CBRE Pitsburgh Annual Real Estate Symposium-feb 2013
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Transcript of CBRE Pitsburgh Annual Real Estate Symposium-feb 2013
Welcometo the:
February 7, 2013
Jack R. NorrisManaging Director | CBRE Pittsburgh
Jeffrey B. AckermanIncoming Managing Director | CBRE Pittsburgh
Asieh Mansour, Ph. D.Head of Americas Research | CBRE
Speakers
Moderator
Pittsburgh Market Overview
National Perspective
PittsburghMarket Overview
Presented by:Jeffrey Ackerman
201222@01220Review of the Pittsburgh Market 2012
Overall 2012 was a year of modest growth despite the volatile macro global economy
Technology, financial services, healthcare & energy drove the growth the past year
Leasing activity was strong across most sectors despite a lack of extremely large transactions
Occupancy and rental rates rose in most sectors
There was modest job growth in 2012 and we are expected to continue to see annual job growth of 2.2 % from 2013 to 2016
Source:moodys.com
New Office Buildings Under Construction / Planned
Cranberry Crossroads
Schenley Plaza
PNC Tower
Southpointe II
Offices at the Gardens
Bakery Square II
Pittsburgh Overall Office Market
All ClassesTotal Absorption
Square Feet 9 Million SF
Source:CBRE – Econometric Advisors
Markets Driving Absorption
Gr. Downto
wn
CBD and Gr. Downtown
ParkwayWest
Parkway West
Parkway North
Parkway North
SouthpointeSouthpointe
Southpointe
Cranberry
Cranberry
Pittsburgh CBD Office Market
Class ATotal Absorption
1,683,253 SFSquare Feet
Source:Co-Star
Job Growth Pittsburgh Office Market 2007-2012
z Hotels
Office
Medical
Office
Square Feet
Pittsburgh Suburban Office Market
Class ATotal Absorption
5,041,175 SF
Source:Co-Star
Market Comparison – Overall Office
All ClassesOccupancy Rate
Source:CBRE – Econometric Advisors
Market Comparison – CBD Office
Class AOccupancy Rate
Source:CBRE – Econometric Advisors
Market Comparison – Overall Office
All ClassesTotal Absorption2007-2012
Source:CBRE – Econometric Advisors
Market Comparison – CBD Office
Class ATotal Absorption2007-2012
Source:CBRE – Econometric Advisors
Vacancy Rates in 20 Largest Markets
7.9%
9.2%
8.4%
10.5%
10.1%
11.4%
11.0%
11.9%
11.8%
12.3%
12.2%
12.9%
12.9%
14.2%
13.5%
15.9%
15.5%
18.6%
16.0%
19.2%
Sources:Co-Star Group, Inc.PPR (Property and Portfolio Research )
Retail New Development
New Development starting to occur:
McCandlessCrossing
The Foundry
Blue SpruceShoppes
Cranberry Echo Development
Former Consol HQ North Shore Place I & II
Multi-Family New Development
Southside
2600 E. Carson Street
90 Units
East Side
City of Pittsburgh
5,000 SF Retail129 Market-Rate
Apartments180 Car Parking
Cranberry Twp
Cranberry Woods
302 Multifamily Units, comprising apartments,
townhomes, & live-work units
Cranberry Twp
Rochester Road
Phase I – 120 UnitsPhase II 108 Units
Brixat 26
Highland Building/
Wallace Building
Rochester Village at Park Place
Cranberry Woods Office
ParkJohnson Development Company
Multi-Family New Development
River Vue Apartments
CBD
300 LibertyAvenue
218 Units
Strip District
24th & Railroad Street
95 Units
Phase II of the Cork Factory
CBD
425 6th
Avenue
Converting upper 14 floors to apartments
Murrysville
School Rd & Marquis Place Lane
188 Units
Regional Enterprise
Tower
Marquis Place Apartments
Our downtown urban core will continue to experience a rebirth
Redevelopment will be on the upswing with a particular focus on Class B and C properties
The workplace will be designed with higher ceilings and greater creativity, productivity and innovation
Rental rates will spike for well located and designed real estate in most sectors
Strong investor demand for Class A assets in our CBD and strong suburban markets
What to Expect in 2013
Asieh Mansour, Ph. D.Head of AmericasResearch
The Global Economy and Real Estate Markets
Thank You!
PittsburghThe Future is Now
Sources:Bureau of Labor and StatisticsCBRE – EACo-Star Group, Inc.PPR (Property and Portfolio Research )Real Capital Analytics