1. Welcome
to the:
February 7, 2013

3. Speakers
Moderator
Jack R. Norris
Managing Director | CBRE Pittsburgh
Pittsburgh Market Overview
Jeffrey B. Ackerman
Incoming Managing Director | CBRE Pittsburgh
National Perspective
Asieh Mansour, Ph. D.
Head of Americas Research | CBRE

4. Pittsburgh
Market Overview
Presented by:
Jeffrey Ackerman

5. Review of the Pittsburgh Market 2012
201222@01220
 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

6. New Office Buildings Under Construction / Planned
PNC Tower Bakery Square II Offices at the Gardens
Southpointe II
Cranberry Schenley Plaza
Crossroads

7. Pittsburgh Overall Office Market
All Classes
Total Absorption
Square Feet 9 Million SF
Source:
CBRE – Econometric Advisors

8. Markets Driving Absorption
Cranberry
CBD and Gr.
Downtown
Parkway North Cranberry
Parkway North
Parkway
Parkway West
West
Southpointe
Southpointe
Southpointe

9. Pittsburgh CBD Office Market
Class A
Total Absorption
Square Feet
1,683,253 SF
Source:
Co-Star

10. Job Growth Pittsburgh Office Market 2007-2012
z

11. Pittsburgh Suburban Office Market
Class A
Total Absorption
Square Feet 5,041,175 SF
Source:
Co-Star

12. Market Comparison – Overall Office
All Classes
Occupancy Rate
Source:
CBRE – Econometric Advisors

13. Market Comparison – CBD Office
Class A
Occupancy Rate
Source:
CBRE – Econometric Advisors

14. Market Comparison – Overall Office
All Classes
Total Absorption
2007-2012
Source:
CBRE – Econometric Advisors

15. Market Comparison – CBD Office
Class A
Total Absorption
2007-2012
Source:
CBRE – Econometric Advisors

16. Vacancy Rates in 20 Largest Markets
7.9%
8.4%
9.2%
10.1%
10.5%
11.0%
11.4%
11.8%
11.9%
12.2%
12.3%
12.9%
12.9%
13.5%
14.2%
15.5%
15.9%
16.0%
18.6%
19.2%
Sources:
Co-Star Group, Inc.
PPR (Property and Portfolio Research )

17. Retail New Development
 New Development starting to occur:
McCandless Blue Spruce Cranberry Echo
Crossing Shoppes Development
Former Consol HQ The Foundry North Shore Place I & II

18. Multi-Family New Development
Brix Highland Building/ Cranberry Woods Rochester Village
at 26 Wallace Building Office Park at Park Place
Johnson Development Company
Southside East Side Cranberry Twp Cranberry Twp
City of Pittsburgh Cranberry Woods
2600 E. Carson Street Rochester Road
5,000 SF Retail 302 Multifamily Units,
129 Market-Rate comprising apartments, Phase I – 120 Units
90 Units townhomes, & live-
Apartments Phase II 108 Units
180 Car Parking work units

19. Multi-Family New Development
River Vue Phase II of the Regional Marquis Place
Apartments Cork Factory Enterprise Tower Apartments
CBD Strip District CBD Murrysville
300 Liberty 24th & Railroad 425 6th School Rd &
Avenue Street Avenue Marquis Place Lane
218 Units 95 Units Converting upper 14 188 Units
floors to apartments

20. What to Expect in 2013
 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

21. Asieh Mansour, Ph. D.
Head of Americas
Research
The Global Economy and
Real Estate Markets

22. Pittsburgh
The Future is Now
Thank You!
Sources:
Bureau of Labor and Statistics
CBRE – EA
Co-Star Group, Inc.
PPR (Property and Portfolio Research )
Real Capital Analytics