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Old 06-23-2010, 07:24 AM
 
20,274 posts, read 17,245,616 times
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Default Pittsburgh office vacancy rate among lowest in U.S.

This is a month old, but new to me:

Building Pittsburgh » Pittsburgh Office Vacancies Decline (http://buildingpittsburgh.com/?p=165 - broken link)

http://buildingpittsburgh.com/wp-content/uploads/2010/03/spring-office-vacancy-255x300.jpg (broken link)

Key excerpt:

Quote:
The Pittsburgh market vacancy rate declined compared to fourth quarter 2009 and was the fifth lowest in the nation at 11.5%. A low concentration of national financial institutions and the hot energy sector, along with UPMC’s expansion downtown, and very little new construction are keeping vacancy rates low. Because of the character of the offices regionally, the effective rate (meaning the amount of marketable contiguous space) of vacancy is even lower. In several key submarkets - Cranberry, Oakland, Southpointe - there is almost no vacant office space, and what is vacant is still under construction and leasing quickly.

While this is good news for the region, the downside is that with financial markets still stalled, and with little presence of national developers, a growing number of office end-users are finding it difficult to shop for space. There are several medium sized build-to-suit opportunities that could be lost because the developers may not want to accept borrowing conditions as they currently exist. It’s not the worst problem to have but it’s a problem nonetheless.
This goes along with similar stories about the Pittsburgh apartment market having among the lowest vacany rates in the United States.

So it will be interesting to see how this plays out. I sometimes get this image in my mind of the Pittsburgh real estate development market being like a body of water that is building up behind a dam, with the dam being the current very poor environment nationwide for getting financing for real estate development, and the water being demand for space in Pittsburgh, and declining vacancy rates being a measure of the depth of the water. And assuming that dam eventually breaks open, we could see an awful lot of development projects get started in relatively short order. But we shall see.
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Old 06-23-2010, 07:39 AM
 
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Speak of the devil . . . the One Grandview project just got final approval from the Planning Commission:

Hotel-condo project OK'd by city

The only remaining holdup? Financing. Hopefully things have thawed enough already that they can get it.
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Old 06-24-2010, 07:10 AM
 
Location: Pittsburgh
1,373 posts, read 1,050,456 times
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Great news. Wasn't it just like two years ago or so that the vacancy rate was up around 17%? If so, that's a huge decline. I'd love to see a new office tower go up downtown.
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Old 06-24-2010, 08:18 AM
 
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Quote:
Originally Posted by AaronClark View Post
Great news. Wasn't it just like two years ago or so that the vacancy rate was up around 17%? If so, that's a huge decline.
I definitely remember it being considerably higher, although there are so many different measures I'm not sure what I am remembering would be apples-to-apples. What I am sure about is that Pittsburgh's relative ranking has improved considerably in recent years.

Quote:
I'd love to see a new office tower go up downtown.
Me too--I have some specific lots in mind, in fact. I also think this should help push along redevelopment in the Lower Hill and Bluff/Uptown.
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Old 06-24-2010, 08:22 AM
 
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5/Forbes thru uptown would be a perfect gateway for an extention of downtown....I personally would like to see 5 AV become an Entertainment district with the Consol center Anchoring
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Old 06-24-2010, 09:15 AM
 
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Quote:
Originally Posted by Blackbeauty212 View Post
I personally would like to see 5 AV become an Entertainment district with the Consol center Anchoring
Me too. My model is the area around the Verizon Center in DC. That model would include a decent amount of office and residential space as well.
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Old 06-24-2010, 02:00 PM
 
Location: Pittsburgh
1,758 posts, read 2,247,680 times
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Quote:
Originally Posted by AaronClark View Post
Great news. Wasn't it just like two years ago or so that the vacancy rate was up around 17%? If so, that's a huge decline. I'd love to see a new office tower go up downtown.
If as new tower does go up Downtown, I think it will include residential, office, and possibly hotel rooms like Three PNC. Three PNC is technically a skyscraper at twenty-three stories. It could have been easily fifteen to twenty stories taller given it's square footage. There is definetely a demand for more housing and class A office space Downtown. If the Cultural Trust can start it's ambitious plans for Riverparc, we may see a tower of thirty stories or more break ground within a few years.
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Old 06-24-2010, 06:06 PM
 
Location: Pittsburgh area
9,871 posts, read 8,539,164 times
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One building has a LOT of vacancy, though, and now it's for sale:

Downtown Pittsburgh’s iconic Oliver Building up for sale - Pittsburgh Business Times

The Oliver Building on Smithfield is over 40% empty since K&L moved out.

Ultimately it'll probably be a win-win. I was surprised to learn that K&L didn't take more space. It's just better designed space, more contiguous, and a chance to remake the lobby and put their logo up on the top. It's really hard to renovate in place after being in there so long. Short-term it's bad for Oliver Building, but long-term it means that space can all be thoroughly rethought.

Mixed use, anyone? ;-) Although if office vacancy is low, they probably won't do that.
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Old 06-25-2010, 06:45 AM
 
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Such a great building. Anyway, I'd also guess it remains office, in part because of the office vacancy issue, and also because it isn't quite in any of the emerging residential clusters (Cultural District, Market Square, and Point Park University). But you never know.
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Old 06-25-2010, 07:11 AM
 
4,541 posts, read 4,251,137 times
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Speaking of residental seems like 2 more interesting project are coming to light

Two city condominium projects seek special zoning exceptions

I've always wonder why that part of South Side (2nd - 10th South of Carson) remained a sleeper. It seems (to me anyway) as a perfect location for where Yuppies, Professional Empty Nesters would want to live....It's so close to everything (The Flats, Station Sq, Downtown, Mt Washington) you literally could be in a majority of the city's hotspots with in minutes.
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