- The first quarter saw 401,006 square feet of net absorption in the Pittsburgh market. Vacancy rates decreased to 16.2% while average asking rents increased. - In the Fringe submarket, two new developments delivered - District 15 for Facebook and SAP Center for SAP. Additional projects are under development or proposed in this submarket and in Oakland/East End. - Wabtec's decision to relocate operations to North Shore exemplifies strong demand to locate near the city's talent pool. New projects in Oakland/East End could increase competition for other urban submarkets.

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.
Fundamentals Forecast
YTD net absorption 401,006 s.f. ▲
Under construction 1,299,061 s.f. ▲
Total vacancy 16.2% ▼
Average asking rent (gross) $24.22 p.s.f. ▲
Concessions Rising ▲
Q1 2019
Office Insight
A ribbon has been cut in the Strip District as District 15 delivers and prepares
for Facebook’s occupancy. Across the river to the north, SAP Center delivers
and readies for SAP’s occupancy in the second quarter. As the two new
developments arrived in the Fringe submarket, new projects have been
proposed. District 15 Beta has been announced as a larger encore to the first.
The second phase of 3 Crossings in the Strip District has commenced with The
Stacks, two buildings connected by a central courtyard and existing framing
totaling 108,000 square feet. However, The Stacks is merely the first part of a
much larger marketed site plan that could encompass over 560,000 square
feet of office, complete with additional residential units and parking. Although
a majority of the region’s new development has concentrated in the Fringe
submarket, Oakland / East End will receive new office as well. Walnut Capital,
currently building Philips Respironics’ new headquarters at Bakery Square,
announced plans for a 12-story office building in downtown Oakland totaling
285,000 square feet. Wexford Science + Technology announced plans for a
200,000-square-foot, 13-story office tower along Forbes Avenue,
demonstrating a continued partnership with the University of Pittsburgh. The
new project would be across the street from the 94,000-square-foot Murdoch
Building currently under construction.
Outlook
Wabtec’s decision to relocate operations to the North Shore at 30 Isabella
further exemplifies strong demand to locate near the city’s high concentration
of talent. The projects under development and proposed for Oakland / East
End will inject new product in the center of the office demand and present
strong competition for the other urban submarkets. As research
commercializes, new companies enter the market and the tenant migration
continues, can Oakland steal the well-established thunder from the Fringe?
-1,000,000
0
1,000,000
2016 2017 2018 YTD 2019
Supply and demand (s.f.) Net absorption
Deliveries
The tenant migration towards the urban core continues
to the benefit of the North Shore
15.8%
16.6%
17.5%
16.6%
16.2%
2015 2016 2017 2018 YTD 2019
Total vacancy
$0.00
$10.00
$20.00
$30.00
2015 2016 2017 2018 YTD 2019
Average asking rents ($/s.f.) Class A
Class B
For more information, contact: Tobiah Bilski | tobiah.bilski@am.jll.com
• Currently located in an eastern suburb of Pittsburgh, Wabtec signed an
84,000-square-foot lease at 30 Isabella on the North Shore.
• The first quarter comes out of the gate with 400,000 square feet
absorbed.
• The Fringe submarket is rich with new projects, both under development
and proposed, but plans in Oakland / East End could change the game.

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.
Class
Inventory
(s.f.)
Total net
absorption
(s.f.)
YTD total net
absorption
(s.f.)
YTD total net
absorption (%
of stock)
Direct
vacancy (%)
Total
vacancy (%)
Average
direct asking
rent ($ p.s.f.)
YTD
Completions
(s.f.)
Under
Development
(s.f.)
Northern I-79 / Cranberry Totals 4,286,907 69,930 69,930 1.6% 14.2% 16.7% $23.56 0 90,000
East Totals 3,053,814 13,176 13,176 0.4% 25.3% 26.4% $19.46 0 0
North Totals 3,751,808 6,977 6,977 0.2% 10.7% 10.8% $19.50 0 0
South Totals 2,306,096 15,441 15,441 0.7% 9.8% 11.7% $20.11 0 0
Southpointe Totals 2,972,107 60,436 60,436 2.0% 14.0% 16.9% $23.02 0 0
West Totals 7,055,933 3,927 3,927 0.1% 18.1% 19.8% $21.45 0 220,000
Suburban Totals 23,426,665 169,887 169,887 0.7% 15.8% 17.5% $21.11 0 310,000
CBD Totals 18,969,985 -97,085 -97,085 -0.5% 14.7% 15.7% $27.46 0 50,000
Fringe Totals 8,510,066 336,938 336,938 4.0% 13.0% 17.2% $25.09 277,000 408,408
Oakland / East End Totals 2,057,356 -8,734 -8,734 -0.4% 3.3% 3.3% $27.17 0 530,653
Urban Totals 29,537,407 231,119 231,119 0.8% 13.4% 15.2% $26.75 277,000 989,061
Pittsburgh Totals 52,964,072 401,006 401,006 0.8% 14.5% 16.2% $24.22 277,000 1,299,061
Northern I-79 / Cranberry A 3,601,749 69,930 69,930 1.9% 12.8% 15.8% $25.59 0 90,000
East A 1,580,784 23,075 23,075 1.5% 30.1% 30.5% $20.59 0 0
North A 809,347 -6,062 -6,062 -0.7% 11.3% 11.5% $24.84 0 0
Southpointe A 1,909,754 28,181 28,181 1.5% 5.9% 10.4% $23.45 0 0
West A 3,767,504 -20,873 -20,873 -0.6% 17.5% 20.2% $23.15 0 220,000
Suburban A 11,669,138 94,251 94,251 0.8% 15.4% 18.0% $22.82 0 310,000
CBD A 13,498,998 -126,751 -126,751 -0.9% 13.0% 14.0% $30.20 0 50,000
Fringe A 2,534,970 339,088 339,088 13.4% 3.4% 9.8% $29.24 277,000 408,408
Oakland / East End A 969,243 -9,479 -9,479 -1.0% 3.6% 3.6% $29.02 0 488,653
Urban A 17,003,211 202,858 202,858 1.2% 11.1% 12.8% $30.04 277,000 947,061
Pittsburgh A 28,672,349 297,109 297,109 1.0% 12.8% 14.9% $27.13 277,000 1,257,061
Northern I-79 / Cranberry B 685,158 0 0 0.0% 21.6% 21.6% $20.00 0 0
East B 1,473,030 -9,899 -9,899 -0.7% 20.2% 22.1% $17.68 0 0
North B 2,942,461 13,039 13,039 0.4% 10.6% 10.7% $18.16 0 0
South B 2,306,096 15,441 15,441 0.7% 9.8% 11.7% $20.11 0 0
Southpointe B 1,062,353 32,255 32,255 3.0% 28.5% 28.5% $22.86 0 0
West B 3,288,429 24,800 24,800 0.8% 18.8% 19.3% $19.89 0 0
Suburban B 11,757,527 75,636 75,636 0.6% 16.2% 17.0% $19.81 0 0
CBD B 5,470,987 29,666 29,666 0.5% 18.9% 19.7% $22.24 0 0
Fringe B 5,975,096 -2,150 -2,150 0.0% 17.0% 20.4% $24.16 0 0
Oakland / East End B 1,088,113 745 745 0.1% 3.0% 3.0% $20.43 0 42,000
Urban B 12,534,196 28,261 28,261 0.2% 16.6% 18.6% $23.19 0 42,000
Pittsburgh B 24,291,723 103,897 103,897 0.4% 16.4% 17.8% $21.53 0 42,000
Q1 2019
Office Statistics
For more information, contact: Tobiah Bilski | tobiah.bilski@am.jll.com