Pittsburgh's Big Deal
Pittsburghers are mourning the closing of the downtown Macy's, housed in the iconic Kaufmann's department store building, a Pittsburgh landmark known for its signature clock. No worries, says Philadelphia-based Core Realty, which bought the property for $15 million, the clock is staying as part of a $90 million renovation that includes a hotel, apartments, and two floors of retail. Chances are good that retailers will be interested in leasing space to serve a growing base of downtown residents. Since 2000, more than 2,500 units have been added to Pittsburgh's CBD, many of them in renovated office properties. Since 2011, about 2 msf of office space has been converted to hotel and residential uses.
Indianapolis Almost at Full Employment
Indianapolis is within striking distance of its all-time peak employment rate of March 2000, as 2Q 2015 brought in 5,200 new jobs in health, education, and professional services. This bodes well for Indy's office market. The city has seen five consecutive quarters of positive net absorption, with the most demand for class A suburban space, according to Colliers International. The downward vacancy rate is expected to continue and may push rents higher toward year-end. On the investment side, Indianapolis continues to attract out-of-town buyers.
“Notwithstanding some softening in the Canadian office sector, we expect the marketplace to stay active in coming quarters …The wild card is that U.S.-based tenants continue to show considerable interest in expanding or establishing a foothold in major Canadian centres, a trend that has the potential to offset some of the negatives."
- Bill Argeropoulos, Research (Canada), Avison Young
Ice hockey equipment maker Bauer Hockey opened its first retail location, Own the Moment Hockey Experience, a 20,000-sf equipment store and a 2,500-sf ice rink in a former grocery store in Burlington, Mass., a Boston suburb. A subsidiary of Performance Sports Group Ltd., Bauer is set to open its second store in the Minneapolis area, converting another suburban retail property. It plans eight to 10 stores in hockey markets throughout the U.S. and Canada.