TALL TIMBER GROUP

506B MCKNIGHT PARK DRIVE • PITTSBURGH, PA 15237 • PHONE (412) 366-1857 • FAX (412) 366-2774

Contact Information: Jeff Burd, President Tall Timber Group 506B McKnight Park Drive Pittsburgh, PA 15237 412-366-1857 FOR IMMEDIATE RELEASE: July 20, 2011

Residential and Commercial Construction Up Double Digits in Second Quarter

Pittsburgh, PA –Housing starts rose almost 19% compared to last year during the first half of 2011. “The construction activity during the first six months was more in line with expectation than any time in the past few years” said Jeff Burd, President of Tall Timber Group. “Because of the rush to get permits ahead of the sprinkler regulations [which have now been repealed] skewed the numbers in the first quarter and it seems that the adjustment has taken place since.” During the January through June period 850 permits were issued for single-family detached units, up from 816 during the same period last year. Permits for attached units rose more steeply, with 507 units started compared to 325 during the first half of 2010. The total number of housing units started was 1,357 compared to 1,114 in January-June 2010. “With the favorable demographics supporting villas and quads it was more surprising that last year’s activity in attached housing declined, particularly since the financing conditions favor renting as well,” says Burd. “What won’t be known until later this year is whether or not the traditional single-family market has absorbed the permits from the ‘sprinkler rush’ at the beginning of the year. Demand for housing definitely seems higher, even if financing is tighter” Demand for housing in the City of Pittsburgh continued strong, twice that of Cranberry or Adams Township’s. Non-residential construction rose 13.3% compared to the same period last year. Contracting during January-June was $1.28 billion, up from $1.13 billion in 2009. “The second quarter was better than it felt like because so many jobs in the pipeline slowed down as the global news got worse in May and June,” says Burd. “More than $700 million in projects was contracted in the second quarter, a figure that could have been as much as 25 percent higher had higher prices not pushed back a number of projects to be redesigned and re-bid later.” Burd noted that even with the uncertainty about the global economic picture, there was more progress on larger projects in the region than has been in the past few years. PNC’s announcement of the Tower at PNC Plaza made the loudest noise but other corporate projects were also advanced. Mylan’s 250,000 square foot headquarters, the 100,000 square foot facility for Gardner Denver in Alta Vista Business Park, and the rumored large facilities for Guardian Protection and Ensinger were but a few of the projects becoming active. Increased private sector activity could help offset the disappointment of the cancellation of the UPMC-led CB21 project. Tall Timber Group, based in Ross Township, is a research and consulting firm for businesses marketing in the construction industry. Founded in 2000 Tall Timber is also the publisher of BreakingGround magazine. The totals listed below represent the number of new housing units for which building permits were issued, excluding mobile homes and elderly care complexes. The top areas were: Continued next page

TOP HOUSING MARKETS – Pg. 2 Municipality #SFD #SFA Total Single-Family Detached Adams Township 50 38 88Peters Township 44 0 44Cranberry Township 41 69 110Pine Township 41 6 47South Fayette Township 40 8 48Richland Township 31 0 31Jefferson Hills 26 0 26Moon Township 26 3 29North Huntingdon Township 26 2 28Franklin Park 23 6 29 Single-Family Attached Pittsburgh 23 173 196Cranberry Township 41 69 110Plum 17 60 110Adams Township 50 38 88Collier Township 6 24 30 Total Pittsburgh MSA 2010:2 816 325 1,141Total Pittsburgh MSA 2011:2 850 507 1,357% Change 4.2% 56.0% 18.9% By County SFD SFA TotalAllegheny 357 318 675Beaver 70 10 80Butler 134 131 265Fayette 56 6 62Washington 122 30 152Westmoreland 111 12 123

For more information contact Jeff Burd, Tall Timber Group, at 412-366-1857

# # #