Pittsburgh February 2021 – Key Take-Aways
- Desmone Architects’ Jim Ambrose is somewhat concerned that companies will over correct on office space reductions. The team at Desmone is working a number of ‘visioning’ sessions with clients, and overall isn’t seeing much downsizing (though they have only worked 4 or 5 so far).
- Jeff Ford with Grossman, Yanak & Ford inquired if anyone else has seen a number of large funds looking for opportunities as he has. Others have seen, and most funds are in the $50-$100M range looking to acquire distressed assets, which have not yet hit the market. Also with GYF, Don Johnston reports having picked up over 50 new clients who have interest in the Employee Retention Credit.
- New Member Kelsey Kanspedos with Bohler reports, surprisingly, that they are seeing a number of big box retailers looking to do ground-up construction. They are also working with retailers on decreasing store sizes and amping up their drive thru or walk up capabilities. They are also seeing a number of solar farms and industrial projects and a lot of out-of-towners interested in entering the market
- Ben Atwood with CoStar Group has been spending a lot of time focusing on the multi-family market. In the city, rents have remained flat, and across the urban and suburban market, at least 60% of multi-family owners are offering concessions, but the consensus of the group is that it’s likely higher. Luxury communities have been hit the hardest, with rents trending downward.
- Chip Desmone with Desmone Architects further commented on the multi-family market as they are involved with another 2,000 units and 2 additional highrise conversions to multi-family which will only put additional strain on the market.
- AdVenture Development’s Mark McDonnell reports they are seeing a high demand for townhomes. They are also working with seven national retailers (in Raleigh) for opening in the Fall of 2022.
- AJ Pantoni with Hanna Langholz is keeping busy and getting deals done! Has a fascinating new listing of 2 piers and worked with Chip Desmone and team to put together some mock ups for how the piers could be repurposed.
- Pittsburgh Champion, Gene Boyer, reported that they are bringing the Papa J’s corner in Downtown Carnegie with modular multi-family.
- Guest Eric Schindler with Elmhurst Group reports that most of the deals they are seeing are in flex buildings (not office buildings). He also reports they closed on 4 acres at Tech Center and will build at 160k sf flex building on spec, to include 3 levels: a high bay space on the 1st floor (20-30 foot clear), a mezzanine level overlooking the first floor and a third floor for office space. They also have 2 other flex buildings (60k sf each) that they are building at Thornhill Industrial Park with a tremendous level of activity.
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