Research &
Forecast Report
PITTSBURGH | RETAIL
Q1 2015
Local Market Update
Mark Anderson Vice President | Pittsburgh
The Pittsburgh market remained relatively stable during the first quarter of 2015, with a minor downturn in both
occupancy and lease rates. The region remained very strong overall posting a 3.8 percent vacancy rate, compared to a
3.7 percent vacancy rate for fourth quarter 2014. Lease rates tumbled a bit to an average of $12.04 per square foot
after posting $12.20 in the previous quarter. The total retail market consists of 136,263,348 square feet, of which
5,150,329 square feet was vacant at the end of the first quarter. Absorption during the quarter was a negative 46,808
square feet. The strongest markets continued to be Oakland, the North Hills, and the South Hills with vacancy rates of
2.0%, 2.1% and 2.4% respectively. Shopping Centers, which account for 32,727,746 square feet posted a 4.9% vacancy
rate during the quarter. Typical lease rates for quality new construction are in the high $20.00 to low $40.00 per
square foot range. Dollar Stores and value retailers can still find decent locations in the high single digits. Landlords
are providing little in the way of concessions, as many tenants have few options within the market.
Adding to the tight market conditions is the fact that new construction is limited. Just 390,482 square feet is currently
under construction, but that does not include the development of Newbury Market which is over 300,000 square feet.
The new construction number also does not include the redevelopment of the former Northway Mall, which by itself is
422,000 square feet. The biggest news of the quarter was that The Block Northway confirmed Nordstrom Rack as an
anchor tenant and is close to finalizing a lease with The Container Store. The Block Northway is looking for lease rates
in the low $40 range for space fronting McKnight Road.
The Pittsburgh market is poised to continue its strong performance for the foreseeable future. We anticipate that overall
lease rates will rise as summer approaches. Vacancy rates will most likely decline and construction activity will most
likely remain limited. Overall the market is strong and should remain so during the remainder of the year.
Colliers International | Pittsburgh > Landlord Representation
Harrison Town Square, Pittsburgh, PA
Shoppes at Adams Ridge
Warrendale Village, Warrendale, PA
> Available space: 400 - 20,000 SF
Cranberry Township, PA
> Available space: 14,275 SF class A retail
> Great retail/medical space in the heart of
> Available space: 1,400 SF (newer
> New construction opportunity
Natrona Heights
> Total facade renovation underway
construction)
7809 McKnight Road, Pittsburgh, PA
Chiodo’s Plaza, Robinson Township, PA
> Up to 12,500 SF available
> Available space: 1,000 - 4,000 SF
Parkway Center | Building Seven
Pittsburgh, PA
> Build to suit opportunity
> Great visibility in Robinson trade area
> 6,893 SF | Former restaurant/nightclub
with potential patio seating
> 4,000 +/- SF endcap
> 3,889 SF | Former Chinese restaurant
> Near Ross Park and Northway Mall
Gateway Commons
Cranberry Township, PA
> New available space: 1,300 - 14,000 SF
> Newer retail space located at the
corner of Freedom Rd. / Route 228 and
Commonwealth Drive
2
> Significant parking available
> Available First Quarter 2015
> 784 SF | Coffee shop/cafe | Sundry store
1910 Cochran Road, Pittsburgh, PA
Thorn Run Crossing, Moon, PA
> 3,184 SF end cap with drive thru
> 5,276 SF available
> Great Mt. Lebanon/Scott Township location
> Divisible to 1,500 SF
> Ample free parking
> Multiple suites available
> Excellent demographics and visibility
Pittsburgh Research & Forecast Report | Q1 2015 | Pittsburgh / Retail | Colliers International
Pittsburgh Region Retail Market Statistics > Q1 2015
Market Comparisons - Total Retail Market Statistics Q1 2015 > Quarterly Comparison and Totals
MARKET
EXISTING INVENTORY
# BLDGS
TOTAL GLA
VACANCY
DIRECT SF
TOTAL SF
VAC. %
YTD NET
ABSORPTION
YTD
DELIVERIES
UNDER
CONST. SF
QUOTED
RATES
Armstrong
165
1,475,620
38,200
38,200
2.6%
0
0
0
Beaver County
795
8,585,014
552,472
552,472
6.4%
397
0
0
$7.53
Butler County
796
9,808,472
308,131
308,131
3.1%
(14,960)
0
26,000
$14.16
Central Business District
136
2,414,778
144,349
144,349
6.0%
0
0
0
$10.40
Greater Downtown
794
5,126,236
199,586
199,586
3.9%
(4,795)
0
0
$10.32
Monroeville
North Pittsburgh
Northeast Pittsburgh
Oakland
Parkway East Corridor
Parkway West Corridor
South Pittsburgh
Washington County
West Pittsburgh
Westmoreland County
MARKET TOTALS
239
6,012,883
268,053
288,053
4.8%
(38,177)
0
0
$13.84
1,375
14,730,162
299,716
311,384
2.1%
19,298
0
248,000
$16.97
890
8,556,515
480,428
488,575
5.7%
437
0
0
$12.54
177
1,117,445
22,167
22,167
2.0%
(4,300)
2,094
15,688,678
774,761
774,761
4.9%
(364)
0
0
$17.25
10,640
$11.12
0
0
$12.40
12,406
0
$10.61
47,691
$14.99
18,960
425
6,646,703
189,220
189,220
2.8%
(446)
2,229
23,411,425
567,904
571,854
2.4%
(36,182)
936
11,058,759
277,067
277,817
2.5%
16,795
0
394
3,128,519
117,611
117,611
3.8%
2,340
0
5,108
$9.38
1,689
18,502,144
866,664
866,664
4.7%
13,149
0
53,043
$10.40
136,263,348
5,106,329
5,150,844
3.8%
(46,808)
390,482
$12.04
13,134
31,366
Colliers International | Pittsburgh > Tenant Representation
3
$9.00
Pittsburgh Research & Forecast Report | Q1 2015 | Pittsburgh / Retail | Colliers International
Tight Market for Retailers
Mark Anderson Vice President | Pittsburgh
The Pittsburgh retail real estate market is the strongest it
has been in years. With vacancy rates the lowest they have
been in over ten years and slight new construction, tenants
will have a hard time finding many options for new locations.
