Residential boom often brings retail along
You can bank on it
Justin Merriman | Tribune-Review
McCandless Crossing in the making
Justin Merriman | Tribune-Review
One more Lowe's
Justin Merriman | Tribune-Review

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Marie Wilson is a Pittsburgh Tribune-Review staff writer and can be reached at 412-380-5609 or via e-mail.
When suburbs experience residential building booms, one thing is sure to follow: Retail development.
Big-box stores, small retail shops, offices and entertainment sites are in the works in McCandless, Robinson, South Fayette and Moon. And while some may herald new development as a positive sign that the economy is escaping its doldrums, experts and developers say these projects were planned before the economy slowed, and demand for new business space is driving them forward.
"Our occupancy is actually increasing in retail," said Jared Imperatore of Grant Street Associates, a commercial real estate firm Downtown. "Even though new developments are coming around, we're able to fill these stores."
With a Lowe's home improvement store and a Fidelity Bank under construction, a McKnight Road development called McCandless Crossing is having no trouble finding tenants for its million square feet of retail and commercial space, said Kevin Dougherty, principal of AdVenture Development, a company with offices in Pittsburgh and North Carolina.
"Even in this economy here, we're optimistic based on the good things that have happened in the Western Pennsylvania area," Dougherty said. "Some people are still cautious in certain disciplines in expansion or relocation. ... But we're working with those who are ready to go."
Dougherty said he began purchasing land for the development in 1992. McCandless Crossing will occupy 130 acres and cost about $100 million to build.
New retail developments often follow residential ones, said Bob Hurley, deputy director of Allegheny County Economic Development.
"The majority of high-intensity focus that we've noticed on the retail side is in close proximity to where the new housing is occurring as well, so it's logical," Hurley said.
Two municipalities where development is occurring -- Moon and Robinson -- were in the county's top 10 for population growth between 1990 and 2000, according to the University of Pittsburgh's Center for Social and Urban Research. The populations of both increased 13.5 percent, to 22,290 residents in Moon and to 12,289 residents in Robinson in 2000.
But the number of retail stores in an area stays consistent over time, said Chris Briem, a regional economist with the University of Pittsburgh's Center for Social and Urban Research. New stores in one neighborhood often signal store closings in other neighborhoods.
"Retail development in the region could be reflecting growth in the region, but it could also be reflecting changes going on within the region," Briem said. "There's always going to be movement of folks between counties or within the region, so you're going to see retail development move along with it."
Because of Pittsburgh's hilly and segmented geography, a retailer needs between four and six stores to serve the entire area, Imperatore said.
"As you drive north on McKnight, the demographics get better, so retailers are trying to get in," said Jay Murphy of Echo Retail, retail leasing director for McCandless Crossing.
The desire to have a location on McKnight Road also benefits Ross, said building inspector Dennis Schack.
"It seems like everyone wants to come to the North Hills, and McKnight is like the supermagnet," he said.
Developers believe retailers want to claim their spot in the West Hills, allowing Settlers Ridge in Robinson to begin a 78,000-square foot expansion.
"It's going to create more jobs," said Rick Urbano, Robinson's planning director. "It's a no-brainer: We need all the jobs we can get in this economy."
Local officials say development will increase the taxable value of vacant sites, such as the former West Hills Shopping Center in Moon, where a 151,000 square foot Wal-Mart store has been in the planning stages since 2007.
"Right now, it's not a market where a lot of money is being put into real estate, so it's great that money is being spent to develop these sites in Moon Township," said Adam McGurk, Moon's assistant township manager and planning director. "Any investment in the community is positive in these economic times."
Construction on the Wal-Mart can begin after PennDOT approves the site's traffic plan, according to company spokesman Jason Klipa. The store will bring about 300 jobs to Moon, Klipa said.
Some planned retail developments are so large, they need public money to be feasible, Hurley said.
Newbury Market, an industrial redevelopment under way in South Fayette with 80 acres of retail space and 130 acres of residential space, received $5 million from the state in 2008. The total cost of the development is estimated at $160 million, according to Allegheny County Economic Development. Brett Malky, president of EQA Landmark Communities, which is building the property, did not return calls for comment.
Developers are waiting for leasing commitments before starting construction, said Bob McGurk, who is managing McCandless Crossing for AdVenture Development. Doing so helps spur development, even during rough economic times, he said.
"My belief is that because of the Pittsburgh market and our cost of living, we are able to hold and sustain additional retail," Imperatore said.
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