Time for the North Side
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Fall 2019 TIME FOR THE NORTH SIDE 2019 NAIOP Pittsburgh Buyer’s Guide NICE WORK. Daniel S. Deiseroth, P.E. President It’s what we do. No need for fi reworks. Just know we’ve been doing it since 1954. If you look around Pittsburgh, chances are you’re looking at us. And what exceptional project management can do. A FULL-SERVICE CIVIL ENGINEERING FIRM 412.921.4030 GatewayEngineers.com B U I L D WITH C O NFID E N C E CONTENTS | Fall 2019 05 President’s Message 07 Executive Director’s Message 29 Eye On the Economy 08 Feature 33 Office Market Update Time for the North Side 37 Industrial Market Update 41 Capital Market Update 47 Legal/Legislative Outlook Transportation and Permitting – An Evolved and Refined Process 51 Benchmarks 23 Development Profile Changes on the Horizon 371 North Shore Drive – SAP Pittsburgh Office for LERTA 55 Voices 59 News from the Counties 73 People / Events 77 Buyers Guide 2019 www.developingpittsburgh.com 3 LISTEN BETTER. PLAN BETTER. BUILD BETTER. Since 1916 BUTLER BUILDERS SINCE 1965 a COMMITTED partner for your SUCCESS Fairchance Construction Co. <> 724.564.7485 <> www.fairchanceconstruction.com PUBLISHER Tall Timber Group President’s Message www.talltimbergroup.com EDITOR Jeff Burd 412-366-1857 [email protected] As we head into fall, it is a great We all must remember, however, that time to reflect on a very eventful public policy has the ability to facilitate PRODUCTION year for development in general, continued development or to hinder Carson Publishing, Inc. and for NAIOP Pittsburgh as a it. While real estate development has Kevin J. Gordon Chapter. So many important and had an unprecedented good run, [email protected] interesting projects are underway, our overall regional growth numbers recently completed or starting off. still show challenges. Without GRAPHIC DESIGN The explosion of great development an environment that makes new 321Blink projects in the strip, the continued development attractive, we will face tech emergence in Lawrenceville, a shortage in the very near future of CONTRIBUTING PHOTOGRAPHY airport corridor growth, and the first locations for the new and growing NAIOP Pittsburgh completed – and occupied – buildings businesses that are putting Pittsburgh Cory Klein Photography at Hazelwood Green all bode well for on so many “Best of” lists. our region and our industry. AE7 Architects Now is not the time to put the brakes Tall Timber Group As a chapter, NAIOP Pittsburgh on development. To do so would Northside Leadership Conference continues to make great progress jeopardize the progress we’ve made in growing our membership, as a region, and an industry, and CONTRIBUTING EDITORS dramatically increasing our advocacy poses a threat to the many good jobs Jeremy Marshall platform, and continuing to provide in the development and construction Karen Kukish great networking and service to the industries. It would also jeopardize real estate development community the region’s continued economic ADVERTISING SALES in the region. development overall. Karen Kukish One aspect that is particularly Real estate development has played 412-837-6971 important to me, to NAIOP and a central role in boosting our region’s [email protected] to our region is our Developing economy, including key contributions Leaders (DLs) program. The DL to the university driven tech economy MORE INFORMATION: program has grown tremendously, in Lawrenceville and the Strip, and DevelopingPittsburghTM is published by now totaling 111 members in the the improvements in East Liberty, Tall Timber Group for NAIOP Pittsburgh Pittsburgh chapter – nearly one-third Downtown, and the South Side. The 412-928-8303 of our membership. Our DLs are commercial real estate development www.naioppittsburgh.com engaged and active, bringing new industry can continue to be a key energy, new programs and new partner in the emergence of new No part of this magazine may be perspectives to the development industries and neighborhoods, IF reproduced without written permission industry. Importantly, our DLs are a we make sure the environment for by the Publisher. very diverse crowd, showing that real investment continues to be productive estate can attract and support great here. All rights reserved. careers for professionals of all ages, Our great staff at NAIOP Pittsburgh races and genders. Our DLs are clearly This information is carefully gathered and your Board are working hard contributing to the more inclusive to ensure that the interests of the and compiled in such a manner as to economy we all want to see. ensure maximum accuracy. We cannot, industry are well represented and to and do not, guarantee either the cor- The growth in DLs reflects recognition promote a broader appreciation of rectness of all information furnished of both the value of real estate as the fundamental contributions our nor the complete absence of errors and a career and its value to the overall industry makes to the prosperity of economy in our