Recent job-creation announcements by local companies appear to hold promise for improvement of the Pittsburgh-area commercial office market.

Grubb & Ellis Co.'s second quarter 2005 Office Market Trends report noted plans by six companies -- Respironics Inc., Pacesetter Corp., Sony Technology Center-Pittsburgh, Schneider National Inc., Pennsylvania Breaker LLC, and Consol Energy Inc. -- that will mean jobs for a total of 1,600 people.

"The market place is positioning itself for improvement," predicts the commercial real estate company, which sites positive trends in job creation, declining unemployment and the fact that there are a number of medium- to large-size tenants considering plans to relocate or expand in the region.

It did not mention names of the companies involved, but said they are looking for between 30,000 and 150,000 square feet of space.

As reported by the Pittsburgh Tribune-Review, American Eagle Outfitters is among those companies weighing space needs, with the 186,000-square-foot Quantum II office building at the Soffer Organization's SouthSide complex recently emerging as a front-running candidate.

In the past, American Eagle has considered expanding near its existing office-warehouse facility in Marshall. More recently, it has been courted for a new building planned by Columbus-based Continental Real Estate Cos. Inc., the developer of land between PNC Park and Heinz Field on Pittsburgh's North Side.

If it finds a tenant, Continental would build a third office building on the property, where Equitable Resources Inc. already relocated its headquarters and another building is under construction for the local offices of Del Monte Foods Co.

Reed Smith LLC, the large Downtown-based law firm, also has confirmed it is considering its options. The law firm is said to need between 180,000 and 200,000 square feet if it decides to move from its current location on Sixth Avenue.

Overall vacancy rate for premier, Class A office space in the region remains high, at 20.8 percent during the second quarter, Grubb & Ellis said.

One of the positive leasing deals during the quarter was Allegheny County's decision to take 78,000 square feet in the Buncher Co.'s Penn Liberty Plaza II office building in the Strip District for relocation of the Coroner's Office and county labs.

Meanwhile, several sales transactions also bear hope for the office market, including J.J. Operating Corp.'s recent purchase of the 126,517-square-foot Warner Centre office-retail complex Downtown. The company hopes to find new tenants for the building, which has a high vacancy rate.

Also, the Community College of Allegheny County announced its intention to purchase the 150,000-square-foot former Siemens Energy and Automation Inc. building in North Fayette, where it plans to consolidate three college centers in the Parkway West corridor.

And two buildings at the 10-building Parkway Center in Green Tree were sold by owner, Philadelphia-based Rubenstein Co.

The 110,000-square-foot Five Parkway Center Building was sold to the parent company of the Central Blood Bank of Pittsburgh, which will move there, and the 87,000-square-foot Eight Parkway Center was purchased by CBC Cos. of Columbus, Ohio.

The Rubenstein company has put the remaining eight buildings in the complex up for sale.

Since the Grubb & Ellis report was issued, more good news about job creation came from Dick's Sporting Goods Inc., which last week announced an aggressive, 10-year plan to expand its Findlay headquarters campus fivefold.

Dick's, which now employs 800 in its headquarters building that opened last year, said it eventually may have has many as 1.1 million square feet of space, a six-building complex capable of housing more than 5,400 people.

Real estate notes:

Five housing developments in the Pittsburgh region have received funding assistance from the Federal Home Loan Bank of Pittsburgh. The 124-unit Liberty Park Phase 1 in East Liberty, a $18.95 million complex being developed by East Liberty Development Inc. through PNC Bank, received the largest grant: $500,000. Another East Liberty Development-sponsored project, the 49-unit Negley Neighbors, a $5.77 million development financed through Citizens Bank, will receive a $180,000 grant. Homes at Pleasant Ridge in Stowe, being built by Falbo-Pennrose Properties through the Allegheny County Housing Authority, will get a $150,000 grant toward construction of six three-bedroom, single-family houses, the second phase of a $1.22 million project. Other local projects are the Upper Rooms, a 26-unit, $2.34 million complex by the Reformed Presbyterian Woman's Association on the North Side, developed by Benaciak and Associates of Pittsburgh, which will receive a $52,000 grant; and Habitat for Humanity of Beaver County, which will receive a $30,000 grant toward the $221,250 cost of rehabilitating three homes in Midland and Rochester.

Current projects of the Sampson-Morris Group include 800 Commonwealth property, a two-story, 64,352-square-foot building on 5.4 acres in the RIDC Thorn Hill Industrial Park in Cranberry; and renovation of an Emsworth industrial site that will provide office/warehouse space. This year, Sampson-Morris renovated a 15,000-square-foot warehouse property at 1640 Golden Mile Highway (Rt. 286) in Monroeville, which was occupied by Renewal by Andersen, a window replacement company. And recently, Edward Jones, a financial and investment adviser, occupied 1,500 square feet in Pine Valley Plaza, a converted former warehouse, Rt. 286 in Holiday Park, Plum.

The Soffer Organization has named Patti Dittman vice president and general manager of Penn Center West, Robinson Township. Penn Center has seven office buildings of about 670,000 square feet on 93 acres. Steven Kasunich was named vice president and general manager of Penn Center East, which contains seven office buildings with about 625,000 square feet and a 240-unit apartment building. Other appointments include Deno Emili, as vice president of SouthSide Works; Jean White, as leasing agent at SouthSide Works, and Mark Dellana, as general manager of SouthSide Works and vice president of development.

