BreakingNews

BreakingNews

November 17, 2016

Market News

Monday's "Perspectives & Possibilities" seminar presented by NAIOP Pittsburgh and the Pittsburgh Regional Alliance featured seven site selection consultants from around the country who weighed in on the region's strengths and weaknesses. The group was very upbeat, pointing to the strong economic drivers and supportive infrastructure for industrial growth. The decision by Shell to build its cracker in Monaca seemed to be especially impressive to the specialists in heavy industrial projects. On the downside, most expressed concern about the lack of construction-ready sites available.

Kevin Acklin addresses the crowd at the Nov. 14 NAIOP/PRA "Perspectives & Possibilities" event at JLL Center at Tower Two-Sixty

At this afternoon's webinar presented by ConstructConnect, AIA and AGC, the chief economists of AIA and AGC predicted that U.S. construction growth in 2017 would be lower than in 2016. AIA's Kermit Baker forecasts almost flat growth of non-residential overall (5.6% vs. 5.8% in 2016). His expectation is that no segment of the market will be especially strong, with the office market predicted to be the strongest sector, up 7.5%. Ken Simonson from the AGC forecasts growth of 5% to 10% for private residential next year but is less optimistic about non-residential construction, which he sees growing between 2% and 7% in 2017 compared to 7% to 9% in 2016. Simonson sees continued stagnation in public construction, although his forecast is for higher volume than in 2016.

The national shortage of construction workers was a point of concern for both Baker and Simonson. Each reported difficulties in finding adequate staff for design and construction firms. Simonson predicts the tight labor market will push prices higher by 3% to 4% in 2017.

Project News

Allegheny Health Network awarded Mascaro the $3 million Esophageal Lung Institute project at West Penn. UPMC awarded AIM Construction the $6 million Hill Building renovation. Rycon Construction was selected to act as contractor for the $40 million + Station Square Apartments . A. Martini & Co. was selected to do the $2.2 million build-out of Industrious' co-working space in PPG Place. Pitt selected Massaro for its $3 million renovation to the Cathedral of Learning's 14th floor. Pitt is also seeking proposals from construction managers for multiple projects to renovate Posvar Hall, totaling roughly $15 million.

To keep up to date with the market check out BuildingPittsburgh .

Coming Events

MBA YC Holiday Party, December 8

The MBA's Young Constructors annual holiday party benefitting Toys for Tots and Austin's Playroom will be held Dec. 8 at the Buckhead Saloon in Station Square. Learn more about the event or Register at the MBA's website.

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Tall Timber Group is the publisher of BreakingGround and DEVELOPINGPittsburgh magazines and the Pittsburgh Homebuilding Report, and is a consultant for contractors and designers serving the construction and real estate market. For more information about our services, contact Jeff Burd or call:

Tall Timber Group
506B McKnight Park Dr.
Pittsburgh, Pennsylvania 15237
412-366-1857

www.talltimbergroup.com

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