Pittsburgh's Awards NAIOP Pittsburgh’S 20Th Annual Awards Banquet Honors Projects and Individuals Exemplifying Excellence in the Commercial Real Estate Industry
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DEVE LPittsburghOPINGSPRING 2013 PITTSBURGH’S NEXT ACT Naiop PITTSBURGH s Annual Awards Year-End Market Updates Dodd-Frank And Commercial Real Estate Insight | On-Site... opportunities and constraints strategically transformed The highest and best use of real estate is achieved using accurate, unbiased and informed analysis to identify the unique conditions and constraints of each site and/or facility. At CEC, that’s what we do for the commercial, retail, industrial, institutional and residential real estate markets. We deliver environmentally-conscious integrated design and provide diverse real estate consulting services to owners, facility managers, developers, architects and contractors at all points in a property’s life cycle. 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Burchick Construction Company, Inc. • 500 Lowries Run Road • Pittsburgh, Pennsylvania 15237 Telephone: 412.369.9700 • Fax: 412.369.9991 • www.burchick.com | Spring 2013 05 President’s Perspective CONTE NTS Dan Puntil 19 Development Project Pittsburgh International Business Park 26 Developer Profile Chapman Properties 06 Pittsburgh’s Next Act 36 Eye on the Economy The region’s assets are getting accolades from around the globe but the civic and commercial real estate leaders aren’t resting on their laurels. Regional leaders talk Office Market Update about what works and what needs to work better for Pittsburgh to keep thriving. 40 Newmark Grubb Knight Frank 44 Industrial Market Update Langholz Wilson Ellis 48 Retail Market Update CBRE 50 National Market Update Avison Young 33 Developing Trend An improved Panama Canal should change global logistics and create the need for more transportation and distribution to the Midwest and Northeast. 58 Legal/Legislative Outlook 63 Benchmarks 69 Voices 73 News from the Counties 52 NAIOP Pittsburgh's Awards NAIOP Pittsburgh’s 20th Annual Awards Banquet honors projects and individuals exemplifying excellence in the commercial real estate industry. 85 Transactions of Note www.developingpittsburgh.com 3 CAPITAL MARKETS DEBT & EQUITY FINANCE CBRE Capital Markets integrates the disciplines of mortgage banking and investment sales to provide the fastest, most effective execution on behalf of our clients. The combined power of CBRE Capital Markets provides investors with a single, fully integrated global investment service offering. The world’s leading developers and commercial property owners turn to CBRE’s Debt & Equity Finance group to provide creative financial solutions for their commercial real estate investment needs. CBRE has long-term, established relationships with more than 200 of the industry’s premier international lenders, including banks, pension funds, life insurance and credit companies, conduits/CMBS entities, government–sponsored entities and offshore investors. Capital Markets leverages the strengths of CBRE, the world’s leading real estate services firm, with 300 offices in over 60 countries, excluding affiliates. PITTSBURGH DeBT & eqUITy FInance PROFeSSIOnaLS :: DAVID MEESE :: jAMIE ShAFEr :: ANThoNY roSSIE Senior Vice President Vice President Vice President 412.303.4811 412.904.9506 412.904.9503 [email protected] [email protected] [email protected] The right business partner for all your real estate needs. #1 in commercial real estate worldwide www.cbre.com/capitalmarkets We obtained the information in this document from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction. President’s Perspective PUBLISHER Tall Timber Group elcome to this market while maintaining these www.talltimbergroup.com the second enviable statistics? Will the growth edition of come from “Eds and Meds?” The EDITOR Develop- energy sector? Will it be in the form Jeff Burd ingPitts- of new development or renovation of 412-366-1857 burgh some of our existing assets? My sense [email protected] Magazine, Wa publication focusing on is that it will include all of the above. the commercial real estate industry and In this edition of DevelopingPittsburgh, PRODUCTION brought to you by NAIOP Pittsburgh. we will explore the factors that will Carson Publishing, Inc. It is my distinct privilege to serve as impact our ability to maintain this Kevin J. Gordon President of NAIOP Pittsburgh for momentum and continue to grow and [email protected] 2013. I am humbled to follow in line prosper. We will discuss the challenges with some of the most prominent and of keeping up an aging infrastructure, ART DIRECTOR/GRAPHIC DESIGN influential leaders in the commercial the need for pad ready sites and foster- Carson Publishing, Inc. real estate industry that have served in ing public/private partnerships in a new Jaimee D. Greenawalt the same capacity. These great lead- era of austerity for government. ers have developed a strong founda- CONTRIBUTING PHOTOGRAPHY tion that has served as the base from We’ll also spotlight our annual NAIOP Carson Publishing, Inc. which this organization was built upon, Pittsburgh award winners. This Devel- Jan Pakler much like a real estate project. NAIOP oping Pittsburgh has a special section Pittsburgh Regional Alliance Pittsburgh has grown year after year, devoted to the projects and people to become the preeminent real estate that made special contributions to the CONTRIBUTING EDITORS organization in Pittsburgh with a focus commercial real estate industry. Anna Burd on our core values of Education, Advo- Cecelia Cagni cacy and Leadership. Together with our We should all be proud of our accom- Karen Kukish outstanding Board of Directors, it will plishments, but not rest on our laurels. be my goal to further our mission and Much like the city of Pittsburgh has ADVERTISING SALES continue to grow this great organiza- adapted over the years, so too does Karen Kukish tion. our real estate industry need to adapt. 724-837-6971 We need to continue to be creative, [email protected] This edition of Developing Pittsburgh be proactive, be innovative and be Magazine will focus on ‘what’s next’ disciplined. Those qualities have been MORE INFORMATION: for commercial real estate in Pitts- the hallmark of Pittsburgh over the DEVELOPINGPittsburgh is published by burgh. The secret has been revealed decades and have served our city very Tall Timber Group for NAIOP Pittsburgh that Pittsburgh real estate has not only well. Let’s take the next steps and con- 412-928-8303 fared far better than many other cit- tinue to grow the Greater Pittsburgh www.naioppittsburgh.com ies during the economic downturn, it commercial real estate industry. has in fact, prospered. Our controlled, No part of this magazine may be reproduced without written permission sustainable growth as a result of high by the Publisher. All rights reserved. barriers to entry have prevented over building resulting in a real estate mar- This information is carefully gathered and compiled ket that performs at the top of all mar- in such a manner as to ensure maximum accuracy. kets in the country. Our vacancy rates We cannot, and do not, guarantee either the in office, industrial, retail and multi- correctness of all information furnished nor the family are among the lowest of all of complete absence of errors and omissions. Hence, responsibility for same neither can be, nor is, the nation’s top 64 markets. Pittsburgh assumed. is now attracting regional, national and international institutional investors Keep up with regional construction and real estate who have identified our region as a events at www.buildingpittsburgh.com market that provides attractive returns while providing a stable real estate environment. So what’s next for Pittsburgh? How do we maintain this position and most im- portantly, how do we continue to grow Daniel P. Puntil 5 DEVELOPINGPITTSBURGH | Spring 2013 www.developingpittsburgh.com 5 FEATURE FOR PITTSBURGH?WHAT'S NEXT 6 DEVELOPINGPITTSBURGH | Spring 2013 FEATURE “Our firm identified and head of invest- a decade ago, in fact, the characteristics of ment at ING Clarion that the twin closings a good investment Partners. “We believe of the Lazarus and market. We look at Pittsburgh has all the Lord & Taylor stores the economic drivers. right pieces.” in Downtown left the We believe the next business community phase of economic It wasn’t