Office space lease renewals were completed recently at Bursca Business Park by Jencons Ltd., for 2,000 square feet; Software Packaging Associates Inc., 2,805 square feet; Video Products Distributors Inc., 1,800 square feet; John Tisdel Distributing Inc., 3,150 square feet; and ComDoc, 3,000 square feet of flex space. Burns & Scalo Real Estate Services Inc. handled the transactions.

There was a spurt in nonresidential construction contracts issued in May in the seven-county Pittsburgh region, but totals for the year still lag behind 2004. Contracts valued at $116.5 million were issued, up 65 percent from the same month last year. But totals for the year are down 37 percent, $327.3 million this year compared to $517.6 million. Residential contracts continued their decline, down 16 percent in May at $99.4 million compared to $118.7 million a year ago.

The Soffer Organization plans to open Quantum II, a 186,000-square-foot office building, later this year, and future plans call for a 25,000-square-foot grocery store, construction of 80 to 120 condominium units and a 17-story hotel, said Mark Dellana, vice president-development. Quantum I, a 164,000-square-foot building, is fully leased by UPMC Health System. Speaking at the recent Idea Exchange held by the International Council of Shopping Centers in Pittsburgh, he said the 34-acre complex will eventually have 600,000 square feet of office space, 300,000 square feet of retail/lifestyle area, a 10-screen cinema, apartments (84) and condos (80-120) and more than six acres of green space. Stores scheduled to open this fall include Puma (offering shoes), Ann Taylor Loft, Sharper Image and Forever 21.

Grand openings have been held at several housing developments. The Village at Sarver's Mill is a development by Sarver Square Associates in Buffalo Township, with Suncrest Homes and R.A. Snoznik Construction Inc. offering houses at $235,000 for single-family and cottage homes and $183,000 for townhomes. Also, the Villages of Totteridge, a new golf course community in Westmoreland County, offers villas and carriage homes priced from $249,900. Links Development Co. Inc. is the builder. The complex is off Hannastown Road in Greensburg. Howard Hanna Real Estate Services is marketing both developments.

About 25 percent of the 82 units in 151 First Side Condominium, being developed by 151 First Side Associates LP, have sales agreements, said Carole Clifford and Tom Yargo of Coldwell Banker Real Estate Inc., which is marketing the Downtown Pittsburgh building. The developers are Ralph A. Falbo Inc., Zambrano Corp. and EQA Landmark Communities. Prices range from $275,000 to $1.5 million. Once two more units are sold, construction can begin.

United Rentals Inc., which provides equipment for commercial and industrial construction, renovation and maintenance, has opened a branch at 2901 Montour Church Road, Oakdale, with Ed Heinz as branch manager.

Cartridge World, which offers refilling services for inkjet and laser printers, photocopy and fax machines, has opened a franchise location at 2644 Mosside Blvd, Monroeville. Jim Rosen is the owner.

USA Baby has expanded and relocated its store to 2257 Babcock Blvd., in the North Hills.

New additions to the Walnut Hollow Shopping Plaza in Murrysville are the UPS Store and Dry Cleaning Station.

Ross Development Co. of East Liberty has opened and is seeking tenants for Penn Plaza, a 6,000-square-foot shopping complex at Penn and East End avenues, in the eastern edge of Pittsburgh.

Sewickley Eye Center relocated recently into The Village Commons building on Broad Street, in Downtown Sewickley. Others in the building include Talbot's and National City Bank.

Lennon, Smith, Souleret Engineering Inc., located in Coraopolis with 60 employees, recently held an open house in recognition of its 20 year anniversary and office expansion.

Real Estate Gallery:

At Coldwell Banker Real Estate, Sharon Canonaco and Gisele Dudek joined the Fox Chapel office. Formerly with Howard Hanna, Canonaco last year produced more than $3 million in closed transactions. Dudek produced just over $2 million in closed transactions last year with Howard Hanna. Tammy Romesburg joined the Cranberry office serving both Cranberry, Beaver County and New Castle.

= Victor Yates joined Allegheny Commercial Real Estate Services in North Hills as a leasing and sales agent. Prior to this position, Yates served the Pittsburgh market in business services and productivity solutions.

= Michael A. Stern, a principal with Strada architectural firm, has been elected to serve as chairman of the Urban Land Institute Pittsburgh District Council. He will help coordinate programming activities, work to increase membership and continue to expand ULI's collaboration with other organizations interested in real estate and land use issues.

Prudential Preferred Realty announced that Jackie Hamilton has been awarded the Accredited Buyer Representation designation by the Real Estate Buyers Agent Council Inc. of the National Association of Realtors.

Real Estate Gallery is a listing of promotions, hirings and other related personnel moves at area companies. Submitted items should include contact names and telephone numbers. Photographs should bear the names of the individuals. Items may be mailed to: Real Estate, Pittsburgh Tribune-Review, D.L. Clark Building, 503 Martindale St., Pittsburgh, PA 15212 or sent by fax to 412-320-7921. Items may also be sent via e-mail to business@tribweb.com.

Contributors: Sam Spatter and Treshea N. Wade