- Construction of new industrial developments is increasing in the Pittsburgh region, concentrated in the West and Beaver County submarkets, with over 1.3 million square feet under construction. - While net absorption for the year remains low due to low vacancy rates, absorption is expected to increase as new developments deliver. Industrial leasing activity is shifting towards new construction projects. - JobsOhio provided a $30 million grant to help advance plans for a potential second petrochemical facility in Belmont County, Ohio, which could further drive demand for industrial and distribution space 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.
Q3 2019
Industrial Insight
Net absorption for the year is trailing the preceding four years due in part to
low vacancy of viable product. However, construction numbers are trending
upwards at over 1.3 million square feet. As these new developments deliver,
absorption will increase. Industrial leasing activity is gravitating towards new
construction due in part to less demand within Pittsburgh’s older inventory.
New construction continues to concentrate in the West and Beaver County
submarkets. Al. Neyer’s Clinton Commerce Center is delivering over 260,000
square feet of product in October 2019 and 105,000 square feet is underway at
Westgate Business Park in Big Beaver. While construction picked up in the
western part of the region in the third quarter, Amazon announced plans for a
million-square-foot distribution center in Findlay Township. The large facility
will add to the impressive roster of expanding business in the airport corridor.
Amazon will join such name brands as Gordon Food Service, Niagara Bottling
and General Electric.
Outlook
The industrial market activity in Pittsburgh is heavily focused within the
western half of the MSA. New construction projects available for lease are
concentrating near the airport and around the Shell petrochemical facility.
Looking ahead, the activity will only continue as Amazon moves forward with
their million-square-foot facility in Findlay Township and the Shell cracker
plant nears completion. Also, adding to the petrochemical industry in the
region could bring more jobs and related businesses to the area. In the third
quarter, JobsOhio provided a $30 million grant for site preparation for a
second petrochemical facility also along the Ohio River in Belmont County,
OH. While PTT Global Chemical has not announced formal plans to start
building a second cracker in Ohio, the grant helps move the project forward.
Ethane storage will become more important as additional petrochemical
plants enter the tristate area.
Fundamentals Forecast
YTD net absorption 301,396 s.f. ▲
QTD net absorption -105,274 s.f. ▲
Under construction 1,337,704 s.f. ▲
Total vacancy 6.3% ▼
Average asking rent (NNN) $5.40 p.s.f. ▶
Tenant improvements Stable ▶
-500,000
1,500,000
3,500,000
2015 2016 2017 2018 YTD
2019
Supply and demand (s.f.) Net absorption
Deliveries
Amazon goes forward with one million-square-foot
distribution center in Findlay Township
11.8%
9.6%
8.4% 7.7%
6.3%
2015 2016 2017 2018 YTD 2019
Total vacancy
For more information, contact: Tobiah Bilski | tobiah.bilski@am.jll.com
• Construction picks up in the West and Beaver County submarkets.
• Net absorption for the year remains low, as leasing activity concentrates
in new construction.
• JobsOhio pushes for second petrochemical facility in the region by
providing a $30 million grant for site preparation.
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
2015 2016 2017 2018 YTD 2019
Average asking rents ($/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 88,306,413 -65,843 417,865 0.5% 6.0% 8.0% $5.53 0 831,899 1,337,704
Manufacturing 53,869,017 -39,431 -116,469 -0.2% 6.8% 7.6% $5.13 0 0 0
Totals 142,255,430 -105,274 301,396 0.2% 6.3% 7.9% $5.40 0 831,899 1,337,704
Beaver County
Warehouse & Distribution 5,494,762 109,200 -164,147 -3.0% 10.5% 17.3% $4.77 0 0 521,000
Manufacturing 4,358,833 0 50,044 1.1% 11.1% 11.1% $4.21 0 0 0
Totals 9,853,595 109,200 -114,103 -1.2% 10.7% 14.7% $4.59 0 0 521,000
Butler County
Warehouse & Distribution 3,916,199 31,200 -94,017 -2.4% 15.1% 14.8% $3.86 0 0 220,000
Manufacturing 3,561,575 0 509 0.0% 7.4% 7.4% $2.43 0 0 0
Totals 7,477,774 31,200 -93,508 -1.3% 11.4% 11.4% $3.43 0 0 220,000
Downtown
Warehouse & Distribution 18,356,235 -50,743 -206,475 -1.1% 4.1% 4.4% $8.86 0 0 0
Manufacturing 4,643,481 -5,856 -1,856 0.0% 1.1% 3.8% $8.12 0 0 0
Totals 22,999,716 -56,599 -208,331 -0.9% 3.5% 4.2% $8.81 0 0 0
East
Warehouse & Distribution 5,969,910 30,063 57,721 1.0% 4.8% 5.9% $7.26 0 0 0
Manufacturing 3,637,199 -29,000 -17,500 -0.5% 6.5% 6.5% $6.67 0 0 0
Totals 9,607,109 1,063 40,221 0.4% 5.4% 6.1% $7.00 0 0 0
Northeast
Warehouse & Distribution 6,086,164 0 77,495 1.3% 2.3% 2.9% $6.31 0 0 0
Manufacturing 6,880,307 3,300 -231,000 -3.4% 5.3% 5.3% $5.57 0 0 0
Totals 12,966,471 3,300 -153,505 -1.2% 3.9% 4.2% $5.81 0 0 0
Northwest
Warehouse & Distribution 10,525,275 -39,794 -270,111 -2.6% 5.4% 7.9% $5.72 0 0 0
Manufacturing 3,063,621 0 48,283 1.6% 2.9% 0.3% $9.25 0 0 0
Totals 13,588,896 -39,794 -221,828 -1.6% 4.8% 6.2% $5.76 0 0 0
South
Warehouse & Distribution 5,517,534 -192,814 -184,069 -3.3% 7.0% 8.4% $5.74 0 0 0
Manufacturing 7,892,472 -56,000 -101,929 -1.3% 5.2% 5.2% $5.95 0 0 0
Totals 13,410,006 -248,814 -285,998 -2.1% 6.0% 6.5% $5.84 0 0 0
Washington County
Warehouse & Distribution 6,568,579 21,559 553,275 8.4% 10.9% 16.4% $5.17 0 535,249 0
Manufacturing 4,736,380 13,125 85,675 1.8% 1.6% 1.6% $5.80 0 0 0
Totals 11,304,959 34,684 638,950 5.7% 7.0% 10.2% $5.21 0 535,249 0
West
Warehouse & Distribution 11,452,141 26,445 521,600 4.6% 4.0% 5.7% $5.45 0 259,150 596,704
Manufacturing 2,706,639 35,000 27,705 1.0% 2.0% 4.5% $5.37 0 0 0
Totals 14,158,780 61,445 549,305 3.9% 3.6% 5.5% $5.44 0 259,150 596,704
Westmoreland County
Warehouse & Distribution 14,419,614 -959 126,593 0.9% 5.4% 7.7% $4.45 0 37,500 0
Manufacturing 12,388,510 0 23,600 0.2% 13.0% 16.0% $5.15 0 0 0
Totals 26,888,124 -959 150,193 0.6% 9.1% 11.7% $4.94 0 37,500 0
Q3 2019
Industrial Statistics
For more information, contact: Tobiah Bilski | tobiah.bilski@am.jll.com