Oxford Development announcing Downtown project (Pittsburgh, California: real estate market, foreclosure, lease)

[CFP]

It's nice to be optimistic, but better to be realistic. This proposed high-rise, along with the Burns & Scalo proposed high-rise, along with the under construction PNC Tower has to make you wonder - what new industries like steel, glass or aluminum are going to create the jobs necessary to fill these buildings? There is such a thing as the Skyscraper Index which posits that (from Wikipedia) "Business cycles and skyscraper construction correlate in such a way that investment in skyscrapers peaks when cyclical growth is exhausted and the economy is ready for recession."

A lot of this development is pure speculation that the economy will continue to expand, but with another major global banking crisis on the way that scenario is highly unlikely. It's more likely that the economy is going to contract into another recession.

[baconlegs]

My hope is that this proposal is for a tower and that it creates a little spirit of competition between PNC and Oxford. I'm certain PNC's design plan and renderings did not consider Oxford immediately blocking the eastern flank (cf. Frick blocking Carnegie's view of Grant Hill a century ago).

If Oxford builds a 30 story tower and PNC's new tower has truly shrunken from 40+ to 33, Oxford will have effectively taken the wind (and sunlight) out of PNC's sails. Maybe this is a nefarious plan by some disappointed folks to get PNC to go bigger? (because we all know they can). Here's hoping Mr. Rohr's arrogance makes this a race to the stratosphere. The only thing better than 1 crane in the skyline... is 2.

[Mtl-Cns]

Seems to me to be a total waste not to renovate the existing building that appears to be in decent shape when there are plenty of parcels of land on which they could construct a new tower. Again, the Grant St. lot, but also the former arena site, the wasteland along the Allegheny in the lower strip, etc.

Or even better, how about the true a-hole of downtown, that absolutely hideous block in the cultural district bordered by 8th and 9th st., and Penn Ave. and Ft. Duquense Blvd? Every time I walk by there it makes me want to barf. If they want to raze something -- I highly suggest every structure on that dumpy block (not that there are that many structures, mostly an inexplicable sea of asphalt.)

[greg42]

Originally Posted by evergrey

anybody have any images of the block of buildings that were destroyed for the frank and seder department store? I bet they were even more historic and beautiful.

Good one. Not that I am without sentiment here. Especially if Oxford is being speculative with no tenant yet, I have to wonder why it must be there and not an already empty lot such as the one by their eponymous tower. We'll see. I suppose the block and hill could be seen as making the difference, but if so I wonder what will ever happen with that useless lot up there.

[greg42]

Originally Posted by Mtl-Cns

Or even better, how about the true a-hole of downtown, that absolutely hideous block in the cultural district bordered by 8th and 9th st., and Penn Ave. and Ft. Duquense Blvd? Every time I walk by there it makes me want to barf. If they want to raze something -- I highly suggest every structure on that dumpy block (not that there are that many structures, mostly an inexplicable sea of asphalt.)

You have to take this up with effing Kevin McMahon and the rest of the Cultural Trust board perhaps. The Trust is the reason why that's still sitting like that and not already under development. They put the project on hold over the objection of the developer; in fact the developer sued the Trust from what I remember so now it's FUBAR. All this residential and other development is happening in downtown, and instead of the Trust being at the forefront or in the middle of it, they are being left behind....

[Mtl-Cns]

Originally Posted by greg42

You have to take this up with effing Kevin McMahon and the rest of the Cultural Trust board perhaps. The Trust is the reason why that's still sitting like that and not already under development. They put the project on hold over the objection of the developer; in fact the developer sued the Trust from what I remember so now it's FUBAR. All this residential and other development is happening in downtown, and instead of the Trust being at the forefront or in the middle of it, they are being left behind....

Does the trust own that land then?

[greg42]

Originally Posted by Mtl-Cns

Does the trust own that land then?

Pretty sure, although I shouldn't pretend I know for 100% certain about the block your mentioned. I believe they do own most of that block though, as well as many other parcels along that corridor. At 9th and Ft Duquesne though is a PPA parking garage.

[BrianTH]

Originally Posted by Evergrey

Anybody have any images of the block of buildings that were destroyed for the Frank and Seder department store? I bet they were even more historic and beautiful.

You can see just the corner and a bit down Fifth in this image:



Zoomable at this link:

http://images.library.pitt.edu/cgi-b...46&image.y=156

Demolition in 1917:

[pman]

Originally Posted by Mtl-Cns

Seems to me to be a total waste not to renovate the existing building that appears to be in decent shape when there are plenty of parcels of land on which they could construct a new tower. Again, the Grant St. lot, but also the former arena site, the wasteland along the Allegheny in the lower strip, etc.

Or even better, how about the true a-hole of downtown, that absolutely hideous block in the cultural district bordered by 8th and 9th st., and Penn Ave. and Ft. Duquense Blvd? Every time I walk by there it makes me want to barf. If they want to raze something -- I highly suggest every structure on that dumpy block (not that there are that many structures, mostly an inexplicable sea of asphalt.)

well spoken. what a waste

[BrianTH]

Originally Posted by CFP

what new industries like steel, glass or aluminum are going to create the jobs necessary to fill these buildings?

Finance, corporate management, and various professional and business services are long-standing job growth areas for the Pittsburgh Metro. That is basically because it has a good location, good local sources of talent, and relatively inexpensive CBD office space and housing (the latter translating into labor cost savings).

Anyway, that job growth across the relevant sectors is why Class A office space Downtown has gotten so tight. Of course it is possible that process is about to come to a crashing halt, but it is also possible that this process of Pittsburgh working geographic arbitrage to its advantage is just getting started.

Business cycles and skyscraper construction correlate in such a way that investment in skyscrapers peaks when cyclical growth is exhausted and the economy is ready for recession.

Even assuming this is true, how do you know when investment in skyscrapers has peaked?