Downtown living, etc.

[londonbarcelona]

Originally Posted by guylocke

That's incorrect in a big way. .

I beg to differ. Pittsburgh-area office deals sink to lowest level in 4 years

[londonbarcelona]

Originally Posted by guylocke

That's incorrect in a big way. The office OCCUPANCY rate is at a a four year high. The metro finished 2007 with a vacancy rate of 12.6% compared to 14.5% in the first quarter. The downtown vacancy rate is also on the decline and UPMC of course just bought a huge chunk of the US Steel building which will drop the rate even more, probably to a low that Pittsburgh hasn't seen in many years. People are renting and buying available office space in Pittsburgh at a very appreciable rate (comparative to Pittsburgh).

"In the fourth quarter of 2007, the region ranked 67th out of the 79 metropolitan areas analyzed in the study as compared to a ranking of 77th one year prior." So says the Pittsburgh Business Times. That's not something to brag about. Unless you're bragging that Pittsbugh's not dead last....

[londonbarcelona]

Originally Posted by Humanoid

I do not think its just the city leaders its also the people. They want to keep their city as is, but also want it to grow economically.
Economic growth will change some of Pittsburgh's dynamics, but the folks in Pittsburgh do not seem to want that.

I've been saying that forever and all I ever get is verbally spanked for voicing the obvious. Like you, having lived in several other areas of the world, I too, am taking my toys and going home. I put Pittsburgh in the same league as Buffalo. And that's really sad...

[guylocke]

I beg to differ. Pittsburgh-area office deals sink to lowest level in 4 years

We are talking about two different things. I am talking about actual occupancy rates and you are talking about actual sales-volume. The last Grubb & Ellis report shows the occupancy rate trends.

Then why are you moving if everything is so rosey, "dear?"

I've explained that many times and I'm certainly not ashamed to say it again. I love Pittsburgh. I think for the cost-of-living, it is hard to beat this city in terms of things to do, things to see, culture, charm, and uniqueness. However, I'm a young guy, there's a great big world out there, and I want to see some of it. For those who don't know, I am relocating to Seattle this summer after I get licensed because I fell in love with Seattle and want to experience the west coast for a while! And I hear all these people moving from the west coast to Pittsburgh and anticipate that you will love it here! Everyone needs a change once in a while, whether by choice, or by force.

I am actually waiting for the Riverparc development to begin in 2009. If I am tired of Seattle in a few years, I'll be back! I can't WAIT for that development.

[BrianTH]

Humanoid,

From what I have seen, it is a real mix in the Downtown apartments: students, working class, and professionals. I don't know off hand how many are corporate rentals.

As for the upcoming state of the credit and real estate markets: I certainly think you could be right. But I have learned that economic forecasting is extremely tough, and so we shall have to wait and see what happens.

But I do think it is worth noting that it is entirely possible different segments of the housing market in different cities will experience different dynamics. This in fact is the historical norm for real estate (the residential markets being very "balkanized"), and it was a bit unusual to see such a relatively widespread similarity in the dynamic across the country. And it is of course true that this first round of unusually widespread appreciation sets the stage for a similarly widespread dynamic of depreciation, but as you note, Pittsburgh did not participate in the appreciation dynamic as much as many places.

But again, we shall see.