complex in Peters Township.

John Adair of Coldwell Banker and Gregg Broujos and Luke Hingson of NAI Pittsburgh Commercial represented the sellers. The buyer is Heritage Meadows Partners L.P, a local investor syndication.

“The sale of Heritage Meadows is another example of the extremely strong multi-family market in Western Pennsylvania” according to Gregg Broujos, founding principal at NAI Pittsburgh Commercial

NAI Pittsburgh Commercial, locally owned company and established leader of Western Pennsylvania’s Commercial Real Estate Industry, provides results-oriented brokerage,
consulting, marketing and research services to businesses and investors throughout the world.

For additional information on multi-family opportunities, please contact Luke Hingson (ext. 208) or Gregg Broujos (ext. 206) at (412) 321-4200.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

Commercial Market Falls to 10th

2010-07-20T11:21:00.002-04:00

By Sam Spatter, FOR THE PITTSBURGH TRIBUNE-REVIEW
Tuesday, July 20, 2010

Pittsburgh improved its score on Moody's latest ranking of commercial real estate markets in 60 metropolitan areas during the second quarter. But the region fell from fifth place to 10th.

The region ″still is a good market. It's just that other metro areas improved their markets greater than Pittsburgh,″ said Keith Banhazl, a vice president with Moody's Investors Service, which compiles the report known as the Red-Green-Yellow survey each quarter.

Honolulu made the top of the latest list, followed by New York, Los Angeles, Boston, San Francisco, Fort Lauderdale, Albuquerque, Salt Lake City and San Jose.

Randy McCombs, a principal with Grant Street Associates, Downtown, noted the region still is in the top 10 -- ″a good indication that Pittsburgh continues on its nice and steady commercial real estate way,″ he said.

Only a year ago, Moody's ranked Pittsburgh first in the nation. The survey gauged Pittsburgh on occupancy rates for apartment and office buildings and hotels.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

NAI Pittsburgh Commercial is Pleased to Announce:

2010-07-20T11:17:00.003-04:00

Raymond C. Orowetz, P.E. obtains LEED Green Associate credential

PITTSBURGH, PA July 19 2010

NAI Pittsburgh Commercial is pleased to announce that Raymond C. Orowetz, P.E., recently passed the LEED Green Associate exam as administered by the Green Building Certification Institute. This credential denotes knowledge of green building principles, technologies, best practices and the rapidly evolving LEED Rating System. LEED (Leadership in Energy and Environmental Design) is an internationally recognized third-party green building certification system and the nationally accepted benchmark for the design, construction and operation of high performance buildings.

Mr. Orowetz, also a register professional civil engineer, has been affiliated with NAI since June of 2005 following a fifteen year stint as president of his own commercial real estate firm and has a total of 25 years experience in the commercial real estate industry.

NAI Pittsburgh Commercial, a locally owned company and established leader of Western Pennsylvania’s Commercial Real Estate Industry, provides results-oriented brokerage, consulting, marketing and research services to businesses and investors throughout the world.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

NAI Pittsburgh Commercial Appointed as Exclusive Listing Agent for +/- 26 Acres

2010-07-19T09:19:00.008-04:00

PITTSBURGH, PA – (July 16, 2010) - NAI Pittsburgh Commercial is proud to announce that they have been selected to be the Exclusive Listing Agent for +/- 26 Acres of Land located on Route 18/Big Beaver Boulevard in Homewood Borough, Beaver Falls, PA.

The Land is located less than a mile from the Pennsylvania Turnpike/Interstate 76 at Exit 13 and next to Giuseppe’s Restaurant & across from a Super 8 Motel.
All utilities are available to the Site and the Land is zoned Commercial & Light Industrial.

The sales team consists of John C. Bilyak, Principal & Director of Industrial Brokerage and Jessica L. Jarosz, Associate of NAI Pittsburgh Commercial. John Bilyak stated “We are excited for the opportunity to work on marketing this exceptionally located land which can offer a development opportunity to a variety of corporate, retail or industrial users in Beaver County.”

NAI Pittsburgh Commercial, locally owned company and established leader of Western Pennsylvania’s Commercial Real Estate Industry, provides results-oriented brokerage, consulting, marketing and research services to businesses and investors throughout the world.

For additional information on this office opportunity, please contact John Bilyak (ext. 209) or Jessica Jarosz (ext. 202) at (412) 321-4200.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

Patrick Sentner, SIOR, interviewed on KDKA Channel 2 News

2010-07-15T14:29:00.002-04:00

Several Buildings In Downtown Pittsburgh Go Up For Sale:

Click here to hear our own Patrick Sentner, SIOR, provide his insight on the local Pittsburgh market in a recent interview with KDKA’s Jon Delano.

Apartment rents in Pittsburgh region edge upward by 3 percent

2010-07-12T11:57:00.003-04:00

Average apartment rents in the Pittsburgh region, over the past six months, have increased by 3 percent, according to a national survey.

Average rent -- within a 10 mile radius of Pittsburgh -- is $792, said rentjungle.com, an apartment search and market research website. It reported it was $789 at the end of the first quarter.

Locally, one bedroom apartments rent for $659 a month on an average and two bedroom apartments average $808 a month, it said.

The most expensive Pittsburgh neighborhoods to rent apartments are in the South Side, rentjingle said. That includes the South Shore, Southside Slopes and Southside Flats.

Average rents for all size apartments there range from about $1,100 to $1,000, the report said.

Cheapest rents are in the neighborhoods of Stanton Heights. about $700, Lower Lawrenceville about $720 and East Liberty, about $750.

Debbie Roberts, general manager of the 298-unit Cork Factory in the Strip District, said Pittsburgh's apartment market is extremely strong, noting her complex is at 99 percent occupied

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

Global Economic Outlook with Dr. Peter Linneman

2010-07-12T10:58:00.003-04:00

Web Conference
Date: Wednesday, July 21, 2010
Time: 1 PM to 2 PM EDT

Is the Economic Recovery on Solid Ground?
Join NAI Global Chief Economist Dr. Peter Linneman for a discussion on how the European debt crisis will impact economic recovery in the U.S. and the rest of the world. Is our confidence shaken, or just stirred? Dr. Linneman will also be available to answer your questions during the event.

Dr. Lineman, widely recognized as one of the leading strategic thinkers in the real estate industry, was recently cited as one of the 25 most influential people in real estate by Realtor Magazine. He serves as the Albert Sussman Professor of Real Estate, Finance and Public Policy at the Wharton School of Business, the University of Pennsylvania, and the Principal, Linneman Associates.

The Global Economic Outlook Web Conference will be held July 21, 2010 at 1:00 PM EDT. Participation is limited, so be sure to register early by clicking here.

Downtown Pittsburgh property owners test commercial real estate market

2010-06-29T15:06:00.002-04:00

Pittsburgh Business Times - by Tim Schooley

If there’s one thing Gary Horwitz, president of Los Angeles-based Hertz Investment Group, wants to make clear about his company’s plans to sell the 1.5 million-square-foot Gateway Center Downtown, it’s this: They’re not selling because they have to.

“It’s not a distressed sale. We’re selling this because we think it is the right time,” he said, adding the company is considering purchasing other property in town. “I think it will be a good investment, and I think it will encourage us to invest in other properties in Pittsburgh.”

For reasons all their own, Downtown has seen a number of significant properties go up for sale recently.

Unlike five or six years ago, when local brokerage professionals were describing the market as the worst in 30 years, Pittsburgh’s commercial real estate sector today is outperforming a national market that continues to struggle.

Property owners such as Hertz are seeking to capitalize on that position.

In addition to Gateway Center’s potential, Hertz’s commercial brokers — the Los Angeles office of Grubb & Ellis — are marketing the strength of Pittsburgh and its Downtown, which includes a low 7.6 percent vacancy rate for Class A office property, a top-five ranking for overall real estate market performance, a mix of Fortune 500 companies and an emerging energy sector.

Not far from Gateway Center, the Southwestern Pennsylvania chapter of the American Red Cross acknowledged this week it is working to hire a commercial real estate firm to put its Downtown office building up for sale and to help it find new property in which to operate. The Red Cross expects to choose a brokerage firm in the next few weeks and put its four-story, 38,000-square-foot headquarters building on the market soon after, said Brian Knavish, the organization’s director of media relations.

Both properties join the Oliver Building; EQT Plaza, formerly known as Dominion Tower; and the Regional Enterprise Tower among major Downtown buildings recently marketed for sale.

“Everything is up for sale Downtown now,” said Ned Doran, an executive vice president with GVA Oxford.

EYES ON HERTZ
The local real estate community will watch closely to see if Hertz, which bought the property in 2004 from TrizecHahn Corp., can turn a profit on the sale of Gateway. The company paid $55 million for the property and invested another $8 million in upgrades.

Stephen Blank, a senior fellow at the Urban Land Institute who follows real estate capital markets and investment, said commercial real estate values remain down, by some estimates nearly 40 percent.

“Values are clearly down peak to trough from 2007 to the end of 2009,” he said.

That trend, coupled with more stringent financing terms, poses challenges for sellers, Blank said. At the same time, he sees improvements in the overall market and a lot of capital on the sidelines.

Dan Puntil, a senior vice president who manages the office of Grandbridge Real Estate Capital, said the national investment community is beginning to consider Pittsburgh in ways it hasn’t before.

“There’s a lot of people out there looking for real estate deals right now,” Puntil said. “Pittsburgh has always been somewhat overlooked by the investment community. Lately, there are some people coming into the market.”

Horwitz sees that as the case. He said the company decided to put the property on the market after it generated a strong number of inquiries.

“The motivating factor is we’re a national real estate company. We operate in 12 markets throughout the United States, and Pittsburgh has consistently been the strongest of those markets,” he said. “We’re really reacting to consistent requests of inquiry for Gateway Center.”

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

NAI Pittsburgh Commercial is Proud to Announce the Sale of 256 Kappa Drive

2010-05-20T09:59:00.004-04:00

NAI PITTSBURGH COMMERCIAL IS PROUD TO ANNOUNCE
The Sale of 256 Kappa Drive in RIDC/O’Hara

PITTSBURGH, PA (May 19, 2010)

NAI Pittsburgh Commercial was the listing & selling agent for an 11,500 sq. ft. flex building at 256 Kappa Drive in the RIDC/O’Hara business park. The seller was Superior Specialty Company and the buyer was 258 Kappa Drive LP.

John Bilyak, Principal and Director of Industrial Brokerage and Gregory H.M. Broujos, Founding Principal, were involved in the sale.

According to Mr. Bilyak, “256 Kappa was not on the market very long and had much
activity during the marketing campaign. This is a testament to the continued tight flex,warehouse, and office market along the Route 28 corridor.”

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

Pittsburgh Economy Ranks as Top 100 Strongest

2010-05-14T12:08:00.002-04:00

Pittsburgh Business Times
Pittsburgh, PA (May 15, 2010)

Metro Pittsburgh has the 73rd strongest economy in the United States, according to a study released Wednesday by Policom Corp.

The top 10 are Seattle; Washington, D.C.-Arlington-Alexandria; Denver; Houston; Sacramento, Calif.; Salt Lake City, Utah; Des Moines, Iowa; San Diego; Madison, Wis.; and Dallas-Fort Worth-Arlington.

So what constitutes a top area in terms of economics?

"The top rated areas have had rapid, consistent growth in both size and quality for an extended period of time," said William Fruth, president of Palm City, Fla.-based Policom. “The rankings do not reflect the latest ‘hotspot’ or boom town, but the areas which have the best economic foundation. While most communities have slowed or declined during this recession, the strongest areas have been able to weather the storm.”

The study focused on 366 metropolitan areas, including Pittsburgh. The firm considers a metropolitan area to be at least one urbanized geographic location that has a population of 50,000 or more persons.

To determine how these areas are performing, Policom measures 23 different economic factors.

The data company followed 20 years of data covering 23 economic factors to create the rankings. The most recent study focused on a 19-year period stretching from 1989 to 2008.

Policom is an independent research firm that focuses on economics and specializes in analyzing local and state economies.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

Armstrong County’s Northpointe Office Park set for Expansion

2010-05-10T09:55:00.007-04:00

Pittsburgh Business Times
by Tim Schooley

Pittsburgh, PA (May 7,2010)

The private sector may be struggling to come up with financing for industrial real estate development, but that isn’t stopping the Armstrong County Industrial Development Authority from pushing forward on a 30,000 SF addition at Northpinte, a 995 acre mixed-use development.

With $4million in state and federal dollars in hand, the county authority expects to break ground soon, adding to the development, located in South Buffalo Township near the Route 28 Allegheny Expressway.

“If we can fill that niche, I’m happy to do so,” said Michael Coonley, executive director of the public authority, which works jointly with Armstrong County Industrial Development Council. “It was the perfect storm. There was a need indentified in that 28 corridor. We had very little to spare in our existing buildings.”

Home to a mix of tenants that includes Boeing, BNY Mellon and a branch of Indiana University of Pennsylvania, Northpointe now consists of nine privately owned buildings.

With occupancy at the development running near 100 percent since its first year, Northpointe was able to secure local and federal funding for the project, which should be available in the fall. While still intended for flex use, the new building’s configuration will be designed more for office users and accommodate either larger tenants or small companies in need of about 6,000 SF.

“It will probably have a higher percentage of office users than our previous buildings,” Coonley said. “There are components of the building that will have areas for light manufacturing and research and development.”

John Bilyak, the director of Industrial Brokerage with NAI Pittsburgh Commercial helping to market the property, was unsure if the business park would be able to draw the same kinds of defense-related companies it has in the past, given the passing last year of U.S. Rep. Jack Murtha, the powerful Johnstown Democrat who brought considerable federal funding to his district, which includes Northpointe.

But Bilyak expects the new building will have no problem finding tenants, with vacancy levels low and little other available land in the area. “The northeast corridor of the Allegheny Valley has never been tighter since I’ve been in the business,” he said. “That includes any product type with the exception of retail.”

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

Pittsburgh Named Most Livable City Again

2010-05-10T09:35:00.002-04:00

Tuesday, May 04, 2010
By Sally Kalson, Pittsburgh Post-Gazette

Once again, Pittsburgh has been named the country's Most Livable City, this time by Forbes.com.

The business publication ranked the metropolitan area as No. 1, based on its arts and leisure scene, job prospects, safety and affordability -- but not, obviously, on its baseball team.

This is the second-year running that the city has picked up a Most Livable distinction. Last year, British magazine The Economist named Pittsburgh No. 1 in the United States, and 29th worldwide. But it's a big jump from where Forbes ranked Pittsburgh in 2009, when it came in at No. 10.

