BreakingGround September October 2025

THE MAGAZINE OF THE MASTER BUILDERS’ ASSOCIATION OF WESTERN PENNSYLVANIA

RETAIL

MARKET UPDATE

SEPT/OCT 2025

Overhead Door Co. of Greater Pittsburgh™ CSI Divisions 08, 10, 11 | (412)781-4000 | info@ohdpgh.com Your local garage door experts

Reliable Heat.

Lower Costs.

Building Success Starts with Peoples Natural Gas. Why pay more for temporary site heat? Natural gas is cost-effective, dependable, and always ready. Work with Peoples Natural Gas to plan ahead, install your gas line early and tap into an energy source you can rely on.

Scan here or visit Peoples-Gas.com/constructionheat to prepare your site today.

Making Your Life Better.

Industry Intelligence. Focused Legal Perspective.

Unparalleled Value.

HIGH-YIELDING RESULTS.

Construction Litigation

Contracts & Business Services

Workforce Services

Environmental & Regulatory

Energy & Natural Resources

Public Sector

We are critical thinkers who are focused, driven and cost effective in everything we do.

Meet our attorneys at babstcalland.com.

PITTSBURGH, PA | CHARLESTON, WV | HARRISBURG, PA | LAKEWOOD, NY | STATE COLLEGE, PA | WASHINGTON, DC

rn

2025

Contents PUBLISHER Master Builders’ Association of Western PA www.mbawpa.org MANAGING EDITOR Ben Atwood 412-922-3912 ben@mbawpa.com EDITOR Jeff Burd jburd@talltimbergroup.com PRODUCTION Carson Publishing, Inc. Kevin J. Gordon ART DIRECTOR Carson Publishing, Inc. GRAPHIC DESIGN Blink Advertising blinkadvertising.com CONTRIBUTING PHOTOGRAPHY American Subcontractors Association of Western PA CREW Pittsburgh Denmarsh Photography Henne Jewelers Mascaro Construction, L.P. Massery Photography Master Builders’ Association of Western PA NAIOP Pittsburgh Nala Marketing Rycon Construction Shannon Construction Turner Construction Co. SPONSORSHIP DIRECTOR Mary Chuderewicz mchuderewicz@mbawpa.org MORE INFORMATION: BreakingGroundTM is published by the Master Builders’ Association of Western Pennsylvania, 412-922-3912 or www.mbawpa.org Archive copies of BreakingGroundTM can be viewed at www.mbawpa.org No part of this magazine may be reproduced without written permission by the Publisher.

All rights reserved.

On the cover: Henne Jewelers

05 PUBLISHER’S NOTE

43

MANAGEMENT PERSPECTIVE Bridging Documents and DesignBuild Warranties: Building Bridges to Avoid Pitfalls

47

BEST PRACTICE Designing for Safety: How Prevention through Design Can Transform the Built Environment

53

INDUSTRY & COMMUNITY NEWS

07 REGIONAL MARKET UPDATE 13

NATIONAL MARKET UPDATE

17

WHAT’S IT COST?

18

FEATURE Retail Market Update

31

PROJECT PROFILE Henne Jewelers Expansion and Renovation

37

LEGAL PERSPECTIVE New OSHA Rule on Personal Protective Equipment

39

FINANCIAL PERSPECTIVE Navigating the OBBBA Era: Strategic Tax Planning for the Construction Industry

59 AWARDS & CONTRACTS 61

FACES & NEW PLACES

65

2025 NAIOP PITTSBURGH BUYERS GUIDE

80 CLOSING OUT Kevin Dougherty President, Adventure Development, LLC

This information is carefully gathered and compiled in such a manner as to ensure maximum accuracy. We cannot, and do not, guarantee either the correctness of all information furnished nor the complete absence of errors and omissions. Hence, responsibility for same neither can be, nor is, assumed.

BreakingGround September/October 2025

3

5 HOT METAL STREET

PITTSBURGH, PA 15203

THE WESTERN PA CHAPTER, NECA

EMPOWERING LIVES & COMMUNITIES SINCE

1946

WWW.WPANECA.COM

#WEPOWERPA

2024

PUBLISHER’S NOTE

A

fter looking at the economics of the retail industry for the past month, I get the uneasy feeling that we are heading towards a shift in consumption that could reset the U.S. economy. The fundamentals of retailing are diverging rapidly. On the demand side, consumers continue to have a strong appetite for goods and services. On the supply side, however, things are less stable.

Retailers are facing some difficult challenges. There is a shortage of desirable space to rent. Construction of new space is a fraction of what it was, and of what is needed. Thus far, rents are not growing faster than normal, but that will not be true for much longer if development remains constrained.

The other element of supply, the merchandise, is facing the dual challenge of high tariffs and high cost of sales. The current trend for the cost of retailing is turning higher towards an unsustainable path.

Should these trends continue, there will be a tipping point for consumers. If the cost of goods rises by double digits at the same time rents do, prices will push consumers to keep their wallets in their pockets. We will reach a point of imbalance that will be followed by a rebalancing. We call those periods recessions.

Maybe that is where we’re heading, an old-fashioned correction that causes mild unemployment and lasts less than a year. But when you look at the underlying fundamentals of consumption, it is not hard to see how something more drastic could be on the horizon.

The U.S. economy rides on the backs of consumers. While that has been true since the industrial revolution, the degree to which U.S. domestic output relies on consumption elevated considerably during the late 1980s-1990s. In 1960, when the population was 181 million and GDP was $542 billion, consumers accounted for 62 percent of the economy.

That share of the economy is almost eight percentage points higher today, when GDP is $29 trillion. More enlightening is a comparison of the consumer share of GDP per capita.

Consumer per capita share of GDP accounted for almost $60,000 per person in 2024. In 1960, consumer spending as a share of GDP was less than $2,000 per person.

There are good explanations for why this need not be a problem. Productivity is dramatically higher today. The taxes we pay are also dramatically lower today, leaving us with more disposable income. The median earner paid 30 percent federal income tax in 1960 compared to today’s 22 percent.

Those earning $100,000 – or roughly $1 million today – paid 75 percent in federal tax. Today, that rate is 37 percent. Data on household debt shows Americans pay less than 12 percent of their income for loans of all types. The personal savings rate is lower, about 4.5 percent vs. 10 percent in 1960, but about the same as it has been since 1997. Setting aside the difference in social attitudes about consumption today vs. 65 years ago, Americans do not seem to be out over the tips of their skis.

What looms as a tipping point is the change in attitude about free trade, which has sparked the widespread application of tariffs. There are mountains of data that show that Americans are far better off today because of freer trade policies over the past 30 years. But those policies have also led to a hollowing out of the manufacturing base. Millions of U.S. manufacturing jobs moved overseas. That means millions of voters have good reason to be unhappy about freer global trade. It is easy to see how a trade policy that makes it more expensive to buy goods made overseas would be popular.

Throughout U.S. history, high tariffs have not proven to accomplish the goals of imposing them. But let’s assume they do in 2025. Assume that U.S. companies (and perhaps more foreign-owned firms) move operations back to the U.S. Assuming those companies can find workers willing to work in manufacturing (an assumption that does not have great support in reality today), how will that trickle down to the market? How much will a toaster or television cost that was made in an American factory? How much must an American factory worker be paid to produce a $30 toaster or a $219.99, 54-inch smart TV? How many toasters and smart TVs will be made by robots?

It isn’t hard to see a very different consumption landscape by 2030 if tariffs remain in place and manufacturers move more goods production to the U.S. Things will cost more.

Consumers will not be able to purchase as many things. That will mean people who have lower incomes will make do with less, as was the case in 1960. Such an environment will be tough on the category-killer retailers like WalMart, Target, and the like. The shortage of Class A space to rent will no longer be a problem.

This is not necessarily an apocalyptic vision of society, although it will require some painful readjustment. It would not hurt to have Americans consume less and save more.

Using tariffs as a tax that brings down government debt would ease that burden on future generations, assuming some federal administration stops increasing spending. U.S. consumers would likely demand better quality and durability out of the more expensive goods they purchase. In some ways it would be more like 1960 again.

But getting back to 1960 should not be the goal. Six decades of progress should not be thrown away, even if some of the effects of progress aren’t desirable to you. Tariffs are a tax on consumption, and a regressive one at that. Progress, even when it was messy, has benefitted American society for almost 250 years. Regress seems like a bad policy goal.

BreakingGround September/October 2025

5

It’s a win-win for our region when labor and business are aligned.

At Pittsburgh Works Together, we cover the impact of labor and business on Western PA’s economic health.

Access research briefs, data insights and expert analysis at pghworks.com.

Pgh WorksTogether

Pgh_works

PittsburghWorksTogether

PghWorks

REGIONAL MARKET UPDATE

BY BEN ATWOOD AND JEFF BURD

T

he combination of higher construction costs, higher borrowing costs, vanishing federal grants and support, and general economic uncertainty made the typical late summer slowdown somewhat slower than usual.

Contractors tend to judge the market by the week’s bidding activity, but the current market conditions are not just leading to fewer opportunities to bid. Requests for qualification and/or proposals have slowed. More ominously, reports of layoffs at architectural and engineering firms are increasing in frequency, raising concerns about the opportunities for construction in 2026.

To a large degree, the concerns about the current market are probably overblown. According to Tall Timber Group, there have been $2.8 billion in nonresidential and commercial starts through August 31. Moreover, a number of the highprofile projects that have been on hold throughout the year, especially multi-family projects, are looking like they will get underway in 2025. But pessimism about the bread-andbutter projects in the Pittsburgh market, particularly in higher education and healthcare, is well founded.

The higher education market is somewhat upside down compared to 2023. The region’s powerhouse research institutions, University of Pittsburgh and Carnegie Mellon University, were in the midst of investing more than $1 billion in capital projects at that time, including half dozen projects over $100 million. The numerous small colleges and public universities were struggling with declining enrollment and under-invested facilities. Many observers expected the failure of one or more small colleges during this decade. The fate of the PA System of Higher Education (PASSHE) institutions was uncertain.

Pitt and Carnegie Mellon have seen more than $200 million in federal research funding cuts, leading both to cut overhead

Healthcare institutions have been under financial stress since the pandemic, which was limiting the capital budgets at the region’s hospitals. Cuts in research funding by the Trump administration, along with cuts in Medicaid and potential changes to Medicare, have added more financial uncertainty to the outlook for healthcare providers. Construction at the two major healthcare systems in Western PA, Allegheny Health Network (AHN) and UPMC, is limited to smaller clinical renovations, infrastructure modernization, and parking garage modernization.

UPMC’s $1.2 billion flagship Heart and Transplant Hospital is roughly 80 percent complete, although construction will continue through 2026. No other major capital projects are moving forward at UPMC as the third quarter of 2025 ends.

At AHN, progress on its new hospital at the Canonsburg General Hospital site has stalled, as new leadership at AHN reviews the project. If given the green light, construction of the new hospital will commence again in spring 2026. A $48 million parking garage at West Penn Hospital is moving into design but no schedule for construction has been approved.

Pittsburgh Manufacturing Employment

95

Manufacturing Employment (In Thousands)

Two years later, PASSHE still faces an uncertain future, but new buildings are underway on two Western PA campuses. Small colleges, notably Allegheny College, Grove City College, and Washington & Jefferson College, have seen a surge in giving from Baby Boomer alumni, unlocking what will be more than $300 million in construction projects built in the latter half of the decade.

expenses. Two major projects at Carnegie Mellon, the R.K. Mellon Hall of Science and the Robotics Institute at Hazelwood Green, are still in construction, but the next major project has not been identified. Construction is well underway on Pitt’s Student Recreation Center, Sports Performance Center, Fifth and Halket, and the Bioforge at Hazelwood Green; however, the balance of Pitt’s most recent master plan will likely be reevaluated before any new major project begins. The most pressing need at Pitt, more student housing, is being addressed by private developers. Plans for a mid-campus residence hall on Fifth Avenue are again on hold.

90

85

80

75

2018-01-01

2020-01-01

2022-01-01

2024-01-01

Source: Bureau of Labor Statistics

BreakingGround September/October 2025

7

Pittsburgh Multifamily: Deliveries, Absorption, and Vacancies

1,500

10.00%

1,000

7.50%

500

5.00%

0

2.50%

Mellon has generated countless headlines, the uptick in power generation applications for natural gas has activated the Marcellus Shale players to expand their operational activities for the first time in a decade. The combination of limited power availability on the grid and an anticipated surge in power demand from industrial and data center development is creating the need to generate electricity on site, which typically involves gas-fired technology.

This increase in demand for energy generation is rippling through Western PA. GE Vernova has announced a $100 0.00% (500) million investment to expand its Speers, Absorption Net Deliveries Vacancy Pittsburgh Vacancy United States PA, electrical switchgear capacity. Cumi America, which has businesses in The vacancy rate for multi-family properties has fallen steadily since the beginning of 2024, mining, fusion, and renewable energy, despite increased new construction, in contrast to the national vacancy rate. Source: CoStar agreed to lease a 90,277 square foot building under construction now at Against this deterioration of education and healthcare activity, Imperial Business Park. there is renewed activity in other sectors that are offsetting the lower construction volume at colleges and hospitals.

Unlike many of the mega projects receiving headlines in recent months, there is significant progress on the repurposing of The energy sector has been one of the most active in the the former Homer City power plant site in Indiana County.

Pittsburgh market all year. Although the summit at Carnegie

8

www.mbawpa.org

Housing Inventory: Active Listing Count In Pittsburgh 8000

6000

Active Listings

Construction has begun on the $15 billion redevelopment to create 4.5 gigawatts of electricity for future data centers. Homer City Redevelopment awarded the excavation contract and hired Kiewit Power Constructors as engineering-procurement-construction (EPC) contractor. Kiewit intends to selfperform large portions of the project but has been developing scopes of work for major packages, worth billions of dollars, that will bid to regional contractors. Some of these contracts have been awarded, while most will bid as the project develops throughout the balance of the decade.

4000

2000

Pittsburgh-based International Electric Power III LLC has been meeting with local construction companies about Source: National Association of Realtors, Federal Reserve Bank of St. Louis its proposed 1,400-acre data center in Greene County. In addition to the Two of the larger projects in Allegheny County Sanitary multibillion-dollar data center, Essential Utilities recently Authority’s (ALCOSAN) multi-billion-dollar Wet Weather announced its Aqua unit would design an 18 million-gallonEqualization Program should be under construction by year per-day water treatment plant to support the cooling needs end. The authority is taking bids on the $325 million Wet of the data center. No construction schedule has been Weather Pump Station on October 2 and is scheduled to open announced but the gas power turbines are reported to be bids for the $750 Ohio River Tunnel on November 24. The two scheduled for delivery in 2028, with a plant opening in 2029. major ALCOSAN projects will add $1 billion to the Pittsburgh 0

2020-01-01

2021-01-01

2022-01-01

2023-01-01

2024-01-01

2025-01-01

POWER ON POWER ON POWER ON BreakingGround September/October 2025

9

PROJECT FEATURE

Pittsburgh Athletic Association Pittsburgh, PA

BUILDING ABOVE AND BEYOND At PJ Dick, we follow a simple 3-step process for serving our customers: Go above.

Go beyond. Repeat.

Make your mark, make a difference, and make history.

Build with us!

The extra mile is our commitment to you.

Trust your next construction project to PJ Dick.

. Healthcare . Higher Education . Sports + Entertainment

PJDICK.COM Scan the QR code to check out our website!

. Multi-Family (412) 807-2000

. Commercial Space

INFO@PJDICK.COM

. Mixed Use . Transportation Infrastructure

construction market over the next three years. Similar tunnel projects for the Allegheny River and Monongahela River are scheduled to start in 2029 and 2031 respectively.

In the K-12 market, several larger projects have been or will be advertised for bids in early fall. Carlynton School District has its $16 million Carnegie Elementary School project back out for bid after a reduction in scope from the April bids that were over budget. Likewise, the $20 million Mars Area Elementary School expansion, which originally bid in May, will be re-bid in late September. Massaro CM Services is scheduled to advertise two projects estimated to cost $30 million combined at Lincoln Park Performing Arts Charter School in Midland, PA. The Event Center and Arts and Science Center should go out to bid in mid-October.

Design is nearing completion on two major projects that have been in the pipeline since before the pandemic. Bids on the $90 million Quaker Valley High School building were scheduled to be taken in November, but delays in permitting have pushed bidding into the new year.

Hempfield Area School District reviewed the most recent 3-D drawings for its $150 million high school addition and renovation, which the district hopes to advertise for bids after the year-end holidays.

The fundamentals of the Pittsburgh economy continue to outpace those of the U.S. economy overall. Stable employment and wage growth are supportive of commercial real estate, although the environment for new development is still challenging. And supply constraints are keeping new housing construction from meeting demand.

Pittsburgh’s labor market showed signs of both resilience and adjustment in July. The civilian labor force expanded modestly to 1.24 million, up slightly from May, while total employment held steady at 1.18 million. Total non-farm employment stood at 1.22 million, about 1.8 percent higher than a year earlier. The unemployment rate ticked up to 4.2 percent, with the highest year-over-year jumps in unemployment, 0.4 percent, being felt in Westmoreland and Washington counties.

Industry level performance was mixed. Construction continued a steady climb in employment through mid-year, despite showing a year-over-year decline, while manufacturing declined. Government also experienced a notable drop, as employment fell to 113,400, nearly 6,000 below March levels. Growth came from professional and business services, financial activities, and particularly education and health services. Leisure and hospitality also posted solid gains, up three percent year over year.

Over the past two years, manufacturing employment in the Pittsburgh metro has edged lower. As of July 2025, the Bureau of Labor Statistics index stood at 85.6, compared to 87.9 in July of 2023. That represents a decline of roughly 2.7 percent over the 24-month period. The numbers suggest the region has not been able to regain momentum, instead showing a gradual easing of employment levels. For context, the index uses 2017 as its baseline year (set equal to 100), meaning Pittsburgh’s manufacturing workforce is now sitting about 14

percent below that benchmark. Month by month, the series has fluctuated slightly over the past twelve months, but no significant upward movement upsets this broader trend.

While the declines have been modest, the lack of sustained recovery underscores the headwinds facing the sector.

Though the data oscillates seasonally, the number of active home listings around Pittsburgh has risen noticeably. As of July, there were 5,101 listings, compared to 3,827 in July of 2023, according to the National Association of Realtors. That’s an increase of roughly 1,274, or 33 percent, signaling an ongoing loosening in housing supply. Month to month, the data shows a steady upward trend through 2024 and into 2025, with listings climbing from the mid-3,000s into the low 5,000s by summer.

While still low compared to pre-2019 historic norms, this twoyear increase represents a significant shift.

This is not having much of an impact on pricing, though. In July, the median listing price for homes reached $252,278, compared to $242,950 in July of 2023. This represents an increase of nearly four percent in the two-year span. While the gain is modest compared to the double-digit jumps seen during the pandemic, it signals that prices remain on an upward trajectory, despite the influx of listings.

CoStar reports that office vacancies have ticked up 50 basis points in Pittsburgh year over year, and at 11.7 percent, vacancies are at the highest level since the global financial crisis. Year-over-year absorption, a measurement of office demand, is very slightly in the red. Despite being negative, this is a win for the region’s office owners, who saw millions of square feet hit the market post pandemic and is another sign that office deterioration is slowing. Pittsburgh remains somewhat insulated from the broader office struggles due to limited development, so local vacancies remain under the national rate of 14.1 percent.

Multi-family continues performing well. Vacancies ticked up in time with new deliveries but remain firmly under control at 5.6 percent. Modest levels of construction (there are currently 2,800 units underway) will likely cause vacancies to climb over the next 12 months; however, the amount being built will not cause major disruptions to the supply-demand balance. The uptick in vacancies has had no impact on rents, which climbed by nearly three percent year after year. This compares favorably to the national benchmark of one percent and is in line with the ten-year averages for Pittsburgh.

The fourth quarter of the year is typically a leading indicator for the year that follows. Pittsburgh’s two largest projects, the new airport and the UPMC Presbyterian tower, are nearing completion. Those projects have provided a strong foundation for the construction industry since the end of the pandemic, even as the mainstream of the regional construction market ebbed and flowed. Several opportunities for billion-dollar projects are on the horizon that would support thousands of construction jobs. With the global economy slowing, the start of construction at U.S. Steel, Homer City, or one of the data centers being proposed would keep the Pittsburgh market from feeling the worst effects of economic turbulence in 2026. BG

BreakingGround September/October 2025

11

Construction Experience

You Can Build On Bowles Rice continues to expand its respected construction law practice into Pennsylvania, Ohio, and beyond. Our senior construction attorneys in Pennsylvania have over 90 years of construction experience between them, representing every facet of the construction industry—from general contractors, subcontractors, suppliers, and developers to design professionals and municipal and private owners. We focus on providing responsive, efficient, and cost effective representation for our construction industry clients. We understand the business, and we understand the law that you will be required to navigate and overcome to be successful.

• Contract Negotiation and Formation

• Delay, Disruption and Acceleration Claims

• Project Delivery System Analysis

• Federal and State Prevailing Wage Issues

• Project Management Assistance

• OSHA Compliance and Citations

• Dispute Avoidance and Dispute Resolution

• Bid Disputes

• Payment and Performance Bond Claims

• Employment Disputes

• Mechanics’ Lien Claims

Brad Mellor bmellor@bowlesrice.com

Damon Thomas dthomas@bowlesrice.com

Tom Weiers tom.weiers@bowlesrice.com

• Prompt Payment Act Claims • AAA Arbitration/Mediation Panel Members

bowlesrice.com 1800 Main Street • Suite 200 Canonsburg, PA 15317 Responsible Attorney: Taylor Frankovitch

CHARLESTON, WV • MARTINSBURG, WV • MORGANTOWN, WV • PARKERSBURG, WV • SOUTHPOINTE, PA • WINCHESTER, VA

NATIONAL MARKET UPDATE

E

BY BEN ATWOOD

conomic distress signals began flashing this summer, increasing concerns about cooling job growth, economic fallout from President Trump’s sweeping tariffs, and heightened inflation.

The most surprising was the sudden decline in employment growth and downward revision to prior month’s labor figures by the Bureau of Labor Statistics (BLS). The data showed non-farm payroll rose by just 73,000 in July and 22,000 in August, well below expectations. Additionally, prior monthly job data was revised downward and the unemployment rate edged up to 4.3 percent. Broader joblessness, including discouraged and underemployed workers, also climbed to the highest level since early 2022.

Most of the limited hiring came from health care and social assistance, while sectors like professional services and government shed jobs. Wage growth remained steady, but the household survey showed a dip in employment and a drop in labor force participation.

Private payrolls rose modestly in August, according to payroll processor ADP. The September 3 monthly ADP National Employment Report for the U.S. showed a gain of 54,000 jobs, below expectations.

These metrics point to a slow but persistent cooling of the job market, raising concerns about how much longer the broader economy can remain resilient in the face of trade

tensions. The weak data added urgency to political pressure from President Trump, who continues to demand aggressive rate reductions from Federal Reserve Chair Jerome Powell.

