JLL Pittsburgh Industrial Insight & Statistics - Q3 2019
- 1. © 2019 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof. Q3 2019 Industrial Insight Net absorption for the year is trailing the preceding four years due in part to low vacancy of viable product. However, construction numbers are trending upwards at over 1.3 million square feet. As these new developments deliver, absorption will increase. Industrial leasing activity is gravitating towards new construction due in part to less demand within Pittsburgh’s older inventory. New construction continues to concentrate in the West and Beaver County submarkets. Al. Neyer’s Clinton Commerce Center is delivering over 260,000 square feet of product in October 2019 and 105,000 square feet is underway at Westgate Business Park in Big Beaver. While construction picked up in the western part of the region in the third quarter, Amazon announced plans for a million-square-foot distribution center in Findlay Township. The large facility will add to the impressive roster of expanding business in the airport corridor. Amazon will join such name brands as Gordon Food Service, Niagara Bottling and General Electric. Outlook The industrial market activity in Pittsburgh is heavily focused within the western half of the MSA. New construction projects available for lease are concentrating near the airport and around the Shell petrochemical facility. Looking ahead, the activity will only continue as Amazon moves forward with their million-square-foot facility in Findlay Township and the Shell cracker plant nears completion. Also, adding to the petrochemical industry in the region could bring more jobs and related businesses to the area. In the third quarter, JobsOhio provided a $30 million grant for site preparation for a second petrochemical facility also along the Ohio River in Belmont County, OH. While PTT Global Chemical has not announced formal plans to start building a second cracker in Ohio, the grant helps move the project forward. Ethane storage will become more important as additional petrochemical plants enter the tristate area. Fundamentals Forecast YTD net absorption 301,396 s.f. ▲ QTD net absorption -105,274 s.f. ▲ Under construction 1,337,704 s.f. ▲ Total vacancy 6.3% ▼ Average asking rent (NNN) $5.40 p.s.f. ▶ Tenant improvements Stable ▶ -500,000 1,500,000 3,500,000 2015 2016 2017 2018 YTD 2019 Supply and demand (s.f.) Net absorption Deliveries Amazon goes forward with one million-square-foot distribution center in Findlay Township 11.8% 9.6% 8.4% 7.7% 6.3% 2015 2016 2017 2018 YTD 2019 Total vacancy For more information, contact: Tobiah Bilski | [email protected] • Construction picks up in the West and Beaver County submarkets. • Net absorption for the year remains low, as leasing activity concentrates in new construction. • JobsOhio pushes for second petrochemical facility in the region by providing a $30 million grant for site preparation. $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 2015 2016 2017 2018 YTD 2019 Average asking rents ($/s.f.) W&D Manufacturing
- 2. © 2019 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof. Inventory (s.f.) Quarterly total net absorption (s.f.) YTD total net absorption (s.f.) YTD total net absorption (% of stock) Total vacancy (%) Total availability (%) Average total asking rent ($ p.s.f.) Quarterly Completions (s.f.) YTD Completions (s.f.) Under construction (s.f.) Pittsburgh total Warehouse & Distribution 88,306,413 -65,843 417,865 0.5% 6.0% 8.0% $5.53 0 831,899 1,337,704 Manufacturing 53,869,017 -39,431 -116,469 -0.2% 6.8% 7.6% $5.13 0 0 0 Totals 142,255,430 -105,274 301,396 0.2% 6.3% 7.9% $5.40 0 831,899 1,337,704 Beaver County Warehouse & Distribution 5,494,762 109,200 -164,147 -3.0% 10.5% 17.3% $4.77 0 0 521,000 Manufacturing 4,358,833 0 50,044 1.1% 11.1% 11.1% $4.21 0 0 0 Totals 9,853,595 109,200 -114,103 -1.2% 10.7% 14.7% $4.59 0 0 521,000 Butler County Warehouse & Distribution 3,916,199 31,200 -94,017 -2.4% 15.1% 14.8% $3.86 0 0 220,000 Manufacturing 3,561,575 0 509 0.0% 7.4% 7.4% $2.43 0 0 0 Totals 7,477,774 31,200 -93,508 -1.3% 11.4% 11.4% $3.43 0 0 220,000 Downtown Warehouse & Distribution 18,356,235 -50,743 -206,475 -1.1% 4.1% 4.4% $8.86 0 0 0 Manufacturing 4,643,481 -5,856 -1,856 0.0% 1.1% 3.8% $8.12 0 0 0 Totals 22,999,716 -56,599 -208,331 -0.9% 3.5% 4.2% $8.81 0 0 0 East Warehouse & Distribution 5,969,910 30,063 57,721 1.0% 4.8% 5.9% $7.26 0 0 0 Manufacturing 3,637,199 -29,000 -17,500 -0.5% 6.5% 6.5% $6.67 0 0 0 Totals 9,607,109 1,063 40,221 0.4% 5.4% 6.1% $7.00 0 0 0 Northeast Warehouse & Distribution 6,086,164 0 77,495 1.3% 2.3% 2.9% $6.31 0 0 0 Manufacturing 6,880,307 3,300 -231,000 -3.4% 5.3% 5.3% $5.57 0 0 0 Totals 12,966,471 3,300 -153,505 -1.2% 3.9% 4.2% $5.81 0 0 0 Northwest Warehouse & Distribution 10,525,275 -39,794 -270,111 -2.6% 5.4% 7.9% $5.72 0 0 0 Manufacturing 3,063,621 0 48,283 1.6% 2.9% 0.3% $9.25 0 0 0 Totals 13,588,896 -39,794 -221,828 -1.6% 4.8% 6.2% $5.76 0 0 0 South Warehouse & Distribution 5,517,534 -192,814 -184,069 -3.3% 7.0% 8.4% $5.74 0 0 0 Manufacturing 7,892,472 -56,000 -101,929 -1.3% 5.2% 5.2% $5.95 0 0 0 Totals 13,410,006 -248,814 -285,998 -2.1% 6.0% 6.5% $5.84 0 0 0 Washington County Warehouse & Distribution 6,568,579 21,559 553,275 8.4% 10.9% 16.4% $5.17 0 535,249 0 Manufacturing 4,736,380 13,125 85,675 1.8% 1.6% 1.6% $5.80 0 0 0 Totals 11,304,959 34,684 638,950 5.7% 7.0% 10.2% $5.21 0 535,249 0 West Warehouse & Distribution 11,452,141 26,445 521,600 4.6% 4.0% 5.7% $5.45 0 259,150 596,704 Manufacturing 2,706,639 35,000 27,705 1.0% 2.0% 4.5% $5.37 0 0 0 Totals 14,158,780 61,445 549,305 3.9% 3.6% 5.5% $5.44 0 259,150 596,704 Westmoreland County Warehouse & Distribution 14,419,614 -959 126,593 0.9% 5.4% 7.7% $4.45 0 37,500 0 Manufacturing 12,388,510 0 23,600 0.2% 13.0% 16.0% $5.15 0 0 0 Totals 26,888,124 -959 150,193 0.6% 9.1% 11.7% $4.94 0 37,500 0 Q3 2019 Industrial Statistics For more information, contact: Tobiah Bilski | [email protected]