Reiterating the description that has won high marks from other ratings mavens as well, Forbes reporter Francesca Levy wrote of the city's rebound from its manufacturing past, with "disused steel mills" transformed into multimedia art centers.

In addition to the Rust Belt renaissance, the article cited the city's strong university presence with more than a dozen campuses, noting that college towns in general have a younger, more educated and consumer-oriented population.

Mayor Luke Ravenstahl pounced on the news, sending out a statement that "Our city has come a long way and I'm thrilled that Forbes.com has once again recognized Pittsburgh's unique position as a city that truly has it all -- entertainment and affordability, but most importantly, safety and jobs."

If people are guffawing at the honor the way they did in 1985, when the city won its first Most Livable distinction, from the Places Rated Almanac, they're woefully out of date, said Joe McGrath, president of Visit Pittsburgh, the official tourist promotion agency of Allegheny County.

"This is more validation that our product is as good as we say it is," he said.

So why is the region still losing population?

"It takes a while to steer a new course and change directions," Mr. McGrath said. "But it is happening."

The methodology looked at five measures in the 200 largest Standard Metropolitan Statistical Areas.

Economically, cities were ranked both by their five-year income growth and current unemployment rate, using data from the Bureau of Labor Statistics. The stronger the income growth and the lower the unemployment, the higher each city ranked.

"Jobs don't mean everything, though," the article said. "A city is more livable if a family's income goes further. Using cost of living data from Moody's Economy.com, we ranked cities higher that had lower costs for everyday goods."

Inexpensive is not always desirable, however, so the ranking included crimes per 100,000 residents, using data from the FBI and Sperling's Best Places. Also considered was a thriving local culture crucial to livability, based on an index from Sperling's Best Places.

Each city's final score was an average of all the factors. Looking at Pittsburgh's numbers, it appears that low crime rate, active arts scene and high income growth put the city over the top. The city's score card:

Low unemployment: 73

Low crime: 15

Income growth: 20

Low cost of living: 52

Arts and leisure: 26

After Pittsburgh in the top slot, Forbes.com ranked these cities: 2) Ogden-Clearfield, Utah; 3) Provo-Orem, Utah; 4) Ann Arbor, Mich.; 5) Harrisburg-Carlisle, Pa.; 6) Omaha-Council Bluffs, Neb.-Iowa; 7) Manchester-Nashua, N.H.; 8) Trenton-Ewing N.J.; 9) a tie, with Lincoln, Neb., and Bridgeport-Stamford-Norwalk, Conn.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region click here.

NAI Pittsburgh Commercial: Exclusive Leasing Agent for 95 West Beau Street, Washington, PA

2010-05-10T09:25:00.005-04:00

PITTSBURGH, PA – (May 5, 2010)

NAI Pittsburgh Commercial is proud to announce they have been selected to be the Exclusive Leasing Agent for 95 West Beau Street in Washington, PA.

95 West Beau Street is a Six (6) Story, LEED Certified, 144,000 SF mixed-use building that was constructed in 2006 and is located in historic downtown Washington. The building is adjacent to and attached to an 800 car public parking garage, is minutes from Interstates 79 and 70, and is in walking distance to various amenities. Currently, there is 3,500 to 106,000 contiguous SF of Class A office space immediately available and “plug & play” ready.

Paul Horan, a Founding Principal of NAI Pittsburgh Commercial said “We are excited for the opportunity to work with Millcraft Industries and specifically 95 West Beau Street. This is a premier property, strategically located to accommodate the ever growing demand for quality office space in Washington County.”

For additional information on this office opportunity, please contact Paul Horan (ext. 205) or Jeff Adams (ext. 210) at (412) 321-4200.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE.

Patrick Sentner elected as SIOR Regional Director

2010-05-10T09:22:00.000-04:00

PITTSBURGH, PA May 6, 2010

NAI PITTSBURGH COMMERCIAL IS PLEASED TO ANNOUNCE:
Patrick Sentner, SIOR has been elected as SIOR Regional Director for the Mid-Atlantic Region.

NAI Pittsburgh Commercial is pleased to announce that Patrick Sentner, SIOR has been elected as SIOR Regional Director for the Mid-Atlantic Region and will be installed during the SIOR Leadership Conference on October 20, 2010.

Mr. Sentner has been affiliated with and active in the SIOR since 2003 and has over 20
years of experience in the commercial real estate community.

Patrick Sentner, a Founding Principal of NAI Pittsburgh Commercial said “As a true advocate of the SIOR principals, I am honored to represent this outstanding organization in a greater capacity.”

Promotion of Jessica Jarosz to Associate

2010-04-26T09:42:00.001-04:00

NAI PITTSBURGH COMMERCIAL IS PLEASED TO ANNOUNCE THE PROMOTION OF JESSICA L. JAROSZ TO ASSOCIATE

Pittsburgh, PA - (April 20, 2010) -

NAI Pittsburgh Commercial is pleased to announce that Jessica L. Jarosz has been promoted to Associate and will now be concentrating her efforts solely on real estate brokerage business. Ms. Jarosz has been with the company since its inception in 2005 and was responsible for office management in addition to her brokerage role. Prior to joining NAI Pittsburgh Commercial, she was part of the brokerage team at Oxford Development Company.

Ms. Jarosz specializes in tenant representation, office, industrial and corporate services. She is responsible for assisting clients with site selection, proposals, financial analyses and lease negotiations, as well as securing tenants and/or buyers. She has over ten (10) years of related experience and is dedicated to providing clients with exceptional service, commitment and professionalism.

Her partial client list includes: Allied Barton Security Services, AMC Settlement Services,
BMC/Parente Beard, Papermart, Inc., and Waynesburg University.

Bill Leone, Managing Principal of NAI Pittsburgh Commercial said “Jessica has made an enormous contribution to both NAI Pittsburgh Commercial and our valued clients. She displays the highest level of integrity and selflessness, while providing incomparable results-oriented real estate services to the business community.”

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE.

Promotion of Jeffrey Adams to Vice President of Office & Industrial Brokerage

2010-04-12T16:32:00.004-04:00

NAI PITTSBURGH COMMERCIAL IS PLEASED TO ANNOUNCE THE PROMOTION OF JEFFREY ADAMS TO VICE PRESIDENT-OFFICE & INDUSTRIAL BROKERAGE

NAI Pittsburgh Commercial is pleased to announce that Jeffrey Adams has been promoted to Vice President-Office and Industrial Brokerage.

Mr. Adams a 1998 graduate of the Pennsylvania State University has been active in the Western Pennsylvania real estate market since January of 1999. He has been responsible for procuring tenant and buyer representation assignments, leasing and subleasing agency assignments as well as assisting with sale dispositions of office, industrial and investment properties.

His client list includes Fortune 500, technology, medical, law and law-related, financial and banking companies and many service related companies. He has been engaged by UPMC, HRPT Properties Trust, IMPAQT, DeLallo’s, RMS Lifeline, Inmedius, Jackson Holdings, Raphael Ramsden & Behers, KForce, Inc., Pepsi North America and Circuits, LLC for their various real estate requirements.

Bill Leone, Managing Principal of NAI Pittsburgh Commercial said Mr. Adams personifies the firm’s commitment to its clients and to its business philosophy. “Over the past 10 years, Jeff has made an outstanding contribution to his clients, his colleagues, and the firm, while also demonstrating the values embodied in our founding principles,”

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE.

Lisa Mikolay has been named Office Manager

2010-04-12T16:29:00.001-04:00

NAI Pittsburgh Commercial is pleased to announce that Lisa Mikolay has been named as Office Manager.

Prior to joining NAI Pittsburgh Commercial, Ms. Mikolay was the Executive Assistant at a local real estate company and the Office Manager at a local architecture firm. Ms. Mikolay brings many years of management experience and proven marketing skills to one of Pittsburgh’s most successful commercial real estate firms.

“We are very excited to have Lisa as part of our team. Her presence makes us an even stronger company as we move forward as one of Pittsburgh’s premier commercial real estate providers”, according to William Leone, Managing Partner.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

NAI PITTSBURGH COMMERCIAL APPOINTED AS EXCLUSIVE BROKER

2010-03-23T14:02:00.002-04:00

Pittsburgh, PA - (March 23, 2010) -

NAI Pittsburgh Commercial has been engaged to lease Northpointe Technology Center II, a 30,000 square foot new construction flex project with a target delivery date of Fall 2010. Northpointe is located along Route 28 at Exit 18. The space will be ideal for office start-ups or larger office users, and for those in need of light manufacturing space.

NAI Pittsburgh Commercial will also be responsible for the leasing efforts at Northpointe Technology Center I, an existing 30,000 SF Flex/Light Manufacturing building.

John Bilyak, Principal & Director of Industrial Brokerage and Jessica L. Jarosz, Associate, of NAI Pittsburgh Commercial, are representing the Armstrong County Industrial Development Authority in this exciting new project. Feel free to contact John or Jessica at 412.321.4200 for more information or to schedule a tour.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE.

Pittsburgh region tops nation in new office tenants

2010-03-19T11:36:00.000-04:00

By Sam Spatter, FOR THE PITTSBURGH TRIBUNE-REVIEW
Wednesday, March 17, 2010

Pittsburgh led the nation during 2009 in the amount of office space leased or occupied by new tenants, the chief economist for Grubb & Ellis, a national commercial real estate company, said Tuesday.

"The region did remarkably well versus other markets," said Bob Bach, during the firm's 2010 Commercial Real Estate Forecast Update at the Duquesne Club, Downtown.

The region filled 693,276 square feet of office space -- equal to about 40 football fields -- which helped reduce the office vacancy rate to about 15 percent -- from about 16 percent -- while other cities, such as Philadelphia, had 2 million square feet vacated last year, increasing office vacancy to 16.8 percent, Bach said.

The overall increase in occupancy was fueled by Westinghouse Electric Co.'s move to about 500,000 square feet of space at its new world headquarters in Cranberry, and Dick's Sporting Goods occupancy of its new 670,000-square-foot headquarters in Findlay, at Pittsburgh International Airport.

Other gains included K&L Gates law firm occupying 251,000 square feet of space in K&L Gates Center, formerly One Oliver Plaza Building, Downtown, and the state's leasing of space in three Downtown buildings, now that the State Office Building, Downtown, has been sold to Millcraft Industries Inc. Because the state owned the building, the office space was not included in previous office inventories.

Offsetting losses included about 387,000 square feet of space at Westinghouse's former Monroeville campus and 289,000 square feet of space K&L Gates is vacating at the Henry W. Oliver building, Downtown. But BNY Mellon Corp. already has leased 100,000 square feet of space at the Monroeville site.

Bach said class A rental rates Downtown are predicted to increase to $22.75 this year from $21.75 per square foot last year, while suburban office rates could increase to about $20.85 from about $20.40 per square foot of space.

"Dwindling class A space will force tenants to consider second generation space, and the limited availability of larger blocks of space will provide upward pressure on class A rates," he said.

NAI Pittsburgh Commercial Leases 3,500 SF at 125 Hillvue Lane, Pittsburgh, PA 5237

2010-03-18T09:04:00.003-04:00

Pittsburgh, PA - (March 17, 2010) -

NAI Pittsburgh Commercial is pleased to announce the 3,500 SF lease signing of Nine10 Interactive, Inc at 125 Hillvue Lane in Pittsburgh, PA 15237.

Edward R. Lawrence, of NAI Pittsburgh Commercial represented the landlord in the transaction. Gail Beek of ACRES represented Nine10 Interactive, Inc.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE.

NAI Global Named Global Broker of the Year

2010-03-11T09:18:00.004-05:00

The readers of Private Equity Real Estate (PERE) magazine named NAI Global the Global Broker of the Year in the PERE Awards 2009.

“Each year, the readers of PERE magazine and PERENews.com nominate and choose the firms, individuals and deals they believe stood out from the crowd the previous year,” said Zoe Hughes, Senior Editor, Real Estate. “2009 was a year in which the private real estate investing world experienced a tremendous amount of turmoil, so to be selected in this year’s awards is a tremendous accolade from our readers and a vote of confidence in what lies ahead for NAI Global.”

“This award is a testament to the quality and commitment of NAI Global and its professionals around the world in serving the private equity and financial sectors,” said Jeffrey M. Finn, NAI Global President & CEO. “Looking ahead, we will continue to innovate and add value with focused service offerings like our Special Asset Solutions group or the Commercial Property PowerSale™ program, to deliver exceptional results for clients around the globe.”

NAI Global offers a wide range of services for the commercial real estate investment sector, including asset management, acquisition/disposition, property management, leasing/agency services, valuation and advisory, market analytics, auction and portfolio optimization. The Global Broker of the Year award from PERE serves as recognition that NAI Global is the best at identifying and anticipating a client’s investment and brokerage needs.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

NAI Pittsburgh Commercial Represents National Association of EMS Educators

2010-03-11T09:11:00.003-05:00

Pittsburgh, PA - (March 10, 2010)

NAI Pittsburgh Commercial is pleased to announce the 3,600 square foot lease signing of National Association of EMS Educators at 250 Mt. Lebanon Boulevard, Pittsburgh, Pennsylvania.

The National Association of EMS Educators was established in 1995 as a membership organization designed to promote and provide a voice for EMS Education. Today, it is a national professional association comprised of educators, instructors, teachers, training officers, directors and advisors in EMS in both the private and public sectors.

Ralph Egerman, Principal of NAI Pittsburgh Commercial, represented EMS Educators in this transaction.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

Pittsburgh, Buncher set to develop Allegheny riverfront

2010-03-10T11:49:00.003-05:00

Tuesday, March 09, 2010
By Timothy McNulty, Pittsburgh Post-Gazette

Longtime dreams of new Allegheny riverfront housing, commercial spaces, bike paths and other recreational amenities are a step closer to reality, Mayor Luke Ravenstahl is set to announce today.

The city plans to join forces with the Buncher Co. real estate firm to redevelop some 80 acres of riverfront land, starting in the Strip District and going north 6.5 miles to the foot of Highland Park. The city would combine parcels it owns -- including the historic Produce Terminal on Smallman Street and the 22-acre former Tippins International site at 62nd Street -- with industrial properties Buncher owns in Lawrenceville and the Strip District to create the redevelopment site.

Construction could kick off in the Strip District in 2013, in the 40 undeveloped acres behind the terminal building on the south bank of the Allegheny River. The city and the Urban Redevelopment Authority will spend some $20 million in capital funds to remediate the site and prepare it for redevelopment. Buncher will then follow master plans for that site -- and other parcels dotting the riverfront up through Lawrenceville -- that architects Perkins Eastman have been compiling for the URA over the past year.