Despite headline gross domestic product (GDP) growth showing strength in the second quarter, the Federal Reserve declined to do so. The board’s meeting notes cited concerns that much of that growth was driven by temporary trade distortions and inflation lingering over two percent, suggesting a fragile economic underbelly.

Soon thereafter, an August BLS data release showed an unanticipated rise in the producer price index (PPI). These rose sharply in July, signaling renewed inflationary pressures that further complicate the Federal Reserve’s path forward.

Wholesale prices climbed 3.3 percent year-over-year, well above the Fed’s two percent target. The 0.9 percent monthover-month growth was the largest spike in over two years and even when stripping out volatile categories like food and energy, price growth remained elevated.

This suggests inflation is spreading across a broad range of goods and services, and construction related indexes reflect it. Of the 78 main inputs to construction, 11 rose by more than one percent compared to seven in June, while 43 rose by less than one percent. Overall inputs for construction climbed by 0.4 percent, led by a sharp 4.1 percent jump in energy. Subcontractor costs also moved higher, particularly for concrete and roofing work in nonresidential projects. The steepest increases came in diesel fuel, aluminum mill shapes, and copper and brass shapes.

Year-over-year comparisons highlight broader pressures, with 25 indexes up over three percent since July of 2024.

Fabricated steel plates, aluminum products, and architectural metal work posted the largest annual gains, suggesting tariff impacts may be filtering into materials.

Total construction spending in the U.S. has declined in five of the past six months. Source U.S. Census Bureau.

This coincided with another monthly decline in total construction spending.

The June release of the U.S. Census Bureau’s construction spending data showed a slippage of 0.4 percent from May to June. That is an annualized rate of $2.14 trillion, and nearly 3 percent lower than a year earlier. Through the first half of the year, spending totaled just over $1.03 trillion, about 2.2 percent below the same period in 2024, reflecting a broader cooling trend in the sector.

BreakingGround September/October 2025

13

Private construction was the main drag, falling 0.5 percent overall as residential spending declined 0.7 percent and nonresidential dipped 0.3 percent. Public construction was little changed from May, with small increases in education and highway projects.

Intriguingly, broader inflation impacts for consumers remain modest. July’s strong PPI contrasted with a relatively tame consumer price index (CPI), which rose by 0.2 percent from June. Key tariff-sensitive sectors like new vehicles barely moved, suggesting businesses may still be absorbing much of the added costs. This eased some concerns about tariff price pressure on consumers, and reinforced hopes for interest rate cuts. Still, economists cautioned that price increases could build in the months ahead as tariff effects spread more fully through supply chains.

Despite the modest inflation, consumers are getting anxious again. The University of Michigan’s August report on consumer sentiment showed that consumer sentiment slipped for the first time in four months, falling about five percent. The sharpest drop came in buying conditions for durable goods, which plunged 14 percent to their lowest level in a year as households balked at high prices. Assessments of current personal finances also weakened, reflecting unease about eroding purchasing power. By contrast, expectations for future finances improved slightly, supported by modestly firmer income outlooks, though these remain muted overall.

Inflation expectations moved higher on both short- and long-term horizons. Year-end expectations rose from 4.5

Source: ADP National Employment Report.

percent to 4.9 percent in July, with the increase cutting across demographics and political affiliations. Long run expectations also climbed to 3.9 percent from 3.4 percent. While these levels remain below the peaks recorded earlier in the spring, the reversal ends several months of decline and suggests ongoing anxiety about tariff related inflation seeping into day-to-day life.

Goldman Sachs continues forecasting that this is what will happen in the coming months. In August, their Chief Economist David Mericle defended the bank’s analysis after Trump publicly criticized Goldman and mocked its leadership for publishing a report stating that higher producer prices would filter down to consumers by fourth quarter. The firm’s research suggests U.S. consumers could end up shouldering about two-thirds of the tariff costs, reversing the current trend where companies and exporters have borne the burden.

According to Goldman’s modeling, this shift would push core inflation higher, with CPI expected to reach 3.2 percent by year’s end.

That would place it well above the Federal Reserve’s two percent target and raise pressures on households already squeezed by higher living costs. The report also notes that some U.S. producers shielded from foreign competition may take advantage of tariffs by hiking prices further, amplifying the effect on consumers.

Consumer sentiment has recovered from post-pandemic lows in April and May. Consumer spending remains with two percent of year-end 2024 levels. Source: University of Michigan Consumer Sentiment Index, U.S. Bureau of Economic Analysis, Federal Reserve Bank of St. Louis.

14 www.mbawpa.org

Goldman still expects the Federal Reserve to deliver rate cuts later this year, citing the recent weakness in job growth, believing that the labor market will weigh heavily in Fed decision making. Markets are currently betting on cuts at each of the three remaining meetings in 2025, reflecting the expectation that slower growth will outweigh tariff driven price increases in the Fed’s policy calculus.

In early August, Vanguard issued a report indicating that it believes that the Fed’s communication following its July meeting leaned mildly against a September rate cut, but that stance will likely pivot now toward prioritizing employment weakness. With policy rates still roughly one percentage point above what Vanguard considers neutral, the firm expects two rate cuts before year end to cushion the economy against tariff pressures and slowing job growth. They expect the economy to stay on course with modest growth, projecting GDP at around 1.5 percent and core inflation near three percent by the end of 2025.

ORGANIC

Vanguard also raised its baseline assumption for the effective U.S. tariff rate to about 17 percent by year-end, reflecting recent trade developments that reduced uncertainty. It cautioned that the ultimate impact would depend on how foreign investment agreements and the delayed pass-through of tariff costs to consumers unfold.

Interestingly, the domestic warning signs coincided with distress signals abroad. June’s trade figures from EuroStat show the European Union (EU) under mounting economic pressure. The EU’s trade posted an $8.7 billion trade surplus that month, down over 60 percent from the surplus a year prior. Imports surged by 6.4 percent while exports remained flat, signaling a structural imbalance. Month to month, the surplus also plunged nearly 39 percent from May to June.

The trade relationship with the U.S. has become particularly strained. Imports from America rose 16.4 percent in June while European exports to the U.S. fell by more than 10 percent, cutting the EU’s surplus with its biggest partner neatly in half.

This downturn coincides with President Trump’s escalating tariff strategy, which saw duties raised to 10 percent in April and automotive tariffs reaching 25 percent before the July agreement that imposed a 15 percent blanket tariff on most European goods.

The economic impact is spilling into growth and production figures. Eurozone GDP slowed sharply in second quarter of 2025, expanding only 0.1 percent after 0.6 percent in the first quarter, with Germany slipping into contraction. Industrial output dropped, particularly in capital goods manufacturing, as export orders faltered.

Rooted in Pittsburgh, our client demand expanded the firm’s reach to 19 offices in 10 states.

Call us for construction and surety-related questions.

Since April’s sweeping and unprecedented implementation of tariffs, there has been something of a disconnect between the economic fears often expressed in the media and the relative tranquility of each subsequent month’s economic data. Dramatic downward swings in the stock market were quickly negated by rapid growth, while inflation, production, and employment all remained stable.

But the economic data from the past two months indicate a cooling is coming. It’s currently reflected in the upward trajectories of PPI and unemployment figures, as well as in the ongoing decline of total construction spending. Day-today inflation remains under control, but major institutions are forecasting this to rise in the coming months, which would increase the chances that consumption will slow enough to cause a recession. BG

William D. Clifford & W. Alan Torrance, Jr. Included in The Best Lawyers in America 2023 Commercial Litigation, Construction Law, and Litigation-Construction 412-281-7272 BreakingGround September/October 2025

15

www.volpatt.com

#WeAreVolpatt commercial industrial institutional

WHAT’S IT COST?

BY BEN ATWOOD

J

uly’s Bureau of Labor Statistics (BLS) data indicates that the impacts of President Trump’s sweeping tariffs are potentially appearing in construction pricing.

The most telling sign was the unexpected 0.9 percent month-over-month rise in the Producer Price Index (PPI). This growth significantly exceeded the forecasted 0.2 percent rise and was one of the largest spikes of the past three years.

The PPI series tracks how much prices are changing for the goods and services businesses and suppliers sell and shows how much more (or less) it costs to make or deliver products.

When the PPI rises, it typically indicates that upstream costs are heating up and the BLS data shows this happened in July.

Of the 78 BLS indexes related to construction, 11 rose by over one percent from June to July and 43 rose by less than one percent. This is an increase in price hikes from what the data showed for those same series from May to June, when seven indexes climbed by over one percent, and 48 by less than one percent.

Inputs for construction industries climbed by 0.4 percent from June to July, with the largest growth in the energy sector, which saw an upward push of 4.1 percent.

Subcontractor prices rose by 2.3 percent for concrete contractors in nonresidential building work, while roofing contractors in that same sector saw month-overmonth change of 1.3 percent.

The largest monthly increases of individual indexes were seen in #2 diesel fuel (11 percent), aluminum mill shapes (seven percent), copper and brass shapes (six percent). Comparing July of 2025 to that same month in 2024 shows 25 indexes have risen by over three percent, with the largest year over year gains experienced in fabricated steel plates (14.3 percent), aluminum mill shapes (13.6 percent) and ornamental and architectural metal work (9.2 percent).

This type of increase hints that the impact of tariffs is on the horizon; however, it remains too soon to tell if this is the start of a trend or just an anomaly. In January of this year, the PPI registered at 0.95 then dropped quickly, declining in April.

In 2022, when inflation began heating up, the PPI rose by over one percent in

five of the first six months. Additionally, the consumer pricing index (CPI) remained relatively stable with a month over month change of 0.2 percent, indicating that producers have yet to pass on the costs to consumers.

Price increases are less likely to be passed on to businesses when market conditions are deteriorating. While construction activity has slowed globally and nationally, demand for construction remains elevated. July’s jump in producer prices is certainly a reflection of cheaper, pre-tariff inventories burning off. That may mean that prices will again stabilize between July and August, when global trade deals were set to be completed. It is likely that it will be until the September PPI reading before judging if the construction market is absorbing or passing along tariff-based hikes). BG Change Since June-25

Jul-24

Feb-20

Consumer Price Index (CPI-U)

0.2

2.7

24.9

Producer Price Index (PPI For Final Demand)

0.9

3.3

26.7

Final Demand Construction

0.6

1.1

37.9

Construction for Private Capital Investment

0.6

0.9

40.5

Construction for Government

0.6

1.4

33.3

Construction (Partial)

0.6

1.4

35.4

New Nonresidential Building Construction

0.6

1.0

39.0

New Warehouse Building Construction

1.0

0.6

44.5

New School Building Construction

0.7

1.1

33.1

New Office Building Construction

0.3

1.0

45.2

New Industrial Building Construction

1.0

1.8

42.1

New Health Care Building Construction

0.5

0.6

33.9

Concrete Contractors

2.3

4.1

35.6

Roofing Contractors

1.3

4.6

57.3

Electrical Contractors

-0.1

0.5

31.8

Plumbing Contractors

0.3

1.5

30.0

New Nonresedential Construction

0.5

2.6

41.6

Architectural Services

0.0

1.0

9.5

Engineering Services

0.0

2.9

17.9

Truck Transportation of Freight

1.0

-0.6

21.4

#2 Diesel Fuel

11.1

-7.2

64.3

Paving Mixtures

0.2

0.3

20.0

Cement

-0.1

1.7

40.3

Concrete Products

-0.2

2.1

41.4

Concrete Pipe

-0.3

7.6

63.1

Brick and Structural Clay Tile

0.0

1.3

32.6

Plastic Construction Products

-0.3

-1.7

47.4

Flat Glass Gypsum Building MAterials Lumber and Plywood Architectural Coatings Steel Mill Products Copper and Brass Mill Shapes Aluminum Mill Shapes Sheet Metal Products Ornamental and Architectural Metal Work Fabricated Steel Plate Prefabricated Metal Buildings Asphalt (At Refinery)

3.1 0.0 -0.8 0.0 -0.5 -5.7 7.4 0.0 0.0 0.6 -0.9 -1.9

2.8 0.3 5.1 0.8 8.8 6.9 13.7 4.5 9.2 14.3 0.6 -13.7

27.9 52.2 25.3 48.0 64.4 78.1 46.7 54.4 104.1 72.5 62.1 22.9

Source: Bureau of Labor Statistics. Updated June 12, 2025.

BreakingGround September/October 2025

17

The Dick’s House of Sports at Ross Park Mall was the first of several new expanded stores in the Pittsburgh region.

18 www.mbawpa.org

Retail

Market Update

By Jeff Burd and Ben Atwood It was not very long ago that the trouble with commercial real estate was retail. As Amazon (and others) got its distribution network built and its logistics finely tuned in the late 2010s, shoppers began taking advantage of the convenience of purchasing almost all goods online. Within a few years, retailers across the spectrum of products were forced to respond to this new mode of shopping by beefing up their websites, building logistical alliances, and altering their way of going to market.

BreakingGround September/October 2025

19

f

e

a

t

u

r

e

Posman Books was one of the first of the dozens of retailers occupying the Smallman Terminal developed

by McCaffrey Interests. Photo by Massery Photography.

A

s might be deduced, this paradigm shift in retail sales led to a paradigm shift in retail real estate. For a time, it seemed like brick-and-mortar retail stores were going to become dinosaurs, extinct even as retail spending soared. But, what emerged was a sort of hybrid approach to retailing, often referred to as omni-channel retail. Brands realized that shoppers still wanted to see and feel some of what they were buying, particularly at the high end of the market. Brick-and-mortar retail was not heading towards extinction after all; however, the retail footprint did change.

This sorting out of the retail industry was happening when COVID-19 turned us all into online shoppers in spring 2020.

As stores and restaurants hustled to adapt to sidewalk pickup and outdoor dining, the long-term structural realignment continued.

When the U.S. consumer was liberated from the pandemic’s confinement with the rollout of vaccines in spring 2021, retailing benefitted as much, or more, than any sector of the economy. The inflationary cycle that followed the pandemic recovery led to a steep increase in prime interest rates, which froze commercial real estate transactions and pushed property values lower. While retailing remained healthy, it was impossible for retail real estate to escape the problems of dramatically higher borrowing costs. To some extent, those problems persist today.

20 www.mbawpa.org

All these changes have made a dramatic dent in the supply and demand for retail properties. Some fundamental truths remain intact. Retailers need to be near rooftops. High traffic locations are better than low traffic locations. Triple-net leases still offer reliable income and few hassles for owners.

But the makeup of retail property has been fundamentally altered again.

The Retail Market Fundamentals The root fundamentals that support retailing are again at all-time highs as the third quarter of 2025 winds down. The latest data on retail sales, from July, showed retail spending up 0.5 percent from June and nearly four percent higher than July 2024. Moreover, retail sales were up 4.4 percent yearover-year when spending on automobiles and gasoline was excluded. Despite growing signs of wariness, consumers are maintaining high levels of spending relative to income, as well as higher incomes.

Those higher incomes also support record high levels of consumer borrowing. Consumer debt reached $18.39 trillion at the end of July, according to the Federal Reserve Bank of New York Household Debt and Credit Report. That is nearly 50 percent more debt than consumers were carrying at the peak of the housing bubble; however, household incomes are rising at a similar rate. The Bureau of Labor Statistics reported that median real household earnings rose 0.4 percent from

f

e

a

t

u

r

e

June to July. As a share of disposable income, household debt has remained at 11.2 percent since the fourth quarter of 2023.

That is 30 percent lower than in the fall of 2008 and a lower rate than all but five of the past 45 years.

Compared to the durability of consumer spending, however, the physical footprint of retailing remains in flux.

In the 1990s, the big box retailers offered the first hints that the traditional retail delivery system was becoming outdated.

Just as massive, covered malls had upended the retail paradigm in the 1960s, big box developments

Retail construction in metropolitan Pittsburgh is on track to be above the long-term trend in 2025.

American Subcontractors Association of Western PA Advocating

Convening

Educating

An advocate for subcontractors, specialty contractors, suppliers and service providers in the construction industry since 1966.

COMING EVENTS

2219 Ridge Road South Park, PA 15129 (724) 538-8227 Erin Joyce, Executive Director erin@asawpa.org

October 16, Monthly Chapter Meeting November 18, Monthly Chapter Meeting

For information about membership opportunities contact ASA of Western PA or go to www.asawpa.org

BreakingGround September/October 2025

21

f

e

a

t

u

r

e

catalyzed a shakeup in shopping malls.

That paradigm shift, like the ones before it, was a supply response to the timeless demand from shoppers for the most convenient and least expensive shopping experience. By the 1990s, the so-called category killer – WalMart, Target, Home Depot, Best Buy, Petsmart, etc. – were being developed together as “power centers” to offer open-air shopping centers that allowed consumers the convenience of a mall at better prices.

Cap rates for all U.S. retail property types have increased modestly since post-pandemic lows in 2022.

Source: CoStar

#7

22 www.mbawpa.org

The size of these power centers, like The Pointe at North Fayette or Trinity Point, were on par with the average covered suburban mall, and those malls were typically on a scale

f

e

a

t

u

r

e

with the large downtown department stores that they replaced. So, while each of these shifts produced pain and opportunity for landlords, the amount of brick-and-mortar space available for shopping continued to increase.

This most recent shift in buying behavior involves shopping convenience and value without a store. The outcome of that shift is still being navigated by both retailers and landlords.

The shift in retail to e-commerce has had a dramatic effect on new retail development in Pittsburgh since the Great Recession. Beginning with 2014, the first year of real economic growth following the recession, new retail Consumer debt as a percentage of disposable income is lower than during the first 20 years of this construction has fallen century. Source: Federal Reserve Bank of New York Household Debt and Credit Report (Q2 2025). consistently, from 590,000 square feet in 2014 to 232,000 square feet in strong,” she says. “That’s reflected in the occupancy rates, 2019. Aside from the 904,000 square feet started in 2015, which nationwide are 95 percent. There just hasn’t been any when the Block at Northway and Siena in Upper St. Clair new construction.” got underway, the total square footage of new development Doug Herold, principal and owner of Herold Commercial topped 500,000 square feet only once (in 2021) since 2014.

Valuation Services, notes that the value of retail properties Last year, less than 145,000 square feet of new retail went has been resilient, despite the spike in interest rates. under construction.

“I have done several appraisals comparing values from 2022 Compare those totals to the 1.8 million square feet started in through 2025. For office buildings the value fell significantly the metro area in 2002, during a recession, or the 2.5 million during that time, but for retail buildings the value has been square feet started in 2007, at the peak of that economic relatively stable,” he explains. “Yes, the cost of capital has cycle. In fact, the 4.834 million square feet started in 2006it increased, which theoretically increases cap rates, but I 2007 exceeds the total square footage started in Pittsburgh haven’t seen that as severe in retail. Retail cap rates have in the past dozen years. increased by 50 or 100 basis points. That relatively small With few exceptions, the decline in new construction increase in cap rate is typically offset by increasing rents.” experienced in Pittsburgh has been consistent throughout With brisk leasing activity and less new construction the U.S. As the years have unfolded, the limited growth of competition, retail property owners are seeing demand from new supply has made the market stronger for the existing investors and buyers. The market is not back to pre-pandemic landlords in desirable locations. activity levels, but there are businesses in the market. As Herold “Our market is still strong. There is a fair amount of demand on notes, the gap in perception of value between buyer and seller both the leasing and acquisition side,” says Mark Anderson, is not wide, but it does exist. Investor interest in retail is growing senior vice president, retail brokerage at Colliers | Pittsburgh. again, but they are looking at deals more carefully.

“There is not a lot of well-located product that’s available for “Lenders are looking for places to lend and are looking lease or sale. Retail is all about location.” favorably at retail. Occupancy is high and rents have Claudia Steeb, senior managing director at JLL Capital readjusted. From an investment standpoint, what is left is Markets, echoes Anderson’s comment about supply. good so they’re looking for well-located, well-underwritten assets. We’re seeing activity pick up even though rates “In retail, many stores have closed, and properties have still aren’t cooperating,” Steeb says. “Cap rates are higher been transformed or sold for other use so that what is left is because interest rates are higher. That’s a problem if the

BreakingGround September/October 2025

23

f

e

a

t

u

r

e

borrowing rate is higher than the cap rate, because buyers won’t buy the property with negative arbitrage. What we’re seeing is that investors are looking at returns and then backing into a cap rate. That’s hard for sellers to understand, especially here in Pittsburgh.”

Nationwide, most institutional investors are now seeking cap rates that are one-to-two percentage points higher than sellers. That is mostly true in Pittsburgh as well, where Steeb says more leases are written without annual rent escalation than are typical in most markets. Fewer large Class A assets are on the market in Pittsburgh, which is why many of the transactions closed over the past year have been small, often stand-alone properties with high cap rates. Steeb explains that what the institutional investors are seeking is infrequently for sale in Western PA. “Grocery-anchored retail is still the darling, as long as it’s a well-performing grocer. If you have the number four grocer in a four-grocer market it will not do as well as the number one grocer from either a debt or investment perspective,” she says.

“The best cap rates go with grocery-anchored properties. In our market that’s Giant Eagle or Whole Foods.”

IN A WORLD WHERE RESILIENCY IS NEEDED MORE THAN EVER, Who will you trust with your next project?

+ iwbuildsbetter.com 24 www.mbawpa.org

“The next thing that investors are focused on or what we call essential or e-commerce resistant retail. Those are strips that have Internet-resistant services like a nail salon or quick service restaurant. You can’t go online and get your nails done,” Steeb continues. “Smaller strip centers, which could be only 20,000 to 40,000 square feet, have smaller tenants which is another factor that’s in favor with investors. If you lose a tenant in those centers, you lose a 2,000 or 5,000 square foot tenant, not a big box user.”

“The number of transactions is down from where it had been, but there are still transactions,” Herold says. “Are there transactions for big properties? No. Other than the sale of Monroeville Mall, which was something of an outlier, big sales have fizzled out. For smaller retail properties, there is not a big gap between buyer’s and seller’s expectations.”

Investment sales volume reached $140 million in the second quarter of 2025, the highest level in three years. This was largely driven by two portfolio purchases, the WalMart purchase of the Bethel Park Shopping center for $30.7 million, and Columbus-based Germaine buying the local assets of Babby Rahal Group for $15 million. CoStar forecasts that total investment activity in 2025 will be the highest since before the pandemic. Through August, 471 retail deals have closed. This has already surpassed total retail sales seen in 2023 (384) and is on pace to eclipse 2024’s total of 567.

Leasing seems to be following similar trends in Pittsburgh as the national market. Colliers Pittsburgh reports that vacancies rose in the second quarter, but only by 0.5 percentage points to 4.5 percent. Even with a number of mall anchors and specialty retailers closing, there is sufficient demand to keep absorption strong.

According to CoStar, store closures tied to bankruptcy have weighed on net absorption, with 2.9 million square feet vacated over the past year. That’s a 15 percent increase

f

e

a

t

u

r

e

compared to 2024. Despite these move-outs, availabilities remain historically low, with about 9 million square feet currently listed for lease, well below the 12 percent peak levels of the pandemic. Very little of the available space for lease is Class A property. Most vacancies are Class B (60 percent) and Class C (30 percent).

