Market data is collected from CoStar Market Analytics PITTSBURGH INDUSTRIAL MARKET OVERVIEW NOVEMBER 2018 TOTAL MARKET AS OF NOV 2018 OVERALL INDUSTRIAL STATISTICS BY SUBMARKET | NOV 2018 Market Total Inventory Vacancy Rate Average Asking Rent Net Absorption Armstrong 2.16 mil. 5.7% $5.54 (19,548) Beaver 12.72 mil. 7.9% $5.03 (324,631) Butler 15.68 mil. 7.1% $7.51 48,069 Fayette 4.34 mil. 13.4% $4.57 (308,739) Greater Downtown 13.98 mil. 3.7% $7.12 (240,988) Monroeville 2.61 mil. 5.3% $9.15 (22,306) North Pittsburgh 17.56 mil. 2.0% $7.23 100,324 Northeast Pittsburgh 17.56 mil. 3.8% $8.01 (187,145) Oakland 396,000 - $8.17 (15,000) Parkway East 14.13 mil. 7.6% $5.90 (318,242) Parkway West 10.25 mil. 8.5% $8.61 169,330 South Pittsburgh 19.13 mil. 2.7% $7.94 (163,295) Washington County 13.68 mil. 8.5% $7.30 271,865 West Pittsburgh 15.93 mil. 5.2% $6.37 330,204 Westmoreland County 33.61 mil. 7.2% $5.76 233,998 TOTAL INVENTORY 193 MIL VACANCY RATE 5.9% ASKING RENT $6.84
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PITTSBURGH INDUSTRIAL MARKET OVERVIEW NOVEMBER 2018 · PITTSBURGH INDUSTRIAL MARKET OVERVIEW NOVEMBER 2018 TOTAL MARKET AS OF NOV 2018 OVERALL INDUSTRIAL STATISTICS BY SUBMARKET |
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Market data is collected from CoStar Market Analytics
PITTSBURGH INDUSTRIAL MARKET OVERVIEW NOVEMBER 2018
TOTAL MARKET AS OF NOV 2018
OVERALL INDUSTRIAL STATISTICS BY SUBMARKET | NOV 2018
Market TotalInventory
Vacancy Rate
Average Asking Rent
Net Absorption
Armstrong 2.16 mil. 5.7% $5.54 (19,548)
Beaver 12.72 mil. 7.9% $5.03 (324,631)
Butler 15.68 mil. 7.1% $7.51 48,069
Fayette 4.34 mil. 13.4% $4.57 (308,739)
Greater Downtown 13.98 mil. 3.7% $7.12 (240,988)
Monroeville 2.61 mil. 5.3% $9.15 (22,306)
North Pittsburgh 17.56 mil. 2.0% $7.23 100,324
Northeast Pittsburgh 17.56 mil. 3.8% $8.01 (187,145)
Oakland 396,000 - $8.17 (15,000)
Parkway East 14.13 mil. 7.6% $5.90 (318,242)
Parkway West 10.25 mil. 8.5% $8.61 169,330
South Pittsburgh 19.13 mil. 2.7% $7.94 (163,295)
Washington County 13.68 mil. 8.5% $7.30 271,865
West Pittsburgh 15.93 mil. 5.2% $6.37 330,204
Westmoreland County 33.61 mil. 7.2% $5.76 233,998
TOTAL INVENTORY
193 MIL
VACANCY RATE
5.9%
ASKING RENT
$6.84
Market data is collected from CoStar Market Analytics
PITTSBURGH INDUSTRIAL MARKET OVERVIEWLogistics continues to drive growth in the industrial sector, but it is unlikely that Pittsburgh will ever establish itself as a shipping hub. In Pennsylvania, developers are gravitating toward Philadelphia and Lehigh Valley, and to the west, major facilities are popping up in Columbus and Cincinnati. The region’s less-than-desirable terrain, location, and flat population growth have hindered large-scale speculative development in the logistics division.
However, thanks to growing demand across the country for logistics facilities to accommodate growing levels of e-commerce, demand has been healthy enough to keep fundamentals solid. So while the inventory here primarily serves the local and regional economies, fundamentals remain strong. This has kept vacancy rates hovering around record lows and kept rent growth solid. Out-of-state investors are starting to test the waters of the Pittsburgh inventory pool, and as a result, volume has far exceeded historical expectations since 2015.
Industrial vacancies in Pittsburgh are slightly elevated relative to the national average. But when compared to historical expectations, the metro is doing well, despite net absorption figures being at the lowest point in the cycle. Pittsburgh is largely driven by local and regional logistics tenants who have ready access to major highways like I-70 and I-80, as well as the Pennsylvania Turnpike. However, areas like Harrisburg, Philadelphia, and Lehigh Valley are attracting a higher level of demand due to the more central location and proximity to highways, as well as ports for shipping. While Pittsburgh is large enough to generate some demand for space to service the local economy, even locally based demand growth will be limited by this metro’s lack of population growth. Additionally, the region’s slow shift away from a manufacturing-based economy has long since rendered it second fiddle to national warehouse markets.
Most of the industrial demand and new supply in the metro is in the Westmoreland County Submarket, home to roughly 17% of Pittsburgh’s inventory and a number of large industrial parks. This area is largely rural, and has acres of land waiting to be developed. Washington County has also seen a boost in demand over the past few years as a result of drilling at the Marcellus Shale, and the influx of oil and gas tenants moving to the area. And submarkets surrounding the construction of the Shell ethane cracker plant in Beaver County are anticipating a future uptick in demand once the plant delivers in 2020. As a result, Beaver County, Parkway West Corridor, and West Pittsburgh have all seen increased supply figures that exceed historical norms.
ZEDIKER STATION, THE LARGEST DEVELOPMENT SITE IN WESTERN PAHanna Langholz Wilson Ellis kicked off their marketing campaign for an extremely unique development site in Washington County. Less than a mile from the junction of Interstates 70 and 79 is Zediker Station, a 1,200 acre contiguous piece of land, under one owner. Zediker Station has access to two Class I rail lines, CSX and Norfolk Southern with short-line service provided by Carload Express. Government partners are in place and committed to the success of the development of this site. Regionally, this site is in a prime location; not only is it geographically located at the junction of two interstates, it is within 500 miles of 48% of US businesses, 45% of US and Canada populations, 63% of the national industrial output, 53% of US READ MORE
ALMONO SEEKS DEVELOPERS TO TAKE ON PORTION OF HAZELWOOD GREEN REDEVELOPMENTAlmono hopes to build on the momentum underway at the Mill 19 redevelopment of the former mill structure at Hazelwood Green by the Regional Industrial Development Corporation of Southwestern Pennsylvania, which already has leases in place for the build out from Carnegie Mellon University-affiliated Advanced Robotics Manufacturing and the Manufacturing Futures Initiative READ MORE
INDUSTRIAL PACKAGING COMPANY INKS DEAL FOR FINDLAY COMMERCE CENTERA new manufacturer is moving into the Findlay Commerce Center, joining two tire companies to put the 316,000-square-foot building at two-thirds leased. READ MORE
AMERICAN TEXTILE EXPANDS AT FORMER MILL PROPERTY IN MCKEESPORT American Textile Co. has inked a new deal for a 98,000-square-foot distribution facility in McKeesport.
The company will set up in the Manor I building in the former U.S. Steel National Tube Works in McKeesport that now operates as the RIDC Industrial Center, according to an announcement by the Regional Industrial Development Corporation of Southwestern Pennsylvania, which now owns and manages the mill-site-turned-business-park.READ MORE.