The hope is to follow the city's 1990s success in using public-private partnerships to redevelop the former LTV site into the bustling SouthSide Works development.

"This historic development partnership will allow us to reconnect our neighborhoods to the rivers," Mr. Ravenstahl said in a statement. The plans will "unlock the true potential of this portion of the riverfront."

Perkins Eastman has been working for more than a year on the Allegheny Riverfront Vision plan, under a $350,000 contract from the URA. It drew on similar plans from the city's Riverlife Task Force and used input from community meetings the last several months, and is set to deliver the plan next month.

Officials stressed that the developments could take years, or even decades, to complete. The URA bought the 123-acre LTV site in 1993 and the first buildings from the Soffer Organization weren't completed for 11 years. Unlike that project, the 80 acres in the current plan are spread over miles and not completely contiguous.

"It's a dream come true, but a work in progress," said state Sen. Jim Ferlo, D-Highland Park, who has been pushing redevelopment of the Allegheny riverfront since joining Pittsburgh City Council 23 years ago.

The first formal step is a URA board vote Thursday on an agreement with Buncher. The URA will agree to adding infrastructure such as streets, parks and trails to the parcels behind the terminal building on Smallman Street, which Mr. Ferlo said Buncher will likely use for residential construction. (The Strip has experienced the largest increase in housing sales prices and demand in the city, Perkins Eastman found.)

The estimated $20.5 million cost of those upgrades would likely be paid through local, state and federal capital funds and tax increment financing (TIF). By city estimates, the work would create the equivalent of 5,000 new jobs and $6 million in new tax revenue.

After that project, developers would work up the river, possibly relocating some industrial firms in Buncher-controlled properties from 43rd to 48th streets in Lawrenceville up to the Tippins site less than 20 blocks north. That would create space for riverfront access for Lawrenceville residents -- access, parks and other riverfront amenities are major parts of the master plan. Traffic studies for Butler Street and surrounding roadways would be included.

"It's a progressive domino effect of land uses, for higher and better uses of the corridor," Mr. Ferlo said.

The city plans to honor leases through 2012 for those currently within the produce terminal building and then relocate them. The adjacent construction in the first phase of the project could start in 2013. The Neighbors in the Strip community group already has plans -- partially funded by the URA -- for a public market in portions of the terminal building.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

Pittsburgh's apartment market No. 1

2010-03-09T11:01:00.003-05:00

By Sam Spatter, FOR THE PITTSBURGH TRIBUNE-REVIEW
Saturday, March 6, 2010

Apartment buildings are hot properties in the Pittsburgh market, and at least five major projects are in the works to satisfy demand from renters and investors, local real estate experts said.

One of the projects is a proposal for 220 apartments in the former State Office Building, Downtown, according to experts and the developer.

Millcraft Industries Inc. completed the purchase of the 16-story building on Monday, paying $4.6 million. Millcraft officials had delayed announcing how they would use the building, saying only that they would begin work by late summer on anything from residential condos to apartments to retail space.

The state moved 800 employees out of the building over the past few months into other Downtown buildings.

"We are considering the 220 apartments for the building, but we also would consider an office tenant who offers to occupy the entire building," said Lucas Piatt, Millcraft Industries' executive vice president. He said there are no plans to convert the building into a hotel.

Other projects under development include the conversion of the former Goodwill Industries headquarters building into 64 apartments in the South Side; the former South Side Vo-Tech School into 71 units; 100 units in an apartment in the Oakland Portal project in Oakland; and 112 units in the Highland Building in East Liberty.

Apartment buildings are holding their value during difficult economic times, said Paul D. Griffith, managing director for Integra Realty Resources in Pittsburgh.

"What's driving the demand for apartments is the low vacancy rates, with Pittsburgh having among the lowest in the nation," said Griffith, who spoke this week at a meeting of the local chapter of the National Association of Industrial and Office Properties.

Pittsburgh's apartment occupancy rate of 96.6 percent is ranked No. 1 in the nation, according to a mid-year 2009 survey by M/PF Research, a Texas firm that tracks rental markets.

The occupancy rate is the best in the nation by a fairly sizable margin, said Greg Willett, M/PF vice president, research and analysis.

Federal aid is available to help finance apartment projects. All of the projects mentioned are considering using the Department of Housing and Urban Development's 221(d)4 mortgage insurance program, said Cheryl Campbell, field office director of the Pittsburgh office.

"The South Side Vo-Tech project has received a firm commitment, and the other four have expressed interest but not submitted an application," she said. The program offers longer financing and lower-interest rates, she said.

Two area apartment complexes -- the Morrowfield in Squirrel Hill with 156 units and the Waterford in Collier with 315 units -- are on the market and have attracted interest from investors, said Cynthia Kamin, senior vice president, CB Richard Ellis.

"About 70 percent of the inquiries, including some offers, have come from out-of-town investors," she said. Recently, out-of-town buyers are getting more competition from local buyers, she said.

In the past, 70 percent of the buyers were from out of town. Recently, they consist of 50 percent, she said.

Out-of-town buyers bought three major apartment complexes within the past 12 months.
Brookview Associates, an affiliate of St. Louis-based developer Brookview Group Ltd., paid $10.2 million for the 241-unit Penn Towers in Wilkins; Morgan Management LLC of Pittsford, N.Y., paid $11.6 million for the 291-unit Westpointe Apartments in Robinson; and Morgan Communities of Pittsford purchased the 232-unit Lincoln at North Shore. No sales price was released.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

Rockpointe Industrial Park on the Market

2010-03-03T09:01:00.004-05:00

Pittsburgh Business Times
by Tim Schooley

Rock Ferrone’s ambition to develop a busy industrial park around an air strip in West Deer Township near Pittsburgh appears to have reached the end of the runway.

On Monday, NAI Pittsburgh Commercial announced that it has been hired to market the 263-acre Rockpointe industrial park for sale, either in its entirety or in smaller parcels.

“For whatever reason, it just didn’t work out and he wasn’t able to attract the building owners and users like he needed to,” said Gregg Broujos, a principal for NAI working on the assignment for Ferrone. “He’s going to move on and sell it so that someone else can finish it off.”

The sale includes the 3,500-foot air strip and its surrounding acreage. Not included in the sale are the two buildings owned and occupied by Management Safety Associates, Inc. or the building owned and operated by Joseph B. Fay Company. Independent of the sale of the park, Zambrano Corp. is also marketing for sale a 65,000 square foot office building within the park which is fully vacant.

John Bilyak, principal and director of Industrial brokerage for NAI, called the land included in the sale “western Pennsylvania flat” and estimated that 60 percent to 70 percent of the overall property included in the sale is developable. The industrial park is fully equipped with all utilities and infrastructure.

The park is zoned industrial with a business and technology overlay, according to NAI.
The goal is to sell the property to one buyer but Broujos and Bilyak said the land could be subdivided for smaller users as well, with seven acre-parcels selling in the range of $30,000 to $60,000 per acre.

Close to the Pittsburgh Mills and 25 minutes from Downtown Pittsburgh, the park is accessible to Route 28. Bilyak expects demand to be strong since industrial, office and land in the Allegheny Valley corridor he described as “historically tight.”

“If you try to identify a three-to-seven-acre parcel along the 28 corridor you really have to go up into Armstrong county before you can have options,” said Bilyak.

The property goes on the market as its status as a Keystone Opportunity Zone, which enables the owner to avoid state and local taxes, is set to expire at the end of the year after a ten-year term, said Bilyak.

Bilyak and Broujos hope to sell the property this year and are marketing it nationwide.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

Natural gas workers boost real estate market

2010-03-02T11:54:00.002-05:00

By Bill Toland, Pittsburgh Post-Gazette

The Marcellus Shale field can be portrayed as a boon or a bane, depending on whom you talk to, but to the Realtors operating in Washington County, there's not much of a downside.

Natural gas drilling companies and firms related to the development of the shale are doing some hiring locally. But many of the field crews, engineering experts and front-office workers are imported from out of state because they have an expertise that the native work force doesn't yet possess.

They've been coming here since 2003, scouting drilling sites and establishing satellite offices. In 2008 and 2009, the pace of new arrivals has quickened.

Their presence, and their need for housing, has helped keep afloat Washington County's middling real estate market.

"The transfers coming in. That's helped keep our market very strong here," said Bonnie Loya, a Coldwell Banker Realtor.

In Washington County last year, both average home price and median home price slipped slightly, according to RealSTATs, a local real estate information service. Still those numbers are stable compared with the rest of the country, and they could have been worse.

As it was, 2009 marked the first time in two decades that the Pittsburgh region's average home price dropped.

There's been talk in Pittsburgh about proposed Marcellus Shale gas rigs hurting property values -- the prospect of towering rigs in urban settings such as Baldwin have concerned residents and homeowners.

In rural and suburban Washington County, where the homes often are farther apart, there are still occasional run-ins between neighbors -- one charging another with ruining his view, his farm or the stream running through his property, for example -- and those will likely increase as new rigs number in the thousands this year.

But it's not enough to worry the people charged with selling the homes. And the fact that many properties are sold along with their mineral rights has helped to buttress land prices.

"The land prices have increased, if anything," said Karen Marshall, of the Karen Marshall Group, a Bethel Park-based realty group affiliated with Keller Williams.

"We're getting 93, 97 percent of asking price."

The big players in Marcellus Shale also need office space, and that's helped to goose the county's commercial leasing market.

"We've had great luck with companies coming in," Ms. Marshall said.

"Capital Oil & Gas, Texas companies ... all of my guys want to be in Washington County."

It's more than anecdotal; other home agents report the same. Southwestern Pennsylvania's natural low home churn, coupled with the newcomers, sometimes makes it seem like the gas workers are the only ones buying these days.

"The last house I just sold was for someone who was in that industry," said Kris Marra of Prudential Realty.

"Their next-door neighbors are in the business, too."

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

Exclusive Listing - Rockpointe Business Air Park

2010-03-01T15:49:00.003-05:00

NAI PITTSBURGH COMMERCIAL APPOINTED AS THE EXCLUSIVE BROKER FOR THE SALE OF ROCKPOINTE BUSINESS AIR PARK LOCATED IN WEST DEER TOWNSHIP, ALLEGHENY COUNTY, PA 15084

NAI Pittsburgh Commercial has been engaged to sell the Rockpointe Business Air Park, a 263 acre industrial park with all public utilities and interior roadways developed and in place. The sale also includes an existing and operational 3,500’ air strip. The Park is zoned industrial with a business and technology overlay, and is home to Management Sciences Associates and the Joseph B. Fay Company.

The Park is available for sale in its entirety, or can be subdivided for development sites as small as 7 acres. Ideally located just 25 minutes from Downtown Pittsburgh, Rockpointe is easily accessible from the Pennsylvania Turnpike and Route 28 near the Galleria at Pittsburgh Mills shopping and tourist center.

John Bilyak, Principal & Director of Industrial Brokerage, Gregg Broujos, Principal, & Jeffrey Adams, Associate, all of NAI Pittsburgh Commercial, are representing the owner in the sale of this asset.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

No vacancy: Office space in Oakland is tighter than ever

2010-02-26T10:29:00.006-05:00

Thursday, February 25, 2010
By Mark Belko, Pittsburgh Post-Gazette

If you're looking for premium office space in Oakland, you might want to look somewhere else

The perennially tight office market there couldn't be much tighter, registering a zero vacancy rate for top Class A space in the last quarter, according to two real estate reports.

"In 20 years of doing commercial real estate, I don't think I've seen a zero vacancy rate in a significant market comparable to Oakland," said Aaron D. Stauber, president of New York-based Rugby Realty, which has extensive property holdings in Pittsburgh.

Oakland's vacancy rate is even more amazing, Mr. Stauber said, when compared with vacancy rates throughout the country and in some of the biggest cities that have been soaring as a result of the recession.

"In the context of what's happening in the rest of the country and the economy, it's mind-boggling," he said.

Fourth-quarter 2009 reports by the CoStar Group, a commercial real estate data firm, and CB Richard Ellis listed Oakland's Class A vacancy rate at zero. Another real estate firm, Grubb & Ellis, reported it at 2.8 percent, with all but 21,687 of 779,352 square feet of class A space taken. The vacancy rate for Class A space in Midtown Manhattan, by contrast, was 14.7 percent, according to one report.

"Zero is almost impossible to achieve, frankly. It's rare or an anomaly. You always have someone moving in or moving out. Traditionally, 96 to 97 percent is seen as 100 percent occupied," said Bill Hunt, president of the Elmhurst Group, which owns one fully occupied office building in Oakland.

Even after adding other classes of office space into the equation, Oakland still commands the lowest vacancy rate in the region, at 1.8 percent to 7.1 percent, depending on the report.
Factors filling Oakland nearly to the brim include the ever-growing demand for space by universities and medical institutions and the scarcity of private land available for new office development.

The high cost of building underground parking, a virtual must in Oakland, is a big factor in discouraging speculative office construction, said Jason Stewart, Grubb & Ellis vice president. He estimated that the cost of building one underground parking space could run $35,000 to $45,000.

The high demand for office space and the short supply have been a boon for Oakland landlords and merchants - as well as the Pittsburgh Technology Center and Downtown landlords, both of which offer an alternative to businesses, universities and others who can't find the space they want in Oakland.

Mr. Stauber said the region already has seen a spillover effect with the move of the UPMC headquarters to the U.S. Steel Tower, Downtown, and Google's move from Oakland to the Bakery Square development in Larimer, where it will be expanding.

"These are all indicators of what's going on," he said.

UPMC spokesman Paul Wood said one reason the health care giant moved its corporate offices to Downtown was to free up space for clinical services in Oakland.

"It's a great problem for the city of Pittsburgh to have," he said of Oakland's scarcity of space. "It's a sign of the relative economic strength of the region."

At the same time the lease rate for Class A space in Oakland - ranging from $24.30 a square foot in the Grubb & Ellis report to $27 a square foot in the CoStar report - was the highest in the region in the last quarter.

The $27 rate quoted by CoStar is up $1.25 a square foot from the first quarter of 2006, when the vacancy rate was 3.5 percent. Mr. Stauber said he has been told that some of the latest deals involve rents above $30 a square foot.

Georgia Petropoulos Muir, executive director of the Oakland Business Improvement District, said the low vacancy rates have been a "win-win" for landlords and merchants. While landlords don't have to worry about filling their space, retailers and restaurants benefit from the steady foot traffic from the universities, hospitals and private offices, she said.

"I'd love to see all my space filled," she said.

