RIDC O'Hara shifts to adapt to post-pandemic life

Like many business corridors over the past several years, RIDC O’Hara is reshuffling as it readjusts to the world shaped by covid-19.

“We haven’t been immune to what everyone else is going through,” said Michael Connor, vice president of office services at Hanna Langholz Wilson Ellis. “There has been a ton of space that has come online. We’ve consolidated some existing tenants; we’ve expanded existing tenants.”

Hanna represents nine of the buildings that the Regional Industrial Development Corp. (RIDC) owns in the park.

Within the 3.75 million-square-foot business park, the occupancy rate is about 89%. In early 2021, when the pandemic was turning the world around, the occupancy rate was about 97%.

Connor said property tours are picking up.

Tenant types changing

Many of those potential tenants are involved in sectors such as light manufacturing, labs and warehousing, rather than the office pool.

“It’s very dominant toward flex space versus traditional office space,” Connor said. “Anything that is more hands-on, we’re seeing consistent activity in those sectors.

“Anything that can be done flexibly or remotely, those are the industries where we’re seeing consolidation in space or are less active — at least as a snapshot in time.”

The pandemic hit businesses hard across the board, especially offices where people who could work remotely did so. And it has prompted people to rethink how they have used their work spaces.

In Downtown Pittsburgh, for example, more residential projects are underway as the market demands shift away from in-person office work.

Some firms downsize, move

RIDC O’Hara has been dealing with some big changes.

Giant Eagle, which has been headquartered on Kappa Drive for decades, shrunk its footprint early in the pandemic. It decided not to renew its lease at 701 Alpha Drive, one of three office buildings it occupied.

For Giant Eagle, many of those office workers ended up working from home or at newer, smaller offices in Pittsburgh’s Lawrenceville and Strip District neighborhoods.

The grocery chain says it still holds leases on the remaining two buildings.

“We continue to see success with our corporate team members working remotely and choosing to utilize our Lawrenceville and Strip District offices for in-person business needs,” spokesman Dick Roberts said. “We have existing lease agreements at two office locations in RIDC Park in O’Hara Township and take advantage of areas within the buildings for specialized tasks, including printing and mailroom activities.”

In another case, Cintas Corp., a company that specializes in first aid, safety and cleaning supplies, moved its operations from a 5,000-square-foot facility in RIDC to one that’s nearly double the size on Alpha Drive. The Cincinnati-based company signed a seven-year lease last April.

Periwinkle’s Bakery & Cafe on Gamma Drive shut down in late 2022. At the time, the bakery cited staffing issues as the reason for shuttering. Its website states it is temporarily closed until further notice.

RIDC O’Hara: ‘Will always do well’

RIDC O’Hara was the first planned industrial park in Pennsylvania by the Regional Industrial Development Corp., a nonprofit economic development organization, in 1967.

Timothy White, RIDC’s senior vice president of business development and strategy, said the park has gone through many evolutions over the years.

“It is too early to tell how the office market will evolve with over 50% of office workers still at home,” White said. “But this location, surrounded by a strong residential market and good school districts, will always do well over time.

“Early-stage tech companies that value its proximity to Oakland and Lawrenceville, relatively low cost and ample free parking have always found it a good location to develop their products and grow their businesses,” White said. “It continues to include a good mix of technology, life sciences, light industrial and manufacturing companies.”

White noted that companies such as Motional, MSA, Cadence Design and others can trace their pasts through the O’Hara business park, and the park is home to “cutting-edge companies including Aerotech, Thar Pharmaceuticals, Zoll Lifevest, Tandem Life and many others.”