Weitere ähnliche Inhalte
Ähnlich wie JLL Pittsburgh Office Insight & Statistics - Q3 2019 (19)
Mehr von Tobiah Bilski (15)
Kürzlich hochgeladen (20)
JLL Pittsburgh Office 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.
Fundamentals Forecast
YTD net absorption 25,342 s.f. ▲
Under construction 1,354,561 s.f. ▼
Total vacancy 17.1% ▼
Average asking rent (gross) $24.89 p.s.f. ▲
Concessions Rising ▲
Q3 2019
Office Insight
In the third quarter, total average asking rates in the urban submarkets for
Class A reached $31.27 per-square-foot, jumping $0.29 since the beginning of
the year. The trajectory of Class A asking rates in the urban submarkets is not
going to slow down, as new construction in the Oakland / East End submarket
are pushing record highs for the region, topping $50.00 per-square-foot. The
new demand from technology users is rapidly changing the local urban real
estate landscape, pushing Pittsburgh into a higher weight class of secondary
markets. Lately, it has not just been the urban submarkets finding leasing
activity. Over the past several quarters, Southpointe has been showing a
gradual comeback. Sublease space once marketed by energy companies has
been steadily leased and the total vacancy rate is now 17.6 percent.. Along
with this momentum, a project called “Park Place” has broken ground, set to
add 40,000 square feet of Class A office inventory to the submarket.
Outlook
Over 100,000 square feet of tenant improvement work contracted to Mascaro
Construction in the US Steel Tower by WeWork, despite the absence of a
formal announcement of a lease execution. Although the CBD has
experienced increased competition from the Fringe and Oakland / East End
submarkets, the added flexible space options in downtown are providing
entry level opportunities for companies to experience the amenities within
the submarket. A lease the size of WeWork’s also helps suppress the climbing
vacancy rate in the CBD Class A inventory. However, WeWork has reportingly
experienced internal turmoil following the release of their S-1. In the third
quarter, HDR signed a 32,000-square-foot lease at One Oxford Centre.
Although HDR’s lease absorbs vacancy within the Trophy Class, it results in
vacancy within the Class A buildings. Going forward, leasing activity in the CBD
submarket will come mainly from the internal movement of tenants.
-1,000,000
0
1,000,000
2016 2017 2018 YTD 2019
Supply and demand (s.f.) Net absorption
Deliveries
Southpointe making a comeback with positive
absorption, declining vacancy and new construction
15.8%
16.6%
17.5%
16.6%
17.1%
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
• Asking rates in the Oakland / East End submarket are reaching record
highs, cresting $50.00 per-square-foot.
• Mascaro Construction receives $9.0 million contract for over 100,000
square feet of tenant improvements at US Steel Tower for WeWork.
• Urban submarket Class A total average asking rates at an all-time high
reaching over $31.00 per-square-foot.
- 2. © 2019 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Class
Inventory
(s.f.)
Total net
absorption
(s.f.)
YTD total net
absorption
(s.f.)
YTD total net
absorption (%
of stock)
Direct
vacancy (%)
Total
vacancy (%)
Average
direct asking
rent ($ p.s.f.)
YTD
Completions
(s.f.)
Under
Development
(s.f.)
Northern I-79 / Cranberry Totals 4,286,907 -17,299 -83,539 -1.9% 12.6% 20.3% $24.39 0 90,000
East Totals 3,053,814 -21,711 12,582 0.4% 26.1% 26.5% $19.52 0 0
North Totals 3,751,808 -317 13,738 0.4% 10.6% 10.7% $19.97 0 0
South Totals 2,311,420 -25,770 -50,448 -2.2% 14.5% 14.5% $20.11 0 0
Southpointe Totals 2,972,107 -18,490 39,261 1.3% 15.9% 17.6% $21.69 0 40,000
West Totals 7,055,933 11,951 -127,898 -0.7% 19.1% 21.3% $22.35 0 220,000
Suburban Totals 23,431,989 -71,636 -196,304 -0.5% 16.6% 18.9% $21.58 0 350,000
CBD Totals 18,969,985 -86,217 -187,439 -1.0% 15.0% 16.1% $27.59 0 50,000
Fringe Totals 8,424,913 -51,471 315,576 3.4% 14.0% 18.1% $26.98 277,000 408,408
Oakland / East End Totals 2,198,256 -4,419 93,509 4.3% 3.0% 3.2% $37.56 86,500 546,153
Urban Totals 29,593,154 -142,107 221,646 0.7% 13.8% 15.7% $27.71 363,500 1,004,561
Pittsburgh Totals 53,025,143 -213,743 25,342 0.2% 15.1% 17.1% $24.89 363,500 1,354,561
Northern I-79 / Cranberry A 3,601,749 -12,702 -79,685 -2.2% 11.0% 20.0% $25.73 0 90,000
East A 1,580,784 -9,049 38,570 2.4% 28.8% 29.5% $20.50 0 0
North A 809,347 408 2,309 0.3% 10.3% 10.5% $25.24 0 0
Southpointe A 1,909,754 4,992 60,199 3.2% 7.1% 8.8% $23.28 0 40,000
West A 3,767,504 8,930 17,833 2.6% 16.5% 18.5% $24.46 0 220,000
Suburban A 11,669,138 -7,421 39,226 1.0% 14.5% 18.3% $23.67 0 350,000
CBD A 13,498,998 -91,437 -243,163 -1.8% 13.5% 14.8% $30.38 0 50,000
Fringe A 2,665,470 -35,695 348,694 13.1% 4.6% 9.8% $32.07 277,000 408,408
Oakland / East End A 1,055,743 -4,569 60,814 5.8% 4.5% 4.9% $39.63 86,500 504,153
Urban A 17,220,211 -131,701 166,345 1.0% 11.6% 13.4% $31.27 363,500 962,561
Pittsburgh A 28,889,349 -139,122 205,571 1.0% 12.8% 15.4% $28.16 363,500 1,312,561
Northern I-79 / Cranberry B 685,158 -4,597 -3,854 -0.6% 21.0% 22.1% $20.45 0 0
East B 1,473,030 -12,662 -25,988 -1.8% 23.2% 23.2% $18.19 0 0
North B 2,942,461 -725 11,429 0.4% 10.7% 10.7% $18.67 0 0
South B 2,311,420 -25,770 -50,448 -2.2% 14.5% 14.5% $20.11 0 0
Southpointe B 1,062,353 -23,482 -20,938 -2.0% 31.8% 33.6% $20.82 0 0
West B 3,288,429 3,021 -145,731 -4.4% 22.2% 24.4% $20.49 0 0
Suburban B 11,762,851 -64,215 -235,530 -2.0% 18.7% 19.6% $19.88 0 0
CBD B 5,470,987 5,220 55,724 1.0% 18.5% 19.2% $22.40 0 0
Fringe B 5,759,443 -15,776 -33,118 -1.0% 18.4% 21.9% $24.24 0 0
Oakland / East End B 1,142,513 150 32,695 2.9% 1.7% 1.7% $21.94 0 42,000
Urban B 12,372,943 -10,406 55,301 0.2% 16.9% 18.9% $23.36 0 42,000
Pittsburgh B 24,135,794 -74,621 -180,229 -0.9% 17.8% 19.2% $21.58 0 42,000
Q3 2019
Office Statistics
For more information, contact: Tobiah Bilski | tobiah.bilski@am.jll.com