She added that while the office market is tight, especially for the premium space, there are vacancies, particularly in some of the smaller buildings with less than 10,000 square feet.
"If there's anyone out there looking to locate an office in Oakland, yes, there are properties [available]," she said.

For those seeking coveted premium space, some help could be on the way.

FWG Realty Inc. has revived plans for office buildings and a hotel on land bounded by Fifth, Forbes and Craft avenues. Known as the Oakland Portal project, the proposal includes three buildings totaling 375,000 square feet, along with underground parking.

The project had been on hold because of difficulties in securing financing.

However, Frank Gustine Jr., one of the partners, said the financing market had improved and FWG was looking to move ahead.

It hopes to build Class A space, aware of the short supply and high demand.

"We're getting our financing arranged. We're talking to people about that. We think we have a great site," Mr. Gustine said, adding FWG hopes to be in the position to announce a groundbreaking by spring or summer.

A group of developers, including Massaro Properties and Langholz Wilson Ellis, also is negotiating with Allegheny County to buy the Health Department building and property at 3333 Forbes Ave. in Oakland with plans to redevelop it into a hotel, office building and garage.

Elmhurst has plans to build a seven-story office building at Ruskin Avenue and Bayard Street later this year. Mr. Hunt said the development, which will include underground parking, would cost "north of $20 million."

With so little nonuniversity land available for use, Mr. Hunt predicted that developers soon would start to look to tear down older obsolete buildings to build new space.

Given the tight office market in Oakland, the bid by a county task force to create a public-private partnership to build a transit line linking Downtown and Oakland resonated with Mr. Stewart and Mr. Stauber.

"It's potentially a great relief valve for Oakland. Its users can look at Downtown now as being more accessible without having to depend on parking in Downtown or bus service," Mr. Stewart said.

"Oakland and Downtown ... they're almost symbiotic. The only thing lacking right now is a transportation system," Mr. Stauber added.

For the time being, though, it could be slim pickings in Oakland, particularly for users of Class A office space. Mr. Stewart, for one, doesn't see the factors creating the crunch changing anytime soon, meaning space will continue to be at a premium.

"The cost to build parking won't go down, and nobody's making land," he said.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

Pittsburgh Named One of America's Best Housing Markets

2010-02-24T15:18:00.006-05:00

Francesca Levy, 02.19.10, 04:50 PM EST
Forbes.com

Low foreclosures, rising home prices and affordability make these parts of the country good bets for home buyers.

Families in the market for a house are shopping at the right time: Nationally, homes are near the most affordable they've been in 18 years. In the fourth quarter of 2009 housing was 62.4% more affordable than the same time a year earlier, according to the Housing Opportunity Index, published quarterly by the National Association of Home Builders and Wells Fargo.

The best place to buy right now: Pittsburgh. For a housing market to be attractive it should have appreciating prices that show homeowners are making wise investments; an affordability rating that gives middle-class families with good credit entry into the market; and a relatively low number of foreclosures, which keeps prices stable and indicates there isn't an excess of inventory.

In Depth: America's Best Housing Markets
Pittsburgh has all three. In the metro area, 85% of homes are affordable to those making the median family income of $62,500. At the same time, foreclosures are low: Only one home is in foreclosure for every 120 housing units--the second-best record of all the cities we ranked; and home prices are expected to increase 2.67% by the end of the year.

Yes, the city has suffered greatly since the decline of its manufacturing-dependent economy. But that slump helped its real estate market dodge the rapid run-up in prices that doomed so many markets after the housing boom.

"Manufacturing cities like Pittsburgh have suffered so much for the last two, three, four years that there’s still a population base in that region, and now those areas are sort of attractive," says James P. Gaines, research economist at the Real Estate Center at Texas A&M University. "Home prices are so low, some service-level jobs can be created, so it's not surprising perhaps that there's been a revitalization of some of those communities."

Behind the Numbers To find the country's best housing markets, we used the Housing Opportunity Index, a metric created by the National Association of Home Builders and Wells Fargo ( WFC - news - people ) that determines affordability by measuring median home prices against median incomes. Using the 40 largest housing Metropolitan Statistical Areas that the HOI ranks, we then factored in Moody's ( MCO - news - people )Economy.com's one-year forecast for the S&P/Case-Shiller Home Price Index, a measure of sales prices in major markets, to find out where home prices were expected to rise. Finally we included the 2009 Foreclosure report from RealtyTrac, ranking cities by their percentage of foreclosures. We averaged the rankings for all these measures to arrive at an overall score.

The reason for taking all these factors into account is that alone each doesn't say much about a housing market's health. An area could be affordable because prices were dragged down by a glut of foreclosures. Similarly, a low foreclosure rate doesn't guarantee that home-buying is a good investment, as values could be flat or falling. Even looking at home-price forecasts in a vacuum won't tell you everything about a market, since some areas have dramatic price increases ahead due to severe drops back when the bubble burst.

Like Pittsburgh, Columbus, Ohio, might not jump to mind as one of the country's best cities for housing, but job-rich suburbs surround the city and 87% of middle-income families can afford a home. That combination creates significant pull for homebuyers.

Also looking strong is Louisville, Ky., a city whose low foreclosure rate--only 1.15% of homes are in foreclosure, half the national average--illuminates it as one of the cities least affected by this aspect of the dramatic housing market collapse of the past three years. Louisville had less of a market boom than coastal cities and vacation destinations, so it didn't have as far to fall.

Jobs Stability Equals Housing Stability Strong industries have bolstered some of the cities on our list: The energy sector has kept jobs flowing into Texas oil town Houston, and that effect trickles into Dallas and Austin (which is also buoyed by technology jobs). A good job market means the housing outlook will stay strong. Houston home prices are expected to rise 1.2% by next year; it's one of only four of the markets we ranked where prices won't continue to slide, according to Moody's Economy.com.

Midwestern cities Indianapolis, Minneapolis and St. Louis make our list in spite of middling home-price forecasts because housing in these places is eminently affordable. Indianapolis has the highest HOI in the country, with decent housing accessible to 96% of families making the median income. In places like this the recession has weighed down home prices, but mortgage rates are still at historic lows, giving families a chance to get in on the ground floor.

Some markets are accessible to buyers because of a price slide now, yet still offer wise investment choices. In Minneapolis-St. Paul, which is ranked seventh in HOI, prices will continue to slide this year by three-quarters of a percent; but by 2012 they will have risen 2.82%.
Most real estate markets are struggling, some quite severely, so discussing the best ones is relative. But between the even-keeled housing climate of some Midwestern cities and the job opportunities in Texas, real estate in these areas is worth keeping an eye on.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

NAI Pittsburgh Commercial brokers awarded at SIOR Luncheon

2010-02-24T15:13:00.001-05:00

NAI Pittsburgh Commercial brokers awarded at the Society of Industrial & Office Realtors (“SIOR”) Top Brokers and 2009 Deals of the Year Luncheon

On Tuesday, February 23, 2010, the Western Pennsylvania Chapter of Society of Industrial & Office Realtors (“SIOR”) held its annual awards banquet at the Duquesne Club in Downtown Pittsburgh to honor accomplished commercial real estate professionals around the region for transactions completed in 2009.

Paul D. Horan, Founding Principal of NAI Pittsburgh Commercial and John C. Bilyak, Principal & Director of Industrial Brokerage, were awarded the SIOR Industrial Lease of the Year Award. Mr. Horan and Mr. Bilyak represented Benshaw, Inc. in the 183,000 square foot lease of 615 Alpha Drive in RIDC Industrial Park.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

Pittsburgh region's office vacancy rate stable through '09

2010-02-05T14:12:00.003-05:00

By Sam Spatter, FOR THE PITTSBURGH TRIBUNE-REVIEW

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.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

Recovery forecast to continue to chug along at 'half-speed'

2010-01-25T10:47:00.005-05:00

By Thomas Olson, PITTSBURGH TRIBUNE-REVIEW

The economy will not encounter a double-dip recession but will continue along a "half-speed" recovery in 2010, PNC Financial Services Group's chief economist said Thursday.

The same should be true for Western Pennsylvania, where unemployment will probably peak at nearly 9 percent before edging back to about 8 percent by the end of the year, said Stuart Hoffman.

"I see no reason why Pittsburgh should not recover, along with the U.S.," he told about 250 people at the Economic Club of Pittsburgh's annual forecast luncheon at the Omni William Penn Hotel, Downtown.

Unemployment in the seven-county Pittsburgh region was 7.9 percent in November, according to the most recent figures from the state Department of Labor & Industry.

Hoffman noted unemployment traditionally lags other economic indicators by a year or so. For instance, gross domestic product -- the total value of goods and services sold -- rose 2.2 percent in the third quarter, signaling a recovery.

He expects the United States will create about 2 million jobs this year, which would begin to recoup the 7.75 million lost since the recession began in December 2007.

Hoffman did not project how many jobs the Pittsburgh region might gain this year, but he expects new jobs will come in the education and medical fields, and possibly among "green" and energy-related jobs and maybe retail.

"Consumers are beginning to spend a little more freely because they have a little more confidence," he said. He also expects modest growth in this region for home sales, starts and remodeling.

Richard Hoey, chief economist for BNY Mellon Corp., provided a global forecast. He projects the world economy will grow at a rate of about 4 percent this year, including a 3 percent to 4 percent rate in the United States.

"We're going to have a world and U.S. economic recovery that's sustainable," said Hoey. "We're not going to have a double-dip recession."

Hoey said the recovery in the stock market that began in spring is "fully justified," based on the direction of and outlook for corporate profits.

He is pessimistic, however, about the federal government reversing growth in budget deficits. He envisions a "fiscal train wreck" in five to seven years, in which public borrowing to service that debt will crowd out the private sector's demand for capital.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

NAI Pittsburgh Commercial Represents Eye Candy Optical in new Lease, Peters Township, PA

2010-01-22T11:34:00.006-05:00

Pittsburgh, PA - (January 20, 2010) -

NAI Pittsburgh Commercial is pleased to announce the 2,211 square foot lease signing of Eye Candy Optical Center at Donaldson’s Crossroads in Peters Township. Formerly Giant Eagle Optical, Eye Candy Optical Center has moved to a new suite at Donaldson’s Crossroads and will be celebrating a grand opening on January 30, 2010.

Eye Candy Optical Center is a full-service vision center offering eye exams, selection of over 2000 frame styles and contacts, as well as eyeglass accessories.

Patrick J Sentner, SIOR, Principal and Edward R. Lawrence, MBA, Associate, of NAI Pittsburgh Commercial represented Eye Candy Optical Center in the transaction.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

NAI Pittsburgh Commercial represents Service Express at BURSCA Industrial Park

2010-01-22T11:32:00.004-05:00

Pittsburgh, PA - (January 20, 2010) -

NAI Pittsburgh Commercial is pleased to announce the 3,000 square foot lease signing of Service Express, Inc at 500 BURSCA Drive at the BURSCA Industrial Park in South Fayette Township. Headquartered in Grand Rapids, Michigan, Service Express, Inc provides on-site computer hardware maintenance services for mid to high end servers. Service Express, Inc has averaged 20% annual growth over the past ten years and was named to the Inc. 5,000 List of America’s Fastest Growing Privately Held Companies in 2007, 2008, and 2009.

Edward R. Lawrence, MBA Associate, of NAI Pittsburgh Commercial represented Service Express, Inc in the transaction.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

NAI PITTSBURGH COMMERCIAL REPRESENTS DICLAUDIO & KRAMER AT ABELE BUSINESS PARK

2010-01-22T11:28:00.003-05:00

Pittsburgh, PA - (January 20, 2010) -

NAI Pittsburgh Commercial is pleased to announce the 2,078 square foot lease signing of DiClaudio & Kramer, LLC Inc at Abele Road, Suite 1001 in the Abele Business Park in South Fayette Township. DiClaudio & Kramer, LLC is a CPA firm that offers a full range of auditing, accounting, and tax services.

Edward R. Lawrence, MBA, Associate, of NAI Pittsburgh Commercial represented DiClaudio & Kramer in the transaction.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

NAI PITTSBURGH COMMERCIAL LEASES 3,364 SF AT 859 MISSIONARY DRIVE LOCATED IN THE SOUTH HILLS

2010-01-22T11:20:00.002-05:00

Pittsburgh, PA - (January 20, 2010) -

NAI Pittsburgh Commercial is pleased to announce the 3,364 SF lease signing of Life Cycle Engineering located at 859 Missionary Drive, Pittsburgh PA 15236.

Edward R. Lawrence of NAI Pittsburgh Commercial represented the building owner in the transaction. Tom Denk and Rich Beynon of Beynon & Company, represented Life Cycle Engineering.

The flex building is comprised of 29,256 SF and is listed for sale at $1,295,000 through NAI Pittsburgh Commercial.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

5 Markets Expected to Fare Best in 2010

2010-01-12T10:16:00.005-05:00

After a dour year where housing prices fell more than 12% nationwide, will 2010 bring sunnier tidings?

The short answer: only a tad in a select few places but overall not really.

The five areas that Moody's foresees home prices performing best in 2010 are: Tacoma, Wash., (an increase of 2.44%); Memphis, Tenn., (up 0.99%); Pittsburgh (up 0.89%); Charleston, S.C. (up 0.18%); and Seattle (decline of 0.50%). (These five markets are culled from data on Moody's Economy.com and based on the largest 100 metro areas.)

Yes, there have been pieces of good news over the past few months that have indicated a quiet, slow bottoming of real estate prices. For instance, sales of existing homes rose 7.4% in November from the previous month, the highest rate since February 2007, according to data from the National Association of Realtors released last week. The tax incentives for home buyers passed earlier this year along with historically low interest rates have no doubt nudged many buyers into the market.

Yet a recovery depends on several factors. At the top of the list is a turnaround in the labor market. More people going back to work will have a beneficial effect on household income and consumer confidence and would stabilize the housing market, says Stuart Gabriel, director of UCLA's Ziman Center for Real Estate. As of November, one of out every 10 American workers is unemployed, according to the Bureau of Labor Statistics. And while that's down slightly from October, Moody's expects the jobless rate to peak in the third quarter next year at 10.6%.
Another factor is the backlog in foreclosures, which are dragging down values and adding to the housing supply. "By all accounts, that backlog is at a historic high," says Gabriel. "It suggests that many more homes will be sold on a distressed basis either via foreclosure or short sale."

RealtyTrac, an online marketplace of foreclosure listings, estimates 3.2 million households will have received a foreclosure notice in 2009, up from 2.3 million in 2008. The firm projects that number could approach four million in 2010. "We do think 2010 will probably represent the peak, and in 2011 [foreclosures] will start to go down at least marginally," says Rick Sharga, senior vice president at RealtyTrac. Why the acceleration next year? First, says Sharga, there have been enormous delays in processing this year. Many homes that would have gone into foreclosure in 2009 won't actually enter and complete the process until 2010.

