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It may be just a temporary bump fueled by a number of $100 million-plus projects, but evidence indicates the nonresidential construction market in Western Pennsylvania is holding up pretty well.

With construction started on Westinghouse Electric Co.'s headquarters in Cranberry, the Majestic Star casino on the North Shore, and the Uptown arena for the Pittsburgh Penguins, and with site work under way for the Dick's Sporting Goods headquarters in North Fayette, prospects are good that nonresidential building will top $3 billion this year, according to one industry expert.

It remains to be seen what impact factors such as increased fuel and materials costs will have on the market for the second half of this year and beyond, said Jeff Burd, president of Tall Timber Group, a Ross-based market research company.

"Nonresidential construction was brisk in the second quarter, with more than $1 billion in projects awarded," said Burd, who tracks the market in six counties.

Contracting activity in the first six months of the year totaled $1.58 billion, roughly the same as last year but Burd is not sure if activity for the year will surpass the $3.55 billion mark achieved in 2007.

"The difference between this year and 2007 is that prospects for the second half of the year are not as rosy," he said. "But there are still bright spots."

Those include exceptions that the University of Pittsburgh Medical Center's plans for conversion of Al Monzo's Palace Inn hotel/entertainment complex in Monroeville into a health care facility could move forward this year.

The project could cost more than $200 million, he said.

Another major undertaking is a mental health/ambulatory care center expansion planned at the Veterans Administration Hospital in Oakland.

But a downer for market is likely to be the costs of materials and supplies, including diesel fuel, steel, copper and asphalt, Burd said.

He expects the cost of fuel will decline in the second half of the year but doesn't see other costs falling that much because the demand for basic materials and for skilled labor will remain high.

Real estate notes:

• Bit-x-bit's LLC, a company that provides discovery technology through its forensic work, relocated from the Technology Center, 322 Fourth Ave., to 1,500 square feet in the Frick Building, 437 Grant St., Downtown. In doubling the amount of space it formerly occupied, the company added two employees and now has a five-member staff, said Susan Ardisson, chief executive officer. She said her company has experienced significant growth in the past year and needed to expand its office and laboratory space.

• Arsenal Terminal Warehouse wants approval from the city for a tenant, Scott Electric, to use 7,000 square feet of outdoor area at its 3939 Butler St., Lawrenceville, location for vehicle/equipment sales or limited rental. The Islamic Center of Pittsburgh wants to use a fenced-in playground on the Parkman Avenue side of its two-story structure in Oakland for religious assembly and related activities. Both projects will require Pittsburgh Zoning Board of Adjustment approvals; they will reviewed Thursday,at public hearings in the board's 200 Ross St., Downtown, hearing room.

• The Buncher Co. has relocated from its long-time Squirrel Hill office to the third floor of the Penn Liberty Plaza One building, 1300 Penn Ave., Strip District. No decision has been reached on the future of its former office, which is available for lease, said Thomas J. Balestrieri, chief executive officer.

• Carl Walker Construction has been awarded a $13.6 million contract to build a five-story, 1,000-car garage at the Meadows Racetrack & Casino in Washington County. The 327,000-square-foot garage will adjoin the casino with a firewall separating the two structures. Completion is scheduled in May.

• WTW Architects of Pittsburgh is joining forces with Ellis Ricket & Associates to develop a signature building as welcome center at Valdosta State University in southern Georgia. Construction of the $26 million, 120,000-square-foot student center should begin this summer with completion by fall of 2009.

Transactions:

• The former Skidgy's Restaurant site, 300 Cochran Rd., Mt. Lebanon, will soon be the home of a Northwest Savings Bank office. The bank purchased the property from Eric A. and Karen L. Jones for $800,000, according to a deed filed in Allegheny County. It plans to relocate its branch from 437 Cochran to the new site, said Jim Holdings, a Northwest spokesman.

• Chatham University's expansion at the Shadyside-Squirrel Hill campus includes the purchase of the Haber apartment building, 5801 Fifth Ave., for $825,000 from James C. and Mary S. Haber.

• Daniel R. and Helen V. Sosso have sold a structure on 1.3 acres at 12620 Perry Highway, Pine, to Rite Aid of Pennsylvania Inc. for $2.22 million.

• Sauer Inc. has sold its Lawrenceville property at 30 51st St. to David Reams Jamieson and William M. Robinson, trustees of the Douglas H. Ostrow 2007 Trust, under a lease-back agreement for $1.15 million.

Contributor: Sam Spatter

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