“There have been a number of retailers declare bankruptcy in recent years, but most of this vacated space has been leasing up quickly. Vacancies for retail are actually very low,” notes Jesse Cortez, broker and business advisor at Colony Agency.

“Construction costs are making development very hard. So anytime a prime space gets vacated it’s filled, as it’s much cheaper to backfill than build.”

The Outlook What will move developers to put shovels in the ground and move the new construction numbers towards those heady 2006-2007 numbers? With occupancy levels at or above 95 percent, demand for space clearly outstrips supply. The fly in the ointment is the cost of construction.

“Staffing and cost of operations are challenges and if the unit is not paying for itself, it won't be there long. Anything that was a fad is going by the wayside,” Dougherty says.

Since the supply chain disruptions of 2020-2022 pushed construction escalation as high as 24 percent year-over-year, the cost to build is roughly 40 percent higher in 2025 than it was five years earlier.

Rents, unfortunately, have not risen commensurate with those costs.

“There is demand for new retail as evidenced by 95 percent leased properties.

Retailers would like to be in the best of the best and the newest good-looking properties,” says Steeb.

“The issue right now is cost of construction. With where rents and costs are, the two don’t equal.”

“The cost of new construction is high, and many tenants cannot afford the rent for new construction. You need the national chains that are willing to pay the freight for new construction. The local mom and pop retailer has a hard time,” adds Anderson. “Generally, the Pittsburgh market is in the mid-to-high $30s per square foot for rent. National tenants can pay that rent to be where they want to be. It’s difficult to build small shop space where you have smaller tenants who may not be national and rent needs to be in the high 30s or low 40s per square foot.”

Kevin Dougherty, president of Adventure Development LLC, reports that his only vacancy at McCandless Crossing, the former Dick’s Sporting Goods store, has been leased to two TJX companies, TJ Maxx and Sierra Trading Post. Dougherty

Under the current federal INFLATION REDUCTION ACT our western Pennsylvania region qualifies for 40% investment tax credits, bonus and accelerated depreciation as well as DIRECT PAY benefits for non-profits. Allow us to show you how this makes economic sense for you.

www.scalosolar.com

BreakingGround September/October 2025

25

Industry leadership from the region’s largest locally-owned accounting firm.

When it comes to your business, we look at the big picture.

And we never forget the importance of a personal relationship.

With our wide range of accounting, tax and advisory services, you can count on us to deliver day after day.

Big Capabilities.

Personal Connections.

To learn more, visit www.schneiderdowns.com/construction

Gennaro J. DiBello, CPA gdibello@schneiderdowns.com Ted M. Pettko, CPA tpettko@schneiderdowns.com

26 www.mbawpa.org

f

e

a

says that all his current tenants with leases expiring are renewing and the outlook for the nine tenants with expiring leases in 2026 is the same. Despite those strong fundamentals for demand, Adventure has no plans to start construction on the retail portion of its McCandless Square project just a mile north of McCandless Crossing.

“It’s hard to make the numbers work. Your site work and utility costs, a lot of which tie back to regulation, are much higher.

The government’s interest makes it very onerous,” Dougherty says. “Developers have decided not to do anything because it’s not worth the risk.”

Dougherty, who developed more than two million square feet of retail in Western PA as a partner in Michael Joseph Development in the 1990s, reports that core and shell costs for new construction are nearly double the $65 per square foot that prevailed prior to the pandemic.

With the prospects for new development remaining bleak for 2026, retailers will need to find space in existing properties.

Despite the decline in retail construction in Pittsburgh since 2020, there are some pockets of oversupply. In large scale, these exist mainly in closed mall anchors, like Macy’s, J.C. Penney, and Sears stores. On a smaller, but more widespread scale, these are the closed Rite Aid and Dollar General stores.

The latter should cause few problems for the market, as there are fewer than 10 stores and the footprint – and rental income – are small. The Rite Aid stores are more of a headache.

t

u

r

e

Rite Aid estimates that roughly 70 former stores will be on the market for re-use in Pittsburgh. Although they vary in size, most of the closed pharmacy stores are larger than 12,000 square feet. Moreover, Rite Aid typically paid top dollar in rent. Depending upon the location, that could be as high as $40 per square foot. The most widely speculated potential users for the former Rite Aid stores – discount stores or Goodwill stores – would produce income that is half or less of what the drug chain produced.

Thus far, two Rite Aids stores in excellent locations – near the Pittsburgh city limits on Banksville Road and Wenzell and along Route 30 in Hempfield Township – have been announced as locations that Sheetz Inc. will use as sites for new gas station/convenience stores. Sheetz has proposed similar demolition-and-rebuild developments in Chester County and in the Cleveland suburb of Broadview Heights.

The total space vacated by Rite Aid in Western PA approached one million square feet, but its dispersion means that the impact will be isolated. Because many of the stores are in prime locations, the property will be valuable. Some of the Rite Aids in better locations will become Sheetz or GetGo stations, banks, or casual dining locations. Others, particularly those in strip centers or less desirable locations, will remain vacant until the landlords accept the losses that are unavoidable.

During an earnings call earlier this year, Dick’s CEO Lauren Hobart reiterated that the retailer was going to make

Champion City Sports is one of more than a dozen new retail or casual dining outlets built at the Pittsburgh International Airport in the past year.

Photo by Shannon Construction.

BreakingGround September/October 2025

27

f

e

a

t

u

r

e

Fine dining restaurants, like DelFrisco’s, remain strong operations, but higher costs and economic uncertainty have slowed new entries into the Pittsburgh market. Photo by Denmarsh Photography. Use courtesy A. Martini & Company.

“significant investments” in its stores. These would include both digital and physical plant investments, as Dick’s has seen increased demand for its experiential concept stores, “House of Sports” and “Field House,” and a surge in e-commerce. It is investing in this omnichannel approach, in which 80 percent of its online sales are fulfilled at store locations.

During 2024, Dick’s opened seven House of Sports and 15 Field House locations, 70 percent of which were relocations or renovations to existing stores. It plans to open 16 and 18, respectively, in 2025. The concept stores, especially the House of Sports, include climbing walls, batting cages, indoor tracks, and golf simulators that increase the customers’ time in the stores, and increase sales. The House of Sports concept is larger than the former large-scale Dick’s store, running 125,000 square feet and more in the Pittsburgh market, and has been located in former mall anchor stores.

The largest new current retail projects in the Pittsburgh region are build-to-suit projects like Dick’s. At Newbury in South Fayette Township, Bass Pro Shops is building a new 100,000 square foot store. Wegman’s will be starting construction in the fourth quarter on its first store in Southwestern PA, a 115,000 square foot development in Cranberry Township. The only speculative retail project under construction is an 18,000 square foot multi-tenant outparcel at Village of Pine. Leasing data from CoStar shows that roughly five percent of the total new construction in the Pittsburgh market is available for rent.

28 www.mbawpa.org

“By and large, you just aren’t seeing brand new spec retail construction the same way you are seeing it in other classes.

Retailers aren’t adjusting what they can or will pay in rents,” says Cortez.

Dougherty notes that retailers and restaurateurs are facing unusual challenges that may limit expansion, despite the favorable economic and real estate fundamentals. The severe staffing shortages that followed the pandemic have eased only slightly, and staffing costs are dramatically higher than five years ago. Inflation, and the unpredictable fluctuations in costs that are the result of more protective trade policies, are shrinking margins. Retail owners do not see certainty about the economy in the coming 12-to-18 months, so the calculations about store locations are being influenced by the profitability of existing operations. Trendy may be replaced by reliable.

“Staffing and cost of operations are challenges and if the unit is not paying for itself, it won’t be there long. Anything that was a fad is going by the wayside,” Dougherty says. “The drugstore world which has been turned on its head. They were a robust part of the economy just five years ago. The value in the drugstore is the prescription business, but now the grocery stores and large general merchandisers are doing that. We also lost a lot of specialty retailers. It’s almost to the point where I expect that to rebound.”

f

e

a

t

u

r

e

Until the return of specialty retail, the model for success may look something like Jackson Village Plaza, on Route 19 north of Zelienople in Jackson Township. Buoyed by more than 1,300 new single-family homes built in Jackson Township in a 10-year period, Madison Acquisitions developed a retail plaza of seven free-standing outlets totaling roughly 45,000 square feet. The largest of these was an Aldi’s, which is 19,000 square feet. The balance of the center includes a handful of reliable brands – Starbucks, Taco Bell, Wendy’s, O’Reilly Auto Parts – along with a credit union and GetGo. Given municipal approval in mid-2023, Jackson Village was mostly completed within 12 months.

The site, within a mile of the interstate intersection and the Steamfitters Local 449 training center and offices, offers a location that guarantees sufficient traffic with minimal risk for the development.

Those kinds of opportunities are difficult to uncover.

Going into 2026, the outlook is for a similar mix of build-to-suit development and free-standing expansion for reliable brands. The largest project in the pipeline is the proposed Menard’s, a 250,000 square foot home improvement store that was approved for construction in Hempfield Township during the pandemic. Menard’s recently negotiated an agreement with the township to extend its expired approval to the end of 2025. The retailer did not share whether the extension signaled an imminent start to construction.

As has been the case since at least 2022, most new retail will be infill leases in existing shopping centers. With available space dwindling, outside of the recently closed national stores, the Pittsburgh market is ripe for new construction; however, there is nothing to suggest that demand is strong enough to push rents high enough to bring the kind of low double-digit returns that investors require for new development. The housing market has proven that shrinking supply and strong demand do not automatically trigger new construction.

For retail development, including in Western PA, something more of a reset will be required to kick start activity. BG

Full-Service Exterior Envelope Contractor

Frick Environmental Center—LEED Platinum

PNC Tower— LEED Platinum

Carnegie Mellon University Cohon Center  New Construction  Roof Replacement  Exterior Cladding  Metal Fabrication  Maintenance & Repairs  24/7 Emergency Response

800-683-4586 | www.krsm.net Wheeling, WV | Frederick, MD | Columbus, OH | Lexington, KY | Pittsburgh, PA

BreakingGround September/October 2025

29

At Desmone, we design buildings and spaces that allow people to thrive – physically, emotionally, and spiritually. Our unique service journey is rooted in effective delivery strategies and informed by principles of health and wellness. We believe that healthy spaces lead to healthy people, and healthy people lead to a healthy world.

Pittsburgh, PA | Morgantown, WV | Cleveland, OH

desmone.com

DESIGNED TO THRIVE HANLON & HENNE

TWO FAMILY BUSINESSES, EACH FOUR GENERATIONS STRONG Hanlon Electric is honored to be part of the team assembled by A. Martini & Co. on Henne Jewelers’ spectacular renovation.

30 www.mbawpa.org

p

r

o

j

e

c

t

p

r

o

f

i

l

e

PROJECT PROFILE HENNE JEWELERS EXPANSION AND RENOVATION

H

enne Jewelers is something of a Shadyside institution that has endured two world wars, the Great Depression, and two global pandemics. Following the COVID-19 pandemic in 2022, John Henne, president and fourth generation owner of Henne Jewelers, began planning for a major expansion of Henne’s 5501 Walnut Street location.

“The business has been growing. This is our third expansion. We expanded our Filbert Street location in 1995-1996. We moved down here to a larger location in 2003 and even after the move we realized we needed more space,” says Henne. “I had the opportunity to buy the building nine years ago with the intention of taking over the bar [the William Penn tavern] that was behind us when its lease expired.”

The expansion had been driven by long-term organic growth and the need for more space for two integral pieces of Henne Jewelers’ business: its diamond engagement and Rolex watch sales. As Henne began preparing for the expansion, he brought A. Martini & Company on board as general contractor and shared his plans with Rolex. Those decisions proved crucial to the success of the project.

“Rolex is such an important partner of ours and they suggested some changes to the building to remove the center staircase that went to the second and third floors for tenants. That turned out to be genius,” Henne recalls. “I was expecting the project to be very disruptive, but I credit Angelo Martini Jr. with an idea that changed the direction we were heading. I was looking on the street for a temporary location and he came up with the idea of moving into the bar, renovating that for our temporary location. It made a remarkable difference. It helped in many ways. It allowed our alarm systems and safe to remain in place.

We still had access to the basement. We didn’t have to move the merchandise to another location.”

“He was going to rent a place down the street, and it was going to be quite expensive. We came up with the idea of moving the store temporarily into the William Penn space,” explains Angelo Martini, Jr., chief operating officer at A. Martini & Co. “We called that phase one. Henne Jewelers worked in that space while we renovated the rest of the building. Once that was completed, we flipped to the William Penn phase of renovation.”

A. Martini & Co. was the general contractor for the earlier

BreakingGround September/October 2025

31

p

r

o

j

e

c

t

renovation at Henne Jewelers, but the relationship between the companies was also personal. Angelo Martini reckons that he and John Henne have been friends since they were seven years old, and members of his family have been customers of Henne Jewelers for decades. For John Henne, that kind of personal relationship was important, and helped him make a potentially difficult decision more comfortable.

“I have a lot of clients who are general contractors. Some probably heard about my potential plans and expressed interest.

It would have been difficult to choose, putting it out to bid and telling three or four other friends no after the bidding process,” Henne says. “The Martinis had done the last build-out and it went smoothly. I knew this was going to be a very complicated project because of the age of the building and I feared there would be lots of change orders, so I wanted somebody I had worked with in the past and could trust.”

The choice of architect was also relationship driven. Angelo and Anthony Martini suggested Chip Desmone, who was also a friend and customer of Henne Jewelers. Henne also consulted with Rolex to seek input on designers with luxury jewelry and watch experience.

“When I presented the project to Rolex, because they needed to sign off on it, they asked who I planned to hire as architect.

32 www.mbawpa.org

p

r

o

f

i

l

e

They suggested Eric Lewis [of E/Line Architecture in Baltimore] because he had done some projects recently for them. We interviewed him and just instantly liked him.”

Teaming Desmone Architects with E/Line gave Henne a local architect he trusted with extensive experience working with the City of Pittsburgh and its challenges, plus a designer who was comfortable working with Rolex.

Chip Desmone describes the programming and schematic phase of the project as “having a life of its own,” growing over time as the process unfolded.

“Originally, John was thinking that they would just expand to the rear, taking the former William Penn bar and part of the second floor. We ran into an issue regarding code and occupancy of the third floor, so we incorporated the offices on the third floor,” Desmone says. “We ended up taking over what was originally the old Rolliers and two apartments above that. That freed up more space on the first and second floors to create the grand staircase in the corner that gave the entire store a lot more daylight, openness, and grandeur.”

Grandeur was an important goal for the project. Henne had to account for space for five luxury watch brands: Rolex, which was programmed for 1,000 square feet of dedicated space;

p

r

o

j

e

c

t

p

r

o

f

i

l

e

The second floor was renovated to be an engagement diamond suite.

and smaller booths for TUDOR, Mont Blanc, Tag Heuer, and Grand Seiko. During and after the pandemic, Henne’s diamond engagement business boomed. Care was taken to design a space that would optimize that shopping experience, which resulted in a dedicated diamond engagement suite on the second floor.

Henne was also intentional about building a destination that would become an anchor for the Walnut Street shopping district, which had seen several major national brands vacate storefronts.

“I am a big believer in Walnut Street. I think this is a unique shopping district with a mixture of local boutiques and national chains. It is the only one in the city that is not on a main road with a bus line going down the street,” Henne explains. “The proximity to Shadyside, Squirrel Hill, Oakland, and Fox Chapel is wonderful for our local customers, and it is a regional draw. We see people coming to Walnut Street from Eastern Ohio, West Virginia, and Erie. There is no place in the city where I would rather be.”

Renovating multiple old buildings proved to be as challenging a task as John Henne feared. The complications created challenges during design and when construction began in early 2024.

“It was a challenge to visually connect all the retail spaces.

Henne has multiple watch brands in the store plus it’s a general jewelry store,” says Desmone. “During design the diamond

engagement piece of the project kept growing. We ended up making that entire second floor a bridal engagement experience space. That really helped us connect the design of the first and second floor. We could bring all these separate retail brands together under one store connected by the stairs and elevator.”

“It was one of the hardest projects I’ve built because the structural grid was not square. Imagine a chessboard where every corner where the squares meet was not a 90-degree angle.

We didn’t discover that until demolition because there was little opportunity to do exploratory demolition until we were into the project,” Martini says. “We expected a column line to run straight through the building and halfway through it jogged two feet to the left or right. There were a lot of meetings on site with the architect and engineer to figure out how to true it up and make things more in line.”

“There was a ton of bracing and back bracing needed to do the renovations,” he continues. “For example, if we needed to hold up the roof to place a beam, we had to brace it on the second floor, first floor, and the basement to carry that load because the third floor could not carry the load itself. There were miles of temporary shoring involved, which is unusual.”

Martini notes that his company’s early involvement in the planning set the stage for the high level of detailed planning and

BreakingGround September/October 2025

33

Quality. Excellence. Integrity.

For over 74 years and 4 generations, A. Martini & Co. has been providing construction management and general contracting expertise to meet your project needs. www.amartinigc.com | 412.828.5500

34 www.mbawpa.org

Photograph: Central Catholic Brothers’ Residence Photographer: Mike Christ

p

r

o

collaboration that would be needed throughout the project. Once construction started, many of the challenges stemmed from the tight urban site at the corner of Walnut and Bellefonte. Work on the roof, for example, meant shutting down AT&T cellular towers and coordinating those outages.

Excavation for the new elevator pit was done with a vacuum excavator, which expedited the digging and eliminated any debris on the street.

It was imperative that the project created as few disruptions as possible for Henne’s neighbors, so parking and deliveries had to be managed so that customers from other retailers were not negatively affected.

j

e

c

t

p

r

o

f

i

l

e

A balcony and monumental stairs were added to bring more light to the interior of the store and for dramatic effect.

“The other interesting part was working with the out-of-town architect and designers from Switzerland on the Rolex space,” says Martini.

“They dictated the pace of the project. It took about 18 months to get the design out of Rolex.”

The project duration was the biggest challenge John Henne cited, as the phasing still created daily logistical and operational problems for a retail jeweler.

“The biggest challenge was the length of time that we were disrupted. We were in the temporary location for essentially 11 months. To take a business that needs to expand and to shrink it to less than half of its size on a side street location was difficult,” he says. “I am here on the sales floor every day, but my office was moved to a house two blocks away. I would walk back and forth six or seven times a day. It was challenging for the team to operate. We communicated regularly and reminded them that this was temporary pain for long-term gain. Now we almost can’t remember the pain, but at the time it was very challenging.”

Henne Jewelers celebrated its grand re-opening on October 19, 2024, with the fully-renovated 7,500 square feet of retail space on two floors. The participants agree that the success of the project turned on the constant communication between the Henne team and the design and construction teams.

Martini gives special credit to Dara Henne, John’s wife.

“Dara is the backbone of the operation. She knew what she wanted and worked closely with Desmone,” he says. “I’ve joked with her over the years that I want to hire her as a project manager.

She has an eye. If something’s out of level or not square, she picks it up. She picked up things, quite frankly, that I missed.”

“The project was successful because we had a client who was determined to do the best possible project he could, given the physical constraints of the building,” notes Desmone. “It was his desire to stay on Walnut Street and make his building an integral part of the retail fabric there. John wanted to make something that was special for Henne and special for Walnut Street.”

“There was great communication between all parties,” says Henne. That was our internal team, which consisted of myself,

my wife, and Kyle Misour, who was the internal project manager, the Martini team of Joe Perri, Angelo, and Superintendent Sean Lewis, and the architects Katelyn Walsh from Desmone and Eric Lewis. We met weekly to be on top of things.”

“John put a good team together. We made sure we bought the proper partners to the table,” says Martini. “I wanted people sitting around the table at the 11th hour who could push it over the finish line.”

“I will tell you that the reception from our customers and new customers has been exceptional. We regularly hear people tell us they don’t feel like they’re in Pittsburgh or that it is like Madison Avenue,” says Henne. “One thing we really wanted to be sure of was that it was high-end and luxury but, at the same time, warm and inviting. It can be challenging to do both, but we have heard from so many of our customers that we managed that.” BG

BreakingGround September/October 2025

35

p

r

o

j

e

c

t

p

r

o

f

i

l

e

PROJECT TEAM A. Martini & Company Henne Jewelers Desmone Architects E/Line Architecture J.A. Sauer Hanlon Electric Cuccaro Plumbing J&J Fire Protection Marsa Inc. Modany Falcone Easley & Rivers Inc. A.J. Vater & Co. Eagle Displays Otis Elevator Specified Systems J.P. Phillips, Inc. Seech Industries Wright Commercial Floors River City Glass

General Contractor Owner Architect Consulting Architect HVAC Contractor Electrical Plumbing Fire Protection Masonry Concrete Drywall/Acoustical Painting/Wallcovering Rolex and Main Store Millwork Elevator Storefront Ceramic Tile Structural Steel Flooring Glass Railing System

RELIABLE PERFORMANCE - INSIDE AND OUT CONTRACT GLAZING FOR 31 YEARS

Interior Glass Systems + Storefront and Entrances + Curtain Wall + Windows

Commercial Windows - Storefronts and Entrances - Curtain Wall

724.942.4200 • Fax: 724.942.0829 www.specifiedsystems.com

36 www.mbawpa.org

LEGAL PERSPECTIVE NEW OSHA RULE ON PERSONAL PROTECTIVE EQUIPMENT

BY WILLIAM S. MYERS, ESQ.

T

he Occupational Safety and Health Administration (OSHA) published a final rule in December on Personal Protective Equipment (PPE) in the construction industry.

The rule took effect on January 11, 2025. OSHA State Plans that did not already have a similar rule must implement their own rule within six months of the publication date. It is a small rule change with potentially significant practical effect, being described by some industry commenters as imposing a “monumental task” on employers.

The rule amends the Construction PPE Standard to require that all PPE “properly fits each affected employee.” The driving force for this amendment is the notion that PPE designed for smaller bodies, particularly for women, is not readily available for workers. One example mentioned in the official comments is the size of work gloves, especially gloves used in dangerous work that require dexterity. The official comments also indicate that “properly fits each affected employee” includes PPE that takes into account “workers’ body changes during pregnancy.”

The likely significant impact derives from multiple factors, including the ambiguity of the term “properly fits,” the requirement that PPE must fit “each affected employee,” the difficulty of proving that a particular item of PPE actually fits a particular employee, and the potential for disagreement between employee and employer over whether PPE properly fits that particular employee—an inherently subjective determination in which the employer is at a distinct disadvantage when it comes to proof.

OSHA rejected calls from experts and stakeholders to define the phrase “properly fits,” including a suggestion from National Institute for Occupational Safety and Health (NIOSH), OSHA’s own research arm. To put that in context, OSHA spent 26 pages of three-column, single-spaced, fine print in the Federal Register to explain a rule that results in a net change of 19 additional words in the standard, but it refused to explain what is meant by what is now the core phrase, “properly fits,” or how employers might go about determining the difference between “properly fits” and “comfortably fits” or “perfectly fits.”

OSHA also refused to make any other suggested revisions to its initial proposed language, opting to finalize the rule in the form first published in July 2023.

phrase to mean “ensures.” When combined with the phrase “properly fits each employee,” it could be construed to mean “tailor made.”

