October 18, 2017
Market News

Allegheny Health Network announced a $700 million capital improvement and expansion program on Wednesday morning. The program largely involves investment in community and suburban facilities, a theme that also was at the heart of UPMC's plans to invest $900 million in its facilities over the next 3 years. The plans from these 2 systems - along with a major expansion at St. Clair Hospital and PSU Hershey Medical - bring the healthcare sector roaring back as one of the primary drivers of construction in the region.

AHN's announcement was but one of several in the region that foretell of a major increase in construction in Western PA. Major project in the logistics, energy, petrochemical and technology sectors have created a wave of new construction that will last into the next decade, with as many as three billion dollar projects underway at the same time in 2019-2020.

Panelists Rick Siger from CMU, Pitt's Rebecca Bagley, Scott Andes from the Brookings Institution and moderator Don Smith from RIDC at the PRA/NAIOP Pittsburgh Real Estate Breakfast discussion of innovation districts.

Project News  

Included among the details of AHN's announcement is a new 160-bed hospital to be built in Pine Township next to the Highmark Wellness Pavilion in Wexford. That project, which could run $300 million, is slated to start in mid-2018. AHN expects to put out RFP's for design and construction management within a few weeks. AHN also announced a partnership with Emerus, a Dallas-based developer/operator of "micro-hospitals" to build community hospitals throughout the AHN footprint. There will be four such micro-hospitals initially, one each in the north, south, east, and west suburbs. In other similar markets, Emerus facilities have been in the 40,000 square foot range. In other AHN news, the new 30,000 sq. ft. cancer center in Butler was awarded to the design/build team of Mascaro and Stantec.
At Starpointe, near Burgettstown, Scannell Properties has begun work on a 507,000 sq. ft. distribution center, which is rumored to be for Shell. Go to BuildingPittsburgh to see who is building this center. In other logistics news, Al. Neyer has begun construction of a 220,000 sq. ft. Class A distribution center in Jackson Township near Zelienople and a major retailer is reported to be looking for a site for a million sq. ft. distribution center in Western PA. In other project news, Carnegie Library of Pittsburgh awarded a contract to Massaro Corporation for its $3 million Carrick Branch. Landau Building Co. was selected by WVUH for the $3 million Ruby Hospital OR. PennDOT awarded Beaver Excavating an $87 million contract for the next phase of the Southern Beltway.

To keep up to date with the market check out  BuildingPittsburgh .  
Looking to see what's happening?

If you're planning an event for the construction or commercial real estate industries, check out the Industry Events Calendar at the Tall Timber Group website. (

Double-check what else is going on in the industry on the dates you have in mind. Or check out what events you might want to attend. Interested in posting events? Email us for instructions.  
People News

West Virginia-based East Coast Metal Systems, Inc. (ECMS) officially opened its new 60,000 square foot metal fabrication facility located at 625 Distribution Road in Triadelphia, WV 26059, consolidating former locations in Bellaire, OH and Wheeling, WV.

Mosites Construction & Development announced the promotion of Tony Malanos to vice president of development. Todd Dunaway joined Mosites Construction as director of business development.
Coming Events

NAIOP Pittsburgh Night at the Fights, November 2
NAIOP Pittsburgh's annual Night at the Fights, benefitting Habitat for Humanity, will be held at the Omni William Penn on Thrusday, Nov. 2.  Click to learn more or to sponsor.

Pennsylvania Builders Exchange Cocktail Party, November 10
PBX is holding its annual cocktail party on Friday, November 10 from 6:00 to 9:00PM at the Rivers Casino.  Click to download the invitation/registration.

Allegheny County's Next Boom Town, November 14
Burns & Scalo Real Estate is hosting a breakfast panel on the impact of the Southern Beltway on South Fayette Twp. at the Beacon 1 in Abele Business Park. Panelists include Co. Exec Rich Fitzgerald, Airport CEO Christina Cassotis, Paul Griffith, Rep Ortitay, Gwen Rodi & Jim Scalo.  Click to learn more or buy tickets.

Join Our Mailing List 


Not regularly getting BreakingNews?

Email to be added to the list.




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


Gateway ad