Landlords are eager to increase lease rates and offer little in
the way of rent concessions or tenant improvements. Most
tenants will have to make compromises if they want to enter
Pittsburgh’s hottest submarkets.
relief for tenants who want to remain in one of Pittsburgh’s
top submarkets. Tenants have to aggressively pursue their
top options, utilizing commercial real estate firms like Colliers
International | Pittsburgh and be prepared to deal with
Landlords who are reticent to negotiate. Tenants who wait
to find better options, or push the negotiation envelope could
find themselves outmaneuvered by the competition.
Hometown Heroes:
Pittsburgh Based Retailers
No submarket is tighter than the Oakland and East End
submarket. While Walnut Street has long been considered
the crème de la crème of East End retail real estate, the
market now extends to the Baum/Centre corridor through
Penn Avenue to Bakery Square. A number of brand name
tenants are searching for space in the area, including Lucky’s
Market and Tesla. With 173,000 total population within three
miles, it is easy to understand why the East End is a strong
destination for retailers. With a vacancy rate of 2 percent,
Oakland leads the pack for Pittsburgh markets that are in
high demand.
Company: Dick’s Sporting Goods
Location: Coraopolis, PA
Year Founded: 1948
Number of U.S. Locations:
610
About the Company:
Dick’s Sporting Goods, Inc. is an authentic full-line
sporting goods retailer offering a broad assortment of
brand name sporting goods equipment, apparel and
footwear in a specialty store environment. The Company
owns and operates Golf Galaxy, LLC, a golf specialty
retailer and eCommerce websites and catalog
operations for both Dick’s Sporting Goods and Golf
Galaxy. For more information please visit
www.dickssportinggoods.com.
The remainder of the Pittsburgh market faces similar tight
conditions. With South Pittsburgh showing a vacancy rate
of 2.4% and the Parkway West at 2.8% there is very little
FOR MORE INFORMATION
RESEARCH CONTACT
Michelle Stewart
Vice President | Pittsburgh
Retail Brokerage
+1 412 321 4200 ext. 227
Michelle.Stewart@colliers.com
Copyright © 2015 Colliers International.
The information contained herein has been obtained from sources deemed reliable. While
every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No
responsibility is assumed for any inaccuracies. Readers are encouraged to consult their
professional advisors prior to acting on any of the material contained in this report.
4
34,300
Revenue:$6.21 Billion
Another tight market is the Wexford/Route 19 North
submarket. Coming in second to Oakland, the Wexford
submarket currently sits at a vacancy rate of 2.1 percent.
The Village at Pine, one of the largest retail centers in the
submarket, is currently 100% occupied with the only option
for tenants being new construction. Down the street,
Wexford Plaza’s new facade renovations have helped fill
the Whole Foods anchored center. Some pressure will be
taken off the market by new developments like McCandless
Crossing and the Block Northway, but Tenants will still have
a hard time locating ideal options.
Mark Anderson
Vice President | Pittsburgh
Retail Brokerage
+1 412 321 4200 ext. 222
MarkE.Anderson@colliers.com
Number of Employees:
Maria Hanson
Adminstrative Assistant | Pittsburgh
+1 412 321 4200 ext. 212
Maria.Hanson@colliers.com
Colliers International | Pittsburgh
Two Gateway Center
603 Stanwix Street, Suite 125
+1 412 321 4200
colliers.com/pittsburgh
North American Research & Forecast Report | Q4 2014 | Office Market Outlook | Colliers International