Landlords continue to invest in Pittsburgh as construction continues into the new year.

1. © 2021 Jones Lang LaSalle IP, Inc. All rights reserved.
Pittsburgh
Pittsburgh’s industrial market started 2021 strong with 796,085 s.f. of
positive absorption and nearly 1.7 million s.f. under construction. Krystal
Biotech’s 100,000-s.f. facility at International Drive was the only delivery of
the quarter, however several new construction projects were recently
announced. SunCap Property Group recently purchased a 67-acre site at
Westport Woods and broke ground on a new 280,000-s.f. distribution facility
for Amazon as they continue their rapid expansion in Pittsburgh.
While build-to-suit projects have dominated new construction in the past
year, developers are optimistic about speculative projects in 2021 due to
the limited supply and quick lease-up timeframes being experienced in the
Pittsburgh market. Northpoint Development recently closed on a 26-acre
site in Findlay and has already begun site work for a new 276,000-s.f
speculative distribution warehouse, which it plans to complete by year-end.
Several significant lease transactions were signed in Q1, which contributed
to an overall decline in vacancy to 6.1%. McCollister’s Transportation Group
committed to over 230,000 s.f. at Amcel Center Two in Westmoreland,
Intervala signed a 5-year lease for 217,863 s.f. at 1001 Technology Drive and
Curology executed a nearly 83,000-s.f. lease at Buncher’s speculative
warehouse development located at 155 Solar Drive in Findlay.
Outlook
Pittsburgh’s industrial market is well positioned to excel throughout the
remainder of 2021, as vaccines continue to be deployed across the U.S. and
the economy continues to regain its footing. New development is expected
to continue over the upcoming quarters as the Shell petrochemical facility
becomes fully operational in 2022 and developers attempt to match the
unprecedented industrial occupier demand in Pittsburgh. While initially the
COVID-19 pandemic created a pause in national real estate development,
the impact has further generated a need for high-quality industrial space to
accommodate the changes in consumer behavior caused by the virus.
Industrial development continues to surge as
developers attempt to meet market demand
• Northpoint Development began site work on a new 276,000-s.f.
speculative warehouse project in Findlay Township.
• Investor optimism remains strong as several speculative and build-to-
suit projects broke ground in Q1.
• McCollister’s Transportation Group’s 233,376-s.f. lease at Amcel
Center Two in Westmoreland was the largest lease in Q1.
• The total vacancy rate decreased to 6.1% and is expected to continue
on a downward trend throughout 2021.
Fundamentals Forecast
YTD net absorption 796,085 s.f.
Under construction 1,684,922 s.f. ▲
Total vacancy 6.1%
Sublease vacancy 192,540 s.f. ▶
Direct asking rent $5.51 p.s.f.
Sublease asking rent $4.68 p.s.f. ▶
Concessions Stable
0
2
4
2017 2018 2019 2020 2021
Millions
Supply and demand (s.f.) Net absorption
Deliveries
0%
4%
8%
12%
16%
2007 2009 2011 2013 2015 2017 2019 2021
Total vacancy (%)
$0.00
$3.00
$6.00
$9.00
2007 2009 2011 2013 2015 2017 2019 2021
Average asking rent ($ p.s.f.)
Direct Sublease
For more information, contact: Tobiah Bilski | Tobiah.Bilski@am.jll.com
Industrial Insight | Q1 2021
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2. © 2021 Jones Lang LaSalle IP, Inc. All rights reserved.
