Pittsburgh Viewpoint Presentation 2017 - Email...
Transcript of Pittsburgh Viewpoint Presentation 2017 - Email...
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VIEWPOINT2017 COMMERCIAL REAL ESTATE TRENDS REPORTFebruary 2, 2017
Download Viewpoint & Access IRR Research @ www.irr.com/research
IRR Research Downloads
Viewpoint 2017Local Research
(Retail, Office, Multifamily, Hospitality, Industrial)
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PROGRAM
IntroductionOffice
IndustrialRetail
HospitalityMultifamily
Pittsburgh Employment & Real Estate
Speakers
Paul D. GriffithSenior Managing Director
Douglas A. HeroldManaging Director
Mickey DroneyDirector
Integra Realty Resources, Inc. irr.com 55
COMMERCIAL REAL ESTATE MARKETS
Integra Realty Resources, Inc. irr.com 66
OFFICE
Page 18
OFFICE
Pittsburgh Office Market Timeline
EXPANSION
HYPERSUPPLYRECOVERY
RECESSION
2012
2013, 2014, 2015, 2016, 2017
Class A Office – CBD Local Markets by Vacancy
Charleston, SC – 5.8%Pittsburgh, PA – 5.9%Austin, TX – 6.0%
Pittsburgh, PA 5.9%
Dallas, TX – 23.2%Phoenix, AZ – 25.4%Dayton, OH – 32.3%
TOP TH
REE
BOTTOM THRE
E
Local MarketCBD
5.9% (2nd out of 59)
Class A Office – SuburbanMetro Pittsburgh Submarkets by Vacancy
Sarasota, FL – 4.8%Portland, OR – 6.3%Salt Lake City, UT – 6.5%
Pittsburgh, PA 9.8%
Dayton, OH – 23.9%Las Vegas, NV – 24.5%Phoenix – 24.9%
TOP TH
REE
BOTTOM THRE
E
Local MarketSuburban
9.8% (14th out of 62)
Office Metro Pittsburgh Submarkets By Vacancy
TOP THREEOakland – 1.8%
Butler County – 4.6%Northeast Pittsburgh – 5.0%
BOTTOM THREESouthpointe ‐ 11.6%
West Pittsburgh – 15.3%Monroeville – 17.7%
SOURCE: CoStar
Class A Urban Office Cap Rate Trends
NationalPittsburgh
20166.83%7.25%
20176.73%7.25%
National Average Pittsburgh Average
SOURCE: Integra Realty Resources – Pittsburgh, 2017
Class A Suburban Office Cap Rate Trends
NationalPittsburgh
20167.18%7.25%
20177.07%7.25%
National Average Pittsburgh Average
SOURCE: Integra Realty Resources – Pittsburgh, 2017
SOURCE: Integra Realty Resources – Pittsburgh, 2017
Class A Office Cap Rates
SOURCE: Integra Realty Resources – Pittsburgh, 2017
Class B Office Cap Rates
SOURCE: Integra Realty Resources – Pittsburgh, 2017
Pittsburgh Class A/B OfficeCap Rate Comparison
SIGNIFICANT TRANSACTIONS
Liberty Center
CBD OfficeDecember 2016
$183 / SF NRA85.3%
6.7% on in-place income
Property Type:Date of Sale:Unit Price:Occupancy:Cap Rate:
Oxford Centre
Property Type:Date of Sale:Unit Price:Occupancy:Cap Rate:
CBD OfficeJanuary 2016
$179.051 / SF NRA82%
6.35% in-place income
1 – Sale price assumes $32,000,000 in renovations ($31.65 / SF)
Centre City Tower
Property Type:Date of Sale:Unit Price:Occupancy:Cap Rate:
CBD OfficeJune 2016
$75.80 / SF NRA80%
8.5%
WalgreensSpecialty Pharmacy Division Building
Property Type:Date of Sale:Unit Price:Occupancy:Cap Rate:
Suburban OfficeMarch 2016
$166.08 / SF NRA100% (Single tenant)
6.55%
Former Glaxo Smith Kline Building
Property Type:Date of Sale:Unit Price:Occupancy:Cap Rate:
Suburban OfficeSeptember 2016
$100.29 / SF NRA32%N/A
Former ANSYS Building
Property Type:Date of Sale:Unit Price:Occupancy:Cap Rate:
Suburban OfficeOctober 2016
$76.39 / SF NRA0%
N/A
Terminal Buildings
Property Type:Date of Sale:Unit Price:Occupancy:Cap Rate:
Urban “Shell” BuildingMay 2016
$13.63 / SF NRAN/AN/A