2012 Global Market report - NAI Global

Pittsburgh, Pennsylvania
Schuylkill County, Pennsylvania
Contact
NAI Global
+1 609 945 4000
PWC Property Solutions
+1 412 937 1925
Metropolitan Area
Economic Overview
2011
Population
2016 Estimated
Population
Employment
Population
Household
Average Income
Median
Household Income
Total Population
Median Age
2,356,285
2,344,550
1,139,340
$63,485
$46,700
41
Recently named “Best in the World 2012” by National
Geographic for its revolutionary transformation, Pittsburgh
has continued its extreme metropolitan makeover with a
balanced, innovation-driven economy based upon its history
and strengths in advanced manufacturing, chemicals,
computer technology, education and medicine (“eds and
meds”), life sciences, financial services and energy. According
to REIS Reports Q3 2011, over 20,000 jobs have been
created this year. Now considered a global economy,
Pittsburgh is also home to eight Fortune 500 companies.
One of the newest and fastest growing industries is natural
gas. Covering a large percentage of Western Pennsylvania’s
land mass, the Marcellus Shale is the largest unconventional
natural gas reserve formation in the world. The development
of this energy resource is producing dramatic benefits
across the Western Pennsylvania economy. Pittsburgh is
also a national leader in green development. In 2012, PNC
Financial Services Group will begin construction on the 33
story, $400 million PNC Tower, making it the greenest
skyscraper in the United States.
The Class A office market should continue to maintain single
digit vacancy rates fueled by new space and expansion
requirements of energy companies. In the CBD, Highwoods
Properties made a significant purchase of the 1.5 million SF
PPG Building complex with a $200 million investment. In
addition to the new PNC Tower, Millcraft Industries will begin
The Gardens, a high rise mixed-use development. Range
Resources will also occupy a new 180,000 SF regional
headquarters at Southpointe II in Canonsburg.
During Q3 2011, four buildings totaling 34,209 SF were
completed in the greater Pittsburgh market. There were
251,788 SF of industrial space under construction at the
end of the Q4 2011. UPMC signed a 150,000 SF lease
in Cranberry’s Thorn Hill Industrial Park for storage and
distribution.
The retail market is now bearing the fruits of a lengthy pause
in development, past developer restraint, favorable rates of
occupancy, stable returns, and within the current national
context, a reasonably healthy economy. A number of national
retailers are opening stores in the metro area. Anthony’s
Coal Fire Pizza recently opened in the popular Settler’s Ridge
development with plans for another store in Monroeville. A
new Whole Foods is set to open in Wexford. Net absorption
numbers have been favorable with the total for the first half
of 2011 at 165,000 SF.
Contact
NAI Keystone Commercial
& Industrial
+1 610 779 1400
Metropolitan Area
Economic Overview
2011
Population
2016 Estimated
Population
Employment
Population
Household
Average Income
Median
Household Income
Total Population
Median Age
148,898
151,423
70,704
$54,360
$43,850
42
Schuylkill County is shaking off its coal roots to emerge as
a service, technology and small business based economy.
The Marcellus Shale boom to the north is having very
positive, albeit indirect business impact with goods, services
and jobs being sought locally. The I-81 corridor hosts many
Fortune 500 Companies who discovered its value and solid
employee base. Industrial activity favors the High Ridge
Business Park also along this corridor.
Pottsville is this market’s largest city and anchors the
medical system, professional and governmental offices and
is also home to Yuengling, America’s oldest brewery. The
office market is dominated by healthcare and governmental
agencies with few leases or sales above 5,000 SF in size.
Food production and distribution are well anchored here.
Grocery giant Wegmans is adding a 500,000 SF, $65 million
dollar addition to its regional distribution center which will
add 219 jobs. Hy-Line, LLC is completing a 36,000 SF
facility for egg laying & production. Solar Innovations
continues to grow in the Pine Grove Industrial Park. The
Empire Education Group continues to invest in the area by
adding 150 jobs. St. Martin America opened a frameless
cabinet production facility in Cressona. This company also
has plants in Texas and China.