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 91,451,141 575,925 575,925 0.6% 6.2% 6.9% $6.12 100,000 100,000 1,614,049
Manufacturing 54,020,037 220,160 220,160 0.4% 5.9% 6.2% $4.67 0 0 70,873
Overall Total 145,471,178 796,085 796,085 0.5% 6.1% 6.6% $5.51 100,000 100,000 1,684,922
Beaver County
Warehouse & Distribution 5,627,234 -78,120 -78,120 -1.4% 12.4% 14.3% $5.34 0 0 105,000
Manufacturing 4,358,833 0 0 0.0% 8.8% 8.8% $4.14 0 0 0
Total 9,986,067 -78,120 -78,120 -0.8% 10.8% 11.9% $4.79 0 0 105,000
Butler County
Warehouse & Distribution 4,136,199 0 0 0.0% 12.2% 12.2% $5.14 0 0 0
Manufacturing 3,561,575 0 0 0.0% 8.5% 8.5% $3.61 0 0 0
Total 7,697,774 0 0 0.0% 10.5% 10.5% $4.51 0 0 0
Downtown
Warehouse & Distribution 18,369,849 -9,058 -9,058 0.0% 4.7% 5.3% $9.25 0 0 0
Manufacturing 4,643,481 0 0 0.0% 1.0% 1.0% $6.24 0 0 0
Total 23,013,330 -9,058 -9,058 0.0% 4.0% 4.4% $9.06 0 0 0
East
Warehouse & Distribution 6,006,450 -47,816 -47,816 -0.8% 6.2% 6.2% $5.43 0 0 0
Manufacturing 3,637,644 -7,500 -7,500 -0.2% 5.7% 5.7% $3.56 0 0 0
Total 9,644,094 -55,316 -55,316 -0.6% 6.0% 6.0% $4.09 0 0 0
Northeast
Warehouse & Distribution 6,086,164 -14,030 -14,030 -0.2% 1.4% 1.7% $5.88 0 0 0
Manufacturing 6,880,307 -21,260 -21,260 -0.3% 2.7% 2.7% $4.98 0 0 0
Total 12,966,471 -35,290 -35,290 -0.3% 2.1% 2.2% $5.21 0 0 0
Northwest
Warehouse & Distribution 10,461,189 103,167 103,167 1.0% 5.0% 6.0% $6.59 0 0 0
Manufacturing 3,153,030 0 0 0.0% 1.5% 1.5% $0.00 0 0 0
Total 13,614,219 103,167 103,167 0.8% 4.2% 5.0% $6.59 0 0 0
South
Warehouse & Distribution 5,565,702 -118,242 -118,242 -2.1% 8.1% 8.1% $5.91 0 0 0
Manufacturing 7,927,472 0 0 0.0% 4.0% 5.1% $5.89 0 0 0
Total 13,493,174 -118,242 -118,242 -0.9% 5.7% 6.3% $5.90 0 0 0
Washington County
Warehouse & Distribution 6,613,888 55,341 55,341 0.8% 10.3% 12.0% $5.50 0 0 250,000
Manufacturing 4,736,380 7,450 7,450 0.2% 1.4% 1.4% $5.20 0 0 0
Total 11,350,268 62,791 62,791 0.6% 6.6% 7.7% $5.47 0 0 250,000
West
Warehouse & Distribution 14,015,237 252,009 252,009 1.8% 3.9% 3.9% $7.16 100,000 100,000 758,817
Manufacturing 2,706,639 8,750 8,750 0.3% 4.1% 6.5% $5.71 0 0 70,873
Total 16,721,876 260,759 260,759 1.6% 4.0% 4.4% $7.00 100,000 100,000 829,690
Westmoreland County
Warehouse & Distribution 14,569,229 432,674 432,674 3.0% 6.7% 7.5% $5.38 0 0 500,232
Manufacturing 12,414,676 232,720 232,720 1.9% 12.1% 12.1% $4.78 0 0 0
Total 26,983,905 665,394 665,394 2.5% 9.2% 9.6% $4.99 0 0 500,232
Inventory (s.f.)
Quarterly total
net absorption
(s.f.)
YTD total net
absorption (s.f.)
YTD total net
absorption (%
of stock)
Total vacancy
(%)
Total
availability
(%)
Average
total asking
rent ($
p.s.f.)
Quarterly
Completions
(s.f.)
YTD
Completions
(s.f.)
Under
construction (s.f.)
