PGH and NYC: fastest office rent appreciation (Pittsburgh, York: real estate, employment)

[BrianTH]

Here is the article:

Office Recovery Begins in U.S. as Vacancies Drop for First Time Since 2007 - Bloomberg

Snippet:

New York and Pittsburgh had the highest effective rent increases from a year earlier, at 2.8 percent, followed by San Francisco at 2.7 percent. . . . Pittsburgh “has held up really well,” said Jones of CBRE. The city’s concentration of employment in the energy industry has helped bolster rents, he said. “They’ve managed to skirt the recession. . . . The market’s tight enough to support further rent growth. It’s a small market but one that’s performed really well.”

These stories are a little bittersweet for me. It is great the Pittsburgh economy is doing relatively well, and that demand for office space here is strong. But we eventually need a proper response on the supply side to keep things going, and relatively high rent appreciation implies supply isn't keeping up right now. And I think that is largely because a combination of the national real estate meltdown and Pittsburgh not being one of the usual suspects has made financing harder to find than it should be (meaning in light of the good local numbers).

Hopefully this is changing now, and we will start getting enough projects moving through the pipeline to match the growing demand. But it is something to keep an eye on.

Edit: Oh, and this sort of thing seems so commonplace these days, but it is really amazing to see a real estate story where the top trio is NYC, SF, and . . . Pittsburgh.

[Blackbeauty212]

With the Old Alcoa Building (Regional Enterprise Tower) now fully on the Market and just about emptied out....Wonder how long until some giant swoops it up, look like it offers the perfect amount of space for an HQ or Regional Office....

Old Alcoa skyscraper falls short as hub for nonprofits

[joycerimes]

It is not surprising to know about New York being the fastest in Office rent appreciation. Indeed there are shortage in the demand for office space. That is why there are many affordable and spacious office rents in Bohemia. just a drive away from the center of the city.