There will be secondary effects of the rule as well. They include the impact on unrelated enforcement action by OSHA, especially following accidents involving employees who were using PPE at the time (compliance officers will be sorely tempted to tack that on as an almost automatic additional violation), as well as employee relations (an enhanced vehicle for alleging employer retaliation), and labor relations (another ambiguity that can become a point of contention with union representatives). All three of those areas have the potential to loom large as tools that can be misused by different players for strategic reasons that have little to do with workplace safety.

The affected standard is 29 C.F.R. Section 1926.95(c). The old and new versions are shown below: Old rule: Section 1926.95. Criteria for personal protective equipment. (c) Design. All personal protective equipment shall be of safe design and construction for the work to be performed.

New rule: Section 1926.95. Criteria for personal protective equipment. (c) Design and selection. Employers must ensure that all personal protective equipment: (1) Is of safe design and construction for the work to be performed; and (2) Is selected to ensure that it properly fits each affected employee.

OSHA has not issued further interpretations or other guidance for the new rule since promulgating it, and neither statistical nor anecdotal data is yet available as to how OSHA is interpreting and applying the new rule. Of course, a further question is whether the change in Presidential Administration will affect the agency’s interpretation of the key phrases discussed above. BG William Myers is an attorney and member at Eckert Seamans Cherin & Mellott, LLC. He may be reached at wmyers@ eckertseamans.com

An additional ambiguity lies in the core requirement of the amended rule, which is framed by the phrase “selected to ensure.” Does that mean “ensures” that the PPE “properly fits,” or does the inclusion of “selected to” allow some room for more standardized decisions by employers about PPE? OSHA ignored this question in the official comments, but its language throughout suggests it will interpret that

BreakingGround September/October 2025

37

Highest Quality. On-Time. On-Budget.

The Mechanical Contractors Association of Western Pennsylvania serves the unique needs of contractors involved in heating, air conditioning, refrigeration, plumbing, piping, and mechanical and related service industries.

We provide our members with high-quality educational materials and programs to help them attain the highest level of managerial and technical expertise.

Contact: Rege Claus, Executive Director | (412) 683-3600 | mcawpa@verizon.net 5131 CYPRESS STREET • PITTSBURGH, PA 15224

FINANCIAL PERSPECTIVE NAVIGATING THE OBBBA ERA: STRATEGIC TAX PLANNING FOR THE CONSTRUCTION INDUSTRY .

BY RYAN BROZE, CPA

T

he construction industry stands at a pivotal moment.

With the enactment of the One Big Beautiful Bill Act (OBBBA), companies now face a landscape rich in opportunity—but also complexity. From bonus depreciation to revised energy incentives, the new legislation reshapes how construction companies approach capital investment, tax planning, and operational efficiency.

A Sector Built on Resilience Construction has long weathered economic storms—from supply chain disruptions and labor shortages to rising interest rates and tighter credit. OBBBA introduces new tools to help firms not only survive but thrive. The key lies in translating revenue into sustainable profit while sidestepping growth pitfalls.

Tax Incentives that could impact many construction companies include: 100 percent Bonus Depreciation and Section 179 Expense OBBBA permanently extends 100 percent bonus depreciation and raises Section 179 limits, allowing construction firms to immediately expense equipment, machinery, and certain building improvements. This accelerates cash flow and supports reinvestment in operations.

Expanded Section 179D deductions reward energyefficient design and construction, especially for firms meeting prevailing wage and apprenticeship standards.

These incentives align with broader industry goals around sustainability and workforce development.

Qualified Business Income Deduction Becomes Permanent The legislation permanently extends the 20 percent qualified business income deduction (QBID), also known as Section 199A, for pass-through business income and REIT dividends.

This provision also expands the deduction limit phase-in range by increasing the $50,000 (non-joint returns) and $100,000 (married filing joint returns) amounts to $75,000 and $150,000, respectively. The provision eases the impact of the limitations for both specified service trades or businesses (SSTBs) and those pass-through entities subject to the wage and investment limitation.

Additionally, this provision introduces a new, inflation-adjusted minimum deduction of $400 for taxpayers with at least $1,000 of qualified business income from one or more active trades or businesses in which the taxpayer materially participates. This ensures small business owners with a certain qualified business income level are entitled to an enhanced baseline deduction.

Immediate Expensing of Domestic R&D Costs Since the 2022 tax year, businesses were required to capitalize and amortize research expenses over five years (or 15 years

for foreign research) causing strain on cash flow when the investment did not align with the tax deduction. OBBBA restores the current deductibility of domestic research and development (R&D) expenses in the year they’re incurred in tax years beginning after December 31, 2024. All taxpayers that previously capitalized R&D costs are permitted to elect to accelerate the remaining deductions over a one- or twoyear period, beginning in 2025. This provision will benefit construction companies that utilize new technologies and are trying to innovate or improve building processes, enabling the entire industry to move forward though innovation.

Accelerated Depreciation for U.S. Manufacturing Facilities Manufacturers can now fully expense the cost of new or improved U.S. production facilities if construction begins between January 19, 2025, and January 1, 2029, and the property is placed in service before 2031. This is a targeted incentive to encourage domestic manufacturing and infrastructure investment. It allows businesses to deduct the full cost of building or upgrading factories, warehouses and other production facilities rather than depreciating them over 39 years.

That’s a massive acceleration of tax benefits, which can significantly improve the return on investment for large capital projects. It also aligns with broader policy goals to bring more production back to the U.S. This provision can bring many new construction projects to the market.

Business Interest Expense Limitation Expanded Another key limitation from the TCJA fell under Sec. 163(j) for the deduction of business interest expense, which limited the deduction to 30 percent of adjusted taxable income (ATI).

The OBBBA restores a more favorable calculation for 2025 and all future tax years. The Sec. 163(j) limitation now uses EBITDA (earnings before interest, taxes, depreciation and amortization) instead of EBIT (earnings before interest and taxes). A new ordering rule requires applying this limitation before the interest capitalization rules for years starting in 2026.

This change increases the amount of deductible interest for many businesses, lowering the after-tax cost of borrowing.

Industries such as manufacturing, real estate, construction and distribution, where interest expense is a major cost, stand to benefit the most. An increase to deductible interest means lower taxable income and improved cash flow.

Additionally, the new ordering rule eliminates a common planning strategy: capitalizing interest to the balance sheet to reduce the amount disallowed under Sec. 163(j). The OBBBA requires the Sec. 163(j) limitation to be considered before the application of other capitalization provisions. This could increase taxable income for some businesses, especially

BreakingGround September/October 2025

39

those with large inventories or long production cycles. The increased ATI limitation for 2025 coupled with the ability to capitalize interest until 2026 may present an opportunity for 2025 tax savings, but careful modeling is essential to maximize your deductions.

This reduces the compliance burden for small businesses.

However, it doesn’t change the rules around worker classification, so businesses still need to be careful about who qualifies as an independent contractor. It’s a welcome simplification, but not a free pass.

1099 Reporting Threshold Increased

Condominium Construction Exception Added

The threshold for issuing Form 1099 to independent contractors increases from $600 to $2,000, indexed for inflation.

Method

of

Accounting

There is a new exception to the percentage of completion method of accounting for certain residential construction contracts and extends the construction contract period from two to three years.

Prior law resulted in phantom income from the application of percentage of completion method for condominium developers.

Taxpayers should consider making an accounting method change for tax purposes and the impact it will have on taxable income.

Business State and Local Tax Deduction Preserved The legislation preserves the full deductibility of business state and local taxes.

The Church of the Ascension, completed in 1907, is a historic masonry structure made of Beaver Valley Sandstone with intricate carvings in Pittsburgh’s Oakland neighborhood.

In 2001, Jendoco was selected to build a two-story Educational Wing addition and renovate their existing Parish Hall.

Upon completion of the Education Wing Project Jendoco conducted a full masonry analysis of the church, tower, and Parish Hall, leading to a restoration that cleaned decades of black soot, re-pointed masonry joints with historically appropriate lime-putty mortar, and stabilized all failing steel.

In 2024, Jendoco and Rothschild Doyno Collaborative completed a Parish Hall addition that celebrates a thriving congregation and connects once isolated campus buildings with active social spaces, a transparent entry that respectfully highlights the historic Parish Hall facade, and creates a welcoming outdoor plaza for extended fellowship and outreach.

During the reconciliation process, Congress contemplated everything from eliminating state and local tax deductions — which included real estate taxes — to only allowing 50 percent. Full deductibility was a win for the construction industry. Taxpayers should ensure they are factoring in pass-through entity taxes (PTET) when starting projects in new states and conducting year-end tax planning to generate the biggest tax deduction benefit.

Qualified Opportunity Zone (QOZ) Program Modified, Made Permanent The legislation establishes a permanent Qualified Opportunity Zone (QOZ) policy that builds off the original program. This provision creates rolling, 10-year QOZ designations beginning on January 1, 2027.

The new law maintains the QOZ designation process from the Tax Cuts and Jobs Act (TCJA) and strengthens the eligibility requirements by: • Updating the definition of a lowincome community tract, and • Eliminating the ability for contiguous tracts that are not low-income communities to be designated as QOZs.

© COPYRIGHT 2025  ED MASSERY PITTSBURGH ARCHITECTURAL PHOTOGRAPHER

WWW.JENDOCO.COM

(412) 361.4500

2000 LINCOLN ROAD - PITTSBURGH, PA 15235

40 www.mbawpa.org

The definition of “low-income community” is narrowed to census tracts that have a poverty rate of at least 20 percent or a

median family income that does not exceed 70 percent of the area median income. Additionally, a guardrail is added to ensure the term low-income community does not include any census tract where the median family income is 125 percent or greater of the area median family income.

•

The approximate # of residential units (if any) for any real property held by the QOF and/or QOZB.

•

The approximate number of full-time equivalent employees of the QOF/QOZB, or another indication of employment impact.

The provision preserves the three taxpayer benefits from the TCJA but modifies them as follows: 1.

Deferral Benefit

•

This is now a “rolling benefit.” The capital gain that was originally deferred as an eligible investment into a Qualified Opportunity Fund (QOF) is required to be included in income in the taxable year that includes the earlier of: 1) the date the QOF interest was sold or exchanged, or 2) the date marking five years after the QOF investment was made.

2.

Reduction Benefit

•

A taxpayer who holds their QOF investment for five years will be eligible for a 10 percent basis step-up that would be applied when the taxpayer is required to recognize the original deferred gain into income. Effectively, this causes 10 percent of the original gain that was deferred to no longer be taxed.

3.

Exclusion Benefit

•

A taxpayer can make an election to have the fair market value (FMV) of their QOF interest equal to the FMV on the date the investment is sold or exchanged if sold within 30 years of the investment date. If sold after a 30-year hold, the QOF interest would equal the FMV of the investment as of the 30-year holding period date.

Additionally, the OBBBA provision establishes a new type of QOF that invests 90 percent of its assets in a QOZ comprised entirely of a rural area. Investment in these qualified rural opportunity funds (QROFs) will receive a 30 percent step-up in cost basis under the reduction benefit (as opposed to the general 10 percent). Additionally, a special rule lowers the substantial improvement threshold of existing structures from 100 percent to 50 percent in rural QOZs. Lastly, the new law adds more reporting requirements moving forward for QOFs and QOZBs that will require them to provide the following information: •

NAICS code(s) of the businesses in which the QOF and/or QOZB are operating.

Your Right Size Law Firm FOR CONSTRUCTION LAW

We are a full-service business law firm offering tailored legal solutions.

Our diverse team helps solve legal issues so you can focus on your core business goals.

412-456-2800 MUSLAW.COM BreakingGround September/October 2025

41

Penalties will be assessed for failure to comply with the reporting requirements. These penalties increase in amount if the fund meets the definition of a large QOF, which requires gross assets in excess of $10 million.

The first round of QOZs available under the new permanent policy will begin on January 1, 2027.

The fact that this provision has made the QOZ program permanent will provide more construction projects in the designated areas. Rolling 10-year QOZ designations would begin January 1, 2027, and fewer non-rural census tracts are expected to qualify, since the definition of a low-income community is narrowed and contiguous census tracts that previously qualified solely based on their proximity to qualifying census tracts are no longer eligible.

The law included incentives to help drive additional investment to rural QOZs that generally had not seen as much capital infusion under the first round of the program.

Overall, the general tax benefits of the QOZ program remain intact. Taxpayers that experience a capital gain event should consult with their tax adviser on whether it makes sense for them to pursue reinvesting their capital gain into a QOF to take advantage of these benefits.

Strategic Planning in Action Many successful companies are already leveraging updated advisory services to incorporate the new tax law changes in items like the following: •

Model cash flow and job costing scenarios.

•

Evaluate lease vs. buy decisions for equipment.

•

Navigate state and local tax complexities.

•

Strengthen balance sheets for bank financing and bonding.

•

Consider accounting method changes

It Starts with a Conversation Whether you’re a general contractor, specialty trade firm, or infrastructure developer, now is the time to revisit your tax strategy. BG Ryan Broze is a partner at Cohen & Company. He can be reached at rbroze@cohenco.com.

FULL-SERVICE CIVIL ENGINEERING

PITTSBURGH & BUTLER, PA | (412) 921-4030 | WWW.GATEWAYENGINEERS.COM

42 www.mbawpa.org

MANAGEMENT PERSPECTIVE BRIDGING DOCUMENTS AND DESIGN-BUILD WARRANTIES: BUILDING BRIDGES TO AVOID PITFALLS

D

BY STEVE D. GARCIA, ESQUIRE

esign-build has continued its steady ascent in both the private and public spheres, revolutionizing how stakeholders approach construction projects. By melding design and construction responsibilities into a single point of responsibility, design-build can streamline project delivery and reduce administrative inefficiencies. Yet, this consolidated approach does not immunize participants from complex warranty obligations. Rather, warranty issues remain murky as potential owner warranties are implicated by bridging documents, federal and state procurement regulations, and performance specifications. That said, we will explore an owner’s implied warranties in the design-build context—first defining the problem, then describing measures for clarifying risk allocation between the parties. Ultimately, a well-drafted design-build contract will bridge over potential warranty pitfalls.

Defining “Bridging Documents” in Design-Build In “bridging” or “partial design” situations, the owner furnishes preliminary design documents or performance criteria that the design-builder must finalize and implement.

These bridging documents can include site data (e.g., geotechnical studies), conceptual plans, or schematic designs. From a warranty perspective the pivotal question is whether the owner’s partially complete plans inadvertently create an implied warranty as set forth in the landmark Spearin doctrine. Under United States v. Spearin, 248 U.S. 132 (1918), owners who provide defective design specifications can be liable for resulting cost overruns, schedule delays, or rework.

In design-build, however, the design-builder typically has primary responsibility for completing and validating the design; courts and Boards of Contract Appeals frequently hold that Spearin-type warranties are “curtailed” because the contractor ultimately “owns” the design. However, if the owner is truly passing along design documents that are not subject to re-evaluation, the design-builder may still raise a Spearin-like claim or defense if a defect later emerges in the bridging documents. The upshot then is that bridging documents must be approached cautiously.

2.

The design-builder reasonably relies upon them when finalizing its bid or completing the project scope.

To avoid this, many public and private owners attempt to disclaim any warranty or representation regarding the accuracy of the bridging documents.

Implied Fitness for Purpose Courts in some jurisdictions have long recognized that an owner may implicitly warrant the “fitness for purpose” of the structure’s design if it provides specialized preliminary designs or site data. Kennedy v. Bowling, 319 Mo. 401, 4 S.W.2d 438 (1928). This risk can be heightened if the owner’s bridging documents reflect specialized knowledge that the design-builder is entitled to rely upon or could not have reasonably come to know without the owner’s disclosure.

N. Harris County Junior Coll. Dist. v. Fleetwood Constr.

Co., 604 S.W.2d 247, 254 (Tex.Civ.App.-Houston [14th Dist.]

1980, writ ref’d, n.r.e.).

Key Federal Frameworks: 41 U.S.C. § 3309, 48 C.F.R. pt. 36, § 36.3, and pt. 536 Under 41 U.S.C. § 3309 and the associated regulations in 48 C.F.R. Part 36—especially Subpart 36.3—federal agencies frequently use a two-phase design-build procurement model. In Phase One, the government evaluates potential contractors’ qualifications to form a shortlist. In Phase Two, these finalists submit technical proposals and pricing, relying in part on the government’s preliminary or “bridging” documents. Because the designbuilder is responsible for completing the design, the government typically includes disclaimers to limit its liability for any incomplete or erroneous preliminary information.

Two Federal Acquisition Regulation (FAR) clauses commonly define risk allocation in these contexts: 1.

FAR 52.236-21 (“Specifications and Drawings for Construction”

Owners’ Implied Warranties in Design-Build

This provision obligates contractors to interpret and follow government-provided specifications and drawings, requiring them to report any inconsistencies or flaws they discover.

Traditional Spearin Warranty, Modified

2.

Traditionally, Spearin ensures that when the owner prepares and provides design specs, it implicitly warrants their adequacy. In design-build, the lines of responsibility shift.

Nonetheless, an implied warranty can still arise if: 1.

The owner supplies partial or bridging documents containing critical or detailed designs, and

FAR 52.236-23 (“Responsibility of the ArchitectEngineer Contractor”)

Although initially aimed at architect-engineer services, it clarifies that design responsibility rests primarily with the contractor—thereby reducing the government’s exposure to Spearin-type implied warranty claims.

However, these disclaimers are not absolute. If the government’s bridging documents contain errors that a

BreakingGround September/October 2025

43

design-builder could not have reasonably detected before contract award, the Spearin doctrine (implied warranty of design adequacy) may still apply. Magnus Pacific Corp. v.

United States, 133 Fed.Cl. 640 (2017).

warranty statutes which complicate the calculus. Although disclaimers can mitigate these risks, if the disclaimers conflict with statutory requirements, courts may deem them unenforceable.

State Level Design-Build Considerations

For example, many states codify specific requirements for performance or design-criteria packages in designbuild contracts. If an owner furnishes incomplete or inaccurate materials, it may still be exposed to Spearin-type implied warranties—even if the design-builder bears primary responsibility for finalizing the design.

And as mentioned, certain states have commercial codes or other rules that carve out owner liability in design-build contracts, shifting verification duties for bridging documents back to the designbuilder. Accordingly, to be enforceable, any disclaimers must be drafted in harmony with any such provisions.

Further, understanding state-level statutes which govern design responsibility is vital to any successful designbuild project. Some states adopted design-build specific

Union Craftsmen

Given these state variations, a design-build team should carefully assess the controlling law of the project before contract execution: document assumptions; request clarifications when bridging documents are unclear; and tailor disclaimers to align with any transparency, disclosure, or carve out statutes. By proactively negotiating risk allocations and adhering to statutory requirements, both owners and designbuilders can minimize disputes and better manage these warranty issues.

Building the Region

Practical Measures for Clarifying Risk Allocation 1.

Read All Regulations and Statutes Carefully Design-builders should confirm whether the contract incorporates clauses such as FAR 52.236-21, 52.236-23, or state-level counterparts that can shift risk. On public jobs, pay close attention to how bridging documents are labeled and whether disclaimers conflict with transparency obligations. Raise those issues with the owner if identified and be sure to address your state’s applicable law.

2.

One Unit at at Time... www.mcawp.com 44 www.mbawpa.org

Request Clarifications Pre-Award

If bridging documents contain ambiguities or omissions, ask for clarification or additional data. Document these inquiries through Requests for Information (RFIs).

3.

Negotiate Thoughtfully

Express

Warranties

Many design-build agreements include performance warranties that go beyond a

typical “standard of care.” Accordingly, a prudent designbuilder will negotiate language that: a.

Limits open-ended liability or consequential damages;

b.

Distinguishes between the owner’s bridging documents and the design-builder’s final design obligations; and

c.

Includes disclaimers aligning with the relevant federal or state procurement statutes.

This article originally appeared in ConsensusDocs Construction Law Newsletter Volume 11, Issue 6 - June 2025, and was printed with permission by the Associated General Contractors. Steve Garcia is a senior associate at Peckar & Abramson P.C. in Houston, TX. He can be reached at sgarcia@pecklaw.com.

Maintain Thorough Documentation Keep comprehensive design logs, records of design changes, and RFI responses.

If a dispute arises, documentation can be pivotal in showing which party had responsibility for what portion of the design.

Monitor Protest Rights “Transparency” Requirements

and

Under federal law, disappointed bidders can file protests at the Government Accountability Office (GAO) or the U.S. Court of Federal Claims. Similarly, states and other governmental entities have protest mechanisms. Understand the protest processes and remain vigilant about meeting solicitation requirements, especially on bridging documents.

Conclusion Design-build contracts bring about integrated responsibilities that can streamline projects, but these arrangements do not eliminate the complexities of implied warranties—especially when owners furnish bridging or partial design documents.

Federal statutes (41 U.S.C. § 3309), regulations (48 C.F.R. pt. 36, 48 C.F.R. § 36.3, 48 C.F.R. pt. 536), and state laws underscore that both private and public design-build stakeholders must carefully consider disclaimers—while design-builder contractors should remain keenly alert to potential implied warranties or items where clarification is needed.

By conducting thorough reviews of partial owner designs, negotiating express warranties with clarity, and ensuring documentation of any disclaimers or clarifications, design-builders and owners alike can solidify a shared foundation of trust. Therefore, with proper planning, the challenges posed by bridging documents or partial designs swiftly go from potential pitfalls to little more than water under the bridge. BG

BreakingGround September/October 2025

45

The 25th Annual

PITTSBURGH CHAPTER

Night at Night at the the

FIGHTS

Seating is Limited SECURE YOUR SPOT BY COMMITTING TO A SPONSORSHIP TODAY! THIS IS A Sell Out Event!

NOVEMBER 13, 2025 at OMNI WILLIAM PENN HOTEL

BEST PRACTICE DESIGNING FOR SAFETY: HOW PREVENTION THROUGH DESIGN CAN TRANSFORM THE BUILT ENVIRONMENT

I

BY LAWRENCE PAYNE, AIA

n the building industry, design innovation is often measured by aesthetics, technology, or speed. Yet, the most transformative designs are those that begin with a simple, enduring commitment: safeguarding the people who occupy and maintain our built spaces.

Prevention through Design (PtD) is a philosophy and practice that embeds safety into the DNA of a building project. By proactively addressing hazards from the earliest planning phases, PtD transforms safety from a reactive process into a driver of design excellence.

Far from limiting creativity, PtD empowers teams to envision built environments that are flexible, maintainable, and aligned with user needs. Leveraging tools like digital simulation, hazard workshops, and lifecycle risk assessments, the process allows design teams to anticipate potential risks and resolve them before they ever materialize on-site or in operation.

Collaboration as a Design Imperative A central tenet of PtD is collaboration. Structured workshops and integrated project teams bring together architects, engineers, safety professionals, maintenance staff, and endusers early in the design process. This broad participation ensures that decisions reflect operational realities as well as aspirational goals.

