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Comings and goings during the 2006 second quarter left the industrial segment of the Pittsburgh region's commercial real estate market with additional vacant space, a new market report says.

The arrival of a number of new tenants failed to offset the impact of several facility closures. Thus, the vacancy rate for the region's industrial buildings increased to 9.2 percent from 8.6 percent during the period last year, with the available inventory increasing to 10.2 million square feet from 9.5 million, according to Grubb & Ellis Co.'s Industrial Market Trends Pittsburgh report.

On the space debit side, more than 800,000 square feet was added to the inventory by the closure of the American Video Glass plant adjacent to Sony Corp.'s television assembly plant in Westmoreland County, as well as a Sony warehouse in New Stanton, the report said.

But additions to the market included Rehig Penn Logistics' lease of 60,000 square feet at a 540,000-square-foot building in Harmar that last served as a warehouse for Glennshaw Glass Co., Eldorado Properties Corp.'s purchase of a 101,000-square-foot building in East Butler with a plan for PPC Lubricants to lease the property for a distribution facility, Curbell Plastics' lease of 21,000 square feet in Cranberry Township, and Fox's Pizza Den's purchase of a 40,000-square-foot property in Murrysville.

Signs are that the market is on the upswing, according to the company, because inquiries for space have increased and developers continue to put up buildings to meet the demands of the marketplace.

"We expect transaction activity to gain velocity in the second half of 2006," the report said. "We continue to

project positive absorption (the amount of net space filled) for 2006 and increased inventory of quality industrial product."

Louis Oliva, senior vice president-industrial for Grubb & Ellis, said it's not unusual for the market to be flat in the summer, so September and October activity should be a good barometer of how the market will perform.

"There are good opportunities out there," Oliva said.

The Parkway West corridor leading to Pittsburgh International Airport continues to be among the most active segments of the marketplace. There, a new 100,000-square-foot building at the Imperial Business Park recently became available for occupancy, and by year's end, a 40,000-square-foot building at the McClaren Woods Business Park will be completed.

As soon as that building is finished, construction will begin on a 44,000-square-foot building at McClaren Woods.

In the meantime, site work continued during the quarter at the Clinton Commerce Park in Findlay, where the Buncher Co. has announced plans to build a 200,000-square-foot warehouse on a speculative basis, with no tenant pledged in advance of construction. It also hopes to build a second 200,000-square-foot building there later.

The Parkway West corridor has been a prime focus for Allegheny County and economic development officials, who say the region needs large "shovel-ready" sites available when companies looking to expand or move come calling.

The Allegheny County Airport Authority also has about 1,200 acres of useable land around the airport for development.

A key project expected to facilitate development in the region is the $224 million Findlay Connector, which is expected to open in October. The six-mile toll road will link the airport to Route 22 in Washington County.

With water and sewer installation scheduled for completion in 2007, more than 300 acres at Chapman Properties' Chapman Commerce Center and 700-plus acres owned by the Imperial Land Corp., both in Findlay, will be available for tenants or owner-users, Grubb & Ellis notes.

Real estate notes

• ALCO Industries Inc. leased 29,588 square feet at 100 Willow Ave., Oakdale, to Oak Engineered Products, which will use the space to manufacture plastic specialty pet products. Approximately 50,000 square feet is still available in the building. Brokers for the deal were Scott Long and Al Bilecky of the Colliers Penn commercial real estate firm.

• The region's retail market remains strong with only 7 percent of its inventory of 54.79 million square feet of space vacant as of the end of the first half of the year, according to a report by Grubb & Ellis. New stores planned by chains including Nordstrom, Crate & Barrel, Trader Joe's and Stein Mart show the area remains on the national retail radar screen, the report said.

• Permit applications filed for new home construction in the seven-county metropolitan Pittsburgh region during the first six months of 2006 fell slightly from the same period last year, according to the U.S. Census Bureau. Permit requests were filed for 2,768 housing units in the first half of this year compared to 2,785 last year. Of these, 2,321 were for single-family houses, up from 2,292 a year ago.

• South Side Local Development Co. has relocated its office to 2000 E. Carson St., above South Side Steaks.

• Burns & Scalo Real Estate Services Inc. has renewed leases of seven tenants at Bursca Business Park in South Fayette near Bridgeville. The firms, which combine occupy 17,000 square feet, are ASA Corp., ComDoc Inc., Enerfab Corp., General Anesthetic Services Inc., LTCR, New Precision Technology and SBL Kiln Services Inc.

• Howard Hanna Real Estate Services has opened offices at 218 West Main St., Ligonier, Westmoreland County, and in St. Clairsville, Ohio, where Howard Hanna Mid West Realty is located in the Bentley Chiropractic Building.

• An Ann Taylor clothing store will be the newest retail addition at the Streets of Cranberry, a lifestyle center developed by Continental Retail Development in Cranberry, Butler County.

• Remodeling of the Ground Round Restaurant at 960 E. Pittsburgh St., Hempfield, includes work in the dining area, kitchen and restrooms.

• A new Walgreen Pharmacy at 6201 Leechburg Rd., Penn Hills, has been sold by W.D. Penn Hill II Investors Ltd., an Ohio-based firm, to W.G. Penn Hills Pa LLC, out of Phoenix. The purchase price was $5.3 million, according to documents filed with the Allegheny County Recorder of Deeds.

• Lord's International has opened its corporate headquarters at 914 Beaver Grade Road, Moon. The company provides digital cameras, Kodak document imaging services and medical imaging for hospitals and physician offices.

Real Estate Gallery

Al Patricca has joined the Prudential Preferred Realty Butler Office. Prior to his affiliation with Prudential Preferred Realty, Patricca, of Butler, worked as a carpenter.

• Astorino announced the appointment of five professionals: Chris McCune is a custom cabinetry operations manager, Leslie Gardner is a CADD operator, Talia Bearce and Matthew Ryan are architectural interns, and Susan Martelli is an administrative assistant.

• Coldwell Banker Real Estate Inc. announced Karen Brezarich is the new manager of the North Huntingdon office in Irwin. The company also said Debbie Platts, of the North Hills office, and Paula Mecurio, of the South Hills/Upper St. Clair office, have joined fellow sales associates Linda Bloom and Connie Zimmer as site agents for the 151 First Side sales center, 117 First Ave., Downtown Pittsburgh; also, Stephanie Christy and Elizabeth Uziel are new sales associates. Other new Coldwell Banker sales associates are: Barbara Miskolcze at Cranberry, Jamar Robinson at Fox Chapel, Douglas Marciniak at Hampton in Allison Park, Jennifer Reddinger at North Hills, Nicole LeJeune at Pleasant Hills, Cori Prior and Sean Steeves at Route 19/Galleria, April Lynn Eager and Margaret Snyder at Airport/West Regional, and Raymond Bollinger at the Beaver office in Monaca.

The Real Estate Gallery is a listing of promotions, hirings and other personnel moves at area companies. Submitted items should include contact names and telephone numbers. Photographs should bear the names of the individuals. Items may be mailed to: Real Estate, Pittsburgh Tribune-Review, D.L. Clark Building, 503 Martindale St., Pittsburgh, PA 15212 or sent by fax to 412-320-7921. Items may also be sent via e-mail to business@tribweb.com.

Contributors -- Sam Spatter and Treshea N. Wade

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