Shopping Centers Today

SEP 2018

Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)

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S E P T E M B E R 2 0 1 8 / S C T 47 mode just now, he says. Still, vacancy rates are low, and rents are stable — even rising in certain locations. Marcus & Millichap reports that the average retail vacancy rate for the metro stands at 3.3 percent and that the 2017 rent growth rate was at 3.7 percent. Fitness concepts are a big demand driver, with such tenants as The Bar Method, Club Pilates, Orangetheory Fitness, Planet Fitness and 3Minute Fitness all growing quickly. "Downtown is really undergoing a third renaissance right now that has been under way for a number of years," said Glickman. The past sev- eral years have seen some $4.6 billion invested in new development down- town, with an additional $3.9 billion now under construction or else hav- ing been announced, according to the Downtown Pittsburgh Partnership. "The waterfront has been getting a lot more attention over the past decade," said Cannon. "We have a great Riverlife Task Force that has helped to spur development and redevelopment of key spots along the river." (The Monongahela and Allegheny rivers meet in Pittsburgh to form the Ohio River.) Activity has focused largely on residential and office development, with retail going in as a comparatively smaller compo- nent in general, he says. Most of the new retail development in Pittsburgh has been occurring in smaller in-fill projects. A notable exception is Newbury Market, a phased retail development now under way as part of the $450 million Newbury Village community being built in South Fayette. The master plan features 225 single-family homes and 250 apart- ment units, plus 1.2 million square feet of office, retail and hotel space. Among the recent additions to the Newbury Market retail portion is the July opening of a 65,000-square-foot Topgolf facility. This Pittsburgh growth story has been stirring more than just a little investor interest. "Over the last 10 to 15 years," said Glickman, "we have seen a significant increase in out-of- town investors who are seeing the value and the future of Pittsburgh that we see." n 33,000 27,000 131,000 workers residents students Urbanization and a population boom in the urban core are the spurs to this restaurant expansion Source: Pittsburgh Downtown Partnership Pittsburgh, once a major center of U.S. steel production, now has an economy based on health care, information technology and education

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