Signs of Improvement: Pittsburgh Office Vacancy Decreases Q2 2009

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

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

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."

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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