Pittsburgh total
Warehouse & Distribution 91,451,141 575,925 575,925 0.6% 6.2% 6.9% $6.12 100,000 100,000 1,614,049
Manufacturing 54,020,037 220,160 220,160 0.4% 5.9% 6.2% $4.67 0 0 70,873
Overall Total 145,471,178 796,085 796,085 0.5% 6.1% 6.6% $5.51 100,000 100,000 1,684,922
Beaver County
Warehouse & Distribution 5,627,234 -78,120 -78,120 -1.4% 12.4% 14.3% $5.34 0 0 105,000
Manufacturing 4,358,833 0 0 0.0% 8.8% 8.8% $4.14 0 0 0
Total 9,986,067 -78,120 -78,120 -0.8% 10.8% 11.9% $4.79 0 0 105,000
Butler County
Warehouse & Distribution 4,136,199 0 0 0.0% 12.2% 12.2% $5.14 0 0 0
Manufacturing 3,561,575 0 0 0.0% 8.5% 8.5% $3.61 0 0 0
Total 7,697,774 0 0 0.0% 10.5% 10.5% $4.51 0 0 0
Downtown
Warehouse & Distribution 18,369,849 -9,058 -9,058 0.0% 4.7% 5.3% $9.25 0 0 0
Manufacturing 4,643,481 0 0 0.0% 1.0% 1.0% $6.24 0 0 0
Total 23,013,330 -9,058 -9,058 0.0% 4.0% 4.4% $9.06 0 0 0
East
Warehouse & Distribution 6,006,450 -47,816 -47,816 -0.8% 6.2% 6.2% $5.43 0 0 0
Manufacturing 3,637,644 -7,500 -7,500 -0.2% 5.7% 5.7% $3.56 0 0 0
Total 9,644,094 -55,316 -55,316 -0.6% 6.0% 6.0% $4.09 0 0 0
Northeast
Warehouse & Distribution 6,086,164 -14,030 -14,030 -0.2% 1.4% 1.7% $5.88 0 0 0
Manufacturing 6,880,307 -21,260 -21,260 -0.3% 2.7% 2.7% $4.98 0 0 0
Total 12,966,471 -35,290 -35,290 -0.3% 2.1% 2.2% $5.21 0 0 0
Northwest
Warehouse & Distribution 10,461,189 103,167 103,167 1.0% 5.0% 6.0% $6.59 0 0 0
Manufacturing 3,153,030 0 0 0.0% 1.5% 1.5% $0.00 0 0 0
Total 13,614,219 103,167 103,167 0.8% 4.2% 5.0% $6.59 0 0 0
South
Warehouse & Distribution 5,565,702 -118,242 -118,242 -2.1% 8.1% 8.1% $5.91 0 0 0
Manufacturing 7,927,472 0 0 0.0% 4.0% 5.1% $5.89 0 0 0
Total 13,493,174 -118,242 -118,242 -0.9% 5.7% 6.3% $5.90 0 0 0
Washington County
Warehouse & Distribution 6,613,888 55,341 55,341 0.8% 10.3% 12.0% $5.50 0 0 250,000
Manufacturing 4,736,380 7,450 7,450 0.2% 1.4% 1.4% $5.20 0 0 0
Total 11,350,268 62,791 62,791 0.6% 6.6% 7.7% $5.47 0 0 250,000
West
Warehouse & Distribution 14,015,237 252,009 252,009 1.8% 3.9% 3.9% $7.16 100,000 100,000 758,817
Manufacturing 2,706,639 8,750 8,750 0.3% 4.1% 6.5% $5.71 0 0 70,873
Total 16,721,876 260,759 260,759 1.6% 4.0% 4.4% $7.00 100,000 100,000 829,690
Westmoreland County
Warehouse & Distribution 14,569,229 432,674 432,674 3.0% 6.7% 7.5% $5.38 0 0 500,232
Manufacturing 12,414,676 232,720 232,720 1.9% 12.1% 12.1% $4.78 0 0 0
Total 26,983,905 665,394 665,394 2.5% 9.2% 9.6% $4.99 0 0 500,232
For more information, contact: Tobiah Bilski| tobiah.bilski@am.jll.com
Pittsburgh
Industrial Statistics | Q1 2021