Second, a big wave of option adjustable-rate mortgages (ARMs) will reset next year. (These are a somewhat obscure category of ARMs that were popular during the real estate boom, which allowed borrowers to make a range of monthly payments. The options include a partial-interest payment that adds the unpaid interest to the loan's balance. On many of the loans, balances have risen while values of the underlying properties have plummeted.) "The number of loans that will adjust starts to go up significantly in the middle of next year. A lot of those loans are underwater...and owners will be really hard-pressed to avoid going into foreclosure," Sharga says.

Home prices, of course, are variable and depend on many factors, each of which are difficult to predict. Still, average home prices will drop by 7.9% nationwide in 2010, according to Moody's Economy.com. In the few areas where there could be positive price growth, the projected increase is modest. "These areas will essentially be flat next year," says Steve Cochrane, managing director at Moody's Economy.com.

These pockets of the country share a few important characteristics. One is that they are starting with a limited supply of housing stock. Another is that throughout most of the decade, prices basically stayed in synch with household income, says Cochrane.

There are other factors, too. Pittsburgh, for example, along with western Pennsylvania, is late in the traditional business cycle, and "our variations tend to be smaller," says Robert Strauss, a professor of economics and public policy at Carnegie Mellon University in Pittsburgh. The economy has managed to stay fairly stable mostly because over the past several decades it transformed from a center of manufacturing to one of education and health care with a bit of financial services and technology.

Smaller areas across the Southeast are expected to fare well in 2010 primarily because they fared relatively decently during the housing crisis, says Jeannine Cataldi, a senior economist at IHS Global Insight. "They didn't have such a big run-up, and they have a diverse economic base that enabled them to stay stable," she says. Home prices in Charleston didn't get out of line with household incomes; also, Boeing (BA: 61.60, -0.60, -0.96%) is investing in a fairly large manufacturing plant there, which could create some potential for income and job growth, says Cochrane.

As for Memphis, the city's largest employer is FedEx (FDX: 84.99, +2.06, +2.48%). Transportation services is one of the early industries to turn around as the economy recovers, says Cochrane, and that should support the area's housing market.

The economies of Tacoma and Seattle - which are neighboring cities - were "much stronger for much longer than much of the rest of the country," says Cochrane. Software giant Microsoft, based in Redmond, Wash., a Seattle suburb, was one reason the area remained stable. Another was Boeing, which builds its commercial airplanes in Seattle.

Going forward, Seattle's position as a key hub of trans-Pacific trade should be a plus for the economy. Orders are increasing for commercial aircraft and it should see some rising demand for tech products, Cochrane says. The outlook for 2010 for the two Washington cities "is for fairly stable, moderate economic growth," he says.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

2010 Global Market Report

2010-01-12T10:13:00.001-05:00

Commercial real estate markets around the world experienced the full impact of the global economic recession in 2009, according to the 24th annual Global Market Report released today by NAI Global. Rising vacancy rates and declining rental rates were evident in virtually every market sector and geography, with weak demand and a growing supply of sublease space further eroding market fundamentals.

After a turbulent 18-24 months since the market peaked, 2009 marked a year where transaction volume nearly came to a standstill as corporate tenants waited for clear signs of recovery and investors remained on the sidelines waiting for signs the bottom has been reached. As the year progressed, government intervention in the form of stimulus packages in the U.S., Europe and parts of Asia took hold and by year’s end many markets had begun to stabilize. However, with U.S. unemployment topping 10%, consumer demand and spending power at their lowest levels in decades and international manufacturing and trade proceeding at a crawl, the global recovery will take some time to truly stimulate economic growth.

“The past year was extremely challenging for commercial real estate, and we don’t anticipate much new demand in 2010,” said Jeffrey M. Finn, President & CEO of NAI Global. “We’re working with our corporate clients to help them take advantage of the current tenants’ market to reduce their long-term occupancy costs. Many tenants are able to negotiate more favorable lease terms today in exchange for a longer commitment. This ‘extend and blend’ practice is a trend we see continuing well into the next 18-24 months.”

Investors who have been sidelined by economic uncertainty will see tremendous acquisition opportunities in the coming year as banks and financial institutions clean up their balance sheets and move more aggressively to dispose of commercial real estate loans and financially distressed real estate assets, said Finn.

“The recession has been over for six months and job growth is just months away, but the fact remains it will be impossible to predict what will happen next,” added Dr. Peter Linneman, NAI Global Chief Economist and Principal at Linneman Associates. “With significant tax, healthcare and regulatory proposals still in the offing, there is little clarity as to the ultimate outcomes or costs. We’re concerned with commercial mortgage delinquency rates as they have been on the rise and could keep the commercial real estate industry in neutral for several more months.”

While the United States, parts of Europe, the Middle East, Asia and Latin America experienced a deep recession, some economies survived 2009 nearly intact. Brazil, India and China all experienced a slowdown in economic growth, international trade and manufacturing demand, yet continued to post positive GDP growth for the year, far outpacing their neighbors and global trends. Brazil is looking for increased activity in the commercial real estate sector, specifically in big cities like Rio de Janeiro, which will soon host the World Cup and Olympic Games. At the end of 2009, China began to see a sharp rise in foreign direct investment in its manufacturing sector, and is expected to post 9% GDP growth in the coming year. India is positioning itself as a leader in logistics and manufacturing, and though commercial property markets will remain soft in the short term, significant growth is expected over the longer term.

The 2010 Global Market Report includes market data for more than 200 markets worldwide. For more information, contact us at 412.321.4200.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

America's Fastest-Recovering Cities

2009-12-22T10:34:00.004-05:00

Diversified industry and relatively stable housing give residents in these metros a measure of economic security.

Francesca Levy, Forbes.com

Though Omaha, Neb., seems second-rate to some, Warren Buffett may have been on to something when he chose it for the headquarters of his massive holding company, Berkshire Hathaway. According to our research, the city has hit upon a formula to weather the economic downturn better than any other in the country.

While no region has escaped the recession, in Omaha, three Texas metros, a handful of Northeastern manufacturing bases and select southern cities, diversified industry and relatively stable housing fundamentals have provided local residents with comparatively secure standards of living.

Full List: America's Fastest-Recovering Cities
Omaha has had a healthy 1.3% gross metropolitan product (GMP) growth in the past year, and a low foreclosure rate (only one in every 3,246 housing units is in foreclosure), but it sails to the top spot on our list because of its unemployment rate: At 5%, the lowest of the metros we surveyed. Omaha's economy is less dependent on manufacturing than other Midwestern cities, and is boosted by a strong agriculture sector and growing biofuels industry. And while the city has a big stake in the financial industry--a factor that nearly spelled ruin for metros like New York--it doesn't specialize in the types of institutions that took big risks and chased exotic financial structures. Instead, it's home to roughly 30 insurance companies and regional banks like Mutual of Omaha.

Lone Star Luck
In No. 2 city San Antonio, home to four military bases, and Austin, our third-ranked city and the state seat of government, municipal jobs supplement Texas' robust energy sector. In Dallas (No. 6), it's a thriving tech industry that buffers it from energy highs and lows. Although Houston (No. 8) is invested mostly in oil, it has diversified its energy industry beyond oil rigs into refining and chemicals manufacturing.

What's more, the state's housing prices never ascended to the unsustainable levels the rest of the country hit at the peak of the housing bubble. Thus, it didn't crash as hard. These factors have toughened the local economy against a recession that is inextricably tied to real estate.
"Texas didn't have as big of a boom," says James P. Gaines, research economist at the Real Estate Center at Texas A&M University. "So we're not having anywhere near the kind of bust."
Behind the Numbers

To form our list, we ranked the 100 largest Metropolitan Statistical Areas--geographic entities that the U.S. Office of Management and Budget defines and uses in collecting statistics--in five categories: unemployment rate, GMP (a measure of the size of a city's economy), foreclosures, home prices and sales rates.

We ranked September unemployment rates (the most recent available by metro) using data from the Bureau of Labor Statistics; the percentage of a metro's homes in foreclosure with September data provided by RealtyTrac; and the change in GMP between the first and second quarter of 2009 from the Brookings Institution's MetroMonitor. We also included the second-quarter 2009 year-over-year change in Freddie Mac's Conventional Mortgage Home Price Index--a measure of housing price inflation--and the average days on the market for properties currently on sale (to measure sales rates), using data from Zillow.com. We then averaged the scores for each measure to arrive at an overall ranking.

While there is no foolproof method for resisting recession, a common thread in thriving cities is an economy fed by multiple industries. Former Northeastern industrial hubs like Pittsburgh, and Rochester, N.Y., while they may not seem the likeliest models of economic health, have been able to supplement industrial sector decline with a boost from public-sector jobs that have pumped up the economy even as the private sector declined. They land in the fourth and seventh spot on our list, respectively.

But Rolf Pendall, associate professor of city and regional planning at Cornell University, warns that for upstate New York, this promising news may be temporary.

"We've had government spending plugging the gap," he says. "But it's hard to say what's going to happen in the next two years if government spending has to get withdrawn a lot, as it might."

Pittsburgh's GMP grew .8% between the second quarter of 2008 and 2009, consistent with the .8% national average. Home prices there remained relatively stable while those in other cities plummeted because the area's prospects still seemed dim during the housing bubble and speculators looked elsewhere.

"These metros have been so troubled for so long," says Pendall, "that people didn't develop irrational exuberance about the prospects in their housing markets."

Cities where home prices that don't fluctuate wildly are particularly well-positioned to ride out this recession, because they were spared the domino effect of foreclosures, lost jobs and lost productivity. In San Antonio and Austin, quick sales rates (homes in these cities spend 54 and 73 days on the market respectively compared to a 100-day national median) and home prices that fall above the national average--Austin's median home price in September, for example, is a healthy $240,000, 7% higher than the average for the top 100 metros, according to data from Zillow.com--indicate that they escaped the perilous zeal for building, and lending, that swept the rest of the country between 2001 and 2007.

There's a lesson to be learned from these cities, some of which aren't economically thriving, but all of which are well-equipped to emerge from the recession in a similar position to where they started. Rather than chasing rising home prices or apparently plentiful jobs in one-industry towns, families looking for long-term economic stability should seek spots where industry is diverse and housing price shifts are benign.

Top 5 Fastest Recovering Cities
1. Omaha-Council Bluffs, NE-IA Metro Area
2. San Antonio, TX Metro Area
3. Austin-Round Rock, TX Metro Area
4. Pittsburgh, PA Metro Area
5. Harrisburg-Carlisle, PA Metro Area

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

NAI Pittsburgh Commercial Leases 6,150 SF at the Lone Oak Technology Park Located in Sewickley, PA

2009-12-15T10:17:00.002-05:00

Sewickley, PA - (December 14, 2009)

NAI Pittsburgh Commercial is pleased to announce the 6,150 SF lease signing of Two Men and a Truck at the Lone Oak Technology Park located at 2 South Avenue in Sewickley, Pennsylvania.

Edward R. Lawrence, Associate and Victor J. Yates, Associate, of NAI Pittsburgh Commercial, represented Lone Oak Technology Park in the transaction. AJ Pantoni, Advisor and Kim Ford, Managing Principal of CresaPartners represented Two Men and a Truck.
The owners of the park are currently in discussions with an architect about the proposed construction of a new 55,000 SF flex building on the Site in 2010.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

Retail Property Being Converted to School

2009-12-10T11:17:00.010-05:00

Developer Pays $2.3M for 110,000-SF Building

Genstein Limited Partnership has purchased the 110,000-square-foot retail building at 1500 Yost Blvd in Pittsburgh from Guardian Construction Management. The developer paid $2.3 million, or $21 per square foot.

Conversion of the building for education has already begun. Propel Charter Schools signed a 15-year lease for 42,000 square feet to establish an elementary school. This will be its sixth location. Propel Charter Schools intends to open for the fall semester and plans on opening a high school at the same location the following year.

The building, built in 1970, sits on 11.3 acres and had been home for Nordstrom and Wal-Mart as temporary tenants over the last two years.

Paul Horan of NAI Pittsburgh Commercial represented the buyer and the new tenant. Jeremy Kronman, Christina Bucciero and Courtney Lynn of CB Richard Ellis represented the seller.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

ULI: Commercial real estate market will hit bottom in 2010

2009-12-10T11:10:00.004-05:00

Pittsburgh Business Times - by Tim Schooley

When a commercial real estate forecast begins with slides of the Roadrunner being chased by Wylie Coyote, it’s not hard to see through to the bottom of the cartoon canyon to understand what the fall represents.

That was Charles DiRocco’s approach to presenting the Urban Land Institute’s report on the Emerging Trends in Real Estate for 2010 in a breakfast hosted by the ULI’s Pittsburgh chapter at the Rivers Club Wednesday morning.

With the residential real estate market bottoming out in 2009, DiRocco said that in 2010 the “commercial real estate is going to hit to bottom as well.

It was a road show DiRocco, Pittsburgh native who is one of the ULI’s principal researchers, has presented in cities throughout the country, serving as the messenger of what’s largely been a bad news market for commercial real estate everywhere.

DiRocco’s gallows approach didn’t sugar coat ongoing trends that suggest a business environment for commercial real estate he expects will be worse than the recession of the early 1990s. The ULI’s larger report expects real estate value declines will average more than 40 percent below previous highs of mid-2007.

With values sinking so much, DiRocco expects real estate development has largely ground to a halt for the new year as well as perhaps a few years to follow.

Richard Moody, a local economist who also participated in the breakfast discussion, emphasized that financing for any new development will remain difficult.

“If you want to see if a banker has a good sense of humor, go and ask him for a construction loan,” Moody said.

The Pittsburgh area has proven to be relatively well-positioned to withstand any fall out in commercial real estate, both men said.

DiRocco said Pittsburgh’s standing has improved over other metros in the past year by not seeing the precipitous drops in value experienced elsewhere. A panel discussion suggested that many late-cycle buyers of 2005 through 2007 could find themselves struggling with foreclosures and workouts given the burden they’ve taken with high sales prices, weakening occupancy and commercial mortgage-backed securities (CMBS) coming due.

Nick Matt, a managing director in the Pittsburgh office of HFF Inc., said it will be difficult for the banks to negotiate a wave of property falling back into their possession.

“Right now, the servicers are inundated,” he said, seeing the process as far more complicated than in the past due to the way commercial mortgage debt has been packaged into CMBS. “We’ve never been through this on the CMBS side.”