From these discussions emerge tailored safety strategies: identifying hidden risks, evaluating long-term consequences, and prioritizing solutions that reduce or eliminate hazards altogether. Lifecycle thinking is essential because what

LOW-PROFILE RAISED FLOOR AT THE PATTEE-PATERNO LIBRARY Flexibility and Long-Term Safety Through Integrated Design

During the renovation of Foster Auditorium, in Penn State University’s Pattee-Paterno Library, the design team implemented a low-profile raised floor system as part of a curved, stepped-floor configuration.

Initially selected for its quick installation and minimal disruption to existing structures, the system quickly proved its long-term value by providing both infrastructure flexibility and reduced lifecycle hazards.

This success later informed the design approach for the Tombros & McWhirter Knowledge Commons, where the raised floor was proposed to support future-ready infrastructure: facilitating easy relocation of power and data, supporting modular partitions, and avoiding interference with the floor slab below.

Since its completion, the raised floor has supported rapid technology shifts and flexible space reconfigurations. Its value was especially evident during the COVID-19 pandemic, when powered furniture layouts were swiftly modified to accommodate social distancing guidelines.

Today, the system has become standard across the Pattee-Paterno Library renovations which is evidence of how PtD strategies can establish infrastructure that’s both safe and adaptable.

works well during construction must also support safe operations, maintenance, and future adaptability.

Designing with Risk in Mind PtD solutions often manifest in simple but powerful ways: selecting materials that are non-toxic and fire-resistant, designing for ergonomic workflows, or Safety impact by project phase

BreakingGround September/October 2025

47

We Make Building Projects a Better Value

Named a Top Architecture & Engineering Firm by ENR East

Energy & Infrastructure | Government | Higher Education

Architecture • Engineering • Interior Design • Planning + Project Services

412-287-7333

aeworks.com

Pittsburgh, PA (Headquarters) •

EXPERIENCE UNMATCHED ANYWHERE ELSE

Metal Framing • Drywall / Drywall Finishing Acoustical • Rough Carpentry Glulam Construction

BRYAN CONSTRUCTION INC.

www.bryanconstructioninc.com 724-794-6003

48 www.mbawpa.org

State College, PA •

Washington, DC

DEMOUNTABLE PARTITIONS AT KNOWLEDGE COMMONS Vertical Adaptability that Supports Evolving Needs

As part of the design of Tombros & McWhirter Knowledge Commons, at the Penn State University Library, the library’s administration set a clear mandate: flexibility must be embedded into both infrastructure and space planning. With a low-profile raised floor already specified to manage horizontal adaptability, the design team enhanced vertical flexibility by incorporating demountable partitions.

These partitions, which include removable “skins,” allow for safe access to embedded power and data systems which eliminates the need for invasive work when space configurations change. This modular design supports the PtD objective of reducing hazards during system modifications.

An example of this strategy’s success came when a video editing suite was transformed into a 3D printing lab. Even with the need to incorporate additional infrastructure, the room was safely adapted to support 32 desktop 3D printers that now serve students across multiple campuses. The transformation occurred quickly, safely, and without disrupting adjacent systems, demonstrating the power of PtD in creating future-ready environments.

ensuring equipment is safely accessible for maintenance.

Risk is mitigated not with reactionary fixes, but with intentional, forward-thinking choices.

These decisions are supported by robust assessment tools like Job Hazard Analysis (JHA), risk matrices, and Failure Mode and Effects Analysis (FMEA). They allow design teams to balance innovation with safety, recognizing that resilient buildings must function safely from day one and through every change ahead.

Building Maintenance into the Blueprint Safe maintenance access is one of the most overlooked, and most critical aspects of building design. PtD reframes this challenge by ensuring building systems are placed where they can be safely accessed and serviced. This not only improves safety for maintenance

personnel but also extends system longevity and reduces lifecycle costs.

Integrated solutions, such as remote-mounted lighting or equipment located within accessible ceiling zones, reflect the broader PtD commitment: that safety should not be sacrificed for spatial ambition.

A Framework for Long-Term Success Compliance with OSHA, ANSI, and ISO standards is a baseline, not a ceiling for PtD-driven projects. The real strength of this methodology lies in its culture of continuous learning. PtD integrates training programs, post-occupancy evaluations, and innovation reviews to capture lessons learned and apply them to future work. Safety metrics become key performance indicators, and design teams evolve with each project.

Penn State University Collaboration Commons and Infill, Pattee-Paterno Library. Photos by Halkin Mason Photography.

BreakingGround September/October 2025

49

ESWP COMMERCIAL AWARD WINNER

AHN WEXFORD CCHP PLANT

Contractors and Local 66 working together to build a better future.

For over 120 years Local 66 in partnership with our Contractors, have been committed to provide qualified and competent Operating Engineers. The most successful companies are union signatories. We will help you to remain competitive and to gain the marketplace advantage. You will keep your employees and we will work with you to provide skilled training; and as you grow and your needs expand, we can provide you with a qualified workforce.

This partnership is a positive approach to doing business. Your company must remain competitive during all economic conditions. We bring positive factors to the relationship – training, reliable workforce, safety, quality and a stronger community presence.

“We partnered with the Local 66 in 2011. Since then, we’ve been able to take on many more clients, more difficult work, due to the contribution of their great staff.”

J.J. Stefanik - President Stefanik’s Next Generation Contracting Co.

111 Zeta Drive, Pittsburgh, PA 15238

50 www.mbawpa.org

”Mascaro Construction Company is a regional general contractor that’s been around for 33 years. Proud to say that 30 of those years, we’ve had a relationship with the Operating Engineers providing us with skilled craftspeople that run all the equipment that we have.”

John C. Mascaro Jr. - President Mascaro Construction “Working with Local 66, we have had employees that have been with us 25-30 years.”

Bindy Bucci - Owner Golden Triangle Construction

412-968-9120

www.iuoe66.org

A Safer, Smarter Future Built by Design As the building industry confronts increasingly complex demands, such as climate resilience, workforce safety, evolving technologies, and shifting programmatic needs, Prevention through Design offers a clear, actionable path forward. It reframes safety not as a constraint, but as an engine of smarter, more responsible innovation. Whether the project is a college library, hospital, data center, or government facility, PtD provides the structure and mindset to anticipate risk, streamline operations, and extend the useful life of every system within a building.

By embedding safety into the earliest phases of planning, organizations reduce the potential for injuries, operational disruptions, and costly retrofits. More importantly, they create environments where people, whether staff, visitors, technicians, or occupants, can thrive without navigating unnecessary risk. From modular infrastructure that allows space to evolve, to lighting systems designed for safe maintenance access, PtD enhances both the user experience and the bottom line.

Equally powerful is the cultural shift PtD promotes. When architects, engineers, contractors, and owners work in unison to prioritize safety at the design table, they foster a shared sense of responsibility that carries through construction, commissioning, and daily operations. This collaborative ethic results in not only safer buildings, but also stronger project outcomes that are on time, on budget, and built to serve for decades.

As regulatory standards grow more rigorous and sustainability imperatives rise, PtD equips project teams to lead with purpose. It connects the dots between technical excellence, human-centered design, and long-term value. In doing so, it ensures that safety is not something we react to after an incident, but something we design for from the very beginning.

In every sector, in every building type, the future belongs to those who design with intention. PtD is not just good

DESIGN FOR SAFE ACCESS AND LONG-TERM VALUE Maintenance Without the Hazards

As part of a two-story courtyard infill, at Penn State University’s Pattee-Paterno Library, the design team created a bright, welcoming atrium using sculptural pendant lights and high-efficiency LED downlights.

While the design enhanced circulation and visual appeal, it also introduced challenges for safely maintaining overhead systems.

To address this, PtD strategies were embedded from the outset. Pendant fixtures were installed on integrated lift systems, allowing safe, floor-level access for cleaning that eliminates the need for ladders or scaffolding. LED lighting and HVAC controls were strategically located in accessible ceiling zones, making routine servicing safer and more efficient.

By prioritizing maintainability alongside aesthetics, the project illustrates how PtD supports both longterm safety and operational performance without compromising user experience.

practice, it’s a new standard of excellence in the built environment. BG Larry Payne is principal at AE Works. He can be reached at larry@aeworks.com.

Penn State University Collaboration Commons and Infill, Pattee-Paterno Library. Photos by Halkin Mason Photography.

BreakingGround September/October 2025

51

www.treconstruction.net 724.650.5544

MICA members are interior contractors who share a common mission: to provide their customers with the highest quality craftsmanship. We partner with the union trades that supply the best trained, safest and most productive craftsmen in the industry.

Alliance Drywall Interiors, Inc. Easley & Rivers, Inc. Giffin Interior & Fixture, Inc. JLJI Enterprises J. J. Morris & Sons, Inc. T. D. Patrinos Painting & Contracting Company

Precision Builders Inc. RAM Acoustical Corporation Schlaegle Design Build Associates TRE Construction Wyatt Inc.

Nemacolin Grand Lodge Interior contractor: Giffin Interior & Fixture, Inc. Another high quality MICA project

52 www.mbawpa.org

INDUSTRY & COMMUNITY NEWS

Turner’s Pitt Cell and Gene/ElevateBio team packed fully stocked backpacks for a local back-to-school drive benefiting the Hazelwood community. Organized

by Turner’s Community and Citizenship team, this effort donated 50 backpacks.

Pictured from left are Turner’s Megan Corrie, Joel Pitacciato, Greg Komar, Alex Romanchik, Nia Sankofa, Tyrell Minniefield, Hunter Gregory, Jake Zambo, Laura Traczynski, Cameron Wilson, Sage Smith, and Najeeb Hameen from ImbuTec.

(From left in blue) Josh Cofano, Art Shivani, and Jim Martin from TRE Construction, with the MBA’s Lance Harrell (second from right) at the NAIOP CREW Clays Shoot on June 19.

Michael Mascaro participated in the annual ALS CEO Soak at the PPG Fountain. Mascaro’s Mike Schoeneman and Kevin Finn stopped over from the Market Square Revitalization project to cheer him on.

(From left) UPMC’s Adrienne Miles and husband George Miles, Tara Connor from Turner Construction, and Rettew’s Paul Ceriani.

BreakingGround September/October 2025

53

The second annual MBA Member’s Intern Luncheon was held July 18 at the Carpenters’ Joint Apprenticeship Training Center. Interns pictured from left are Reese Pallone from DRAW Collective, Olivia Willig from Rycon Construction, Lauren Luppe from PJ Dick, Aidan Bartholomew from UBS Financial Services, and Patrick Loomey from Rocky Bleier Construction Group.

Turner Construction intern, Anthony DeCostello (left), and Rycon Construction intern Garret Crivelli.

The MBA Young Constructors hosted its annual clays shoot on July 31 at Coal Ridge Sporting Clays in Weirton, WV. Pictured from left are, Chelsea Burton, Brice Koprivnak, Kathleen Kiehl, and Nathan Bota from PJ Dick.

54 www.mbawpa.org

(From left) Aon’s Charlie Salazar, Ross Allesandro from Schneider Downs, and Kinsey McInturf from DFL Legal.

Avison Young creates real economic, social and environmental value as a global real estate advisor, powered by people. Our integrated talent realizes the full potential of real estate by using global intelligence platforms that provide clients with insights and advantage. Together, we can create healthy, productive workplaces for employees, cities that are centers for prosperity for their citizens, and built spaces and places that create a net benefit to the economy, the environment and the community.

(From left) Angela Tignanelli, James DeWitt, Jaden Gage, and Jim Hart from FMS Construction.

Legal Counsel for Building What’s Next Contracts, claims, litigation – our team delivers practical legal guidance backed by courtroom strength and decades of experience serving construction clients across Pennsylvania.

(From left) Kevin Wilson from WNA Engineering, Jennefer Bartholemew from UBS, Desmone’s Eric Booth, and WNA’s Heather Grillo.

Pittsburgh I Harrisburg I Lancaster I York I Stewartstown I Malvern I Philadelphia

saxtonstump.com

BreakingGround September/October 2025

55

(From left) Marisa Dascenzo from Workscape, MillerKnoll’s Lindsay Schwotzer, Beverly Shelby from AE Works, and Barbara Pschirer from R3A Architecture.

Sheet Metal

Mechanical

Power

Spiral

DEDICATED TO INTEGRITY AND CUSTOMER COMMITMENT IN ALL WE DO — ALWAYS.

· Duct Systems · Plate Products · Air & Water Balancing · Fabrication Services

· HVAC · Plumbing · Process Piping · Service · Pipe Fabrication · Design Build

· Nuclear HVAC · Air Systems Products Equipment · Duct Fittings & · Specialty Metal Accessories Fabrication · Gripple Hanger Systems · ASME NQA-1 Program

SSM Industries Inc. • 3401 Grand Avenue • Pittsburgh PA 15225 T: 412-777-5100 • F: 412-771-1118 HARRISBURG

PITTSBURGH

PHILADELPHIA/NEW JERSEY

www.ssmi.biz 56 www.mbawpa.org

The American Subcontractors Association of Western PA held its annual golf outing August 18 at Chartiers Country Club. Picture (from left) are W. G. Tomko’s Brian Joyce, Jason Banes, Scott Ruffing, and Dan White from Lighthouse Electric.

LATROBE

(From left) Rycon’s J.R. Bittner, Aaron Reed from Reed Building Supply, Neal Rivers from Easley and Rivers, and Volpatt Construction’s Ray Volpatt.

(From left) McKamish’s Bob Ward, Dustin Rothrock, Jim Synan, and Tom Farr.

WESTMORELAND TECHNOLOGY DRIVE Four industrial parks & RIDC Westmoreland Innovation Center. The PennSTART test track site. Excellent connectivity.

Westmoreland Technology Drive Industrial Complex is ready for your site-selection needs.

PAD SITES! LEASABLE SPACE!

724-830-3061

WestmorelandCountyIDC.com

(From left) Bill Ferrelli, Matt Westwood, Kara Seebacher, and Mark Westwood represented Mascaro at the Autism Awareness Golf Outing.

(From left) Chris Pless from NEXT Architecture, LaFace & McGovern’s Steve Whittingham, Harris Masonry’s Adam Harris, and Greg Heddaeus from Carl Walker Construction at the August 21 NAIOP Pittsburgh Developing Leaders’ Golf Outing at Cranberry Highlands.

BreakingGround September/October 2025

57

ANNUAL WINE DINNER CREW PITTSBURGH SIGNATURE EVENT BLACK & WHITE ATTIRE SUGGESTED

THURSDAY, NOVEMBER 6 WINTERGARDEN AT PPG

50 5050

RAM 50th RAM RAM 50th 50th thth th Anniversary Anniversary Anniversary Olive Olive Olive 1975 - 2025 1975 1975 - 2025 - 2025 Leaf logo Leaf Leaf only: logo logo only: only: 1975- 2025 197519752025 2025

Continuing Continuing Continuing to Build totoBuild Build the the Future theFuture Future withwith with Honesty, Honesty, Honesty, Integrity Integrity Integrity & Reliability! &&Reliability!

Reliability!

Five Five Five decades of decades HARD ofofHARD WORK HARD WORK WORK We take We We pride take takein pride pride ourinwork inour our and work work always and andalways provide alwaysprovide provide the maximum the themaximum maximum value value tovalue ourtoclients! toour ourclients! clients!

decades

50 Years 5050 of Years Years QUALITY ofof QUALITY QUALITY workmanship workmanship workmanship

Building Building Building with INTEGRITY with with INTEGRITY INTEGRITY since 1975 since since 1975 1975

RAMRAM Acoustical RAMAcoustical Acoustical

•We believe •We •We believe inbelieve staying inin staying staying •We remain •We •We remain true remain to true our true founding toto our our founding founding values of values values quality, ofof quality, quality, •We have •We •We worked have have worked on worked many onon wide-ranging many many wide-ranging wide-ranging and and and on the cutting onon the the cutting edge cutting ofedge edge ofof integrity integrity integrity and hard and and work. hard hard work. work. different different different projects projects the projects pastthe 50 the past year past 50 such 50 year year assuch such asas building building building trends trends &trends && •RAM,•RAM, as•RAM, a primary asas a primary a primary construction construction construction company company company in inin local schools, local local schools, colleges, schools, colleges, colleges, churches, churches, churches, businesses, businesses, businesses, remainremain committed remain committed committed southwestern southwestern southwestern PA, hasPA, delivered, PA, has has delivered, delivered, and will and continue and will will continue continue banks, banks, restaurants banks, restaurants restaurants and institutions. and and institutions. institutions. to excellence toto excellence excellence and and and to deliver, toto deliver, top-notch deliver, top-notch top-notch qualityquality services quality services to services our clients. toto our our clients. clients.

•Proud•Proud to•Proud continue toto continue continue partnering partnering partnering with many with with many many professional professional professional management management management with with with •RAM:•RAM: delivers •RAM: delivers the delivers highest the the highest standard highest standard standard of craftsmanship. ofof craftsmanship. craftsmanship. top-notch top-notch top-notch generalgeneral contractors general contractors contractors and architects. and and architects. architects. all our all construction all our ourconstruction construction partners, partners, partners, •From •From start •From tostart finish, start toto we finish, finish, are wewe are are detailed-oriented detailed-oriented detailed-oriented on all jobs. onon allall jobs. jobs.

RAM RAM RAM Acoustical: Acoustical: Acoustical: celebrating celebrating celebrating the the past, the past, past, •Successfully •Successfully •Successfully completing completing completing over over over 3,500 plus 3,500 3,500 projects. plus plus projects. projects. success! success! success! anticipating anticipating anticipating the the future the future future with with with even even even more more more Southwestern Southwestern Southwestern Pennsylvania Pennsylvania Pennsylvania is our home. is is our our Being home. home. supportive Being Being supportive supportive and active and and active active member member of member our community ofof our our community community is a priority is is a priority aand priority weand are and we committed we are are committed committed to toto strengthening strengthening strengthening friendships, friendships, friendships, servingserving others serving and others others investing and and investing investing in our region. in in our our region. region.

RAM Acoustical RAM RAM Acoustical Acoustical Corporation Corporation Corporation is proudisto is proud proud play to anto play important play anan important important role in the role role in in the the region’sregion’s economy region’s economy economy by employing byby employing employing a Unionawork Union a Union force work work generating force force generating generating millionsmillions millions of dollars ofof dollars in dollars wages, in in wages, pensions, wages, pensions, pensions, health benefits, health health benefits, benefits, and state/local and and state/local state/local taxes. taxes. taxes.

0participates 0in ina multitude RAM also RAM RAM participates also also participates in a 0 multitude a multitude of community ofof community community projects. projects. projects.

58 www.mbawpa.org

50 5050

Insert Insert complete/full Insertcomplete/full complete/full 50th 50th 50thth th th RAM Logo RAM RAMLogo Logo 1975 - 202519751975 - 2025 - 2025 P.O. Box P.O. P.O. 908 Box Box 908 908 Phone:Phone: 724-846-6800 Phone: 724-846-6800 724-846-6800 608 Second 608 608 Second Avenue Second Avenue Avenue Fax: 724-846-6033 Fax: Fax: 724-846-6033 724-846-6033 Beaver Beaver Falls, Beaver PA Falls, Falls, 15010 PAPA 15010 15010

AWARDS & CONTRACTS FMS Construction was the successful bidder on the $2.4 million Morgantown High School Kitchen Renovation for Monongalia County Board of Education. The architect is McKinley & Associates.

Massaro Construction Management Services was awarded a contract for construction management of the $30 million Chestnut Ridge Elementary School expansion and renovation in Bedford County, PA. The architect for the 62,000 square foot new building is EI Associates.

Massaro was recently awarded the UPMC Kane Hospital Air Handling Unit Replacement for the operating room and emergency department via a hard bid. The architect for the $3.3 million project is Hasenstab Architects.

The Center Area Transportation Authority awarded Massaro Corporation the office fit-out renovation located in State College. CDM Smith is the architect.

A groundbreaking ceremony was celebrated in late August for The Neighborhood Academy’s new additions. Massaro Corporation was selected for the $13.1 million addition to the academic building and another for the athletic facility.

Mercy Health Champion Emergency Center recently celebrated a groundbreaking for the new hospital in Champion, Ohio. The much-needed facility was awarded to Massaro Corporation, and the architect of record is GBBN. Geneva College awarded Massaro Corporation its $8 million Welcome Center project. The architect of record is McKinley Architectural Services, Inc., (doing business as MCF Architecture).

Shannon Construction is doing the renovations for the DRI tenant space on the 53rd floor of 600 Grant Street. NEXT Architecture is the architect.

Shannon Construction is the general contractor for the tenant renovations for Raines Feldman Littrell on the 15th floor of 11 Stanwix Street. The architect for the 22,000 square foot buildout is POH + W Architects.

TEDCO Construction was awarded a $1.8 million contract by Westmoreland County Community College for renovations to its chemistry labs in New Stanton, PA. The architect is DRAW Collective.

Turner Construction has been selected to deliver the nearly 30,000 square foot fit-out of Deloitte’s new office at One PPG Place. Designed by Gensler, the vibrant new workspace will feature flexible meeting areas, hospitality-focused community spaces, and a layout that fosters collaboration across teams.

Turner will deliver the 72,000 square foot K&L Gates office renovation project, with Gensler as the architect. This modern Class A space will support the firm’s future vision with flexible,

collaborative, and client-focused design.

Pittsburgh Parking Authority awarded a $3.7 million contract to CPS Construction Group Inc. for Repairs and Preventive Maintenance at the First Avenue Garage and Station in downtown Pittsburgh. Desman is the architect for the project.

St. Vincent College selected A. Martini & Co. to build its $10 million Rhodora and John Donahue Hall in Latrobe, PA. The new building, which will be home to the School of Nursing, was designed by Kimmel Bogrette Architecture + Site.

Rycon was selected as the construction manager for the new 17,000 square foot giraffe barn at the Pittsburgh Zoo & Aquarium.

Rycon is building the 21,000 square foot pediatric clinic fitout for WVU Medicine at Wheeling Hospital.

Rycon continues to work at the former Jameson Hospital in New Castle, PA, serving as the general contractor for an upcoming MRI renovation.

MillerKnoll selected Rycon to complete an 8,000 square foot retail fit-out for Design Within Reach in Pittsburgh’s Strip District.

Rycon is serving as the general contractor for Café Conmigo, a new food and beverage destination located in the landside terminal of Pittsburgh International Airport.

PJ Dick is managing Duolingo’s 90,000 square foot fit-out across three floors in the Liberty East building.

PJ Dick’s Mid-Atlantic office is the general contractor for the renovation to Grace Hall on Villanova University’s Cabrini campus. The project includes 24,200 square feet of interior renovations and exterior façade upgrades.

PJ Dick began phase three of the Cathedral of Learning second floor classroom renovations for the University of Pittsburgh. The renovation includes nine new classrooms from 12 existing classrooms with finish and mechanical/ electrical upgrades similar to phases one and two.

Landau Building Company is overseeing the Surgery Renovation at WVU Medicine’s Fairmont Medical Center.

Designed by Harley Ellis Devereaux Architects, the project involves the renovation of approximately 11,140 square feet on the lower level of the hospital.