Retail construction and leasing was stable through 2011,
with those locations along the Route 61 corridor being the
highest in demand.
Industrial Development has been spearheaded by The
Schuylkill County Economic Development Office which
manages 12 industrial parks located across the county
representing more than $1.2 billion in capital investment
over 10 years.
Residential sale volume is down 8% from the prior year with
sale prices relatively stable, down 1%. The median home
price is a low $79,900 further delivering value to the
workforce.
Schuylkill County, with its rural character and a sparse population
within its 779 square mile area, exemplifies an essential
quality of small town America; hard-working people
doing their utmost to improve their quality of life. Now and
again small packages produce big results. This is definitely
true here.
Pittsburgh At A Glance
(Rent/SF/YR) low High effective avg. Vacancy
doWntoWn offIce
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
suburban offIce
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
IndustrIal
$
$
$
$
N/A
19.23
22.57
N/A
21.00
17.00
$
$
$
$
N/A
29.62
24.00
N/A
24.00
20.00
N/A
$ 20.13
N/A
N/A
$ 21.74
$ 17.69
N/A
10.30%
12.90%
N/A
8.00%
9.30%
Bulk Warehouse
Manufacturing
$
$
2.75
2.75
$
$
6.40
13.00
$
$
4.19
3.75
7.10%
7.40%
High Tech/R&D
retaIl
Downtown
Neighborhood Service Centers
Community Power Center
Regional Malls
$
$
$
$
$
5.75
14.00
10.85
14.93
18.00
$
$
$
$
$
16.00
40.00
11.86
15.46
42.00
$ 11.40
$ 18.50
$ 11.29
$ 15.20
$ 25.96
N/A
7.20%
6.80%
5.90%
6.50%
deVeloPment land Low/Acre High/Acre
Office in CBD
$ 1,000,000.00 $ 4,000,000.00
Land in Office Parks
Land in Industrial Parks
Office/Industrial Land - Non-park
$
$
$
100,000.00
50,000.00
75,000.00
$
$
$
200,000.00
120,000.00
500,000.00
Retail/Commercial Land
$ 50,000.00 $ 1,000,000.00
Residential
$ 10,000.00 $ 500,000.00
Schuylkill County At A Glance
(Rent/SF/YR) low High effective avg. Vacancy
doWntoWn offIce
New Construction (AAA)
$ 14.00 $ 18.00 $ 16.00 N/A
Class A (Prime)
$ 8.00 $ 12.00 $ 10.50 9.00%
Class B (Secondary)
suburban offIce
$ 6.00 $ 10.00 $ 8.00 15.00%
New Construction (AAA)
Class A (Prime)
$ 17.50
$ 12.00
$ 20.00
$ 15.00
$ 18.50
$ 13.50
10.00%
14.00%
Class B (Secondary)
IndustrIal
$ 6.00 $ 11.00 $ 8.00 14.00%
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
$
$
$
2.50
2.00
4.75
$
$
$
4.00
3.00
4.75
$
$
$
3.25
2.50
5.50
12.00%
12.00%
12.00%
Downtown
$ 8.00 $ 12.50 $ 10.00 10.50%
Neighborhood Service Centers $ 13.00 $ 17.50 $ 15.00 15.00%
Community Power Center
Regional Malls
$ 9.00
N/A
$ 16.00
N/A
$ 14.00
N/A
12.00%
N/A
deVeloPment land Low/Acre High/Acre
Office in CBD
Land in Office Parks
Land in Industrial Parks
Office/Industrial Land - Non-park
Retail/Commercial Land
Residential
$
$
$
$
N/A
N/A
30,000.00
20,000.00
125,000.00
15,000.00
$
$
$
$
N/A
N/A
75,000.00
60,000.00
800,000.00
30,000.00
2012 Global Market Report n www.naiglobal.com 131