Developing Trend Feature 37 the Natural Gas Industry in Recovery 06 Mobility: the Future of Development 40 Eye on the Economy
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A FULL-SERVICE CIVIL ENGINEERING FIRM 412.921.4030 GatewayEngineers.com | Fall 2016 05CON President's MessageTENTS Developer Profile 31 Burns & Scalo Real Estate Services Developing Trend Feature 37 The natural gas industry in recovery 06 Mobility: The Future of Development 40 Eye On the Economy Office Market Update 43 Colliers International Pittsburgh Industrial Market Update 49 Hanna Langholz Wilson Ellis 53 Capital Markets Update Legal / Legislative 59 Outlook Pittsburgh’s affordable housing initiative Benchmarks 65 The Denver Transit blueprint Voices 69 Legislators weigh in on the role of government in aiding development 23 Development Project Profile East Side Bond Apartments 73 News from the Counties 2016 Buyer’s Guide 81 People / Events 88 Buyer’s Guide The 2016 NAIOP Buyer’s Guide puts contacts for designers, engineers, contractors and lenders in one easy-to-use resource. www.developingpittsburgh.com 3 We challenge ourselves to excellence and to be the leader in the mechanical contracting industry. Service | Commercial Construction Power & Industrial | Metal Fabrication www.mckamish.com President’s Message PUBLISHER Time has been on my mind lately. While we The second saying “There is no time like the Tall Timber Group measure time in very precise increments... present.” comes to mind for two reasons. The www.talltimbergroup.com seconds, minutes, hours, days, weeks, years…it first is because I am not sure that there has ever remains an enigma in many ways. been a better time in the last 40 years to be in EDITOR commercial real estate in Western Pennsylvania. Jeff Burd 412-366-1857 As I think about time, two sayings come to We are enjoying growth in industry sectors [email protected] mind. “Time flies.” and “There is no time like such as information technology and energy the present.” that is reflected in all aspects of commercial real PRODUCTION estate including industrial, office, mixed-use, Carson Publishing, Inc. The first is particularly impactful to me as write hospitality and multi-family. The national Kevin J. Gordon these comments for two specific reasons. I attention that we have been receiving is a well- [email protected] recently dropped my first-born off for her deserved testament to what is happening here. freshman year at the University of Alabama ART DIRECTOR/GRAPHIC DESIGN and my time as president of NAIOP Pittsburgh “There is no time like the present.” also comes Carson Publishing, Inc. Jaimee D. Greenawalt is quickly coming to an end. It is hard for me to to mind when I think of those of you reading believe either of these things. these comments who are not NAIOP Pittsburgh CONTRIBUTING PHOTOGRAPHY members. I have always marveled that while our Port Authority of Allegheny County While I will keep my thoughts on the passage membership is 300 + we attract 700 real estate Massery Photography of time vis a vis my family private I would like to professionals to our annual banquet. Why? Do Mark Grasso share with you my thoughts about the last two you not know or understand the benefits of The Mosites Company years steering Western Pennsylvania’s premiere belonging to both NAIOP Pittsburgh and NAIOP Regional Transportation District commercial real estate organization. First, I corporate? Have you not seen your peers in Tall Timber Group will say that it has been my sincere privilege to the industry benefit from their membership? I CONTRIBUTING EDITORS work with NAIOP Pittsburgh’s leadership. My can tell you that NAIOP Pittsburgh has been Karen Kukish collaboration with them has been among the important in my career development……. best of my professional career and I am certain professionally and personally. ADVERTISING SALES that the organization is in good hands as I move Karen Kukish out of my role as president. So...since there is no time like the present I 412-837-6971 suggest that you visit naioppittsburgh.com or [email protected] The past two year’s have seen many NAIOP naiop.org and learn more about how you can Pittsburgh successes. We continue to offer the join forces with us to better your career and the MORE INFORMATION: best networking and educational opportunities Western Pennsylvania’s commercial real estate DevelopingPittsburghTM is published by Tall Timber Group for NAIOP Pittsburgh in the industry. Attendance at our monthly industry. 412-928-8303 education programs continues to grow and www.naioppittsburgh.com registration for our annual banquet in 2016 was Thank you, the second highest in the history of the event. No part of this magazine may be Night at the Fights is on an upswing allowing reproduced without written permission us to to support the great work of Habitat for by the Publisher. All rights reserved. Humanity of Greater Pittsburgh. This fall we will This information is carefully gathered and com- work with the Pittsburgh Regional Alliance to piled in such a manner as to ensure maximum offer timely and important programming during accuracy. We cannot, and do not, guarantee a visit from national site selectors in November. either the correctness of all information furnished nor the complete absence of errors and omis- Advocacy has also been an important part sions. Hence, responsibility for same neither can of my tenure. Our goal, as always, has been be, nor is, assumed. to work on a national, statewide and local Keep up with regional construction basis to ensure that conditions for commercial and real estate events at real estate development are positive and fair. www.buildingpittsburgh.com We have visited our representatives in both Harrisburg and Washington, D.C. to voice our opinions and concerns and we work with NAIOP corporate to keep abreast of issues that could impact the industry. Currently we are working on matters such as permitting and affordable Brian Walker housing locally; DEP and DCED issues statewide; NAIOP Pittsburgh President and tax reforming and energy policy nationally. www.developingpittsburgh.com 5 FEATURE Photo by Port Authority of Allegheny County. 6 DEVELOPINGPITTSBURGH | Fall 2016 FEATURE t’s about mobility. That’s the message that is being communicatedI at virtually every presentation or conference fo- cused on the future of transpor- tation. Advances in technology and unexpected shifts in societal expectations have changed a conversation about highways and transit from systems to individual mobility almost overnight. As that conversation has evolved, so has the future of commercial real estate development. Pittsburgh has changed. It may seem like the last five years have been something of a civic victory lap, celebrating a remarkable revi- talization of a regional economy. That renewed regional vitality was a rising tide that lifted the fortunes of commercial real estate. You could make an effective argument that the turning point in this transforma- tion occurred when the attitude of Pittsburgh’s people changed. Coincidence or not, real economic progress began after the “Imagine Pittsburgh” campaign kicked off in 2008. That progress gave leaders the room to dream and plan about what Pittsburgh should be like in 2030. One of the key components of a future plan is transportation. www.developingpittsburgh.com 7 FEATURE New Technology He points out that Uber’s share of the ridership market is still muted Stan Caldwell calls what is going by the company’s relative newness on in transportation and mobility to the market. In the west, where “disruptive technology.” Caldwell San Francisco-based Uber began, aving played an is an