UPMC Children’s Hospital has selected Landau Building Company as the general contractor for its upcoming Inpatient Pharmacy project. The 930 square foot renovation will upgrade the 5th and 9th floor pharmacies to meet USP 800 standards. DesignGroup is serving as the project architect.

(Continued on p. 61)

BreakingGround September/October 2025

59

Built on Experience. Backed By Success.

When it comes to construction, our attorneys provide extensive experience across the industry.

Bidding & Procurement | Contract Drafting & Negotiation | Contract Administration Dispute Resolution & Litigation | Energy | Environmental | Finance | Government Contracts Labor & Employment | OSHA | Regulatory Compliance | Supply Chain

Eckert Seamans has been nationally recognized in the 2024 edition of Best Law Firms® for our Litigation – Construction Practice. www.eckertseamans.com | 412.566.6000 | 15 Offices | F. Timothy Grieco, Chair, Construction Practice

Commercial Interior Construction, Exterior Wall Systems, and Prefabrication

PITTSBURGH 412-787-5800 PHILADELPHIA 215-492-5800

www.wyattinc.com

60 www.mbawpa.org

FACES & NEW PLACES Caliber Contracting Services announced that Heidenreich has been hired as a project engineer.

Luke

Caliber Contracting Services announced that Steve Baux has been hired as a superintendent.

Caliber Contracting Services announced that Michelle McNulty has been promoted to director of operations.

Rycon is glad to welcome Western Governors University alumna, Raphael Brothers, as an estimating coordinator.

With over eight years’ experience, David Connell has joined Rycon as a safety coordinator.

Stevenson University alumnus, Daniel Djukic, joined Rycon’s marketing department as a Marketing Coordinator.

Rycon is pleased to welcome Pennsylvania College of Technology alumnus, Elliott Gmiter, as a project engineer.

On June 16, Jake Krawczyk returned to Mascaro as a project engineer after completing two summer internships at Mascaro. He recently graduated from the University of Pittsburgh with a bachelor’s degree in civil engineering.

David Lukac returned to Mascaro as a project engineer on June 16. He recently graduated from Penn State University with a bachelor’s degree in civil engineering and a minor in entrepreneurship and innovation. He completed two summer internships for Mascaro.

RJ Murray returned to Mascaro as a project engineer on June 16. He graduated this spring with a bachelor’s degree in civil engineering from Penn State University. He completed two internship rotations with Mascaro.

On June 16, Madalyn Cerminara joined Mascaro as a Health, Safety & Environmental Manager.

On July 28, Alby Breisinger joined Mascaro as a project engineer. He is a recent graduate from Penn State University with a bachelor’s degree in civil and environmental engineering. He completed two previous internship rotations with Mascaro.

Alex Doe started at Mascaro on July 28 as a project engineer. He recently graduated from Penn State University with a bachelor’s degree in civil engineering and a minor in engineering leadership development. He successfully completed an internship rotation last summer with Mascaro.

Kameryn Snead joined Mascaro as a project accountant on July 28, after successfully completing an internship rotation with Mascaro last summer. She recently graduated from Penn State University with a bachelor’s degree in accounting.

Christopher Cook was hired as a new scheduler for Massaro Corporation. Chris has a bachelor’s degree in construction management and has been in the construction industry since 2008.

Christian Moreland joined Massaro Corporation as a project engineer. He is a Central Catholic alum and a recent graduate of Ohio State University with a degree in civil engineering.

Massaro Corporation hired Jake Mitolo as a newest project manager to join the team. He has a Bachelor of Architectural Engineering degree from Penn State University and has been in the construction industry since 2017.

Clayton Kejas was hired by Massaro Corporation as a project engineer. He graduated with a Bachelor of Architectural Engineering degree from Penn State University.

Eric Shudy was hired as the new business development representative for Massaro Corporation. Eric has more than 20 years’ construction sales experience and is a graduate of Duquesne University.

AWARDS & CONTRACTS (Continued from p. 59) Landau Building Company is serving as general contractor for the R/F Rooms 1 and 2 project at UPMC Children’s Hospital.

The phased renovation covers approximately 650 square feet on the hospital’s second floor and includes replacing equipment in Fluoroscopy Rooms 1 and 2. LGA Partners is the project architect.

Landau Building Company is overseeing the system-wide nurse call upgrades at UPMC Children’s Hospital. The project spans 10 floors and includes replacing nurse call equipment for patients, staff, head-end systems, and cabling. DesignGroup is serving as the project architect.

Mascaro’s Client Services Group won both the WVU HSC North and the WVU HSC South Elevator Modernization projects. The scopes for each project include labor, materials, equipment, and tools to modernize traction elevators.

DiMarco Construction was awarded the contract to build the $3 million expansion of the Westmoreland County Food Bank in Delmont, Salem Township. Canzian Johnston & Associates is the architect for the 7,700 square foot addition.

BreakingGround September/October 2025

61

PROFESSIONAL. SKILLED. COMMITTED. PROUD. C ATED ~ AFL-CIO, CL

Local Union #9

Local Union #2

RO OF E RPROO ATE FE W R S, R

F

S

Local Union #526

O

F IL I

D NITE UNIO N •U

AF

Local Union #154

These are the hallmarks the region’s union construction trades and contractors bring to the jobsite everyday. Our professional tradespeople and contractors bring the dreams and visions of our fast-growing region to life with a dedication that only those who live here, work here, and raise their families here can commit to. It is, after all, our home, our legacy.

&

LIED WOR AL KE R

Pittsburgh

S

Local Union 66

We are also committed to providing opportunity for all who share these values and want to pursue a lifelong, lucrative and satisfying career. For more information on building with our union trades and contractors, or to explore career opportunities, please visit www.buildersguild.org where you will find direct links to our Trade Unions, Joint Apprenticeship Training Centers and Contractor Associations.

Local Union #37

of Western Pennsylvania

Local Union 27

District Council #57

Local Union #5

Local Union #6

Jeff Nobers • Executive Director • 631 Iron City Drive • Pittsburgh, PA 15205 • 412.921.9000

www.buildersguild.org Builders Guild - January 2018 Ad - Color.indd 1

62 www.mbawpa.org

1/16/19 9:00 AM

MBA MEMBERSHIP 2025 MBA OFFICERS President Michael R. Mascaro Mascaro Construction Company, LP Vice President and Treasurer Alexander G. Dick Dick Building Company Secretary/Executive Director David D. Daquelente

2025 MBA BOARD OF DIRECTORS John P. Busse F.J. Busse Company, Inc. James T. Frantz TEDCO Construction Corporation Michael Kuhn Jendoco Construction Corporation Jennifer P. Landau Landau Building Company Anthony F. Martini A. Martini & Co. Steven M. Massaro Massaro Corporation David P. Meuschke, P.E. Burchick Construction Company, Inc. M. Dean Mosites Mosites Construction Company Jake Ploeger PJ Dick Incorporated Jodi L. Rennie Turner Construction Company John Sabatos Rycon Construction, Inc. Raymond A. Volpatt, Jr., P.E., Past President Volpatt Construction Corporation Neal Rivers (MICA President) Easley & Rivers, Inc.

GENERAL CONTRACTORS A. Martini & Co. AIMS Construction Allegheny Construction Group, Inc. Burchick Construction Company, Inc. Caliber Contracting Services, Inc. Carl Walker Construction, Inc. CH&D Enterprises, Inc. CPS Construction Group, Inc. Dick Building Company, LLC DiMarco Construction Co., Inc. E&G Development, Inc. Elwood Construction Corporation F.J. Busse Company, Inc. Facility Support Services, LLC FMS Construction Company Fred L. Burns, Inc. Gilbane Building Company Higley Construction Independence Excavating, Inc. Jendoco Construction Corporation Kokosing Industrial Incorporated Landau Building Company Mascaro Construction Company, LP Massaro Corporation McCrossin Menard USA Mosites Construction Company Nicholson Construction Company PJ Dick Incorporated Rocky Bleier Construction Group Rycon Construction, Inc. Shannon Construction Company Stevens Engineers & Constructors, Inc. TEDCO Construction Corporation Turner Construction Company Uhl Construction Company, Inc. Volpatt Construction Corporation

SPECIALTY CONTRACTORS

2bn contracting A Crane Rental, LLC A. Folino Construction, Inc. A.J. Vater & Company, Inc. Abate Irwin, Inc. ABMECH Acquisitions, LLC ACE Lightning Protection, Inc. Advantage Steel & Construction, LLC All Crane Rental of Pennsylvania, LLC Alliance Drywall Interiors, Inc. Amelie Construction & Supply, LLC Amthor Steel, Inc. BrandSafway Industries LLC Brayman Construction Corporation Bristol Environmental, Inc. Bruce & Merrilees Electric Company Bryan Construction, Inc. Build with MD Burke & Company, LLC dba S.P. McCarl & Company Burnham Industrial Contractors, Inc. Buzzelli Group LLC Casework Installation Company, LLC CaseWorks Inc. Centerpoint Painting Systems Century Steel Erectors Co., LP Clista Electric, Inc. Cost Company Costa Contracting, Inc. Cuddy Roofing Company, Inc. Dagostino Electronic Services D-M Products, Inc. Dom DeMarco Construction, Inc. Donley’s Concrete Group Douglass Pile Company, Inc. E2 Landscape & Construction Easley & Rivers, Inc. EMCOR Services Scalise Industries Fay, S&B USA Construction Ferry Electric Company First American Industries, Inc. Flooring Contractors of Pittsburgh Franco Associates G. Kidd Inc. Gaven Industries, Inc. Geo V Hamilton, Inc. Giffin Interior & Fixture, Inc. Gregori Construction Inc. Gumpher, Inc. Gunning, Inc. Hanlon Electric Company Harris Masonry, Inc. Hatzel & Buehler, Inc. HOFF Enterprises, Inc. Howard Concrete Pumping, Inc. Hunt Valley Environmental, LLC J.J. Morris & Sons, Inc. JLJI Enterprises, Inc. K & I Sheet Metal, Inc. Kalkreuth Roofing & Sheet Metal, Inc. KELLER North America Keystone Electrical Systems, Inc. Kirby Electric, Inc. Kusler Masonry, Inc. L & E Concrete Pumping Inc. Lanco Electric, Inc. Lighthouse Electric Company, Inc. Lisanti Painting Company Manheim Dellovade LLC Marsa, Inc. Massaro Industries, Inc. Master Woodcraft Corporation Matcon Diamond, Inc. Maxim Crane Works, LP McCrossin Foundations, LLC McKamish, Inc. Mele & Mele & Sons, Inc. Mohawk Construction & Supply Co., Inc Next 150 Construction LLC Noralco Corporation O. Z. Enterprises, LLC Paramount Flooring Associates, Inc. Pennsylvania Roofing Systems, Inc. Phoenix Roofing, Inc. Pittsburgh Interior Systems, Inc. Precision Environmental Company Pullman SST RAM Acoustical Corporation Redstone Flooring, LLC Renick Brothers Construction Co. Richard Goettle, Inc.

Right Electric, Inc. Ruthrauff | Sauer, LLC Saint’s Painting Company, Inc. Sargent Electric Company Schindler Elevator Schlaegle Design Build Associates, Inc. Schnabel Foundation Company Solid Platforms, Inc. Specified Systems, Inc. Spectrum Environmental, Inc. SSM Industries, Inc. Steel City Scaffolding of Pittsburgh, LLC Swank Construction Company, LLC T.D. Patrinos Painting & Contracting Company Tarax Service Systems, Inc. TRE Construction Triple 3 Construction, LLC Tri-State Flooring, Inc. W.G. Tomko, Inc. W.O. Grubb Steel Erection, Inc. Wayne Crouse, Inc. Wright Commercial Floors Wyatt Incorporated

AFFILIATE MEMBERS

4CTechnologies 84 Lumber Company A. L. Harding & Company A.R. Chambers and Son, Inc. ADMAR Construction Equipment and Supply AEC Online Store African American Chamber of Commerce of Western PA Allegheny County Airport Authority Pittsburgh International Airport Alliant American Contractors Insurance Group American Global American Producers Supply Company, Inc. AmeriServ Wealth & Capital Management Aon Atlantic Engineering Services Atlas Wholesale Co., Inc. AUROS Group Babst Calland Baker Tilly Virchow Krause, LLP BDO USA, P.A. Beth-Hanover Supply Co., Inc. Black Diamond Equipment Rental Bowles Rice Bronder & Company, P.C. Building Envelope Consultants and Scientists, LLC Building Point Ohio Valley Burns & Scalo Real Estate Services, Inc. Burns White, LLC CAD Construct LLC Cadnetics, Inc. Case | Sabatini Chartwell Investment Partners Chubb Group of Insurance Companies Civil & Environmental Consultants, Inc. Clark Hill PLC Cleveland Brothers Equipment Co., Inc. CliftonLarsonAllen LLP Cohen and Company Cohen Seglias Pallas Greenhall & Furman PC Computer Fellows Inc. Cozen O’Connor CTR Payroll & HR DesignGroup Desmone Architects Dickie, McCamey & Chilcote, P.C. Dingess, Foster, Luciana, Davidson & Chleboski LLP Dollar Bank DRAW Collective Architecture Eckert Seamans Cherin & Mellott ECS Mid Atlantic, LLC EPIC Insurance Brokers & Consultants EquipmentShare Fahringer, McCarty, Grey, Inc. Falk-PLI Engineering and Surveying FASTSIGNS of Pittsburgh FDR Safety, LLC FieldForce Equipment Sales & Rentals, LLC First National Insurance Agency Fisher Phillips GM Equipment Corp.

Graystone Consulting Pittsburgh H2R CPA Henderson Brothers, Inc.

Henry Rossi & Co., LLP HHSDR Architects/Engineers Highstreet Insurance Partners Hillis Carnes Engineering Associates, Inc. HUB International Huth Technologies LLC IMA Corp Interior Supply, Inc. Intertek - PSI J.S. Held JLL K&L Gates LLP Karpinski Engineering Kehm Oil Company L & W Supply LaFace & McGovern Associates, Inc. Langan Engineering & Environmental Services Liberty Insurance Agency Liberty Mutual Surety Lytle EAP Partners/Lytle Testing Services, Inc. Maiello, Brungo & Maiello MarinoWare Marsh Marthinsen & Salvitti Insurance Group McKim & Creed, Inc. McNees Wallace & Nurick LLC Meyer, Unkovic & Scott LLP Meyers Company Michael Baker International Michael Brothers Companies Milwaukee Tool Mobile Air, Inc. Mobile Medical Corporation Monster Smash, LLC Morgan, Lewis & Bockius LLP MSA Safety MSW Supply Multivista NCI - Nursing Corps Ohio Valley Drywall Supply OnPoint Industrial Services OVD Insurance PenTrust Real Estate Advisory Services, Inc. PGH Networks Philadelphia Insurance Companies Pietragallo Gordon Alfano Bosick & Raspanti, LLP Pittsburgh Mobile Concrete, Inc. ProShare Services LLC R.J. Bridges Corporation Reed Building Supply Repco II Republic Services, Inc. RETTEW Associates RJR Safety Inc. Roofing & Exterior Products Services Saxton & Stump Schneider Downs & Company, Inc. Scotti Law Group Security 101 Pittsburgh Seubert & Associates, Inc. Solutions 21 Sprague Energy Stanley Black & Decker Stephany Associates, Inc. Steptoe & Johnson, PLLC STI, Inc. Suburban Propane Sunbelt Rentals, Inc. Susanin, Widman & Brennan, PC The Gateway Engineers, Inc. The Reschini Group / Evergreen Insurance The Sherwin-Williams Co. T-Mobile Tom Brown, Inc. Travelers Bond & Financial Products Tri-State Reprographics/Signarama Pittsburgh Triangle Fastener Corporation Triumph Modular Tucker Arensberg, P.C. UBS Financial Services, Inc. Unified Door & Hardware United Rentals UPMC Work Partners USI Insurance Services W. R. Meadows of Pennsylvania White Cap WNA Engineering, Inc. WTW - Willis Towers Watson Zurich NA Construction

BreakingGround September/October 2025

63

Eastern Atlantic States REGIONAL COUNCIL OF CARPENTERS

LEADING THE WAY...

Over 40,000 highly skilled Carpenters Over 90,000 sq. ft. state of the art J.A.T.C. Trained in all aspects of Carpentry Commercial | Mill Cabinet | Millwrights | Heavy Highway Pile Drivers | Floor Coverers | Residential

Pennsylvania | New Jersey | Maryland | West Virginia Virginia | Delaware | District of Columbia eascarpenters.org | 412.922.6200 64 www.mbawpa.org

ARCHITECTS

2025 BUYER’S GUIDE

AE Works

LOOKING FOR AN ARCHITECT, ENGINEER, CONTRACTOR OR LENDER? THE 2025 NAIOP PITTSBURGH BUYER’S GUIDE LISTS DOZENS OF FIRMS FROM AROUND THE REGION THAT CAN FIT THE BILL.

Leverage the power of diverse services delivered by one team. AE Works combines building design and consulting specializations to enhance project value. United by innovation and entrepreneurial spirit, our team focuses on efficiency, ideation, and trust, optimizing your time and money for capital projects.

Architects...................................................................................................... 65 ASA Specialty Contractors ........................................................................ 68

418 Beaver Street, Sewickley, PA 15143 www.aeworks.com T: 412.287.7333 Tom White Vice President of Business Development tomw@aeworks.com

An award-winning firm, AE Works has been named to the 2025 Architectural Record Top 300. Experience spans commercial, healthcare, science and technology, energy & infrastructure, and higher education projects. Services include architecture, interior design, building systems engineering, and planning + project services.

Civil Engineers.............................................................................................. 68 Contractors................................................................................................... 68 Developers.................................................................................................... 71 Economic Development............................................................................ 72 Engineers....................................................................................................... 72 Environmental ............................................................................................. 73 Industry/Trade Group................................................................................. 73 Interior Designer.......................................................................................... 76 Land Surveyors............................................................................................. 76 Legal Services............................................................................................... 76 Real Estate Brokers...................................................................................... 76

Design 3 Architecture PC 300 Oxford Dr. Suite 120, Monroeville, PA 15146 T: 412-373-2220 www.d3a.com Anthony Scruppi - tScruppi@d3a.com

Design 3 Architecture has been offering architecture, planning, and interior design services to the Pittsburgh region since 1982. We view inherent project constraints as potential opportunities for innovative design solutions.

With a philosophy grounded in team collaboration, providing both personal attention and project leadership, Design 3 Architecture does more than solve problems. We provide solutions that are unique, exciting and affordable.

Solar Solutions ............................................................................................ 77 Specialty Contractors................................................................................. 77

Desmone Architects

YOUR GO-TO ENGINEERING CONSULTING PARTNER Pittsburgh, PA | Erie, PA | Morgantown, WV 412.206.1470 GEOTECHNICAL CONSTRUCTION MATERIALS TESTING ENVIRONMENTAL FACILITIES CONSULTING

SCAN TO LEARN MORE

3400 Butler Street, Pittsburgh, PA 15201 412-683-3230 www.desmone.com Eric Booth, AIA, President ebooth@desmone.com

Great design is inspired by vision. We design buildings and spaces that allow people to thrive – physically, emotionally, and spiritually. Our unique service journey is rooted in effective delivery strategies and informed by principles of health and wellness. Our work reflects the range and diversity of the clients we serve. Each project is informed by a unique set of opportunities and constraints and is inspired by our client’s vision. We design high performing buildings and spaces optimized for the people who live, work and play within. Health and wellness are a consideration on all projects, regardless of size, scale or type. Our work is designed to thrive.

BreakingGround September/October 2025

65

innovation and collaboration, NEXT approaches every project as unique and utilizes talented individuals along with intentional principal involvement to ensure every project’s success.

DLA+ Architecture & Interior Design Foster Plaza 10, Suite 500 680 Andersen Drive, Pittsburgh, PA 15220 412-921-4300 www.DLAplus.com Christoper Haupt, AIA – President & Chief Operating Officer CRHaupt@dlaplus.com

Founded in 2008, DLA+ is a full-service Architecture and Interior Design firm headquartered in Pittsburgh, with offices in Morgantown, WV, and State College, PA. We design rewarding experiences by combining our Strategic ArchitectureSM approach with a passion for design excellence and client commitment. Our clients include leading organizations in workplace, higher education, sports, government, healthcare, and retail/hospitality industries.

With broad expertise, our team excels in architecture, interior design, sustainability, design/build, and construction administration. We’re dedicated to creating remarkably designed, technically sound, and sustainable projects that are rewarding from inception and for generations to come.

IKM Architecture Pittsburgh | Cleveland | Columbus HDQ: 11 Stanwix Street #2200, Pittsburgh, PA 15222 T: 412-281-1337 www.ikminc.com Joel R. Bernard, AIA, NCARB, LEED AP, Principal jbernard@ikminc.com

Since 1911, IKM Architecture has delivered innovative, cost-conscious architecture, interior design, programming, and planning services that create lasting value. With offices in Pittsburgh, Cleveland, and Columbus, we offer regional expertise with the capacity to support projects across a broad footprint. Our work spans healthcare, behavioral health, science and technology, workplace, education, and civic sectors. We align design with client goals - whether optimizing patient flow, advancing research, or enhancing learning environments.

Through immersive stakeholder engagement and tools like VR, 3D modeling, and laser scanning, we transform complex ideas into clear, actionable plans.

DRAW Collective

LGA Partners, LP

470 Washington Road, Pittsburgh, PA 15228 www.drawcollective.com T: 412.561.7117 Daniel Engen, AIA, President DanielE@drawcollective.com Sheena Sundin, CPSM, Marketing Director SheenaS@drawcollective.com

Pittsburgh | Cleveland 444 Liberty Avenue, Suite 1500, Pittsburgh, PA 15222 T: 412-243-3430 Paulette Burns, Partner pauletteb@lga-partners.com

DRAW Collective is a full-service architectural firm specializing in projects that matter in the lives of people. For 80 years, our firm has provided thoughtful architecture and design for educational, health + wellness, and community places. DRAW’s talented team of architects, interior designers, and project managers are passionate about elevating the conversation around design and providing empathetic client services. We strive to assemble the best team to meet each individual project’s needs, resulting in long-term relationships that have lasted generations. DRAW Collective designs places that matter, together.

LGA Partners is an award-winning, full-service architectural design and planning firm headquartered in Pittsburgh, PA. For over 30 years, we have formed meaningful partnerships with clients, consultants, and stakeholders, producing inspiring and enduring architecture. With specialized studios in Aviation, Education, Healthcare, Housing, Retail, and Workplace, our diverse team of 90+ professionals deliver thoughtful, results-driven design solutions across sectors. Our collaborative approach fuels innovation and ensures every project is tailored to meet real-world needs while advancing our clients’ goals. Renowned both locally and globally for our commitment to Design that Works, we are consistently ranked among the region’s largest and fastest-growing firms — and have proudly been named a “Best Place to Work” for seven consecutive years.

HHSDR Architects/Engineers 40 Shenango Avenue, Sharon, PA 16146-1502 130 7th Street, 201 Century Building Pittsburgh PA 15222-3413 T: 412-281-2280 www.hhsdr.com Andreas Dometakis – adometakis@hhsdr.com Matthew Franz – mfranz@hhsdr.com

HHSDR helps our clients deliver successful projects, ontime and on-budget, using a 360 degree approach to project planning, design and management. Our approach means detailed, Partner involvement at every phase, from initial studies through the phases of design, construction contract management and post-construction closeout.

