Back for More: Developer Plans More Buildings on Pittsburgh International Airport Land

    Jan. 24, 2022

    By Mark Belko

    Source Pittsburgh Post-Gazette (TNS)

    Jan. 22—A Cincinnati developer has a slew of new buildings in the works near Pittsburgh International Airport.

    Allegheny County Airport Authority board members approved three ground lease agreements Friday with Al. Neyer LLC for the construction of at least three more buildings on authority-owned land.

    At Clinton Commerce Park, Al. Neyer plans to build a 70,000-square-foot structure intended for light industrial on the last parcel of land available to complete that development.

    The facility will be the seventh built by Al. Neyer at the office park, which currently houses nine buildings. To date, 2.3 million square feet has been developed.

    Brandon Snyder, vice president and Pittsburgh market leader for Al. Neyer, expects to see good demand for the new building, saying there are few opportunities currently for tenants looking for 40,000 to 70,000 square feet of space.

    The ground lease for the 4.86 acres of land will run for 50 years. It will pay the authority $46,574 in the first year, with rates increasing over the term.

    At the Skyview business park adjacent to Industry Drive, Al. Neyer is planning a 109,000-square-foot building to be completed next year.

    The new structure will supplement a 270,000-square-foot building the developer is now erecting. It is to be finished this summer.

    Mr. Snyder said the two-building park is designed to attract distribution and logistics tenants. Al. Neyer is talking to prospects, although it does not have any signed deals.

    "The tenants we are seeing in the market are more distribution-oriented," Mr. Snyder said.

    The 50-year Skyview ground lease for 6.6 acres of land will pay the authority $57,499 in the first year, with increases over the term.

    At the authority's Northfield business park, Al. Neyer is planning to construct a 175,000-square-foot building on 13.65 acres that once was leased to Dick's Sporting Goods. It is one of four buildings totaling 700,000 square feet the developer is proposing at the site.

    Al. Neyer is targeting life science, technology, and manufacturing companies for the Northfield project, Mr. Snyder said. Like the others, the building is being developed without a signed tenant.

    The airport authority will receive $172,432 in the first year of the 50-year ground lease on the 13.65-acre parcel.

    Al. Neyer has made a name for itself in the airport corridor. Overall, it has 11 buildings that are either finished or under development.

    Airport land is attractive, Mr. Snyder said, because it generally has the infrastructure in place needed for development and is close to major highways.

    The e-commerce boom, he noted, has been one of the big drivers of development. Amazon, for example, has a huge warehouse near the airport.

    "It's not far from the city and is close to densely populated areas," Mr. Snyder said of the airport region. "That's why it's been a focus of e-commerce."

    David Storer, director of commercial development for the airport authority, said the agreements with Al. Neyer were reached after a request for proposals was issued.

    The authority selected Al. Neyer based on a number of factors, including the type of development planned and the financial compensation involved.

    Mark Belko: [email protected] or 412-263-1262

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