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

Report: Pittsburgh's office rents off slightly year-over-year

2009-12-03T13:31:00.003-05:00

Office rental rates in Pittsburgh were down slightly year-over-year, according to a report by CB Richard Ellis Group Inc.

The city saw a 1.1 percent year-over-year decline in average rental rates, the report found. As of Sept. 30, the average rent for Pittsburgh office space was $22.61 per square foot.
Boston's central business district led the Americas on the report, with a 33.9 percent drop in average rental rates.

Average office rents worldwide declined 7.7 percent in the fiscal year ended Sept. 30, according to the report, with rents down in 131 of the 179 major cities CB Richard Ellis tracks. Nearly 50 markets have seen double-digit declines. Tops among cities seeing declines was Kiev (down 64.6 percent) and Singapore (53.4 percent).

Other large drops include a 41 percent decline in Hong Kong, a 39 percent decline in Abu Dhabi and a 35 percent decline in Moscow.

New York retained its rank as the most expensive North American market, with Midtown rents of $68.93 per square foot. New York’s rents rank 24th globally.

London’s West End, where rents declined 17.8 percent during the period studied, is the world’s most expensive market, at an average of $184.85 per square foot.

Tokyo, Hong Kong, Moscow and Paris follow London among the world’s most expensive office rental markets.

The Washington Business Journal and the Boston Business Journal, both affiliated publications, contributed reporting.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

Conveyor Belt Manufacturer Fenner Dunlop Americas has Relocated Corporate Headquarters to Pittsburgh

2009-12-01T11:01:00.006-05:00

Strategic location is cited as value-add by one of the newest companies to join the region’s energy economy supply chain

(PITTSBURGH – November 30, 2009)

Fenner Dunlop Americas, a wholly owned subsidiary of Fenner, PLC, a UK public company, has moved its corporate headquarters from the suburban Atlanta community of Scottdale, Ga. to Pittsburgh.

Leasing 15,000 square feet of office space in the Omega Corporate Center in Robinson Township (Allegheny County), Fenner Dunlop is now strategically located – a critical consideration during the site selection process, according to company officials.

“We wanted to be close to our North American belting product manufacturing facilities in both Ohio and Canada, as well as to key locations in our newly acquired service businesses – including Conveyor Service Corporation in Blairsville, Pa. (Indiana County), which we acquired last year – and major customer regions,” said Cassandra Pan, president of Fenner Dunlop Americas. “Operating from Pittsburgh puts Fenner Dunlop at the heart of its North American business, allowing for optimal business management. We’re close to where it’s all happening and closer to our customers.”

The headquarters relocation is expected to create approximately 40 jobs including several executives relocating from Atlanta and several new local hires. In addition to the efforts of the local commercial real estate firm NAI Pittsburgh, other development partners including the Pennsylvania Department of Community and Economic Development, Allegheny County Economic Development and the Pittsburgh Regional Alliance worked collaboratively in support of this business investment win.

Founded in 1861 in the UK, the company primarily manufactured leather belting. Today, Fenner Dunlop has operations across Europe, North and South America, Australia, China, India and South Africa and attributes much of its substantial growth to a number of major acquisitions over the last 30 years.

One such acquisition occurred in 2001and resulted in the formation of Fenner Dunlop Conveyor Belting Worldwide, which comprises the company’s core business of manufacturing conveyor belts and related products and services.

Fenner Dunlop provides total conveyor belt solutions to the coal and hard rock mining industry for surface and underground mines worldwide. As such a provider, the company is now integrated into the Pittsburgh region’s energy economy, which comprises innovation leadership and supply chain expertise across traditional and alternative energy sectors. One of these sectors is coal—a fossil fuel found in ample supply in the Pittsburgh region, where public and private R&D abounds to advance clean coal technology. CONSOL Energy Inc., world-headquartered in Washington County, is the largest producer of high-Btu bituminous coal in the United States and a major customer of Fenner Dunlop.

“Fenner Dunlop conveyor belts and the steel structures on which the belts ride are the principal ways that CONSOL moves coal from its mines. We have literally hundreds of miles of Fenner Dunlop belting in our mines, as well as overland belts. These allow CONSOL to meet its customers’ demands for coal - a fuel staple now and for the future,” said CONSOL Energy CEO Brett Harvey, who also chairs the Pittsburgh Regional Alliance Partnership. “CONSOL Energy is pleased that one of its major vendors has made the decision to join the almost 800 energy-related companies that call the Pittsburgh region home,” said Harvey.

“During the recent Pittsburgh [G-20] Summit, President Obama hailed Pittsburgh for its transformation to a model 21st-century economy. That economy includes leadership related to energy—both traditional and alternative. Our innovative edge, coupled with a historic expertise in manufacturing, is amassing a diverse and robust energy supply chain in the region. For that and other reasons, companies like Fenner Dunlop have strategically selected southwestern Pennsylvania – a place gaining recognition as the nation’s new energy capital. From Pittsburgh, these companies are operating to supply the resources, products and components that will ultimately influence the delivery of energy – not only domestically, but globally – in efficient and more sustainable ways,” said Allegheny Conference on Community Development CEO Dennis Yablonsky.

With the mining industry as a primary customer, Fenner Dunlop also recognizes that the Mine Safety and Health Administration’s Pittsburgh Safety and Health Technology Center in Bruceton, PA – just south of Pittsburgh – played a part in the company’s relocation decision. “Nationally and internationally, conveyor belt fire safety in underground mines is a critical concern. Fenner Denlop is at the forefront of belt fire safety and believes it’s strategic to be close to the organization that is uniquely influencing standards compliance around our core business,” said Fenner Dunlop President Cassandra Pan.

While Fenner Dunlop’s conveyor belting operations are largely reliant on the mining industry, the company has also developed a range of belting-related products including moving walkways, parcel handling, plasterboard forming belts, stable matting and agricultural equipment. More information is available at http://www.fennerdunlopamericas.com/.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

Sale of the Bowne Building

2009-11-09T14:19:00.004-05:00

NAI Pittsburgh Commercial is pleased to announce the sale of the 15,000 square foot office building known as The Bowne Building which is located in downtown Pittsburgh with an address of 120 Boulevard of the Allies, Pittsburgh, PA 15222.

Paul D. Horan, Principal, Gregg Broujos, Principal & Edward Lawrence, Associate of NAI Pittsburgh Commercial represented the sellers in the transaction.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

NAI Pittsburgh Commercial Represents Duquesne Light Company in 86,000 SF Rewenal at Chamber of Commerce Building, Pittsburgh, PA

2009-10-27T09:27:00.002-04:00

Pittsburgh, PA - (October 23, 2009) - NAI Pittsburgh Commercial is pleased to announce it has represented Duquesne Light Company in an 86,265 SF lease renewal at the Chamber of Commerce Building in downtown Pittsburgh.

Patrick J. Sentner, SIOR of NAI Pittsburgh Commercial represented Duquesne Light Company in this transaction while Jeremy Z. Kronman & Andrew Miller of CB Richard Ellis represented the landlord.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

NAI Pittsburgh Commercial Ranked #1 out of 72 Companies for the "Best Places to Work" in Western Pennsylvania

2009-10-23T14:49:00.002-04:00

On Thursday, October 22, 2009, the Pittsburgh Business Times invited 72 of the “Best Places to Work in Western Pennsylvania” to an award ceremony held at the Omni William Penn Hotel in Downtown Pittsburgh.

Paired up with Quantum Market Research, The Pittsburgh Business Times conducted an online study of employee satisfaction in order to identify the 72 Best Places to Work. This compilation of data served as a foundation for the overall top 72 rankings, along with individual rankings in three additional categories: small companies (up to 50 employees); medium companies (51 to 150 employees); and large companies (151 and above).

NAI Pittsburgh Commercial not only received the rating of the number one (#1) Best Places to Work in the small company division (the largest of the three categories), but they were also the number one (#1) of the overall Best Places to Work in Western Pennsylvania!

NAI Pittsburgh Commercial is proud to be included amongst the companies that were recognized with this commendable award

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

3510-90 Smallman Street - 16,500 SF Lease Signing

2009-10-16T11:07:00.004-04:00

Pittsburgh, PA - (October 16, 2009) -

NAI Pittsburgh Commercial is pleased to announce the 16,500 square foot lease signing of Fudgie Wudgie Fudge & Chocolate Company at the 3510-3590 Smallman Street property located in Pittsburgh’s Strip District. Fudgie Wudgie has been hand crafting premium fudge and chocolate since 1983.

3510-90 Smallman Street is a 33,000 square foot building recently constructed by locally owned Real Estate Enterprises. There is 16,500 square feet remaining.

John Bilyak, Principal & Director of Industrial Brokerage represented the owner in the transaction while Herky Pollock of CB Richard Ellis represented the tenant.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

New Shareholder and Principal of NAI Pittsburgh Commercial

2009-10-16T10:59:00.004-04:00

NAI Pittsburgh Commercial is pleased to announce that John C. Bilyak has been named as shareholder and Principal.

Mr. Bilyak has over twenty (20) years of commercial real estate and business experience. His career in real estate has been primarily focused on the disposition and leasing of land and industrial oriented property. Mr. Bilyak also concentrates on the sale of investment grade office and industrial buildings.

Since joining NAI Pittsburgh Commercial in January 2007, as the Director of Industrial Brokerage for the North-Shore based firm, Mr. Bilyak has completed some of the largest industrial transactions in Western Pennsylvania.

Bill Leone, Managing Principal of NAI Pittsburgh Commercial said adding Mr. Bilyak as a new shareholder reflects the firm’s commitment to its clients and to its business philosophy. “John has made an outstanding contribution to his clients, his colleagues, and the firm, while also demonstrating the values embodied in our founding principles,” stated Leone. “Our goal is to retain and add talent while providing our clientele with the highest level of service. Each Principal brings unique attributes to NAI Pittsburgh Commercial.”

NAI Pittsburgh Commercial, locally owned company and established leader of Western Pennsylvania’s Commercial Real Estate Industry, provides results-oriented brokerage, consulting, marketing and research services to businesses and investors throughout the world.

NAI Global is the world's leading managed network of commercial real estate firms. With over 325 offices in 55 countries worldwide, we bring together people and resources to deliver results for our clients wherever needed. Our clients come to us for our deep local knowledge. They build their businesses on the power of our global managed network.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

Feds Frets About Commercial Real Estate

2009-10-08T15:40:00.005-04:00

With Banks Slow to Take Losses, Fears of a Residential-Bust Repeat; 'More Pain Likely Lies Ahead'

The Washington Post

By Lingling Wei and Maurice Tamman

Bakns in the U.S. "are slow" to take losses on their commercial real-estate loans being battered by slumping property values and rental payments, according to a Federal Reserve presentation to banking regulators last month.

The remarks suggest that banking regulators are girding for a rerun of the housing-related losses now slamming thousands of banks that failed to set aside enough capital during the boom to cushion themselves when the bubble burst. "Banks will be slow to recognize the severity of the loss - just as they were in residential," according to the Fed presentation, which was reviewed by The Wall Street Journal.

A Fed official confirmed the authenticity of the document, prepared by an Atlantic Fed real-estate expert who is part of the central bank's Rapid Response program to spread information about emerging problem areas to federal and state banking examiners throughout the U.S.

While the Sept. 29 presentation by K.C. Conway doesn't represent the central bank's formal opinion, worries about the banking industry's commercial real-estate exposure have been building inside the Fed for months. "More pain likely lies ahead for this sector and for those banks with heavy commercial real estate composure," New York Fed President Bill Dudley said in a speech Monday.

In another sign that many U.S. financial institutions are inadequately protected against potential losses on commercial real-estate loans, banks with heavy exposure to such loans set aside just 38 cents in reserves during the second quarter for every $1 in bad loans, according to an analysis of regulatory filings by The Wall Street Journal. That is a sharp decline from $1.58 in reserves for every $1 in bad loans from the beginning of 2007.

The Journal's analysis includes more than 800 banks that reported haveing more half of their loans tied up in commercial real-estate, ranging from apartments to office buildings to warehouses.

Loan-loss reserves typically rise and fall during any credic cycle, being drawn down as losses mount. Some analysts and investors say the recession combined with inadequate loan-loss provisions when times were good have left banks dangerously vulnerable to the deteriorating commercial real-estate market.

Mr. Conway's presentation painted a bleak picture of the slideing real-estate vales and enormous debt that will need to be refinanced in the next few years. Vacancy rates in the apartment, retail and warehouse sectors already have exceeded those seen during the real-estate collapse of the early 1990's, Mr. Conway noted. His report also predicted that commercial real-estate losses would reach roughly 45% next year. Valuing real estate has always been tricky for banks, and the problem is particularly acute now because sales activity is practically nonexistent.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

Office Rents Dive as Vacancies Rise

2009-10-08T15:30:00.007-04:00

The Wall Street Journal
by Christina S.N. Lewis

Rent for office space is falling at the fastest pace in more than a decade as vacancies create a glut and landlords slash prices to attract tenants.
Nationwide, effective office rents fell 8.5% in the third quarter compared with the same period a year ago, the steepest year-over-year decline since 1995, according to Reis Inc., a New York real-estate research firm.
The decline came as companies returned a net 19.6 million square feet of space to landlords in the third quarter, slightly more than in the second quarter. For the first three quarters of this year, the net decline in occupied space totaled a record 64.2 million square feet, the highest so-called negative absorption recorded since Reis began tracking the data in 1980. (That doesn't count space that left the market as a result of the 2001 terrorist attacks.)
The vacancy rate, meanwhile, hit 16.5%, a five-year high, according to Reis.
Declining rents and rising vacancies in the office sector signal more woes for the commercial-real-estate market, which already faces a lack of credit and plummeting property values. With landlords more likely to default, financial institutions, which hold trillions of dollars in commercial-real-estate debt also face more pain. "It means more losses for the banks, because they will have to write off more bad debt," said Victor Calanog, director of research for Reis.
For tenants, however, falling rents represent opportunities to save. Landlords are offering concessions, in the form of free rent and build-out costs. "There's a recognition [from some companies] that this is probably a bottom, let me lock in long term," said Mary Ann Tighe, a New York-based leasing broker with CB Richard Ellis, who has negotiated corporate relocations for tenants including advertising firm Ogilvy & Mather and retailer Limited Brands.

