Pittsburgh continues proving that it is a viable location for distribution as Amazon grows their industrial presence in the region.

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.
Q4 2019
Industrial Insight
As the decade closes, Amazon continues growing their industrial presence in
Pittsburgh. Not long after Amazon began construction of the million-square-
foot distribution center in Findlay township, news broke of Amazon looking
for an additional 100,000 square feet to support last mile delivery demands. E-
commerce sales are driving the growth in distribution centers and
Pittsburgh’s advantageous location within a day’s drive of major markets on
the East Coast and Midwest has made the region attractive to distributors.
Ironically as e-commerce continues to grow, popular brands Peloton and
Casper have opened up brick and mortar stores at the Ross Park Mall. Peloton
has opened a distribution warehouse in Cranberry Township to support local
and regional deliveries.
Outlook
Looking ahead into the new decade, Pittsburgh’s growth opportunity lies in
the ability to successfully navigate new economies. Advanced manufacturing,
robotics, life sciences and plastics are all strong drivers for Pittsburgh’s future.
Prioritizing and allocating resources will determine the region’s success.
Shell’s petrochemical facility in Beaver County has become a showcase for
new approaches in construction management. While Shell’s presence in the
region has created a positive economic gain for the area, Mayor Bill Peduto
has publicly denounced further petrochemical development in Pittsburgh in
an effort to conserve the environment and as an attempt to protect
Pittsburgh’s attractive qualities. The direct and current impact from Shell’s
project prior to completion has been the addition of thousands of jobs, the
use of technology like drones and robots for inspections and the donation of
$1.0 million to the Community College of Beaver County. According to CoStar
News, in the four years since the Shell announcement, the amount of real
estate investment in Beaver County has “skyrocketed” and has reached levels
nearly equal to what was spent in the previous 20 years.
Fundamentals Forecast
YTD net absorption 818,417 s.f. ▲
QTD net absorption 165,292 s.f. ▲
Under construction 2,247,704 s.f. ▲
Total vacancy 6.1% ▼
Average asking rent (NNN) $5.30 p.s.f. ▲
Tenant improvements Stable ▶
-500,000
1,500,000
3,500,000
2015 2016 2017 2018 2019
Supply and demand (s.f.) Net absorption
Deliveries
Amazon is not finished growing in Southwestern
Pennsylvania
11.8%
9.6%
8.4% 7.7%
6.1%
2015 2016 2017 2018 2019
Total vacancy
For more information, contact: Tobiah Bilski | tobiah.bilski@am.jll.com
• Peloton rides into Pittsburgh with a new distribution warehouse location
in Cranberry Township.
• Al. Neyer announces a 480,000-square-foot development in
Westmoreland County.
• Pittsburgh Mayor Bill Peduto rebukes further petrochemical
development in the region.
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
2015 2016 2017 2018 2019
Average asking rents ($/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 88,637,537 47,243 816,837 0.9% 5.8% 7.9% $5.56 286,387 898,286 2,247,704
Manufacturing 53,869,017 118,049 1,580 0.0% 6.5% 7.7% $4.19 0 0 0
Totals 142,601,554 165,292 818,417 0.6% 6.1% 7.9% $5.30 286,387 898,286 2,247,704
Beaver County
Warehouse & Distribution 5,497,234 -20,140 -184,287 -3.4% 10.8% 17.1% $4.84 0 0 651,000
Manufacturing 4,358,833 25,000 75,044 1.7% 10.5% 9.3% $3.50 0 0 0
Totals 9,856,067 4,860 -109,243 -1.1% 10.7% 13.9% $4.60 0 0 651,000
Butler County
Warehouse & Distribution 4,136,199 90,592 -63,425 -1.5% 17.5% 20.6% $4.58 220,000 0 0
Manufacturing 3,561,575 0 509 0.0% 7.4% 10.1% $2.56 0 0 0
Totals 7,697,774 90,592 -62,916 -0.8% 12.8% 15.8% $3.95 220,000 0 0
Downtown
Warehouse & Distribution 18,373,235 -6,234 -212,709 -1.2% 4.2% 4.7% $10.20 0 0 0
Manufacturing 4,643,481 -8,153 -10,009 -0.2% 1.3% 3.9% $0.00 0 0 0
Totals 23,031,716 -14,387 -222,718 -1.0% 3.6% 4.6% $10.20 0 0 0
East
Warehouse & Distribution 5,969,910 59,518 117,239 2.0% 3.8% 5.9% $4.50 0 0 0
Manufacturing 3,637,199 29,000 11,500 0.3% 5.7% 5.7% $3.50 0 0 0
Totals 9,607,109 88,518 128,739 1.3% 4.5% 5.8% $4.09 0 0 0
Northeast
Warehouse & Distribution 6,086,164 0 77,495 1.3% 2.3% 2.9% $6.08 0 0 0
Manufacturing 6,880,307 0 -231,000 -3.4% 5.3% 5.3% $0.00 0 0 0
Totals 12,966,471 0 -153,505 -1.2% 3.9% 4.1% $6.08 0 0 0
Northwest
Warehouse & Distribution 10,525,275 -35,626 -42,216 -0.4% 3.2% 6.2% $8.52 0 0 0
Manufacturing 3,063,621 79,825 128,108 4.2% 0.3% 0.3% $0.00 0 0 0
Totals 13,588,896 44,199 85,892 0.6% 2.5% 4.9% $8.52 0 0 0
South
Warehouse & Distribution 5,521,847 -21,500 -205,569 -3.7% 7.4% 9.0% $5.77 0 0 0
Manufacturing 7,892,472 4,000 -97,929 -1.2% 5.1% 5.1% $6.18 0 0 0
Totals 13,414,319 -17,500 -303,498 -2.3% 6.1% 6.7% $6.04 0 0 0
Washington County
Warehouse & Distribution 6,589,531 17,786 571,061 8.7% 10.6% 16.5% $4.96 0 535,249 0
Manufacturing 4,736,380 -37,273 48,402 1.0% 2.4% 2.4% $3.90 0 0 0
Totals 11,325,911 -19,487 619,463 5.5% 7.2% 10.6% $4.86 0 535,249 0
West
Warehouse & Distribution 11,518,528 16,727 670,496 5.8% 3.0% 4.6% $6.30 66,387 325,537 1,596,704
Manufacturing 2,706,639 -12,000 15,705 0.6% 2.5% 4.5% $0.00 0 0 0
Totals 14,225,167 4,727 686,201 4.8% 2.9% 4.6% $6.30 66,387 325,537 1,596,704
Westmoreland County
Warehouse & Distribution 14,419,614 -53,880 88,752 0.6% 6.1% 7.2% $4.80 0 37,500 0
Manufacturing 12,388,510 37,650 61,250 0.5% 12.7% 16.1% $6.60 0 0 0
Totals 26,888,124 -16,230 150,002 0.6% 9.3% 11.4% $5.28 0 37,500 0
Q4 2019
Industrial Statistics
For more information, contact: Tobiah Bilski | tobiah.bilski@am.jll.com