It means advocacy on our clients’ behalf, through every stage of the project, with the same Partner and team members that started the project with you. It means a facility that is as effective as it is beautiful. It means having the confidence that comes from a firm with more than 70 years of experience. HHSDR looks forward to speaking with you about our 360 degree approach to your project.

66 www.mbawpa.org

NEXT architecture

NEXT architecture 1133 Penn Avenue, Suite 100 Pittsburgh, PA 15222 412-681-1145 www.next-architecture.net Daniel J. DeLisio, Principal/Owner d.delisio@next-architecture.net

NEXT architecture is a full-service architecture and interior design firm located in Pittsburgh, PA. With a focus on innovation and collaboration, NEXT approaches every project as unique and utilizes talented individuals along with intentional principal involvement to ensure every project’s success.

Our philosophy – no ego, every project is unique, and challenges are opportunities – is the driving force behind everything we aim to accomplish at NEXT. We are steadfast in communication and honest in our work, always ensuring that the final product is the best version. With

Our philosophy – no ego, every project is unique, and challenges are opportunities – is the driving force behind everything we aim to accomplish at NEXT. We are steadfast in communication and honest in our work, always ensuring that the final product is the best version. With a history of embracing challenges, our team is always evolving to deliver the best product possible.

Perkins Eastman 525 William Penn Place, Ste. 2510, Pittsburgh, PA 15219 Jeff Young AIA Co-Managing Principal and Executive Director T: +1 412 894 8308 j.young@perkinseastman.com Lee Michael Pellegrino AIA, WELL AP Co-Managing Principal T: +1 412 894 8337 l.pellegrino@perkinseastman.com

Perkins Eastman is a global design firm founded on the belief that design can have a direct and positive impact on people’s lives. Striving for a sustainable and resilient future, and to enhance the human experience through the built environment, our award-winning practice draws on its nearly 1,000 professionals networked across 26 studios worldwide, comprising of work in a wide range of specialized project types. From education, workplace, senior living, and healthcare to mixed-use, residential, civic/ cultural and transit-oriented developments, we are uniquely equipped to tackle the most complex of design challenges.

For more information, visit www.perkinseastman.com.

PWWG Architecture + Planning 408 Blvd. of the Allies, Pittsburgh, PA 15219 T: 412.391.2884 | F: 412.391.1657 www.pwwgarch.com Lisa Carver, AIA, LEED AP, Principal lcarver@pwwgarch.com

Forward-looking clients partner with PWWG for exceptional design and detailing; cost-effective, buildable designs using sustainable principles; our meticulous, ethical approach to professional responsibilities; and the partnerships we nurture.

PWWG works throughout the tri-state area from offices in Pittsburgh and Cincinnati. Projects for developers and private clients include multi-family housing, cultural buildings, mixed-use commercial, and adaptive re-use of existing structures. PWWG’s portfolio is 50% new construction and 50% renewal and re-use, creating new value for original buildings. Our turnkey services include: feasibility and space programming, concept studies, forensic assessment, support for funding applications, architectural & interior design, 3D visualizations, and project management.

PITTSBURGH’S INNOVATIVE BUILDER SOLVING OUR REGION’S COMPLEX CONSTRUCTION CHALLENGES SINCE 1917 US Steel Tower, 600 Grant Street, Suite 2740, Pittsburgh, PA 15219 412-255-5400 | turnerconstruction.com/locations/pittsburgh

From extensive facilities focused on tackling some of the world’s most challenging issues to intricate interior projects where the minor details are the most crucial, Turner Pittsburgh has the local expertise to complete the region’s most complex projects, with the national resources to enhance the services we provide to our clients.

Pictured Above: Westinghouse eVinci Technology Hub, University of Pittsburgh BioForge, and Federal Home Loans Bank Office Fit Out

BreakingGround September/October 2025

67

always produced and installed the highest quality products.

Our superior craftsmanship and dedication to excellence has made us the leader in door systems for Western PA and the Tri-State Region. Our Red Ribbon trademark is your guarantee for receiving unequaled personalized service and expertise –from assistance with product selection through the timely completion of product installation. We also offer our customers preventative maintenance plans as well 24/7 emergency repair service 365 days a year.

R3A Architecture collaborates closely with our clients and partners to explore and discover each project’s potential to transform and re-energize an existing building or a new site. We are motivated by the opportunity to support and enrich our communities – educational, scientific, workplace, residential, civic, non-profit, and others. Our clients include leading universities, technology enabled workplaces, life science and research institutions, and smart manufacturing environments. Our approach leverages design thinking to reframe the dialogue around our clients’ needs, using a research-driven and iterative process to reimagine solutions. We synergize diverse disciplines such as user behavior, occupant wellness, project economics and the science of buildings, to shape and inspire the eventual outcome.

E N G I N E E R S & C O N S U LTA N T S

Mackin Engineers & Consultants

R3A Architecture 48 South 14th St., Pittsburgh, PA 15203 T: 412-431-2480 www.r3a.com James Sheehan – jas@r3a.com Deepak Wadhwani – dw@r3a.com

ENGINEERS & CONSULTANTS

Pellman Electric Associates 1133 Woodward Drive, Greensburg, PA 15601 T: 724-838-7150 or 412-431-5955 www.pellmanelectric.com Darren Pellman, President Darren@pellmanelectric.com

Pellman Electric Associates LLC was built by a team of professionals who established a reputable and customerpleasing electrical contracting company in Greensburg PA. Our high-level customer satisfaction rate is attributed to our ethical and professional office staff and our firstclass field support team. Pellman Electric is focused on complete design-build services, thorough and competitive bidding, accurate accounting, and an excellent project management group complemented by warehouse “on time” material and tool expediting. Whether the project is a residential call or a large-scale commercial project, we recognize that quality and reliability are essential to our clients’ success. Our clients and community deserve the highest level of service. Our experienced professionals arrive on time with materials needed to complete the project in a timely and efficient manner.

103 Technology Drive, Suite 200 E N G I N E E R S & C O N S U LTA N T S Pittsburgh, PA 15275 T: 412-788-0472 www.mackinengineering.com INTEGRITY | QUALITY | EXCELLENCE Bill Harris, PE, CBSI - President wharris@mackinengineering.com

Serving our clients since 1960, Mackin Engineers & Consultants continues to be a leader in the civil engineering field. We offer a wide range of professional consulting services for both public and private sector clients throughout the Commonwealth. Mackin places an emphasis on our staffs’ ongoing professional development to best serve our clients. Our multi-disciplinary staff includes dedicated professionals in the fields of civil, traffic, transportation and structural engineering, landscape architecture, community planning, GIS mapping, and construction inspection/management.

CONTRACTORS

Wildman Chalmers Design 1622 Lowrie St, Pittsburgh, PA 15212 412.436.9303 wildmanchalmers.com Chad Chalmers, RA, AIA, NCARB, LEED AP, Partner chad@wildmanchalmers.com

Wildman Chalmers Design is an award-winning mid-size architectural and interior design firm based in Pittsburgh, PA that works collaboratively with clients, regionally and nationally, to transform their goals and visions into creative design solutions. The firm comprises a diverse group of professionals dedicated to delivering high quality design, documentation and execution, and client service. Our experience covers a wide range of new construction and adaptive reuse projects including commercial, institutional, education, hospitality, retail, residential, and workplace.

ASA SPECIALTY CONTRACTORS

Overhead Door Company of Greater Pittsburgh 400 Poplar Street, Pittsburgh, PA 15223 T: 412-781-4000 Ext. 216 | F: 412-781-2446 www.overheaddoorpittsburgh.com Jason Henze – jhenze@ohdpgh.com

Overhead Door Company of Greater Pittsburgh is a Veteran-owned business specializing in commercial, industrial, and residential door systems, loading dock equipment and operable partitions. Overhead Door has always produced and installed the highest quality products.

Our superior craftsmanship and dedication to excellence has made us the leader in door systems for Western PA and the Tri-State Region. Our Red Ribbon trademark is your guarantee for receiving unequaled personalized service and expertise –from assistance with product selection through the timely completion of product installation. We 68 www.mbawpa.org also offer our customers preventative maintenance plans as well 24/7 emergency repair service 365 days a year.

CIVIL ENGINEERS

The Gateway Engineers 100 McMorris Road, Pittsburgh PA 15205 T: 412-921-4030 | F: 412-921-9960 www.gatewayengineers.com David M. Heath, P.E. dheath@gatewayengineers.com

Since 1954, Gateway Engineers and its predecessors have played an active role in the development of this region. The tradition of providing value-added engineering solutions carries on as the company continues to grow and expand its reach into other parts of the United States. Our team of professional engineers, surveyors, construction inspectors, and landscape architects, along with qualified technicians, is ready to provide the expertise and personalized service which every project deserves. Our mission has always been to help our clients reach a higher level of success through knowledge, experience, and responsiveness. This year marks our 70th anniversary, but our brightest days lie ahead.

For more information, visit www.gatewayengineers.com.

A. Martini & Company 320 Grant Street, Verona, PA 15137 T: 412-828-5500 www.amartinigc.com Emily Landerman – Emily.Landerman@amartinigc.com

As a fourth generation, family owned and operated General Contracting and Construction Management firm, we are celebrating our 75 years of operation. The principals of A. Martini & Co. continue to provide hands on participation as a commitment to our clients and each of their projects. We believe that building projects as a true partner to the owner, utilizing sustainable building practices, and promoting true diversity in our subcontractor selection are the best practices for our region. As a mid-sized CM/GC, we utilize current technology for project tracking and scheduling coupled with personal attention to details, and our client’s needs. A. Martini & Co. provides construction management, general contracting and design build services for corporate, healthcare, senior living, restaurant, religious, retail, nonprofit, residential, industrial, historic, and education clients.

Gilbane Building Company Burchick Construction Company, Inc. 500 Lowries Run Road, Pittsburgh, PA 15237 T: 412-369-9700 www.burchick.com Dave Meuschke – meuschke@burchick.com

Burchick Construction is a full-service general contractor founded on the commitment to excellence that Joe Burchick brings to each project. Burchick’s management approach is designed to ensure optimum results for our clients while setting the performance standard for construction services.

Our executives and managers have broad-based experience delivering construction to the highest of standards with every delivery method preference. Burchick’s project team and professional engineers on staff are equally comfortable with a completed design or with providing pre-construction assistance at the earliest stages of design. Burchick has managed commercial, institutional, and industrial projects from $1 million to $73 million with equal attention. Burchick Construction – Setting the Performance Standard.

Mascaro Construction

11 Stanwix St Suite 701, Pittsburgh, PA 15222 T: 412-207-1700 Chris Perez, Business Development Manager CPerez1@GilbaneCo.com | 412-207-1673

Gilbane Building Company provides a full slate of construction and facilities-related services – from preconstruction planning and integrated consulting capabilities to comprehensive construction management, general contracting, design-build, and facility management services – for clients across various markets.

Founded in 1870 and still a privately held, family-owned company, Gilbane has more than 45 office locations worldwide. Gilbane first established a presence in the Pittsburgh market in 1987 and has built a wide range of projects in markets such as healthcare, higher education, and commercial in the area.

1720 Metropolitan St, Pittsburgh, PA 15233 T: 412-321-4901 www.mascaroconstruction.com Michael R. Mascaro - mcclp@mascaroconstruction.com

Mascaro is one of the region’s largest construction firms specializing in design-build, construction management, and general contracting. Founded in 1988 on the simple premise to deliver excellence in construction services, we bring to your project the ‘Mascaro Advantage:’ We are humble, hungry, and smart – not shying away from hard work and complex projects, but tackling each one proactively. We do what we say we are going to do, right, the first time. We will provide a family atmosphere, concentrating on the health and welfare of not only our employees, but also that of our clients and community.

Our success is based on our market diversity, superior planning, building relationships, and, most importantly, delivering great experiences.

Restoring the Past Building the Future

Jendoco Construction Corporation 2000 Lincoln Road, Pittsburgh, PA 15235 T: 412-361-4500 | F: 412-361-4790 www.jendoco.com Michael Kuhn – mkuhn@jendoco.com

Cuddy Roofing 22 Rutgers Road, Suite 102, Pittsburgh, PA 15205 412-458-3812 Mike Halpin – halpinm@cuddyroofing.com www.cuddyroofing.com

Established in 1991, Cuddy Roofing is one of the largest, premiere union roofing companies in the area. We specialize in difficult, high-end, and sheet metal sustainable applications as well as full-service repair and maintenance. Using stateof-the-art technology, Cuddy Roofing has topped some of the largest and most prestigious buildings in downtown Pittsburgh. We offer our customers superior roofing products that are backed by the best warranties in the industry.

McKamish, Inc.

JENDOCO Construction, founded in 1957, is located in Pittsburgh’s East End and provides building construction services to the Western Pennsylvania region. Jendoco believes that the built environment should have a NetPositive impact on people, nature, and communities and that designing and constructing the places in which we live, work, worship, learn, heal and play should be collaborative, creative, and fun. Through proactive solution development, sustainable building practices, community engagement, and charitable support, Jendoco continues to demonstrate our commitment to the Greater Pittsburgh Region.

50 55th Street, Pittsburgh, PA 15201 T: 412-781-6262 | F: 412-781-2007 www.mckamish.com John Jordan – jjj@mckamish.com

Serving the mid-Atlantic region with almost fifty years of experience, McKamish is a full-service mechanical contractor specializing in commercial HVAC, plumbing, piping, industrial piping, custom metal fabrication, and 24/7 service and maintenance. McKamish is dedicated to “Building Excellence” on every project that we build. With a dedicated team of employees who are committed to our customers, you can feel confident that your project will be handled with integrity. A family-owned company with deep roots in the Pittsburgh community, our goal is to surpass customers’ expectations and provide top quality service in everything we do.

Landau Building Company Dick Building Company 46 South Linden Street, Duquesne, PA 15110 http://www.dickbuilds.com/ T: 412.567.8200 Alexander Dick, Chief Operating Officer agdick@dickbuilds.com

Dick Building Company combines the knowledge acquired from four generations of industry leadership with the latest in construction technology to maximize value for our clients. We maintain integrity and an unwavering work ethic at all levels of the company and promote open communication in our relationships with clients, design professionals, subcontractors and vendors. Dick Building Company carries these values across our spectrum of services, which include: pre-construction consulting, construction management, general contracting, designbuild, project management, program management, green building, and construction inspection.

4378 Craighead Road, Allison Park, PA 15101 T: 724-935-8800 www.landau-bldg.com Jennifer Landau, President – jplandau@landau-bldg.com

Landau Building Company, with a legacy spanning 130 years, has established itself as a leading construction management and general contracting firm in Western PA and the surrounding region. As a sixth-generation familyowned and operated company, we have cultivated a diverse portfolio of commercial, healthcare, institutional, and community-based projects, ranging from ground-up construction to major renovations. In 2006, we expanded our services to include northern West Virginia through our subsidiary, Marks-Landau Construction. To learn more about our services and experience, we invite you to visit our website at www.landau-bldg.com.

PJ Dick Inc. 225 North Shore Drive, Pittsburgh PA 15212 T: 412-807-2000 www.pjdick.com Bernard J. Kobosky | Bernie.kobosky@pjdick.com

PJ Dick provides best-in-class construction management staff to estimate, plan, and build the Mid-Atlantic region’s most prominent projects. Since 1979, PJ Dick has constructed buildings for the commercial, government, hospitality, healthcare, higher education, industrial, K-12 education, multi-family, senior living, and sports and entertainment markets. Consistently ranked among the nation’s top firms, PJ Dick offers unsurpassed general contracting, design/build, construction management, and consulting services while maintaining its values of safety, sustainable building, quality construction and innovative technology.

BreakingGround September/October 2025

69

Building trust through quality work for all of our projects

Rycon Construction

Shannon Construction Company

2501 Smallman St., Suite 100, Pittsburgh, PA 15222 T: 412-392-2525 www.ryconinc.com Stephen Kosmer, Co-President - Pittsburgh Lou Ferraro, Co-President - Pittsburgh

3257 West Liberty Ave., Pittsburgh, PA 15216 T: 412-341-1155 F: 412-341-2955 www.shannon1.com Ken Schultz, President ken@shannon1.com

Founded in Pittsburgh, Rycon Construction is an employeeowned company (ESOP) that provides construction management, general contracting, and design-build services nationwide. An ENR Top 400 Contractor, ENR Top 100 Green Contractor, and BD+C Top 150 Contractor with nine offices, Rycon specializes in new construction, renovations, and adaptive reuse projects. Rycon’s portfolio consists of projects and developments in healthcare, education (K-12 & higher ed), industrial/warehouse, commercial, multi-unit residential, retail, financial, food service, self-storage, governmental, hospitality, and LEED facilities. We have an in-house Architectural Woodwork & Specialty Fabrication Division that ships/installs nationally, and an in-house Service Division offering 24/7 emergency service/restoration and term service work in Western PA.

Shannon Construction is a commercial builder with a rich legacy handed down from generations of family. Our objective is to develop and deliver customized building programs that meet our client’s goals. Shannon utilizes a creative, collaborative project approach to ensure client satisfaction and successful outcomes on every project.

Clients benefit from our service philosophy rooted in personalized attention to every detail. We believe the best way to do business is to treat people fairly and do the right thing. Our services include General Contractor, Construction Management, Design & Build, Self-perform Construction, Building Construction Maintenance, and Green Building techniques.

WOMAN OWNED | WBE CERTIFIED

Specializes in Interiors/Exteriors Building Systems and Construction Specialties

TRE Construction & Real Estate A Commercial Construction Company

1800 Pine Hollow Road, McKees Rocks, PA 15136 COMMERCIAL T: 724-650-5544 CONSTRUCTION www.treconstruction.net COMPANY Angie Eger, Owner/Managing Member

724-650-5544 angie.eger@treconstruction.net TREConstruction.net

#buildbettertogether #TRE

Formed in 2022, TRE Construction focuses on being a high-quality and trusted commercial interiors subcontractor specializing in interior/exterior building systems, doors, frames and hardware, construction specialties, and casework/millwork installations in Greater Western PA, OH, WV, DC, MD, VA. Family-owned and operated, we provide the highest quality of work and deliver cost-effective projects on schedule by employing and supporting motivated, flexible, and focused teams. Our clients count on our dependability, drive, and integrity. People and Safety are the most important assets to building better with TRE. We are a member of the Master Builders’ Association, Master Interior Contractors Association and NAIOP Pittsburgh.

LET’S BUILD A SOLID FINANCIAL FOUNDATION.

100 PINEWOOD LANE, SUITE 201 | WARRENDALE, PA 15086 (724) 934-5300 | hbkcpa.com WORKING TOGETHER SETS US APART

70 www.mbawpa.org

DEVELOPER Turner Construction Company 600 Grant Street, Suite 2740, Pittsburgh, PA 15219 T: 412-255-5400 Chris DiLorenzo cdilorenzo@tcco.com

Volpatt Construction Corporation

Founded in 1902, Turner is the leading general builder in the United States, recognized for our unwavering commitment to excellence, innovation, and service. With nearly 50 offices nationwide, Turner combines the strength of a national organization with the responsiveness and insight of a local partner, delivering industry-leading construction solutions tailored to each community we serve. In the Western Pennsylvania region, our roots run deep; for over a century, we’ve helped shape Pittsburgh’s skyline by playing a vital role in the development of many of the area’s most iconic and transformative buildings. Since establishing a full-time office in Pittsburgh in 1976, we’ve become the trusted builder for a variety of clients across the region. Today, our Pittsburgh team—more than 100 strong—continues to build upon this legacy with a forward-thinking approach that embraces technology, sustainability, and collaboration. As Pittsburgh continues to grow and evolve, Turner stands at the forefront, ready to deliver the next generation of innovative, complex projects that will define the future of our region.

100 Castleview Road, Pittsburgh, PA 15234 T: 412-942-0200 www.volpatt.com Ray Volpatt, Jr. President – rayjr@volpatt.com

From our first renovation in 1991, to over 900 industrial, commercial, and institutional projects, Volpatt Construction has successfully positioned itself as one of the most respected building contractors in the Tri-State area. With a focus on high quality, hands-on service, competitive pricing, and timely project completion, Volpatt Construction has built and maintained a long list of repeat clients, partnering with the finest businesses and institutions in the area. Today, the family-operated company continues to play an integral role in building the region into a top global destination for healthcare, education, and research.

Ambridge Regional Center and ConAm3PL 2301 Duss Avenue #1, Ambridge, PA 15003 T: 724-266-4661 www.AmbridgeRegional.com www.ConAm3PL.com Ric Ford rford@ambridgeregional.com

The Ambridge Regional Center offers over 1 million square feet of warehouse, distribution, manufacturing, lab and yard space for lease. Our tenants include Fortune 100 firms as well as small private companies.

ConAm3PL offers full third party logistics to international conglomerates as well as regional companies whom all utilize our distribution capabilities to maximize their operational efficiencies.

International Brotherhood of Electrical Workers Local Union No. 5 5 Hot Metal Street • Southside • Pittsburgh, PA

For more than 125 years, I.B.E.W. Local 5 has been lighting up Pittsburgh’s sports arenas, its hospitals and its skyscrapers.

Acrisure Stadium, PNC Park, Pittsburgh International Airport, PPG Place, UPMC Children’s Hospital of Pittsburgh and the new FNB Tower.

Behind Pittsburgh’s major buildings is I.B.E.W. Local 5.

BreakingGround September/October 2025

71

ECONOMIC DEVELOPMENT

ENGINEERS

The Buncher Company One Waterfront Place 1251 Waterfront Place #201, Pittsburgh, PA 15222 412-422-9900 www.buncher.com

The Buncher Company, headquartered in Pittsburgh, Pennsylvania, is a recognized leader in all phases of real estate development, including site acquisition, construction, brokerage and leasing, and property management.

We are experienced in providing innovative solutions to prospective clients and tenants, and we understand what it takes to effectively adapt to the constantly changing real estate business environment. Our highly experienced staff of real estate and construction specialists can help clients navigate the complexities of finding the perfect location to build and lease. They bring in-depth industry expertise and knowledge of every property, and consistently deliver high-level tailored services, unlimited accessibility, and timely results.

Indiana County Center for Economic Operations 801 Water St., Indiana, PA 15701-1705 T: 724-465-2662 | F: 724-465-3150 www.indianacountyceo.com Byron G. Stauffer, Jr., Executive Director byronjr@ceo.co.indiana.pa.us

The Indiana County Center for Economic Operations (CEO) serves as a public-private partnership promoting economic growth, development, and prosperity in Indiana County, PA. The CEO serves as a hub for businesses, government agencies, and community organizations.

The CEO provides services and resources for businesses throughout their life cycle. The CEO offers site selection assistance, an array of pad-ready sites and buildings and coordinates financial incentives. The CEO seeks to support the continuous improvement of Indiana County through increased business activity, economic growth, education, tourism and quality of life.