As bad as the current environment is for landlords, analysts say it will worsen as unemployment continues to rise. "Even though the technical recession may be over, the labor market typically takes anywhere from 18 to 24 months to bounce back in a consistent way," said Mr. Calanog, who predicts vacancy will rise through 2010 and may not peak until 2011. "If employers are still shedding jobs, they are also going to shed space."
Vacancies are highest in areas with poor housing markets and industrial cities. They are approaching historic highs in Southern California; Las Vegas; Phoenix; southwest Florida; Detroit; Dayton, Ohio; and Hartford, Conn. Other cities, including Dallas and other parts of Texas, and Atlanta, are seeing high vacancy rates largely as a result of overbuilding.
Rent declines were steepest in big cities with large financial sectors, which saw the greatest run-up in rents in 2006 and 2007. They include Seattle, which has been slammed by the failure of Washington Mutual Inc., New York and San Francisco. But the office market deteriorated broadly across virtually all regions: Of the 79 metro areas that Reis tracks, office vacancies rose in 72 of them and effective rents declined in 68 of them.
In Boston, intellectual-property law firm Fish & Richardson PC recently signed a lease for 124,000 square feet of space in a new development under construction on the South Boston waterfront, paying about $48 a foot with about $85 a foot in tenant improvements from the landlord, according to a person familiar with the deal -- compared with the roughly $55 a foot the firm is paying now to landlord Equity Office.
In its attempt to persuade the tenant to stay, Equity Office, which is owned by private-equity firm The Blackstone Group, initially offered the firm $84.50 a foot in December 2007, but dropped the price over time to stay competitive and sent wine and champagne gift baskets to all of the firm's 45 principals, according to Tim French, Fish & Richardson's Boston managing principal.
"We were like the belle of the ball," said Mr. French.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

NAI Global President & CEO Jeffrey M. Finn was featured in Real Estate Forum

2009-10-06T09:10:00.001-04:00

Discussing opportunities we can find in a frozen credit market and challenges for the year ahead. Chief Economist Dr. Peter Linneman offers his perspective on economic recovery.

Click here to read the article about Jeffrey Finn

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the Office and development opportunities available in the Pittsburgh region CLICK HERE.

Robust Growth Will Follow Economic Recovery's Slow Start

2009-09-28T13:28:00.003-04:00

Says NAI Global Chief Economist Dr. Peter Linneman

The Great Recession has officially ended and recovery will be far more robust than anyone can imagine, according to a new white paper from NAI Global Chief Economist Dr. Peter Linneman. The paper examines the economic recovery and Dr. Linneman provides insight into the leading indicators that the market is stabilizing and investment activity is on the rise.

“Although the news continues to focus on the negative, the economy has bottomed and is on the road to recovery,” said Dr. Linneman. “Historically, the U.S. economy has rebounded in ways that were unimaginable at the time and usually within two years of a recession.”

Is This a Recovery?, NAI Global’s white paper, offers proof that the recession has come to an end and that recovery, however slow, is under way. Dr. Linneman discusses in depth the country’s current economic status, and provides historical evidence from past recessions to support his prediction of a robust recovery by 2012.

You can download the white paper here, or visit http://www.naiglobal.com/, select Publications, then Research Articles & White Papers to see the full archive.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the Office and development opportunities available in the Pittsburgh region CLICK HERE.

Signs of Improvement: Pittsburgh Office Vacancy Decreases Q2 2009

2009-08-24T12:47:00.003-04:00

Office Vacancies in Pittsburgh Slip

Trib Live: Staff and wire reports Saturday August 22, 2009

The vacancy rate in Pittsburgh's office market declined in the second quarter to 18.2 percent from the 18.7 percent at the end of the first quarter, according to a report issued Friday.

New leases signed for space Downtown included First Niagara Bank for 50,000 square feet at 11 Stanwix St. and Direct Energy's 52,000 square feet at Liberty Center, said a report by GVA Oxford.

Other leases include West Penn Allegheny Health Systems moving its executives to Alcoa Business Service Center on the North Shore; and Expedient Communications relocating its headquarters from Norfolk, Va., to Two Allegheny Center, also on the North Shore.

NAI Pittsburgh Commercial represented the Landlord in the West Penn Allegheny Health Systems lease.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the Office and development opportunities available in the Pittsburgh region CLICK HERE.

Largest 2009 Office Sale in Western PA closes

2009-08-13T10:16:00.005-04:00

McKnight Pays $89.5M for Cranberry Woods Office Bldgs.

Deal Marks Largest Purchase in Pittsburgh Region in 2009

By Andrew Deichler (CoStar)

August 11, 2009

In the largest office sale in Western Pennsylvania this year, McKnight Realty Partners has acquired four buildings in the Cranberry Woods office park for $89.5 million, or $198 per square foot. In an effort to re-balance its investment portfolio, Multi-Employer Property Trust (MEPT) sold the property at auction. McKnight used a 1031 exchange, which also involved 16 Pittsburgh-area Wendy's restaurants.

Located at 500-800 Cranberry Woods Drive in Cranberry Township, the four-building office campus totals 452,964 square feet. The buildings are 99 percent occupied by such tenants as Verizon Wireless, Westinghouse Electric Co. and McKesson. Nicholas Matt with HFF (Holliday Fenoglio Fowler L.P.) represented the seller. First Commonwealth and First Merit Bank provided financing for the project. Loan values were not disclosed.

Editiorial: While there remains evidence that the economy has not completed a full recovery, Commercial Real Estate in Pittsburgh remains a solid economic performer. This transaction may prove to have broader implications in the continued development, office rates, and occupancy levels in the Pittsburgh and specifically Cranberry area markets. The record price paid for this investment can be viewed as a positive endorsement for the continued need of Class A office space in the North market and Pittsburgh.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the Office and development opportunities available in the Pittsburgh region CLICK HERE.

PA Budget Stalemate Threatens to Hurt Job Creation

2009-08-04T22:18:00.002-04:00

Future Economic Development Funding in Jeopardy Due to Recession

By Andrew Deichler (CoStar Group)

August 4, 2009

ES3's Facility in York, PA.

Pennsylvania Governor Ed Rendell said Monday that his office is providing incentives for grocery distributor ES3 LLC, to help the company expand its operations in York and create jobs. He also said that aiding such projects in the future might not be so easy.

Funding for projects like the ES3 expansion is drying up across the country as states hammer out budget shortfalls due to the recession.

In Pennsylvania, the Democratic governor and the predominately Democratic House of Representatives have been at a stalemate with the Republican-dominant Senate for the about two months over the state budget.

In short, the Democrats are proposing a personal income tax (PIT) increase to keep job-creation programs going, while the Republicans are in favor of cutting programs to avoid raising taxes.

The governor's office said in a statement that Pennsylvania might be unable to compete for such projects if certain programs are trimmed or completely eliminated in the state budget. "Some lawmakers are debating whether we should turn our backs on the communities and workers these valuable programs serve," said Gov. Rendell. "They want to drastically cut or eliminate the programs that, before the recession hit, helped us to reach record levels of employment."

Click to read the rest of the article

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

AdVenture Development adds office space to McCandless Crossing plans

2009-07-31T15:19:00.002-04:00

From the Pittsburgh Business Times

North Carolina-based real estate developer AdVenture

Development LLC is expanding the scope of its mixed-used

development project in McCandless Township to include an

office component.

North Side-based NAI Pittsburgh Commercial

launched the marketing effort this week to lease a five-

story, 60,000-square-foot office building at the project, the

first of what is expected to be three office buildings at the

mixed-use development.

McCandless Crossing is proposed as a one million-plus square foot development anchored by a

Lowe’s Home Improvement store, to be located along a stretch of McKnight Road on the

northern edge of McCandless Township. McCandless Crossing is also expected to include a

grocery-anchored town center, a movie theater, hotels and town houses.

Paul Horan, a principal at NAI Pittsburgh who is marketing the new office project, expects the

office space will appeal to medical office users given McCandless Crossing’s proximity to the

UPMC Passavant Hospital.

Announcing Premier Mixed Use Development

2009-07-31T14:17:00.000-04:00

NAI Pittsburgh Commercial is pleased to announce that it has been awarded the exclusive leasing of the office space component of McCandless Crossing, a + 130 acre mixed use development in McCandless Township in the North Hills of Pittsburgh.

Anchored by a Lowe’s Home Improvement Store, McCandless Crossing is a 1,000,000 + SF project consisting of a Towne Center component and a master planned area including retail, office, hotels, entertainment and residential. It is in close proximity to Pittsburgh’s premier suburban hospital, UPMC Passavant.

The goal of the developer, AdVenture Development, LLC, is to create a project that complements the existing base of properties and knits them together in a cohesive plan that will further energize the North Hills.

The initial phase of the office component will be a five story 60,000 SF Class “A” office building. Two additional similar sized properties will be developed as dictated by the demand for premier office/medical office space conveniently located at the intersection of Duncan Avenue and McKnight Road.

For more information on this project, please contact Paul Horan, Principal at NAI Pittsburgh Commercial at (412) 321-4200 ext. 205 or phoran@naipittsburgh.com

Imminent Deadlines for PA Real Estate Assessment Appeals (Courtesy of Pepper Hamilton LLP)

2009-07-29T10:19:00.000-04:00

PA Appeal Deadlines - 2010 Tax Year

Absent any county-wide reassessment or county-wide ratio change, the annual deadlines for assessment appeals in Pennsylvania are as follows:

August 1, 2009: Berks, Bucks, Chester, Dauphin, Delaware, Erie, Lancaster, Lehigh, York
August 31, 2009: Butler, Luzerne, Wyoming
September 1, 2009: Adams, Armstrong, Beaver, Bedford (see below) Blair (see below)
Bradford, Cambria. Cameron, Carbon, Centre, Clarion, Clearfield, Clinton,
Columbia, Crawford, Cumberland, Elk, Fayette (see below), Forest,
Franklin, Fulton, Greene, Huntingdon, Indiana, Jefferson, Juniata,
Lackawanna, Lawrence, Lebanon, Lycoming, McKean, Mercer, Mifflin,
Monroe, Montgomery, Montour, Northampton, Northumberland, Perry,
Pike, Potter, Schuylkill, Snyder, Somerset, Sullivan, Susquehanna, Tioga,
Union, Venango, Warren, Washington, Wayne, Westmoreland
October 1, 2009: Philadelphia County
March 31, 2010: Allegheny County

Dusty Elias Kirk and Sharon F. DiPaolo are partners in the firm's Real Estate Practice Group . If you have any questions concerning real estate or real estate tax assessment appeals, please contact Dusty Elias Kirk at kirkd@pepperlaw.com; 412.454.5039 or Sharon F. DiPaolo at dipaolos@pepperlaw.com ; 412.454.5005.

Economic Update: New Issue of Linneman Letter Available for Download

2009-07-28T21:55:00.000-04:00

We are pleased to share with you this special edition of The Linneman Letter.

In this issue, Dr. Peter Linneman, NAI Global’s Chief Economist and Principal at Linneman Associates, provides his insight into the current economy, inflation pressures, when the recovery will take hold, and uses a comparison of today’s global recession to past downturns to forecast the coming months.

You can download a complimentary copy here. And for an in-depth review of the current state of the economy presented by Dr. Linneman, download the second quarter Global Economic Outlook web conference OnDemand.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

Pittsburgh's commercial market leads nation in real estate for business purposes

2009-07-27T10:57:00.002-04:00

By Sam Spatter
FOR THE TRIBUNE-REVIEW
Wednesday, July 22, 2009

Pittsburgh's commercial real estate market has maintained its No. 1 position in the nation, according to Moody's Investors Service.

The New York-based ratings company's second-quarter Red-Yellow-Green report issued Tuesday ranked the seven-county region as the top market overall among 60 metropolitan areas nationwide.

Although Oklahoma City was listed as No. 1 in the first quarter 2009 report, Moody's adjusted its method of ranking, which eliminated Oklahoma City and moved Pittsburgh back into the No. 1 spot for that period.Pittsburgh also was rated No. 1 at year-end 2008.

Moody's rated Pittsburgh in three of seven real estate categories the company uses to compare markets. Cities must be rated in three or more categories to get a final ranking. Pittsburgh was judged on multi-family housing, Downtown office vacancies, and full and limited service hotels' occupancy rates. It was not included in retail, industrial or suburban office ratings.

The No. 1 ranking continues the long climb back for the local market, which Moody's ranked among the 10 "most troubled" throughout most of 2005.

Moody's ranking adds to a list of accolades for the region's real estate market.

Kiplinger.com named Pittsburgh one of its six Safe Havens in Real Estate, notingPittsburgh's investment real estate has steadily increased in value with properties in the Downtown, Oakland and Centre/Baum corridor attracting investors willing to pay top dollar for prime real estate.

Moody's uses performances in the seven categories of real estate to arrive at a composite score ranging from 0 to 100.

The name of the report comes from how it describes a market's performance in traffic-light colors, with scores of 0-33 identified as red, 34-66 as yellow, and 67-100 as green.

Moody's evaluation gives the Pittsburgh area a composite score of 52 in the yellow category. The lower score is because of the nation's deflated economy, Moody said.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

Economic Outlook: Commercial Real Estate Loans..

2009-07-21T21:51:00.003-04:00

Commercial Real Estate Loans Weighing Heavily on Bank Earning Statements

Today's (July 20th) issue of the Wall Street Journal featured an article in the Money & Investing section about the suffering commercial real estate financing industry and its impact on the banking crisis.

As many people are aware, banks have been failing in large numbers over the last 18 months due to short-sighted lending policies and, in some instances, mismanagement and fiduciary scams at senior levels. Now commercial real estate, often a solid monetary investment, is coming under fire as properties and property portfolios are being devalued by increasing vacancies, falling rents and changes in how companies are pursuing their commercial space strategies.

As earnings season heats up in the last couple of weeks of July, investors are closely watching the financial statements from banks and lending institutions to see how they are writing off the commercial loan losses, and for insight into the financial institutions' plans for addressing these earnings issues in the coming months. (You can read Lingling Wei's story here.)

With the commercial real estate market valued at approximately $6.7 trillion USD, is the industry too big to fail? And how will the stock market react to these losses, or perception that losses are coming? The coming quarter should prove most interesting to watch.

Global Economic Outlook - June 2009 now available OnDemand

2009-07-21T21:48:00.001-04:00

Is this the “worst ever” yet? Have we hit bottom?

NAI Global’s Chief Economist Dr. Peter Linneman tells us it is “time to rebuild the confidence” in the U.S. economy. We are nearing a bottom, but it will be a while before recovery takes hold. He provides insight into how the economy is improving, which sectors will improve first and the telltale signs recovery is under way. Listen to the June 2009 Global Economic Outlook web conference OnDemand.