region. Attracting our region. omissions. Hence, responsibility for same talented young professionals to neither can be, nor is, assumed. our ranks demonstrates a number of positive trends and perceptions: Keep up with regional construction development is cool; it brings great and real estate events at: projects into being; it is a key driver www.buildingpittsburgh.com of the region’s economy; and it provides widespread professional opportunities – more so than at any time in recent memory. Younger professionals see an exciting and rewarding career that also allows them to help to grow the region and improve the quality of life for the Don Smith Jr. residents. NAIOP Pittsburgh President Cover photo by Joey Studios www.developingpittsburgh.com 5 EXECUTIVE DIRECTOR’S MESSAGE ast month marked my one year as Executive Director come will be about setting up and delivering legit policy wins of NAIOP Pittsburgh. And for our chapter, this past year for the Pittsburgh CRE community. has been one characterized by growth, innovation, L As we close out the second half of 2019, NAIOP Pittsburgh and incremental change. Building from the many years of will finish strong with great events for premium networking excellence, 2018-19 has been one of NAIOP Pittsburgh’s best and continued advocacy for the CRE community. In October, years. Our membership grew by over 15 percent, our events NAIOP Pittsburgh will celebrate our 20th Annual Night At The consistently sold to capacity, including record attendance at Fights, which is the most unique event of any association in the 26th Annual Awards Banquet, and our Developing Leaders the Pittsburgh region. Additionally, our fall schedule is full of (DL) program skyrocketed this year with strong programming. quality programming. Please visit www.naioppittsburgh.com to Additionally, in keeping in line with our aforementioned DL check out our upcoming programming and to find sponsorship program, our chapter engaged NAIOP Corporate to relaunch information for Night At The Fights. our mentoring program, Mentorship Connect. Working with the board and our great DL leadership, Mentorship Connect Sincerely, booked over 66 mentorship sessions in 2019. While organizational growth has been positive, the policy landscape remains fraught with risks for the CRE community. Worrisome riverfront zoning implications, changes to incentives, inclusionary zoning, permitting gridlock, and possible tax increases, are just some of the policy concerns affecting the Pittsburgh CRE community. When matched with possible effects of the growing U.S. – China trade war, policy decisions by our elected leaders will play a critical role in determining the pace of investment growth. NAIOP Pittsburgh has engaged heavily with our elected leaders over the past year. And in the year to come, there will be no slowdown from us. The last year has been about Brandon J. Mendoza re-establishing our presence at the policy table. The year to Executive Director NAIOP Pittsburgh Architecture Interior Design Planning Consulting PITTSBURGH 412-921-4300 www.DLAplus.com Connect with us: @DLA_PLUS LINKEDIN.COM/COMPANY/3017087 www.developingpittsburgh.com 7 Time for the North Side 8 DEVELOPING PITTSBURGH | Fall 2019 TIME NORTHFOR THE SIDE Use courtesy Northside Leadership Conference. www.developingpittsburgh.com 9 FEATURE t seems like it’s the North Side’s 96-room hotel on East Ohio Street, to Highway capacity expansion created time. After a decade of booming a groundbreaking for apartments at the another set of barriers as Route 65, Irevitalization in neighborhoods like stables building, to the fountain just Route 28 and the Fort Duquesne East Liberty, Lawrenceville, and the Strip completed at the park, to the cancer Bridge became bypasses around the District, the answer to the question center at Allegheny General Hospital, North Side. Three Rivers Stadium of which neighborhood will be the there is something under construction was built and surrounded by acres of next hot spot is probably the North all over. And that doesn’t mention all asphalt. Allegheny Center became a Side. That may seem an odd answer, the small projects being done in all the barrier, isolating the residents of the considering that revitalization of the neighborhoods.” North Side. North Side has been ongoing for about Once an independent city of 75,000 When the industrial base of the region 50 years. It may also seem odd that people, called Allegheny City, the North began to disintegrate in the late 1970s, almost 20 years after the North Shore Side makes up about one-fifth of the the North Side had gone from one saw construction of two professional city. The NLC works for 15 different of America’s wealthiest communities sports stadiums and a casino – plus the smaller neighborhood groups that to one of Pittsburgh’s struggling development that fits in between – that cover the entire city proper along the neighborhoods. it’s the current day that feels more like Allegheny and Ohio rivers, stretching Redevelopment from the Ground Up a boom.