Elmhurst is a 52-year-old Pittsburgh-based organization that invests in, develops, and manages commercial real estate. Elmhurst’s portfolio consists of industrial, office, multifamily, and hotels in the Greater Pittsburgh market area, totaling over 3.6 million square feet, including 2.1 million square feet of ground-up developments.

Elmhurst is a vertically-integrated organization that oversees investment acquisition, asset management, accounting, and property management services for its industrial and office properties. Elmhurst’s tenancy includes prominent regional and national businesses, government agencies, and non-profits.

700 Cherrington Pkwy, Moon Township, PA 15108 T: 800-365-2324 www.cecinc.com Mike Archer, P.E. – marcher@cecinc.com

CEC provides integrated design, engineering, surveying, environmental, and construction-related services with a tailored approach to address diverse development/ redevelopment requirements. We have the local and national expertise necessary to support developers and architects with cost-effective designs for projects of all sizes. We understand the desire to minimize cost and maximize your return on investment. We will provide objective opinions regarding project feasibility to enable you to make informed business decisions. The complete real estate development life cycle... WE OWN IT.™

KU Resources, Inc.

Elmhurst Group One Bigelow Square, Suite 630, Pittsburgh, PA 15219 T: 412 281-8731 www.elmhurstgroup.com Eric R. Schindler, Director of Leasing eschindler@elmhurstgroup.com

Civil & Environmental Consultants, Inc.

Washington County Chamber of Commerce 1000 Horizon Vue Drive, Suite 1C80, Canonsburg, PA 15317 T: 724-225-3010 | F: 724-228-7337 www.washcochamber.com Will Thomeier, Director Economic & Tourism Development – will@washcochamber.com

The Washington County Chamber of Commerce is the largest chamber of commerce Southwestern Pennsylvania and leading economic development agency in Washington County. The Chamber focuses on marketing and business development initiatives to expand the economy of Washington County and was one of the first organizations to publicly support the economic benefits and job creation potential of the natural gas industry.

Learn more at www.washcochamber.com.

22 South Linden St., Duquesne, PA 15110 T: 412-469-9331 | F: 412-469-9336 www.kuresources.com Tysen Miller, PE, LEED AP, CPESC Tmiller@KUResources.com

KU Resources, Inc. provides a full range of environmental management and site development engineering services to industrial, commercial, and community based clients. The firm specializes in brownfield redevelopment, environmental site assessment, economic revitalization assistance, regulatory permitting and compliance, remediation design and implementation, and environmental risk management strategies. The firm’s engineering and environmental consulting capabilities also include the areas of civil and geotechnical engineering, site development engineering, water resources engineering, mining and quarry services, water quality monitoring, and air quality compliance and permitting.

Oxford Development Company 2545 Railroad Street, Pittsburgh, PA 15222 412.261.1500 www.oxforddevelopment.com

For over 60 years, Oxford has stood at the forefront of the marketplace as a developer and full service commercial real estate services provider with experience in the local, regional, and national marketplace. Oxford’s mission is to forge dynamic centers where community thrives alongside commerce, through real estate solutions that uplift and ignite inspiration for our people, partners, and communities alike. We deliver real estate solutions to our clients that are innovative, cost-effective, and sustainable.

Our team has the depth of experience to manage, lease and develop all types of facilities. Oxford’s ability to create unique partnerships and complete complex transactions makes us a preferred real estate partner.

72 www.mbawpa.org

Est. 1985

Westmoreland County Industrial Development Corporation 5th Floor, Suite 520, 40 North Pennsylvania Ave., Greensburg, PA 15601 T: 724-830-3061 | F: 724-830-3611 www.WestmorelandCountyIDC.com Jason W. Rigone, Executive Director WCIDC@westmorelandcountypa.gov

Founded in 1983 by the Westmoreland County Board of Commissioners, Westmoreland County Industrial Development Corporation promotes growth in terms of job creation, economic output and a stable tax base for Westmoreland County. By developing a robust industrial park system, deploying a comprehensive marketing strategy, administering a proactive Business Outreach Program and collaborating in public/private partnerships, WCIDC supports business growth that results in job opportunities for the citizens of Westmoreland County.

LSSE

LSSE Engineers and Surveyors 846 Fourth Ave., Coraopolis, PA 15108 T: 412-264-4400 www.lsse.com Kevin A. Brett, P.E. – kbrett@lsse.com

A leading provider of civil engineering and surveying services for nearly 40 years. Serves public and private clients in the municipal, commercial, industrial, institutional, residential, and utilities markets. Specializes in wastewater facilities, water facilities, and stormwater/green infrastructure planning, design, and construction phase services. LSSE’s operating plan turns on client satisfaction and corporate and individual career development.

INDUSTRY / TRADE GROUP

ENVIRONMENTAL Terracon Inc. 3280 William Pitt Way, Pittsburgh, PA 15238 T: (412) 426-7034 Bradley S. Reese, Operations Manager bsreese@terracon.com

KU Resources, Inc. 22 South Linden St., Duquesne, PA 15110 T: 412-469-9331 | F: 412-469-9336 www.kuresources.com Dominick Anselmo danselmo@kuresources.com

KU Resources, Inc. provides a full range of environmental management and site development engineering services to industrial, commercial, and community based clients. The firm specializes in brownfield redevelopment, environmental site assessment, economic revitalization assistance, regulatory permitting and compliance, remediation design and implementation, and environmental risk management strategies. The firm’s engineering and environmental consulting capabilities also include the areas of civil and geotechnical engineering, site development engineering, water resources engineering, mining and quarry services, water quality monitoring, and air quality compliance and permitting.

Terracon is an employee-owned, consulting engineering firm that provides expertise in environmental, geotechnical, facilities, and materials testing services, including commercial, industrial, and data campus development.

Negotiating the complexities of environmental issues can be challenging and time-consuming. Terracon relies upon demonstrated experience and knowledge of local conditions and regulations to deliver solutions that are timely, practical, and make good business sense.

Due Diligence + Transactional Support Site Investigation + Closure Remedial Design + Implementation Brownfields + Site Redevelopment Building Environmental Sciences Industrial Hygiene Environmental Planning + Permitting (Natural Resources and NEPA) Cultural Resources (Historic Structures and Archaeology) Regulatory Compliance

American Subcontractors Assn. of WPA 2219 Ridge Road, South Park, PA 15129 T: 724-538-8227 www.asawpa.org Erin Joyce, Executive Director erin@asawpa.org

ASA Western PA is the united voice dedicated to improving the business environment and representing subcontractors before all branches of government, other construction industry groups, and the media. We strive to promote quality construction, ethical and equitable business practices, safety in the work environment, and best industry practices. Our scholarship program reaches students interested in the trades through partnerships and school visits. A Mentorship Program is available for all scholarship recipients. ASA’s Emerging Leaders create an environment of young professionals who have the potential to serve in leadership roles and provide networking opportunities that help to expand their careers.

Designed and Built to Get Results For more than a decade, DFL Legal has provided companies with the most effective solutions in resolving unique construction and engineering disputes.

Our success has been achieved by offering our clients proven, big case experience, along with the efficiencies and flexibility of a boutique firm.

Find out how our experience can be put to work for you.

BreakingGround September/October 2025

73

CREW Pittsburgh Builders Guild of Western PA, Inc. 631 Iron City Drive, Pittsburgh, PA 15205 T: 412-921-9000 Jeff Nobers, Executive Director jnobers@buildersguild.org

A unique, non-profit labor/management initiative, representing 16 building trade unions and nine affiliated contractor associations. The Builders Guild is a positive forum for labor, management, and community relationships, and fosters a cooperative and productive climate for regional commercial construction development.

Through the Builders Guild, unions and management have forged fair and equitable working partnerships which promote economic and professional growth.

Guild initiatives include: • Promoting the professionalism, skill, and pride inherent with union construction; • Training for long-term careers in the construction trades; • Providing a reliable, skilled and diversified workforce; Facilitating diverse partnerships with like-minded organizations throughout Western Pennsylvania.

74 www.mbawpa.org

CREW Network 1201 Wakarusa Drive, Suite D, Lawrence, KS 66049 www.crewpittsburgh.org Admin@crewpittsburgh.org

Commercial Real Estate Women (CREW) offers unparalleled business development, personal leadership growth, and networking opportunities, both in our local Pittsburgh market and across 80+ affiliates in the US, Canada, France, Mexico, and the United Kingdom with 14,000+ members. The Pittsburgh chapter has 20+ years of providing educational programs and networking events to its members and the CRE community. Whether male or female, join CREW to have a global commercial real estate network at your fingertips and your contact info in that worldwide network.

Ironworker Employers Association of Western Pennsylvania 135 Technology Drive #311, Canonsburg, PA 15317 T: 412-922-6855 www.iwea.org Danielle Harshman, Executive Director dharshman@iwea.org

The IWEA is a Trade Association of Union Contractors who work in all aspects of the ironworking trade within the construction industry. We are a resource for all owners, developers and contractors who are looking for a qualified contractor with a well-trained workforce. Visit our website or call our office for additional information.

Master Builders’ Association of Western PA, Inc. 631 Iron City Dr., Pittsburgh, PA 15205 T: 412-922-3912 www.mbawpa.org David D. Daquelente, Executive Director dave@mbawpa.org

Master Builders of Western Pennsylvania, Inc., is a trade association and influential voice in the construction industry, including 301 general contractors, construction managers, specialty contractors, service, and supplier companies. Members are responsible for more than 80 percent of the Pittsburgh area commercial construction.

MBA awarded $800,000 in scholarship support to students in industry-related categories, brought nearly 1500 representatives of our industry together to celebrate the MBA Building Excellence Awards, and supports mental health through its acclaimed Yinz Good? campaign. MBA’s affiliation with Associated General Contractors of America affords members with broader access to national resources.

For more information visit http://www.mbawpa.org/

Pittsburgh Works Together

NAIOP Pittsburgh

631 Iron City Drive, Pittsburgh, PA 15205 Jeff Nobers, Executive Director info@PghWorks.com | www.PghWorks.com

PO Box 100085, Pittsburgh, PA 15233 www.naioppittsburgh.org Tom Frank, Executive Director info@naioppittsburgh.org

NAIOP Pittsburgh is the regional association of developers, owners, investors, and professionals in commercial real estate. We are the leading industry resource to foster business relationships, promote responsible development and support growth of the region through education, leadership, and advocacy. Visit naioppittsburgh.com for additional information or contact info@naioppittsburgh.org.

TRAINED.

Pittsburgh Works is committed to creating an inclusive vision of economic progress that embraces and respects both traditional legacy industries and emerging ones, while honoring the diversity of cultures and traditions inherent to each, while ensuring a sustainable environment. We seek a Pittsburgh and a region in which the lines between “old” and “new” economy are erased and respect is shown for our work ethic and dedication to community, while building a future for all.

Pittsburgh Works Together knows that we need an economy that works for everybody. Created after meetings of union leaders and officials from the manufacturing, steel, and energy sectors, our organization is committed to working with leaders of tomorrow’s industries by reminding them that without everybody, there is no New Pittsburgh.

SKILLED.

SAFE. PRODUCTIVE.

PA LABORERS’ UNION

#12 8TH ST. 6TH FLOOR PITTSBURGH, PA 15222 LABORPARECRUIT.ORG

(412) 391-1712

SCAN TO JOIN THE PA LABORERS' UNION

BreakingGround September/October 2025

75

Society for Marketing Professional Services SMPS – Pittsburgh Chapter www.smpspittsburgh.org Tyler Niedzwicki, Chapter President LGA Partners 444 Liberty Avenue, Suite 1500, Pittsburgh, PA 15222 T: 412-243-3430

The Society for Marketing Professional Services (SMPS) is a diverse community of marketing and business development professionals working together to move the Architecture/Engineering/Construction (A/E/C) industry forward. SMPS is the only organization dedicated to creating business opportunities in the A/E/C industry. Companies large and small are able to tap into our powerful national and regional network to form partnerships, secure business referrals, and benchmark performance. The Pittsburgh Chapter offers educational programs, professional development seminars, and networking opportunities to professionals from architectural, engineering, planning, interior design, construction, and consulting firms serving the Pittsburgh region. SMPS Pittsburgh has over 100 members representing more than 50 firms in the built industry.

Meyer, Unkovic & Scott

Design 3 Architecture PC 300 Oxford Dr. Suite 120, Monroeville, PA 15146 T: 412-373-2220 www.d3a.com Anthony Scruppi - tScruppi@d3a.com

Design 3 Architecture has been offering architecture, planning, and interior design services to the Pittsburgh region since 1982. We view inherent project constraints as potential opportunities for innovative design solutions.

With a philosophy grounded in team collaboration, providing both personal attention and project leadership, Design 3 Architecture does more than solve problems. We provide solutions that are unique, exciting and affordable.

LAND SURVEYORS

Est. 1985

INTERIOR DESIGNER

LSSE

2840 Liberty Ave., Suite 403, Pittsburgh, PA 15222 T: 412-932-2044 www.ae7.com Mark Witouski – Mark.witouski@ae7.com

AE7 Interior Design, part of the globally renowned AE7 Architects, specializes in creating innovative and functional interiors for corporate and commercial clients. With a deep understanding of the unique needs of these sectors, AE7 delivers tailored design solutions that enhance productivity, reflect brand identity, and add value to properties.

Our team’s expertise spans office spaces, commercial developments, residential projects, and food and beverage venues ensuring each design is both aesthetically pleasing and highly practical. Committed to excellence, AE7 Interior Design leverages cutting-edge technology and sustainable practices to create environments that inspire and engage.

Discover more at www.ae7.com.

76 www.mbawpa.org

Understanding each client’s business objectives, we provide timely, creative, and cost-effective solutions. We represent those in the business of real estate and companies who must have real estate in order to do business: our clients include manufacturers and service providers as well as owners, developers, managers, lenders, landlords and tenants, investors, contractors, brokers, and design professionals. Clients rely on us to counsel them on all facets of commercial real estate, retail, multifamily, office, and industrial, working with them on purchases and sales, land use and development, construction, financing, leasing, title insurance, property tax, assessment appeals, zoning, and eminent domain throughout the region and across the US. Our multi-practice firm enables us to ensure time and resources are used wisely and your deal closes on time.

REAL ESTATE BROKERS

Lennon, Smith, Souleret Engineering, Inc. Engineers and Surveyors 846 Fourth Ave., Coraopolis, PA 15108 T: 412-264-4400 www.lsse.com Kevin A. Brett, P.E. – kbrett@lsse.com

AE7, LLC

Henry W. Oliver Building 535 Smithfield Street, Suite 1300, Pittsburgh, PA 15222 T: 412-456-2800 www.muslaw.com W. Grant Scott – wgs@muslaw.com Patricia E. Farrell – pef@muslaw.com Amanda M. Daquelente - amd@muslaw.com

A leading provider of civil engineering and surveying services for nearly 40 years. Serves public and private clients in the municipal, commercial, industrial, institutional, residential, and utilities markets. Specializes in wastewater facilities, water facilities, and stormwater/green infrastructure planning, design, and construction phase services. LSSE’s operating plan turns on client satisfaction and corporate and individual career development.

LEGAL SERVICES

Hanna Commercial Real Estate 11 Stanwix Street, Suite 1024, Pittsburgh, PA 15222 T: 412-261-2200 http://www.hannacre.com Michael Connor – mconnor@hannaCRE.com

Hanna Commercial Real Estate (HCRE) is rooted in the history of the Pittsburgh region. Our legacy in Pittsburgh real estate spans nearly 90 years through various companies and names, culminating with the merger of Langholz Wilson Ellis, Inc. and Hanna Commercial Real Estate. HCRE thrives by providing responsive, personalized service. Our disciplines of specialty include retail, office, industrial, and investment commercial brokerage services. We service all Western Pennsylvania and West Virginia. Our greatest asset is our people, who maintain the integrity of HCRE. Our unique structure creates an environment in which our agents and staff are often teamed together to extend both competence and energy to each client’s requirement.

NEWMARK

ATTORNEYS AT LAW

210 Sixth Avenue #600, Pittsburgh, PA 15222 T: 412-281-0100 www.nmrk.com Gerard McLaughlin – Gerard.mclaughlin@nmrk.com Louis Oliva – Louis.oliva@nmrk.com

Since 1970, the Pittsburgh Newmark office has been a key contributor to the firm’s strength in the Midwest. Our services have evolved to address the real estate needs of property investors, multi-market corporations and single-location tenants and landlords. Today, Newmark offers a full range of commercial real estate services, with brokerage professionals specializing in office, industrial, retail and investment product types, and a highly-skilled management services group that provides property, facility and construction management services for a diverse portfolio of properties. In addition, our team handles client accounting and lease administration for property investors and corporations.

SOLAR SOLUTIONS

Scalo Solar 22 Rutgers Road, Suite 101, Pittsburgh, PA 15205 412-458-3888 Mark Heckathorne – Chief Operating Officer heckathornem@scalocopanies.com www.scalo-solar.com

An extension of your team.

Lori Wisniewski Azzara

Lisa M. Wampler

lazzara@cohenseglias.com

lwampler@cohenseglias.com

cohenseglias.com

DC DE FL KY NJ NY PA

Scalo Solar Solutions has been helping residential, commercial, and industrial properties gain their energy independence using our expertise in PV design, construction, yield analysis, tax models, and financial engineering. Scalo Solar Solutions provides tremendous expertise and strategic resources for the roofing and sheet metal needs required by PV solar installations. We can install both your roof and solar array, so you won’t have to communicate between multiple contractors. Scalo Solar aims to help businesses, homeowners, institutions, and non-profits take ownership of their energy future.

SPECIALTY CONTRACTORS COMBINED HEAT & POWER PLANTS

LLI Engineering 1501 Preble Ave, Suite 300, Pittsburgh, PA 15233 T: (412) 904-4310 www.LLIEngineering.com James D. White, PE, LEED AP jwhite@lliengineering.com

LLI Engineering provides mechanical, electrical, architectural, commissioning, and structural engineering services. Since 1910, LLI Engineering has been consistently recognized for providing top-quality engineering design services. We specialize in commercial, critical facilities, education, healthcare, industrial, infrastructure upgrades, green building design, energy conservation modifications, project engineering, and engineering estimates. Located in Pittsburgh, Pennsylvania, LLI Engineering has completed projects in over 20 different states.

MIS, strives to offer specialty IT services for businesses with high telecommunication, data and security needs. We are able to meet all of your IT needs including all other low voltage applications that are migrating to the Network.

(412) 781-5000 Millerinfosys.com 4068 Mt Royal Blvd. Allison Park PA 15101

BreakingGround September/October 2025

77

Minimize Risk. Maximize Potential.® www.seubert.com | 412-734-4900 |

78 www.mbawpa.org

Join Us in Building with Purpose in 2025

D I R EC T O RY S E A RC H

S A F E T Y S E RV I C E S

M BA M E M B E RS H I P

Search MBA's directory to find top general contractors, construction managers, subcontractors, suppliers and service providers for your next project. MBA membership accounts for more than 80% of commercial construction in our region. mbawpa.org/ member-directory 

To assure that the industry maintains its commitment to safety, MBA offers essential training and services. These services include information, interpretation, and consultation on OSHA regulations for member contractors. mbawpa.org/safety 

Get connected to the largest commercial construction trade association in the region. Learn more about the benefits of MBA Membership at mbawpa.org/join-mba 

mbawpa.org

CLOSING OUT

BY KEVIN DOUGHERTY

The slogan, “Pittsburgh Someplace Special,” coined

by KDKA in the 1970s, has remained relevant for the past 50 years because of the city’s enduring charm and resilience.

Underwriting tenants who can support valuations and debt coverage ratios is also essential. Pittsburgh is fortunate to have numerous lending institutions and a highly skilled, nationally recognized real estate workforce.

During my North Catholic High School years in the 1970s, I vividly recall classmates discussing how family members were losing jobs and the high unemployment rates at that time. However, the city’s spirit was lifted when the Steelers began to win for the first time. Light Up Night and the impressive U.S. Steel Tower marked the beginning of Pittsburgh’s real estate renaissance that followed.

Navigating the permitting process is a significant challenge for developers. Waiting is not in our nature.

Time is money and every day adds to a project’s cost.

The process involves balancing urgency with caution and risk with safety. This is why consultants, accountants, and attorneys are essential in moving projects from concept to completion.

In the 1970s, retail development in the Pittsburgh metro area was relatively limited. Monroeville Mall, with its ice-skating rink and diverse shops, catered to the growing residential population in the east. South Hills Village followed, while Century III and Ross Park were still in the planning stages. The north was served by Northway Mall and North Hills Village, while the west had only a few strip retail centers. Downtown retail was a major event, anchored by Kaufman’s, Joseph Horne Co., and Gimbels.

The 1980s brought significant changes in retail, as more malls were built. Big box strip centers anchored by today’s survivors - Walmart, Target, Lowes, and Home Depot – were built. Several category killers also came and went, such as catalog showrooms, various grocers like A&P and Thorofare, and the likes of Hills, Zayre, Ames, Sears, and Kmart.

The 1990s and 2000s brought more retail expansion by some and contraction or consolidation by others. All the while, the Pittsburgh Metro area continued methodically expanding into metro counties like Washington, Butler, Beaver, Westmoreland Indiana, Armstrong, and Fayette.

Western PA’s unique topography limited the number of developable sites which helped the market from ever becoming overbuilt.

Today, retail development faces several challenges, including market demand, building and sitework costs, financing, and governmental regulation. These challenges are consistent across states and communities, but strong leadership is crucial to meeting them.

Relationships and teamwork are essential for project success. Proper sitework is critical, as the civil engineer and geotechnical experts form the foundation of the project (pun intended).

Securing financing is crucial in today’s market. It’s important to connect with lenders who share your vision and understand your goals, as well as with equity investors willing to risk capital.

80 www.mbawpa.org

Why does Pittsburgh work so well? I have been in Raleigh for 21 years and commute back to Pittsburgh twice a month (except December through February).

I feel like the luckiest guy on the planet to work in the two best second-tier cities in the U.S. (second tier in size). Pittsburgh works well because of its people, their work ethic, and because it is a winning city with a great history of leading! Pittsburgh is a phenomenal city, and I love the diversity of the economy, the strong financial institutions, great educational institutions, outstanding medical facilities, and a unique friendly culture.

The workforce has a true “can do” attitude and stays till the job is done!

As developers, we do nothing in a vacuum. We need lots of help. I am forever grateful for mentors and leaders who allowed our team to bring projects from an idea to reality, and gave time, treasure, and wisdom unselfishly.

That is what makes “Pittsburgh Someplace Special.”

Kevin Dougherty is president of Adventure Development, LLC in Raleigh, NC. The Pittsburgh native manages commercial real estate portfolios in Western PA and North Carolina. He can be reached at kmd@adventuredev.com.

PRESENTS

The Construction Industry

Evening of Excellence Save the Date February 26, 2026 Acrisure Stadium WWW.MBAWPA.ORG

www.mckamish.com

CELEBRATING 50 YEARS OF CHALLENGING OURSELVES TO EXCELLENCE AND BEING THE LEADER IN THE MECHANICAL CONSTRUCTION INDUSTRY