Agency Expertise: 80,000SF New Construction

2009-07-21T21:45:00.001-04:00

Full service commercial brokerage firm, NAI Pittsburgh Commercial (www.naipittsburgh.com/412.321.4200), has been selected by Kossman Development Company (www.kossman.com/412.921.6100) as the Exclusive Leasing Agent for the new Valley Commerce Center strategically located on Rt. 50 parallel to Interstate 79 in Bridgeville. The first of the two (2) planned single story Class “A” flex buildings is under construction with the earth work slated for completion by the end of June 2009. The foundation and shell will begin immediately with the exterior and base building scheduled for completion by 3^rd Quarter 2009. John Bilyak of NAI Pittsburgh stated, “We are extremely excited about marketing new flex product in the southern I-79 submarket. This project offers amenities, class “A” building specs, and parking that make it unique to a region in need of quality building product.”

The versatility offered by the 44,244 square foot Building One will be conducive to those tenants with office, flex, lab and clean value added manufacturing applications.

John C. Bilyak, Director of Industrial Brokerage and Patrick J. Sentner, SIOR, Principal of NAI Pittsburgh Commercial, are leading the leasing efforts on behalf of Kossman Development Company.

NAI Forms Alliance with Site Analytics

2009-04-22T19:39:00.004-04:00

Alliance Offers Expanded Market Analytic Services to Retailers

NAI Global, the world’s premier managed network of commercial real estate firms and one of the largest real estate services providers worldwide, announced today it has formed an alliance with Site Analytics Co., a site selection consulting firm, to offer expanded market analytics services to NAI retail professionals.

Founded in 1995, Site Analytics advises brokers, retailers and landlords on growth-related strategic issues. Their customized reports and models employ sophisticated analytic techniques to provide unique insights that help clients resolve the tough questions they face on a daily basis. Adapting these tools—in consultation with NAI Global’s Market Analytics team—for use by NAI retail professionals, Site Analytics’ range of services helps brokers provide the best possible advice to their clients and improve the site selection process.

“Site Analytics is a market innovator and respected service provider in the U.S.,” said George Anderson, Vice President of NAI Global Market Analytics. “This alliance will expand the reach of the Market Analytics team, and enhance this key service offering for our clients.”

Throughout 2009 Site Analytics will create and implement new products tailored specifically for NAI Global’s managed network, with the first set launching in May prior to ICSC RECON Global Retail Real Estate Convention. Some of these custom products help retail brokers determine how to most effectively identify prospective tenants and market a property. Others help NAI brokers advise their retail clients on the best markets and sites for their expansion or contraction efforts.

“Site Analytics is proud to be an Alliance Partner of NAI Global,” said Adam Epstein, President of Site Analytics Co. “Especially in times like these, it’s important to ensure that clients are making a fully-informed decision. We are pleased that NAI brokers, who are often acknowledged as the leading experts in their home markets, will be enhancing the services they offer their clients with the addition of our customized analyses.”

Site Analytics Co. is based in New York City, and will work with NAI Global’s offices both across the United States and internationally. Headquartered in Princeton, New Jersey, NAI Global manages a network of 325 offices and 5,000 professionals in 55 countries across the globe.

NAI Pittsburgh Commercial is a Pittsburgh proud and locally owned commercial real estate brokerage company and part of the NAI Global managed network. Click to learn how NAI Pittsburgh can help you with the toughest retail challenges.

Investor notice: American Escrow

2009-04-15T22:06:00.002-04:00

City to assist those bilked by American Escrow

Wednesday, April 15, 2009

Pittsburgh Post-Gazette

The city of Pittsburgh will allow property owners bilked by Chicago-based American Escrow LLC to make late property tax payments on an installment plan, without charging interest, "on a case-by-case basis," city Treasurer Margaret Lanier said yesterday.

The city has no way of knowing how many property owners are affected, she said. Affected residents should call the city Real Estate Division at 412-255-2525.

American Escrow received money from property owners and held it to pay their taxes and insurance, but then stopped making those payments and drained its accounts.

Interested in Real Estate Investing? Contact us to learn more: NAI Pittsburgh Commercial is a locally owned and Pittsburgh proud commercial real estate brokerage. Interste

NAI Global Named #4 Commercial Real Estate Brokerage in the World

2009-04-15T18:56:00.002-04:00

NAI Global Named #4 Commercial Real Estate Brokerage in the World

National Real Estate Investor magazine's April issue just arrived, including the annual Top 25 Brokerages listing.

NAI Global was named the fourth largest brokerage, in a tie with Colliers International. NAI's total investment sales and lease transactions for 2008 totaled $42 billion.

Look for the full listing, and an article on distressed properties featuring an interview with Jeff Finn about the Commercial Property PowerSale, on www.nreionline.com.

NAI Pittsburgh Commercial is a locally owned and Pittsburgh proud commercial real estate brokerage. Click here for listings.

Agency Representation: Office Expertise

2009-04-07T11:42:00.003-04:00

West Penn Allegheny moves top executives to Alcoa Business Service Center
By Luis Fabregas, TRIBUNE-REVIEW
Tuesday, April 7, 2009

Top executives from cash-strapped West Penn Allegheny Health System this week are relocating to offices at the Alcoa Business Service Center on the North Side.

West Penn Allegheny signed a lease that will give it 22,000 square feet at the building on Isabella Street, said system spokesman Dan Laurent.

Laurent did not immediately know how many people will be moving into the space, but they include CEO Dr. Chris Olivia, whose offices were located at flagship Allegheny General Hospital in the North Side.

"We believe this will allow us to more effectively manage our system — where managers currently occupy offices in 11 different buildings — to exit existing leases, and to consolidate future space," Laurent said.

The move will result in long-term cost savings for West Penn Allegheny, Laurent said, declining to give a specific amount. The six-hospital network last year posted losses of $62.8 million.

Officials have said they plan to shave costs by $66 million. Late last year, Olivia told investors they already achieved the first half of those savings, or about $33 million.

West Penn Allegheny will occupy a portion of one floor of the 230,000-square-foot, six-story building, said Paul D. Horan of NAI Pittsburgh Commercial, which represented part-owner The Rubinoff Company in the deal.

The other portion of the floor will be occupied by Omnyx LLC, a digital imaging company partly created by University of Pittsburgh Medical Center. West Penn Allegheny, the region's second largest hospital network behind UPMC, did not raise objections about this, Horan said.

The building, which is about 90 percent occupied, is home to several other companies including Alcoa, which occupies two floors, Horan said.

Click to view other NAI Pittsburgh Office Properties

Pittsburgh: "Top Ten Metro" per Site Selection Magazine

2009-04-06T20:34:00.004-04:00

Despite a challenging economic climate, the Pittsburgh Region boasted $4+ billion in capital investment related to 290 corporate expansion, relocation and development projects, keeping pace with “Golden Year” 2007. Plus, Pittsburgh was recently honored as one of nation’s “Top Ten Metros” by Site Selection magazine.

Pittsburgh placed #7 in Metro Markets more than 1M people in population. To read the entire article click here.

Auctions: Not Just for Distressed Real Estate

2009-04-02T19:50:00.002-04:00

Article Finds Commercial Real Estate Auctions Are Not Just for Distressed Real Estate

An interesting article in this week's Global Real Estate Monitor examines the value of auctions in bad economic times. As the article states, "Auctioneers have a saying that when times are good, the auction business is good too, but when times are bad, the auction business is great. And, as more commercial property owners are struggling to deal with under-performing assets or upcoming debt maturities in a frozen debt market, auction experts expect the auction business, also known as accelerated marketing, to be quite busy in the coming months."

The article goes on to make the point that auctions and accelerated marketing programs like NAI Global's Commercial Property PowerSale are not just tools to sell distressed real estate assets, but are also effective in creating competitive bidding for high profile assets. Boston's John Hancock Tower is one such trophy office building on the block, and other high profile office buildings, shopping centers, industrial parks, residential subdivisions and prime development land are expected to come to market via auctions and sealed-bid sales during the coming year.

You can read the entire article at http://nreionline.com/globalrealestate/mar_article2.html

Commercial Real Estate Trend: U.S. Retailers to Expand Internationally Post-Recession

2009-03-24T11:59:00.003-04:00

As the economic recession strengthens its hold, you may have noticed a number of major retail and restaurant brands changing their commercial real estate habits. Whether it’s big box retailers halting construction or cancelling plans for new U.S. sites, or fast food retail chains moving slower in approving franchise licenses or closing underperforming locations, the change in their growth plans is evident.

While many of these changes can be attributed to the current economy, it doesn’t mean that when the recession ends and people begin to ramp up their spending habits again, that these big name brands will resume their manifest destiny plan across the U.S. In discussions with retail brands across North America – from big box home improvement and entertainment/electronics retailers to small network retailers – it is clear that the greatest potential for growth is to look beyond the U.S. for future expansion.

Opportunities abound in markets around the world, like the growing consumer bases in China and India, that are much more attractive than picking a new pad site somewhere in the U.S. that just further segments an existing market. Companies are thinking long-term and international. That doesn’t rule out any new U.S. sites, but the long-term strategy will be to market their U.S. locations heavily to capture market share, and to expand globally to increase it.

George Anderson is Vice President of NAI Global Market Analytics, a service for retailers, banks, financial insitutions and corporate end users. Working together with NAI ReStore, the retail arm of NAI Global, NAI Global Market Analytics helps clients optimize their store, branch and distribution networks.

To learn more about Market Analytics and other services provided to Retail Clients from NAI Pittsburgh please click NAI PITTSBURGH RETAIL.

Agency Representation: Industrial Expertise

2009-03-20T10:01:00.003-04:00

John C. Bilyak, Jeffrey Adams and William Leone, SIOR of NAI Pittsburgh Commercial represented the landlord in the 147,310 SF lease to Elliott Company at I-70 Commerce Center in Pittsburgh, PA.

NAI Pittsburgh Commercial offers expertise in Landlord/Agency representation. Please visit NAI Pittsburgh to learn more about our expertise and services offered.

Tenant Representation: Benshaw, Inc.

2009-03-20T10:00:00.001-04:00

Paul D. Horan and John C. Bilyak of NAI Pittsburgh Commercial represented Benshaw, Inc. in the 183,000 SF lease by Benshaw, Inc. in the RIDC Industrial Park in O’Hara Township, PA.

More Wins: Pittsburgh Development & Capital Projects

2009-03-20T09:33:00.005-04:00

The Pittsburgh region landed a total of 290 corporate investment and development projects last year with the potential for more than 10,000 new jobs.

The Allegheny Conference on Community Development and the Pittsburgh Regional Alliance Wednesday announced the numbers, which were down slightly from 2007, when the region saw 308 development projects.

“The 2008 numbers quantify an impressive level of activity in southwestern Pennsylvania, particularly in a year of severe economic challenges nationwide and underscore Pittsburgh’s resilience,” said Michael Langley, CEO of the organizations, in a statement.

"Almost on a daily basis we hear negative stories from around the country about the economic trouble the country is going through and the world is going through," Michael Langley, the chief executive officer of both the conference and the regional alliance, said at a news conference yesterday. "Today we're not going to let the good news get lost about the Pittsburgh region."

When Site Selection magazine put together its list of top metropolitan areas (populations of more than 1 million people) in terms of major development projects under way, Pittsburgh came in seventh. The city was behind much larger metro areas, such as New York, Houston, Dallas and Chicago. Mr. Langley said if the population were taken into account, spending per capita would have shot Pittsburgh up the list.

Site Selection compiled that list by considering metropolitan areas with projects that cost more than $1 million, created at least 50 new jobs or added more than 20,000 square feet in new floor space. Retail space, government projects, schools and hospitals were excluded from consideration.

Specifically, the conference and the PRA pointed to billion-dollar investments by U.S. Steel and Allegheny Technologies in their local manufacturing operations.

All told, the projects resulted in capital investments of more than $4.2 billion in the region.

NAI Pittsburgh Commercial is a Pittsburgh proud locally owned and operated company. To see some of the investment and development opportunities available in the Pittsburgh region CLICK HERE

Highest Priced Commercial Real Estate Markets

2009-03-19T14:07:00.002-04:00

New York City Reclaims Title as Highest Priced Commercial Real Estate Market Worldwide
New York City Peak Rents Top $225 per SF

San Francisco, Boston and Washington, DC Top List of Highest-Priced U.S. Office Markets

New York City’s Midtown Manhattan market reclaimed its title as the highest priced office market in the world in 2008, according to NAI Global’s 2009 Global Market Report. Premium space in Midtown Manhattan peaked at $225 per square foot in 2008, before the sinking economy could take its toll.

London’s Mayfair region held the “highest priced office market” title in 2008 with a peak rent of $265 per square foot per year. In 2009 the market took second place as peak rents fell $56 per square foot to $209 per square foot per year. Hong Kong, the third highest-priced office market in the world, reported peak rents of $186 per square foot per year for 2008, a drop of $77 per square foot from the 2007 high of $263 per square foot per year.

“The global economic crisis is impacting property markets big and small,” said Jeffrey M. Finn, NAI Global President & CEO. “Once strong markets are suddenly facing high vacancy rates and tenants that are taking their time making new space decisions. New York City, in many ways the capital of commerce for the world, saw enough demand to keep prices stable through much of 2008 before the wheels fell off late in the year. Rents are expected to drop significantly in most major world markets in 2009.”
The most expensive space in New York was for premium space at 9 West 57th Street, according to Henry Goodfriend, Executive Managing Director in NAI Global’s New York City office. “At one point we had several buildings with asking rents approaching $250 per square foot, but the market has changed dramatically and those landlords aren’t quoting rates anymore,” he stated.

New York’s peak rents are more than double the highest rents reported in any other U.S. Market. Midtown was followed by San Francisco with peak rents of $110 per square foot downtown, New York City Downtown Manhattan with peak rents of $65 per square foot, and Boston with top rents of $65 per square foot in the Financial District.
San Mateo, California, topped the list of highest-priced suburban office markets in the U.S. with peak rents of $228 per square foot per year, nearly three times the peak rent for Class A space in the second highest priced market. San Mateo is home to Sand Hill Road, a prestigious address for top venture capital firms. Santa Clara County, aka Silicon Valley, was second with top-end rents of $81 per square foot, follow by Los Angeles at $62 per square foot.

Overall, California markets claimed four of the 10 priciest suburban markets in the U.S. Northern New Jersey, at $53, Northern Virginia, at $45, and Miami, at $47.50, also made the list. NAI Global is one of the world’s largest commercial real estate services providers. Headquartered in Princeton, New Jersey, NAI Global manages a network of 5,000 professionals and 325 offices in 55 countries. Now in its 23rd year, NAI’s Global Market Report offers insider insight and perspective on market conditions reported by NAI experts on the ground in more than 200 property markets worldwide.